Date: February 8, 2011

Re: Equalization of Water and Sewer Rates

I would like to propose to my fellow board members that we begin the discussion of rate equalization for water and sewer ratepayers countywide.

Currently, as you are aware, we charge as much as 30 -38% more for our service to those customers who live outside the city limits of Evansville. This practice has been policy long before the current administration and this current board came into office.

Recently, the City of Evansville/Vanderburgh County Plan of Reorganization dated 1/11/2011 proposed equalization of rates in the event of a government merger. Also, officeholders Joe Keifer – County Council (R) and Bill Jeffers – County Surveyor (D) have recommended equalization as well.

Arguments in past years to affirm current policy have stated that service to outlying areas of the county cost the utility more, although I am not aware of any existing proof or study to prove this position.

In reality, the water and sewer lines outside the city limits are (A) much newer and cost less money to maintain, and (B) the majority of this infrastructure was paid for by private developers and homeowners.

Another argument used to support our current rate structure has been that city residents, through their property taxes, pay for both county government and city government; and that taxpayers outside the city only pay for county government yet benefit from the amenities of the city without contributing to its welfare. There have been plenty of examples in the last twenty years where all county taxpayers have contributed tax monies for the benefit of both city residents and those outside the city limits. Also, residents outside the city, as well as city residents, currently pay for the reconstruction of our infrastructure in the oldest areas of the city, which is a substantial expense to all ratepayers. Property taxes have nothing to do with the rates our customers pay. Our utility is rarely supported by anything other than the rates we charge our customers.

Why bring this issue forth now? Through the leadership of Mayor Weinzapfel and this board, we have taken over management again of this utility and are setting the stage for a much more financially healthy utility. We have already noticed a vast improvement in our cash reserves brought about by self-management.

I would like to encourage this board to commission a study by our current accounting service to review optional rate structures that would be equal, fair, phased-in and revenue neutral. We do not need to wait for a possible merger to do what is right and fair.

Respectfully submitted,

Jeff Hatfield

Board Member

IS IT TRUE that just as anticipated that the Vanderburgh County Commissioners passed the first reading of the comprehensive smokefree workplace ordinance last night?…that the vote like last time was 2 – 1 along party lines?…that the lone dissenting vote came from Commissioner Stephen Melcher who made an informative speech explaining his no vote as based on his historical position more than on opposing the facts that support such ordinances?…a parade of speakers went to the lectern to plea with the commissioners to adopt the resolution?…that the reasons cited were scientific evidence of the damage that second hand smoke causes, lifestyle, and economic competitiveness?…that not a single speaker stood up to oppose the ordinance?

IS IT TRUE that earlier in the County Commissioners meeting that Russ Fowler from INDOT testified about the proposed changes to the FULL CLOVERLEAF that had been on the drawing board for years for the intersection of Highway 41 and the Lloyd Expressway?…that the mirror image design of what is already there will basically only result in the two stoplights on the Lloyd being moved to 41?…that Highway 41 is the reason that Evansville is known by some professional drivers as “stoplight city”?…that if one drives from Princeton to Miami by the shortest route that more stoplights will be encountered on 41 going through Evansville that will be encountered on the entire rest of the trip?…that INDOT stands to save $13 Million by doing a mirror image design instead of a full cloverleaf?

IS IT TRUE that $10 Million of those savings will come from avoiding the need to make some needed and positive changes to the sewers?…that if a full cloverleaf is put in that one of the requirements is to convert a short segment of the existing COMBINED SEWER into a modern sewer for drainage purposes?…that the City of Evansville is under court order to make these changes to the sewer in the next 20 years anyway?…that if INDOT goes ahead with its money saving half job that the $10 Million sewer cost to the City of Evansville will most likely increase because now our city will not only have to fix the sewer it will have to tear out and replace part of the half job intersection to do so?…that if there ever was a time to look a gift horse in the mouth that it may just be this project?…that this intersection may just be the gift that keeps on taking?

IS IT TRUE that we have a need for improvements on the west side that would not require tearing them out later?…that Mr. Fowler advised the Commissioners that if the money is not spent where INDOT decided that it will not necessarily be redirected to another project in Vanderburgh County?…as pleasing as Mr. Fowler’s demeanor seemed to be, that was a veiled threat?…that the City County Observer is very proud of the letter sent and efforts expended by Mayor Jonathan Weinzapfel, City Council President B. J. Watts, County Council President Joe Kiefer, and County Commissioners President Lloyd Winnecke to convince INDOT to go forward with this project as it has been planned for years?…that the FULL CLOVERLEAF solution is the right solution?…that all of our elected officials agree and have let that be known?…that INDOT saving $13 Million now and causing Evansville to spend more than that later to tear it out and rebuild it to satisfy the EPA lawsuit is just not good business?

