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From time to time, local government and state government don't agree.
The Justice Building expansion project bond issue has created one of those times. And this disagreement may end up costing county taxpayers a bundle.
"It'll cost the taxpayers of this county considerably," said Ron Robinson, county administrator, Wednesday.
"It's a political thing. Definitely," said commissioner Avis Gunter. "Every day that we sit on it is costing us money. The bond market is going up."
Last month the Kosciusko County Commissioners sent a letter to the Indiana State Board of Tax Commissioners asking when the bond issue for the expansion project will be approved.
The expansion is expected to cost at least $21 million. The bond issue will finance the construction costs.
Timothy A. Brooks, state tax board chairman, sent a reply letter dated Nov. 3 to the commissioners. In his response, Brooks said the state board may take up to three to six months to issue a decision on a project.
However, Brooks contended, everything is not in order for the Justice Building expansion project.
"As you know," Brooks wrote, "there are significant issues of concern relating to compliance with the state board's rule regarding common construction wage procedures. It has taken some time to conduct our review of the file, and we still have several questions regarding the common construction wage."
Brooks said that, based on documents provided by the county, it appeared that local representatives on the wage committee treated non-union wages as the common wage for the county. They did not consider union wages as more common and, according to Brooks, they had insufficient reason for doing so.
Auditor-elect Sue Ann Mitchell said Wednesday, "Our committee representatives functioned very well and did their leg work." She said the union representatives had incorrect data and admitted that their data was not accurate. The county representatives on the common wage council did consider the union wages, she said, and it was apparent in the meeting's minutes that the union wages were considered.
One example of an error the union representative had, Mitchell said, was $35 per hour in fringe benefits for workers. When the figure was questioned, the union representative said it was a typographical error.
County commissioners' attorney Mike Miner said that on public projects, a common wage committee must determine the "common wage" in the locality the project is in. There are three different categories of workers - skilled, semi-skilled and unskilled.
On the five-person committee, the building corporation has two representatives, the commissioners have one, the union has one and the state has one representative.
When contractors bid on the project, Miner said, the "prevailing wage" is the minimum wage the contractors can pay for the various jobs. However, a skilled electrician's minimum wage can be different from a skilled mason's minimum wage.
As for what the county does next, Robinson said, "Basically, we turn it over to the attorneys we have, the county attorney and Rich Hill (of Baker & Daniels). It's up to them. It's a waiting game. They have six months (before they are obligated to give their decision). I've never known a bond to take this long."
On August 25, the county met with the local tax board for a hearing and received an unanimous recommendation and approval for the project.
Mitchell said, "Logic says that if you live in a community where construction companies aren't paying union wage scales, you don't live in a union wage scale community."
"They wanted us to do what the union (wanted) and what the (state) representative wanted us to do," Robinson said. He said the union and state representatives "tried to run the show" but the building corporation's two representatives and the commissioners' representative had another view. The representatives for the state and the workers' union refused to sign the prevailing wage.
Gunter said, "It was the minority against the majority. The majority said this is what we (should) pay in Kosciusko County."
Miner said he believes the local appointees did everything required of them and followed guidelines.
When the commissioners first looked at the project, interest rates were around 4 percent. Robinson said. If the state tax board waits until February to approve the bond issue, the rates may not stay so low, he said.
Mitchell said, "Our fear is that (interest rates) will continue to go up."
This is the first time Miner has heard of the state tax board taking so long to approve a bond issue, he said.
"From the people I've talked to who do these things, recently, in the last six months, there's become a political approach to the bond. Delaying. Questioning the project," he said.
Robinson added that the county is holding 39 prisoners for the state and the county is being told they will be sued by the Indiana Civil Liberties Union if the overcrowding at the jail continues.
"It's a situation where we just have to wait and see what the fine people in Indianapolis are going to tell the people in Kosciusko what to do," Robinson said. He said it was his understanding that the county and building corporation's people did a survey of the prevailing wage in the county and that is what they based their figures on.
Miner said, "Waiting is certainly one of the things we could do and will do for some time." He said he didn't want to suggest other options now as the decisions are left up to the county commissioners.
