PORTER COUNTY BOARD OF COMMISSIONERS
REGULAR MEETING
JANUARY 7, 2003

The regular meeting of the Porter County Board of Commissioners convened at 10:00 a.m. on Tuesday, January 7, 2003 in the Commissioners' Chambers of the Administration Center.

Those present were Commissioners David Burrus and John Evans and Attorney Gwenn Rinkenberger.

President David Burrus called the meeting to order with the Pledge of Allegiance.

REORGANIZATION

Com. Burrus, "As you can see, Larry is not with us today. He is undergoing further testing
and re-evaluation that was previously scheduled. He will be out the bulk of this week but at this time, everything is still looking very positive for him. We are very hopeful it will continue that way. The first item of business for us this morning will be our own reorganization."

Com. Evans, "Mr. President, I would like to propose the following slate for the Board of Commissioners: you shall remain as president, I will assume the vice presidency, and Larry will go to the secretary's role."

Com. Evans moved to approve the appointments as stated above, Com. Burrus seconded, motion carried.

Com. Evans, "Further, I would like to propose that Commissioner Sheets serve on the Northern Indiana Regional Plan Commission; I will serve on the Northern Indiana Commuter Transportation District; Commissioner Sheets to continue on the Plan Commission; you continue on the Drainage Board and also continue on the Kankakee Valley Job Training Corp.; I will serve on the Community Corrections; the Child Protection Agency, and on the Animal Welfare Board and Harold Haberlin will serve as the Kankakee River Basin Committee representative."

Com. Evans moved to approve the appointments as stated above, Com. Burrus seconded, motion carried.


APPROVAL OF PAYROLL

Com. Evans moved to approve the payroll for December 30, 2002, Com. Burrus seconded, motion carried.

RESOLUTION NO. 03-01, SETTING COMMISSIONER MEETING DATES FOR 2003

Com. Burrus, "This resolution will establish the meeting dates for the Board of Commissioners for the year 2003. John, do you want to take care of this?"

Com. Evans, "The resolution basically says we will meet as we have in the past; the first and third Tuesday of every month commencing with this meeting and continuing all the way through to December 16, 2003. There are no holiday breaks due to election or any other reason in the schedule and it consists of the first and third Tuesdays."

Com. Evans moved to approve Resolution No. 03-01, Com. Burrus seconded, motion carried.

APPOINTMENTS FOR COMMISSIONERS' DEPARTMENT HEADS FOR 2003

Com. Burrus, "We have some internal appointments as our next item.This will include the following:

Veteran's Service Office:James Feeney
Highway Superintendent:Jack Jarnecke
Assistant Highway Superintendent:Al Hoagland
Highway Engineer:David Schelling
Building Inspector:Ray Weltz
Environmental Coordinator:Russ Shirley

Com. Evans moved to approve the above listed appointments,

Com. Burrus, "Before we vote on these, I would like to comment that I have been personally satisfied with the performance of the job of all of these individuals and among them there are some that have been exceptionally good. We appreciate their service and dedication through the past year."

Com. Burrus seconded, motion carried.

BOARD APPOINTMENTS

Alcohol Beverage Commission
Com. Evans moved to appoint Sheryl Draschill to the Alcoholic Beverage Commission, Com. Burrus seconded, motion carried.

Animal Welfare Board
Com. Evans moved to appoint Tonya Bland and Larry Mrozinski to continue on the Animal Welfare Board, Com. Burrus seconded, motion carried.

Convention, Recreation & Tourism
Com. Evans moved to appoint Michael Blythe and Dr. John Johnson to the Convention, Recreation and Tourism Board, Com. Burrus seconded, motion carried.

Com. Evans moved to appoint Paul Childress as recommended by Chesterton, Porter and Burns Harbor to the Convention, Recreation and Tourism Board, Com. Burrus seconded, motion carried.

Board of Health
Com. Evans moved to appoint Dr. Alfred Kobak to the Board of Health as a four year term, Com. Burrus seconded, motion carried.

Com. Evans moved to appoint Kathy Martz, a nurse, and a member of the Democratic party, to the four year term of the Board of Health, Com. Burrus seconded, motion carried.

Com. Evans moved to appoint Martin Moeller to serve on the Board of Health for a four year term, member of the Republican party, Com. Burrus seconded, motion carried.