IS IT TRUE that the UE Purple Aces are now sitting alone in 4th place in the Missouri Valley Conference after last night’s victory over defending champion Northern Iowa?…that the USI basketball team is having a good year and just got a favorable ruling from the NCAA regarding post season play?…that some people can’t take a joke?…that we were just kidding about the Bruce Pearl visit to Team Troy’s announcement?…that we knew that Coach Pearl had a job to do in Lexington last night in his return to the bench after his 8 game suspension?…that we were just kidding about Troy being named the head of public relations for the Tennessee basketball team too?…that we really do not believe that the abominable snow man rules downtown Evansville when it snows?…that sometimes we use humor mixed into our column.

IS IT TRUE that we are curious about what Troy will call his team?…that Team Troy, Team Tormatta, or even a band of Trojans will get the point across?

IS IT TRUE that Mole #3 is not known for joking and never uses humor?

City will Pay up to $10k per job, Jobs must pay at least $33,280

February 8, 2011

News Release

Madison, Ind., February 8, 2011 – The city of Madison is serious about attracting more jobs to the thriving community nestled on the banks of the Ohio River in Southeast Indiana. Today, Economic Development Partners in Madison announced a Million Dollar incentive program, offering businesses expanding or moving to the area up to $1 million in financial incentives from the city’s Tax Increment Financing (TIF) board.

Effective immediately, Economic Development Partners will offer up to $10,000 per job for any company creating at least 100 permanent full-time jobs paying an average wage of $16 per hour. To encourage continued job growth in the county, the jobs must be created within three years of the start of the project and the incentive money may be used for investments related to constructing or expanding a building and/or needed equipment.

“This is a very important financial incentive that will help boost our economy and attract new, good paying jobs for the people of Madison,” said Mayor Tim Armstrong, City of Madison, Indiana.

The Tax Increment Finance district for this $1 million incentive includes the city owned Madison- Jefferson County Industrial Park and other buildings and parcels in the area. The Park is state certified as “Shovel Ready,” reducing potential costs of site development and moving permitting processes quickly through the system. In addition, lots in the park are “Pad Ready” ensuring employers all utilities are in place and drainage and retention work is completed.

“Madison is open for business. We are excited to offer this financial incentive as a compliment to Indiana’s already attractive tax climate,” said Corey Murphy, executive director of Economic Development Partners in Madison.

Besides accounting for 10 percent of the nation’s private sector job growth in the past year, Indiana’s tax climate gives the Madison area an advantage over other states nearby. In the last two years alone, Indiana has earned “Best in Midwest for Business” by Forbes Best States for Business Index and “Best in Midwest for Low Taxes” (ranked 10th Nationally) by the Tax Foundation’s 2011 Business Tax Climate Index, just to name a few.

“The State of Indiana offers a favorable tax climate for businesses. We want to offer even more of a reason to do business in Madison and Jefferson County,” added Murphy. “Being able to add $1 million to the state benefits puts us in prime position for companies looking to expand or locate operations.”

Indiana’s competitive business tax structure includes an 8.5 percent corporate income tax on adjusted gross income in addition to no gross receipts tax or inventory tax. In addition, worker’s compensation rates are very competitive.

To compliment the million dollar incentive, the Economic Development Partners will offer other business tools to employers accepting the offer including job training assistance, tax abatements, and other eligible incentives offered by the city and state.

“We created this million dollar bounty to attract companies that create diversified, well-paying employment opportunities for our citizens. The added benefit to the incentive is businesses can now
take advantage of the affordable and available land as well as take advantage of our low cost of living and doing business in Madison,” said Armstrong.

Madison is located on the banks of the Ohio River with easy access to metropolitan areas like Louisville, Cincinnati and Indianapolis.

For more information about the Million Dollar incentive, call Corey Murphy at 812-265-4769 or email at cmurphy@locateinmadison.com .

Infrastructure Upgrades Handle Traffic Without Incident

Yesterday’s first ever eDebate between the front runners from each party for the Office of Mayor of Evansville drove our rapidly growing readership to record levels once again. This time we were ready for the traffic due to the addition of a dedicated server after last weeks record day for the City County Observer crashed our old solution. We should be able to double a couple of more times before having to add to the computing capacity again.

