Clark County Commissioners: More costs pour in for Clark County

Clark County

Discussion

November 13, 2009

Replacing voting machines and shortfall from workers’ compensation pinch thin wallet

By BRADEN LAMMERS The News and Tribune Fri Nov 13, 2009, 12:45 AM EST

Costs continue to mount for Clark County at a time when it can least afford them.

Voting machines stored in the basement of the Clark County Government Building received water damage and the equipment will need to be fixed or replaced before the next election in May.

“The big thing on the machines themselves is nobody can tell me whether they’re OK or they’re not OK, and it’s going to cost a lot of money to get them checked out,” said William “Bubby” Vissing, the county’s election equipment technician.

Costs to repair the voting machines is estimated to be anywhere from $2,500 per day, per repairman to $1,000 per machine — with estimates coming from two companies. The county has 150 voting machines — 80 of one model and 70 of another.

But the damage and the cost of those repairs are not the only problems.

“Since they’ve been in high humidity, because you know our flood down there and there was so much humidity, they won’t guarantee them even after they have checked them out,” Vissing said.

The county has insurance that may pay for some of the machines, but there is a concern about what is covered by the policy.

“Those machines have some age on them — is it replacement value or is it depreciated value? And I don’t know the answer to that today,” said Greg Fifer, attorney for the commissioners.

Another question raised was whether or not to invest in a whole new voting system.

“Do you want to take your insurance money and have to spend it $1,000 at a time, or do you want to take that money and put it on a good system?” Vissing asked.

The general estimate for a new system was about $800,000.

Workers’ compensation

Another unforeseen cost for the county was a gap in a workers’ compensation premium, forcing the county to pay an additional $73,000.

Mike Whalen, of ISU Insurance and Investment Group, revealed the gap to the commissioners at its Thursday meeting.

The workers’ compensation package for the county is written on an annual basis, based on the county payroll, and rates are based on the class of each employee. An audit completed on 2007-08 workers’ compensation premiums showed a shortfall of about $32,000 — an amount the county paid.

However, Whalen said the audit was done incorrectly and the county actually owed an additional $30,000.

The second fee was waived, probably because the audit was done incorrectly the first time, Whalen said.

For the current audit, the county owes $73,521.

While it’s understandable the county might pay an additional amount — because claims are based on estimates — it can’t come at a worse time.

“... Given the county’s financial problems, it’s a particular hardship now to try and find unobligated money to get that paid. But we clearly owe it,” Fifer said.

Last month, the Clark County Council approved a $13.8 million budget. Expected revenues presented by Dan Eggermann, hired by the county as a consultant, for 2010 are $12.9 million, as previously reported by The Evening News. The council has asked departments for 30 percent budget cuts, which is expected to lead to numerous layoffs.

Yet another problem is the workers’ compensation bill is due in 30 days, Whalen said.

“I can’t see payment being made until close to the end of this year, even if the claim gets approved [at the next county council meeting],” Fifer said.

The commissioners placed the request to pay the bill on the council’s agenda for the next meeting.

The commissioners also sent a revised budget to the County Council with cuts of $225,000, said Commissioner Ed Meyer.

“Our budget that we turned in … is not a realistic budget,” he said.

In other business

• Money may dictate how the county will proceed with construction and could cause some road projects to be delayed, because of the shortage in available funding.

The commissioners have asked Fifer to prepare a letter to send to all companies performing construction projects in the county and ask if they continue at their current pace, what the cost would be over the next 12 months. If the county will be short of money, officials will determine whether or not some projects will need to be slowed down or stopped.

It will not permanently affect any road project under way, commissioners said.

• Also, the final design of St. John Road has been approved, said Hyun Lee, Clark County engineer. The right-of-way construction is the next portion of the project to be completed and will cost $17,000, with $3,000 coming from a county match.

• The commissioners approved a land swap with the Indiana Department of Natural Resources. Clark County will receive a single tract of land totaling just more than 101 acres. DNR will receive six parcels of property about the same acreage.

The property the county will receive will expand on the Clark-Floyd County Landfill and the property that has been deeded to DNR is at various locations throughout the county and will be used for horse trails and secure preexisting state property.

• A motion was approved for Joe Olson, agent of record for county employee benefits, to present a new insurance plan for retired county employees. The plan applies to more than 65-year-old county retirees and may offer a savings to both the county and retiree.

The county could save up to $50,000 on the plan, according to the presentation.

Even if the plan is approved, it would take at least 60 days to implement, so it is not likely that it would go into effect before the end of the year.

• The bond financing between the county and Clark Memorial Hospital is close to being completed, Fifer said. As the hospital finalizes its paperwork, documents from the county are scheduled to be due Nov. 20.

The $52 million bond agreement will allow the hospital to sell bonds for the value of the buildings and property and buy them back over time, essentially setting up a landlord-tenant structure with the county.