Hospital Building Board of Trustees
Com. Evans, "With respect to the Hospital Building Board of Trustees, not to be confused with the Hospital Board, it has three appointments. One of the appointments, Dick Bland, due to retiring, has asked not to be reappointed to the Board. The hospital has also sent us notification that they wish to restructure that Board so the terms are staggered and would expire at more appropriate times in accordance with their original resolution."

Com. Evans moved to appoint Eugene Novello in place of Dick Bland to a four year term, expiring in 2006,

Com. Burrus, "Just a comment, as John mentioned, Dick Bland has retired from his job at Centier Bank and has asked to step down from this board. I would like to publicly thank Dick for his years of service on that board that has spanned at least one of the major building expansions at the hospital and his financial background has certainly been welcomed and valuable."

Com. Burrus seconded, motion carried.

Com. Evans moved to appoint Scott Falk, architect, for a one year term to expire December 31, 2003, Com. Burrus seconded, motion carried.

Com. Evans moved to reappoint Tom Roberts with the term to expire December 31, 2004, Com. Burrus seconded, motion carried.

Plan Commission
Com. Evans moved to appoint Robert Detert to the Plan Commission for a four year term, Com. Burrus seconded, motion carried.

Board of Zoning Appeals
Com. Evans moved to reappoint Richard Burns to the Board of Zoning Appeals, Com. Burrus seconded, motion carried.

West Porter Township First District
Com. Evans moved to reappoint Linda Radinsky to the West Porter Township Fire District, Com. Burrus seconded, motion carried.

Animal Welfare Board
Com. Evans moved to reappoint Larry Sheets as the liaison to the Wildlife Board for a one year term, Com. Burrus seconded, motion carried.

Com. Evans, "Because the size of this Board has increased dramatically over the last couple of years and the fact that it is usually an annual reappointment, what we have tried to do is restructure this Board by staggering the dates in which the appointments will expire. I will read them in their entirety and their expiration date. What we have done is we have tried to make it so the first time we are doing this, they will be two year appointments and four year appointments. I will read the name and the year their appointment will expire. They are all valid until December 31st of their expiration years."

Com. Evans moved to appoint Dr. Lisa Christy, DVM, expiration 2006, Christine Sears expiration 2004; Dottie Kostka expiration 2006; Steve Morgavan expiration 2004; Mary Zona-Gregg expiration 2006; Dr. Larry McAfee expiration 2004; Penny Callahan is a new appointment, expiration 2006; Bonnie Swarner expiration 2004; new appointment of Beverly Overmyer expiration 2006; Frank Zona expiration 2004; and Alan Resetar expiration 2006, Com. Sheets seconded, motion carried.

PTABOA, and Calumet River Basin Commission
Com. Burrus, "I would like to make one comment. We have a requirement for two appointments to the Tax Board of Appeals, the PTABOA and we will address that at our second January meeting. Additionally, we have an appointment to the Calumet River Basin Commission. We will address that one also at our second January meeting. I think that concludes the board appointments."

Com. Evans, "I would like to thank all the people that did apply and didn't receive positions and I encourage them to reapply."

PINE TOWNSHIP TRUSTEE LEASE
Nancy Kolasa, Pine Township Trustee

Com. Burrus, "We will now address the lease of the Pine Township Trustee and their landlord. We addressed this last month at our meeting."

Atty. Rinkenberger, "In the third paragraph, it talks about the way the funding should be broken down from township."

Com. Evans, "As I recall, the rent that was being paid in the past was less than the rent that is going to be paid in the future and the State Board of Accounts wants that delineated in a different fashion than what it was."

Ms. Kolasa, "Yes. Actually, I found out that Bill received an additional amount in the assessor's budget which is not available to me. So actually, last year he was budgeted $524.00 a month in rent. He received from three different budgets and all I want to do is keep the township budget the same amount and I am going to move my part time money in my assessing budget to make up the difference in the assessor's part. That comes from the county and the breakdown from the township is still $2,100.00 a year. The reason State Board of Accounts would like the lease re-approved is because I wasn't in office yet when we approved it at your last meeting in the year 2002. I got my cart before the horse. They would like any lease agreement entered into after I am officially in office. Then we just added in the lease where the money was coming from, who was responsible for paying it. That is the big change in the lease."

Com. Burrus, "Okay, so we have the lease to approve and Gwenn, you have reviewed this. Are you satisfied with the terms of the lease?"

Atty. Rinkenberger, "Yes, but we need to strike for the record, the lease we approved at the last Commissioner's meeting since it was 2002."