The number of site accesses yesterday was way above the number of votes that will be needed to win either primary or any seat for the Evansville City Council. There will be a series of eDebates sponsored by the Community Observer. Invitations to candidates for competitive primaries can expect invitations to participate in our next round of eDebates in the very near future.

Stay tuned for our announcement.

If Roberts is “atrocious” what word describes Wesselman Parks Restrooms

Could we all pause briefly to put the Mayor’s description of the “atrocious”, SMG management, in perspective? (Some of us still want to believe that words have meaning.)

Mr. Kiefer, if nothing other than delaying the inevitable, would you please lead a discussion in the civic understanding of “atrocious”? Our reporters aren’t interested in that word in the story. “Legal”, yes, they are all over that. “Atrocious” not so much.

For someone to read the Mayor’s memo, listen to your appeal for a delay, and then hear the few comments you had on the topic. Some of us may be scratching our heads wondering, what was the point.

At the very least, can you provide the business entities that deal with the County an idea of how you would define, “atrocious”?

Example:

–

Let’s bring back into memory those images that Mr. Rector pointed out on TV to us. The shots of the restrooms, the fountains and the mechanical room.

Got those images fresh in your memory? OK.

Now, walk with me out of Robert’s parking lot, to the public park next door. If you’ve ever spent any quality time at Wessleman’s playing softball, volleyball or using the batting cages, you might need a drink or a restroom break.

Let me pause for a second. Because anyone that has been in that scenario knows exactly where I’m going with this discussion.

But back to our walk. Go into that Wessleman’s public restroom and take a good 360 degree mental image.

Now, do a comparative evaluation of the condition of that bathroom, against the average Robert’s bathroom.

Here’s the question. If we are, as a community, to describe that Robert’s experience as “atrocious”. What is the proper definition to describe the Wessleman’s park experience? (Yes, I’m stumped for a word, too.)

Anyway, lets get the heck out of that bathroom.

Now, stand outside the bathroom and take a good look at the water fountain. Comparative evaluation again, assuming Robert’s is the definition of “atrocious”, what is Wessleman’s?

–

Now, don’t get me wrong here. I can fully understand, how a group of individuals, sitting in the corporate boardroom at Vectren headquarters, can come unanimously to a decision that broken water fountains are “atrocious”. Be that as it may. In any real way, was that discussion placed in perspective, of governmental budget capabilities? I just watched the County discuss capping their desired highly educated temporary help, at 12 – 14 dollars an hour with no benefits. “Atrocious”, depends on the context.

You see, the cognitive dissonance that we all feel about this situation needs to be put into perspective and the ongoing moral hazard avoided. Yes, I think there is risk of moral hazard because nobody is explaining how a contractor in decent standing one day can turn “atrocious” spectacle, overnight.

If the County is trying to save money where it can, when it can – i.e. not flushing the taxpayers money down the drain. Then a fountain or toilet that doesn’t work periodically is not an unexpected event, is it? (I rest comfortably at night confident that my utility bills leave plenty of cash to keep the Vectren water fountains and bathrooms fully functioning.)

So in addition to “atrocious”, I’m asking you to define acceptable public sector, “service levels”.

Example:

–

Let’s say I’m in a service business, thinking about contracting with two Counties.

One County is known for level headed, consistent, service level expectations.

The other County has recently publicly labeled temporary appliance outages, “atrocious”, that resulted in a less experienced competitor brought in and a significant public display. While it raises exasperation, nothing changes.

Now do you think my proposals to those two Counties will be priced the same?

One County might lead me to significant legal expenses in defining precisely what the minute details in the expectations will contractually oblige me to meet. One County might put the public goodwill of my business name at significantly higher risk. One County might lead reasonable people to estimate basic labor and maintenance levels closer to what others might label, overkill – to avoid potential problems like this.

We don’t want this episode leading to higher contract services for the County and City, do we Mr. Kiefer?

–

If Mayor Weinzapfel feels competition is necessary – so be it.

But all this talk of competition and standards of service begs at least one question. How much extra are we paying for this new hotel, if it’s designs must handle a strict zero tolerance for bathroom and fountain outages or if maintenance rooms are not allowed the slightest tolerance for dual purpose storage capacity?

Dan Effinger
Evansville, IN

IS IT TRUE that Troy Tornatta will be holding his press conference tonight at 5:00 PM?…that the Vanderburgh County Commissioners will meet at precisely the same time at the Civic Center to begin the process to overturn soon to be candidate Tornatta’s signature accomplishment (reversal of anti-smoking ordinance) as a County Commissioner?…that irony is a beautiful thing?…that there are people in town who are expecting that Troy’s coach at USI and current basketball coach at Tennessee Bruce Pearl will join Troy in his announcement of his plans for the future?…that maybe, just maybe, Troy will not be announcing a run for Mayor?…that maybe, just maybe, Coach Pearl will be announcing that Troy will be his new assistance coach in charge of public relations at the University of Tennessee?

