Commissioners Approve Escrow, Funds Management Agreements
July 28, 2016 at 4:25 p.m.
Bond funds management and escrow agent agreements with Fifth Third Bank for the Justice Building expansion project were approved by the Kosciusko County Commissioners Monday.
Mike Miner, attorney for the commissioners, said, "The first one is basically, normally, an escrow agreement." He said he saw no downside to it. "The other one, basically, what you're doing is entering an investment agreement with Fifth Third."
Commissioner president Brad Jackson said an escrow agreement is an account where money is held; neither the county nor the Justice Building contractors, Weigand of Fort Wayne, can touch the fund until both sides meet their commitments. Jackson said it is not a situation that will cost the county money.
Commissioner Eddie Creighton said it was routine procedure. He said the bond funds management agreement is simply an agreement that the bank will manage the money from the bond sale for the project to earn the maximum amount of dollars. "Hopefully, this will earn more interest than we owe," he said.
Fifth Third Bank received the contracts after offering the best bid.
The county sold $19 million in bonds for the Justice Building expansion project, county auditor Sue Ann Mitchell explained. The money from the bond sale goes to the bank, which acts as a trust agent to invest the money for the county to make further money for the project. The basic agreement says the county will put the money in the bank and Fifth Third will look at it and make decisions regarding the investment on an ongoing basis.
As for the escrow, Mitchell said, they pay Weigand for their work, but retain 10 percent of any bills the contractor submits in case something should be wrong with the project. The money is still the contractor's, as is any interest, but they receive it only when the county is satisfied with the work and releases the money.
The commissioners also signed the contract for bovine brucellosis and tuberculosis eradication programs. The agreement is with the state. The state gives the county $1,000 for next year's budget to test bovine for brucellosis and tuberculosis in case of emergency. Mitchell said it's an annual contract and the money for this year has not been used. If it's not used, it rolls into next year's budget.
In other business, Kosciusko County Highway Superintendent and Engineer Rob Ladson said he received a proposal from the Indiana Department of Transportation and CSX Railroad that asks the county to close CR 150E at the railroad crossing and in return, the state and CSX will improve three other crossings on the rail line to flashing lights and gates. Those three crossings would be at CR 250E, CR 300E and Warner Road.
Letters have been sent to area residents and input from the public is being sought. Ladson said there are no homes to the north of the crossing and there is a better crossing for traffic at CR 100E.
Ladson said the total cost for the work would be $450,000 and the county would normally have to pay 10 percent for the upgrade. However, if they close CR 150E, the county will pay nothing.
"We would get them done quicker," said Ladson.
Ladson also asked the commissioners to renew the county highway's contract with Morton Salt for $34.70 per ton. It was approved.
Creighton asked if there are any state programs for purchasing salt.
Ladson said there are, but it is cheaper for the county to buy salt on their own. He said they normally fill up on salt in the summer to prevent shortages in the winter. They have the funds and storage for the salt.
Regarding a cutoff at CRs 500W and 100S, Ladson said the highway department wants to close the little gravel road. A public meeting is planned. The reason, he said, for the closing is safety concerns.
Commissioners also approved $155,000 for work on CR 250E, between U.S. 30 and Pierceton Road. The project is in cooperation with Winona Lake, who will contribute financially to the project.
One problem with the project is an area south of the railroad crossing that has settled. Ladson said they don't know exactly what the problem is and any estimate on it would be a guess. He recommended the commissioners set that aside until more information is gathered.
The project would include road widening, paving and putting in shoulders. He said the total cost, not including the portion south of the rail line, was approximately $230,000 to $238,000 and was estimated on the higher side.
Once more is known about the area south of the railroad crossing, Ladson and a Winona Lake representative will return to the commissioners for the county's share of funds.
County Administrator Ron Robinson requested up to $12,000 from the commissioners to purchase desks, chairs and filing cabinets for the dispatch center. It was approved.