Com. Evans, "The payment involved still doesn't involve any general fund money?"

Ms. Kolasa, "No. As long as the County Council will approve the transfer of funds there is not a problem at all."

Com. Evans moved to rescind the contract approved at Commissioners' last meeting and enter into the new contract as presented, Com. Burrus seconded, motion carried.

AGREEMENT BETWEEN PORTER COUNTY SHERIFF'S DEPARTMENT AND PORTER STARKE FOR CHEMICAL DEPENDANCY AND ADDICTIONS PROGRAM
David Reynolds, Sheriff

Sheriff Reynolds, "Based on some of the problems we are having in the jail regarding substance abuse, we thought as an outside revenue source, we would charge a booking fee for inmates that come in and it is working real well. The second part of this plan is to work on an agreement with Porter Starke. We would fund part of the services they are giving us regarding treatment in our jail. We actually have started this program but we have not put it under contract or formal agreement with Porter Starke. Whereby we would fund part of the services that are rendered by Porter Starke, and I think the amount is $3,916.00 per month. What I am proposing here today is basically an agreement between Porter Starke and the County for those services. We know the county attorney has reviewed this and in fact, maybe wrote it. I have been in contact with Porter Starke on a couple things they were concerned with but I think right now, even with some of the changes we have made as recently as yesterday, I think they are in agreement of this contract."

Com. Evans, "I have reviewed it also, and I think I am in agreement in the way it is written. I think we need to make mention that of the counties that have instituted the $25.00 booking fee that were taken to court didn't fare too well was because they didn't use it for the inmates' betterment and that is exactly what the intention of this is to do. It has a good purpose."

Com. Evans moved to approve the contract between Porter County Sheriff's Department and Porter Starke Services,

Com. Burrus, "One other comment before I offer my second. We are agreeing to pay for a service and there is no indication or obligation that we are in fact paying for a position from Porter Starke. This is simply a service contract."

Com. Burrus seconded, motion carried.

TIBURON LEASE DISBURSEMENT, E911
Edie Hahn

Ms. Hahn, "This is just a request to be signed so the check can pay for two months."

Com. Burrus, "Then this is a request for payment for one of the installment obligations for the Tiburon software and this is part of an agreement made through American Lease Capital. This would be an agreement we entered into back in the early fall of this past year. The amount is $66,049.00; it is for Tiburon software, and this is part of the funding."

Ms. Hahn, "It is for two months, at that same price."

Com. Burrus, "Two of the payments?"

Ms. Hahn, "Yes."

Com. Evans, "Actually the agreement was made April 22, 2002 and we are making two installments of $66,049.00 each."

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

COMMISSIONERS' REPORTS

North District: John Evans

1. Coventry Subdivision, Phase I, Performance Letter of Credit #414 from DeMotte State Bank in the amount of $25,000.00.New expiration date is June 15, 2003. Recommend approval.

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

Center District: Larry Sheets

1. Vintage View Subdivision Road Agreement, located on the northwest corner of CR 400 East and CR 500 North. Offer to contribute $750.00/lot for a total of $3,750.00. Owners and subdividers are Rick Lahey, and Nicholas P. Ditoro. Recommend approval.

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

2. Woodview South II Subdivision Acceptance Form and Maintenance Letter of Credit # 700 from Centier Bank in the amount of $39,400.00. Recommend approval.

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

3. Ridge Run Subdivision Acceptance Form and Maintenance Letter of Credit # 702 from Centier Bank in the amount of $22,200.00. Recommend approval.

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

4. INDOT LPA Claim voucher for $4,493.65. This is a refund for the project close out for the Norfolk Southern Railroad's work installing gates and flashers at CR 600 North, west of Wheeler. There should be a thank-you to Norfolk Southern for their efficient effort with this project that resulted in an underrun. Recommend approval.

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

5. Emerald Ridge Subdivision Performance Letter of Credit #2002-ILC-456 from Bank Calumet in the amount of $71,000.00. New expiration date is May 3, 2003.

Com. Evans moved to accept, Com. Burrus seconded, motion carried.
South District: David Burrus

1. Meadowgate Phase A Subdivision Acceptance form and Maintenance Letter of Credit
#701 from Centier Bank in the amount of $49, 800.00. There are discrepancies in this subdivision of the road and curb elevation and there is additional work that needs to be done. The road is substantially as plan, except for some reason the cul de sac is 1.3 feet higher than plan elevation.