IS IT TRUE that one 2nd Ward Democratic candidate for City Council voted for the first time ever in the November, 2010 Vanderburgh County election? ….we ask him what took so long? ….we congratulate him for correcting the errors of his political ways and joining the world of voters?

IS IT TRUE the President and Vice President of SMG met yesterday with the Mayor of Evansville?….that we would like to have been a mouse in the corner to witness this spirited conversation between both parties?….that the above SMG executives also met one on one with elected City and County officials?

IS IT TRUE that a consortium of eight local contractors has filed a lawsuit against the Evansville Vanderburgh School Corporation?…that they are alleging that the EVSC found a way to dodge the open bidding requirement for public construction jobs by transferring property to a non-profit to have the work done?…that this is precisely what the EVSC did and that attorneys seem to concur that this move was legal?…that the maneuver is tricky and has been used in other locations both to SAVE MONEY and to expedite construction?…that these eight contractors are doing exactly the right thing by airing their grievances in a court of law?…that there is much curiosity in the City of Evansville about this case?

IS IT TRUE that a contract is now in place to demolish the rotting shell of the Executive Inn?…that we so not recall any call for bids going out for that task?…that John Kish has been quoted in public meetings as estimating that the cost to demolish this tattered facility will be 1.0 Million, then $1.2 Million, then $1.5 Million?…that we are quite curious as to what the real cost of demolition will be and whether or not this Million dollar plus project was competitively bid?

IS IT TRUE that it has now been 1,369 days since the announcement was made on May 14, 2007 that the McCurdy Hotel was to be refurbished into luxury apartments?…that it has now been 1,223 days since the Evansville Redevelopment Commission at the request of Mayor Weinzapfel approved the spending of $603,000 to purchase the parking lot?…that City Centre Properties and Scott Kosene the developers of the McCurdy project are both listed as contributors to the Weinzapfel for Mayor committee for 2010?

IS IT TRUE that there are now 641 days remaining in the two years that the EPA had given the City of Evansville to present an acceptable solution to the Combined Sewer Overflow problem?…..that this plan is an expensive and complex endeavor that needs immediate attention to avoid the embarrassment and expense of another round of fines?

Lloyd Winnecke and Rick Davis were kind enough to contribute to our new electoral series – the “eDebate”

One Republican. One Democrat. Five Questions.

Learn what the dividing issues of this election will be.
The future of Roberts Stadium.
Jobs.
Downtown Snow Removal.
Learn your mayoral candidates stances on these hot topics and more.

CLICK HERE TO READ THE WINNECKE VS DAVIS EDEBATE
POSTED ON COMMUNITY-OBSERVER.COM

In a surprising but strategic move America Online has agreed to purchase the Huffington Post, a pioneer in the Blogosphere for a staggering $315 Million. AOL’s strategy with this both defensive and offensive move is stated to be to Create a Premier Content Network With Local, National and International Reach

Arianna Huffington, founder and one of only two shareholders of the Huffington Post will lead the newly formed Huffington Post Media Group that intends to integrate all Huffington Post and AOL Content, including news, technology, local, multicultural, entertainment, video, community, and more into their daily news feed.

The New Combined Media Group Will Reach 117 Million Americans and 270 Million Globally. Prior to the deal with AOL, the Huffington Post which was founded in 2005 enjoyed a readership of 25 Million unique visitors per month.

Here is a link to the full story:

http://www.huffingtonpost.com/2011/02/07/aol-huffington-post_n_819375.html

If SMG was so bad, why keep them for 20 years?

Bob Cavalieri, the Senior Vice President for Business Development for SMG has supplied the City County Observer with his company’s response to the allegations that have been made by Mayor Weinzapfel that their maintenance has been “atrocious” and Dave Rector the man that Mayor Weinzapfel put in charge of the maintenance of Roberts Stadium has disparaged extensively to the Evansville press corps.

Mr. Cavalieri’s letter along with an official communication dated May 3, 2010 under the seal of the office of the Mayor of Evansville to Sandie Aaron of SMG in May where he praised SMG calling them a “great” company and gave her every indication that SMG would be managing the new Evansville Arena.

Here is a copy of the memo and Mayor Weinzapfel’s letter to SMG without bias or edit.

SMG_Response_Observer