Kosciusko County Commissioners are Brad Jackson, Eddie Creighton and Avis Gunter. [[In-content Ad]]
Bond funds management and escrow agent agreements with Fifth Third Bank for the Justice Building expansion project were approved by the Kosciusko County Commissioners Monday.
Mike Miner, attorney for the commissioners, said, "The first one is basically, normally, an escrow agreement." He said he saw no downside to it. "The other one, basically, what you're doing is entering an investment agreement with Fifth Third."
Commissioner president Brad Jackson said an escrow agreement is an account where money is held; neither the county nor the Justice Building contractors, Weigand of Fort Wayne, can touch the fund until both sides meet their commitments. Jackson said it is not a situation that will cost the county money.
Commissioner Eddie Creighton said it was routine procedure. He said the bond funds management agreement is simply an agreement that the bank will manage the money from the bond sale for the project to earn the maximum amount of dollars. "Hopefully, this will earn more interest than we owe," he said.
Fifth Third Bank received the contracts after offering the best bid.
The county sold $19 million in bonds for the Justice Building expansion project, county auditor Sue Ann Mitchell explained. The money from the bond sale goes to the bank, which acts as a trust agent to invest the money for the county to make further money for the project. The basic agreement says the county will put the money in the bank and Fifth Third will look at it and make decisions regarding the investment on an ongoing basis.
As for the escrow, Mitchell said, they pay Weigand for their work, but retain 10 percent of any bills the contractor submits in case something should be wrong with the project. The money is still the contractor's, as is any interest, but they receive it only when the county is satisfied with the work and releases the money.
The commissioners also signed the contract for bovine brucellosis and tuberculosis eradication programs. The agreement is with the state. The state gives the county $1,000 for next year's budget to test bovine for brucellosis and tuberculosis in case of emergency. Mitchell said it's an annual contract and the money for this year has not been used. If it's not used, it rolls into next year's budget.
In other business, Kosciusko County Highway Superintendent and Engineer Rob Ladson said he received a proposal from the Indiana Department of Transportation and CSX Railroad that asks the county to close CR 150E at the railroad crossing and in return, the state and CSX will improve three other crossings on the rail line to flashing lights and gates. Those three crossings would be at CR 250E, CR 300E and Warner Road.
Letters have been sent to area residents and input from the public is being sought. Ladson said there are no homes to the north of the crossing and there is a better crossing for traffic at CR 100E.
Ladson said the total cost for the work would be $450,000 and the county would normally have to pay 10 percent for the upgrade. However, if they close CR 150E, the county will pay nothing.
"We would get them done quicker," said Ladson.
Ladson also asked the commissioners to renew the county highway's contract with Morton Salt for $34.70 per ton. It was approved.
Creighton asked if there are any state programs for purchasing salt.
Ladson said there are, but it is cheaper for the county to buy salt on their own. He said they normally fill up on salt in the summer to prevent shortages in the winter. They have the funds and storage for the salt.
Regarding a cutoff at CRs 500W and 100S, Ladson said the highway department wants to close the little gravel road. A public meeting is planned. The reason, he said, for the closing is safety concerns.
Commissioners also approved $155,000 for work on CR 250E, between U.S. 30 and Pierceton Road. The project is in cooperation with Winona Lake, who will contribute financially to the project.
One problem with the project is an area south of the railroad crossing that has settled. Ladson said they don't know exactly what the problem is and any estimate on it would be a guess. He recommended the commissioners set that aside until more information is gathered.
The project would include road widening, paving and putting in shoulders. He said the total cost, not including the portion south of the rail line, was approximately $230,000 to $238,000 and was estimated on the higher side.
Once more is known about the area south of the railroad crossing, Ladson and a Winona Lake representative will return to the commissioners for the county's share of funds.
County Administrator Ron Robinson requested up to $12,000 from the commissioners to purchase desks, chairs and filing cabinets for the dispatch center. It was approved.
Kosciusko County Commissioners are Brad Jackson, Eddie Creighton and Avis Gunter. [[In-content Ad]]