Com. Burrus moved to approve, Com. Evans seconded, motion carried.

CORRESPONDENCE

Portage Township Quarterly Poor Relief Report for the period ending December, 2002.
Veteran's Service Officer Monthly Report for December 2002 is on file.
Weights and Measures monthly report for December 2002 is on file.
Clerk's monthly report for November 2002 is on file.

Approval of Public Official Bond for Portage Township Assessor

Com. Evans moved to approve the bond for John Scott, Portage Township Assessor in the amount of $10,000.00, Com. Burrus seconded, motion carried.

Approval of Public Official Bond for court reporter Kimberly Benner

Com. Evans moved to approve the bond for Kimberly Benner, Court Reporter in the amount of $8,500.00, Com. Burrus seconded, motion carried.

Accept late enrollee to Porter County Employee Health Benefit Plan

Com. Evans moved to accept Sharon Rose as late enrollee to the Porter County Employee Health Benefit Plan with coverage to be effective January 1, 2003, Com. Burrus seconded, motion carried.

Approval of consultant agreement with Animal Welfare Board for their attorney for 2003

Com. Evans, "I would like to add that this is necessitated by the fact that their previous attorney, David Chidester, has been elected as judge."

Com. Evans moved to approve Matthew Soliday as the attorney for the Animal Welfare Board for the year 2003 to be paid the amount of $3,720.00, Com. Burrus seconded, motion carried.

Request for transfer of funds-Commissioners

fund 01.30$175.00from acct 2110office supplies
into acct 2410medical & dental

to pay for TB test for JDC employees for the year 2003.

Com. Evans moved to approve, Com. Burrus seconded, motion carried.

Com. Burrus, "As we begin a new year, I think it is appropriate to make a comment about the prospects that we have from the Commissioners' perspective with respect to county government. Exactly two years ago when the current Board met for the first time, we made comments addressing the ominous economic prospect with respect to the nation's economy and the stock market and we also made comments anticipating some rather bleak times with respect to the local steel industry. It wasn't but about eight or nine months later that we began to see some of the effects of those views play out. At this point in time we are still being impacted by the effects of the bankruptcies and the down turn of the economy. During the last year, this office was extremely involved in a number of efforts to try to survive, literally, as a county government. There were many days in the February, March and April time frame where we were actually counting the number of days that we had left with respect to money in the bank. We had applications for a number of loans, there were a number of delays and at one point in time, we had less than 30 days of operating capital left from any and all sources. We, in this office, were involved with preparing contingency plans, dealing with partial shutdowns, looking at total shutdowns; we were looking in detail at what the minimum statutory requirements of service were for each office in county government. What could be curtailed or cutback and what could not and it was a very sobering experience. I don't know of any other county in Indiana that has had to deal with these kinds of problems and I don't wish that experience on any of them. To say that we have been successful is just a little bit optimistic; I don't think we are out of the woods yet and I think there may still be some very, very difficult days ahead. The steps that were taken, and everybody is aware of them, included a ten percent budget cut across the board. There was and still is, a hiring freeze in effect and the impact on county government has been a savings. There's no doubt about a savings, but it has still not been sufficient to place us in a financially viable situation. The results of some of these cuts and some of these savings have included some adverse impact on services. We have seen some curtailment of services in the Health Department; we have seen some curtailment in the Treasurer's office; and in a number of other offices as well. Another impact of these cuts has been the loss of some very good, qualified, and dedicated people who were concerned about their job security, and I think that is a very valid concern. To say that we had a good year is certainly not the case but we have survived the year and we have to go on. I think the thing I have come to realize and I know this is not going to sit well with a number of my conservative friends, among which I call myself one, is that I don't personally think that any further across the board cuts are appropriate in Porter County Government. I don't think that we can look at any large number of dollars being saved across the board. I think there is a possibility though that there may be some specific accurately targeted cuts that might be appropriate in some departments, not all. But again, I think the impact or the result of these specific cuts might be beneficial but not nearly sufficient to do the job we need to have done financially. We have a continual discussion going on about sources of new revenue. Certainly that would be one method of addressing the problem. The concerns of people who oppose any new source of revenue in the form of an income tax are valid as well. They don't necessarily want to see another tax piled on top of the existing real estate taxes. We have done some projections and while I don't know if these numbers are 100% accurate, they are in an accurate range. Under both of the tax proposals involving an income tax, for an individual who might be making something in the neighborhood of $35,000.00 to $40,000.00 a year, the impact of an income tax would be something less than $100.00 per year; probably in the $60.00 range. So, I want to make sure that everybody is clear that the impact, that while it is there, is not as significant as what a lot of people have anticipated. Still thinking in terms of the duplication of taxes, I would like to go on record as saying that I believe that some form of a county income tax is at this time, appropriate. But I would say also that it would have to be incorporated with an appropriate relief of the real estate tax burden. And this can be done through one or more of the existing options that are available. We can look around us, and I know that everybody says that when you make a comparison, it may or not be valid, but in neighboring LaPorte County, they have a budget in the same general range as ours, $26 to $28 million per year. They have the same approximate real estate tax rate as we do; in fact it is a little bit higher, and that county has also the benefit for their operations of a county income tax and also a gambling boat. My feeling has been for the last year, that we certainly need to go through the most extensive cost cutting exercise we can. I feel that has been accomplished and I can address almost anybody's inquiries or criticisms along those lines. I also think that any further concessions or cost cuttings in Porter County are going to dig pretty deeply into some of the services we provide. Now, Porter County residents cannot agree and I don't expect them to agree, on what we consider essential services and what we consider non essential services. You can talk to any group of people and one person's essential will be the other person's non-essential. You will not have a consensus on that. Some of the non-essential things that have been discussed and again, this definition is subject to debate, have to do with the Opera House, the Museum, and some of the cultural activities that the county has taken on as responsibility. We have been looking at ways and means of addressing that as a cost item. We have had a committee for the last year looking at the opportunity or the possibility of consolidation. We have also been looking, independently of that, at each of these entities becoming self sufficient under their own right. Specifically, the Expo Center and the Opera House are very, very close to becoming self sufficient now without any consolidation, without any kind of reorganization. That was a requirement of this office, laid on them prior to the 2002 budget year. That requirement is still existing and they are making progress on it. So, I think the bottom line as I see it right now, is that at almost every opportunity, and there may be exceptions, we have achieved significant cost savings, and I underline significant because nickels and dimes add up, but they don't add up to the level that we need to save. We have done a respectable and professional job in my opinion and I think we are still going to come up short. Now, having said that, the last comment I want to make is to reiterate that I think it is appropriate at this time for our County Council to investigate seriously, some form of a county income tax that will incorporate in offsetting the reduction in the real estate tax. Thank you."

Com. Evans, "Very eloquently put. I concur 200% and I don't want to lead the belief that we are not going to continue to look for the nickels and dimes because we will, but there is just not going to be enough money there to pay the bills. The County Council's attorney tells me that we will not have money June or July of this year so we need to do something. We need to have a plan and that obligation befalls the County Council and I would echo your comment and urge them to get this in the works, get the exploration done, because their time window is closing quickly."

Com. Burrus, "There is one more point I think we need to make on this subject and that is the accumulation of loans that have allowed us to operate for the year 2002. Instead of a roll over effect, we have paid off previous loans with new loans and we have done that numerous times. At the present time, in my own recollection, we have three significant major loans that we have to address somehow. The first one would be the one that is referred to as the state bail out loan and fortunately, in that case, there is a ten year pay back period. The second one is the rolling over that we have done on an annual basis of our bridge fund money. Every year we borrow $2 million from the bridge fund and every year we pay back all of it and borrow some of it again. Current amount is less than $2 million but still it is a significant amount of money. The third one that comes to mind and I want to thank publicly the local banks who stepped forward in the darkest hour of 2002, and offered Porter County Government a line of credit in the amount of $10 million. Now, we have drawn on that but we have not used it all but without their timely support, we would not have been able to span the time from February of 2002 when we were very, very nearly out of cash to the time when the first installment of the state loan became available through the legislative process. So, to recap, we do have three major loans and they are significant. I would also like to specifically mention the local banks again, Mercantile National Bank, First National Bank of Valparaiso, and Centier Bank were the three that stepped forward and provided critically needed financing in the early part of 2002. With that additional justification and that burden of debt repayment existing, I think that additionally reinforces the position that we are speaking for today. With that in mind, we will stand in recess."

Com. Evans moved to recess, Com. Burrus seconded, motion carried.

BOARD OF COMMISSIONERS
PORTER COUNTY, INDIANA

David L. Burrus
John A. Evans
Larry D. Sheets

Attest: Sandra K. Vuko, Auditor