Council approves independent audit of BOT project after heated meeting with commissioners

The Washington County Council held a joint meeting with the Washington County Board of Commissioners on Wednesday, June 24, at noon, to discuss the ongoing BOT (build-operate-transfer) highway garage project that has been a significant source of controversy in the last few months.

A recent audit by the State Board of Accounts (SBOA) also found multiple issues of "noncompliance" related to the BOT project, including a payment of $181,486 to Temple & Temple Excavating and Paving for stone used on the project even though the original agreement required the county itself to furnish the stone. Auditors said the purchase fell outside the agreement and did not follow required bidding procedures.

The audit also found the county paid $113,238 to Miller Heating and Cooling for HVAC equipment and installation work that auditors said was the responsibility of Temple & Temple under the existing agreement. The report further noted the payment was made before the work had been completed.

In another finding, auditors said the county paid $312,968 to Hinderliter Construction for fuel tanks related to the highway garage project. Although this was the responsibility of the county under the Temple & Temple agreement, auditors say the county did this without following the required bidding process or awarding a formal contract.

After the SBOA audit came out, the county council held a meeting on June 1 in which they unanimously voted to utilize $37,500 of county money to audit the Highway Garage Project. However, Council President Brad Gilbert said the State Board of Accounts and the Department of Local Government Finance later advised the council that proper procedure was not followed during this vote because they did not give the required 14-day public notice prior to it. Therefore, the council again convened, having now given appropriate notice, to discuss and vote on the independent audit and investigation.

The June 24 meeting began with Commissioner Phillip Marshall calling Temple & Temple president Ken Temple up to give an update on the project.

Temple began by saying that there was a group of people, comprised of "about three from outside and three from inside, which [he calls] 'the team to destroy Washington County'." He alluded to legal damage caused by this group, and said that others had been "duped by misconceptions".

He then switched to the topic of the BOT project, saying that the structure of the BOT was developed because "people got tired of low-bid construction. They got tired of everybody trying to cut corners," and ending up with inferior products. He stated that when the highway garage project started out, it was about a $6,000,000 project, which was too expensive. "We started in on what we could cut out... and that's where we got down to a base of $4.8 [million]."

He stated that one feature that had to be cut out of the original plans to get it to $4.8 million were aggregate bins, which he likened to buying a car without tires. "We wanted to have a complete project... so I came up with the idea of a land swap. I actually didn't like the idea – they can tell you – but I also saw the advantage of finishing a project and not getting half the roof on and deciding to do the other half five years from now."

"I did it because it helped," Temple said. "It helped the county. It helped move the project to completion."

He then said everything regarding this was 100% documented and copies of the documentation can be provided. "I'll make every one of you a copy of every single thing there is." He went on to say that since he does federal and state work, he is audited every year and that "every dollar is accounted for".

He continued by saying that some things were changed from the initial project plans. "The office was originally a pole barn," he said. "I went to the commissioners [and told them] I didn't really want to put my name on that." He explained that they built a much nicer office which cost more money, "but I was fine with that, I wanted something to be proud of". He also said they ended up using 70% more rebar than the original design.

"Stop me if I'm wrong," Temple said. "I think your [$37,500 for the independent audit and investigation] is to hire someone who was in on the cheap cut rate design in the beginning – which I'm sure I knocked him out of work, okay – but that is just revenge. Strictly revenge. But that's neither here nor there also."

"You've got a first-class facility," he continued. "I wanted to bring other counties here and show them what was possible. I wanted you guys to be proud of it... [but] we've smeared it, we've dragged it, we've ruined a very, very good facility. It's better than most state highways, other counties, you should be proud of it... you're beating it to where it's terrible."

"I think you're referring to Brad Isaacs, when you said someone in on the cheap cut rate design at the beginning," Lucy Brenton spoke up from the gallery. "You didn't name him by name, but I had some insider information."

"Don't add to the misconception," Temple responded. "Because that's the problem today. You don't add on top of what somebody said. I said, 'someone'."

At this point Brenton and several other people began talking over one another. Council President Brad Gilbert tapped a gavel and asked Temple to continue.

Temple then gave a long list of changes and unexpected things that happened during the project. He listed having to pay for some things himself and then being reimbursed by the county, which wasn't in the contract, upgrading the office from pole barn siding to brick, other building upgrades, running utilities, and more. "Footers – we got into rock on a lot of footers, which was unforeseen. [We] probably had to double the concrete on some of [the] footers."

Regarding the land swap, Temple said he didn't want to transfer until the council and commissioners were 100% happy with the highway garage facility.

Councilperson Karen Wischmeier said that she was never shown a design that involved a pole barn for an office.

"There was some preliminary stuff that was done that you probably didn't see," Temple responded. He then said the old designs were still probably still around, and reaffirmed that it was all available upon request.

The money paid by the county for the HVAC was then brought up, to which Temple stated it was credited for the project. He also stated he was "making up a sheet" that showed "the pluses and minuses" of the numbers in question. Wischmeier and Commissioner Tony Cardwell expressed concerns that it appeared, according to the SBOA audit, that the county had paid twice for the HVAC, to which Temple once again said he would provide documentation to show that was not the case.

"I think the main issue here on our side of the fence," said Cardwell, "and I'm involving myself, is that we didn't follow proper procedures."

Temple agreed that procedure was probably not 100% followed. "We could have waited... but then the sub[contractor] goes somewhere else, he ain't coming back, he ain't gonna work for no money. You're probably correct... we probably did do things to facilitate the project. And is that exactly [according to] Hoyle? Probably not," he said. "But the money is 100% accounted for."

Councilperson Preston Shell and Commissioner Cardwell then brought up $277,000 that was recently approved by the board of commissioners to purchase gravel, saying that the commissioners should have come to the council to request the additional appropriation but did not.

"According to the State Board of Accounts, we had all authority to move the money from paving to non-paving to pay that bill," Auditor Kyra Stephenson replied. "It did not need to come before the council."

"But where did it get moved after it got moved to non-paving?" Commissioner Cardwell asked.

"Into the bank?" asked Shell.

"Yes," said Stephenson. "It went to the bank because we had paid for the gravel. We were supposed to supply the gravel. Since we didn't – we paid for the gravel, to Temple's. We then had to reimburse the loan back, for paying for the gravel."

"So we paid for it twice," said Shell.

"No," said Stephenson.

There was then a commotion around the table as everyone argued whether the $277,000 had been paid twice.

"It more or less states in the audit that [funds were] mishandled," Wischmeier said, "If we had followed the proper procedure, maybe this wouldn't have been paid for twice, but the audit clearly outlines that it was mishandled, and it appears to have been paid for twice, just like the HVAC system. Again, if the proper procedure had been done, this may not have happened. I am not saying it has anything to do with Ken. It's procedurally how it's been handled here. It appears that things are getting paid for twice."

"The other procedure that they mention in there," she continued, "is that anything over $150,000 was supposed to be bid, they stated in the audit. That didn't happen either. So there's also that."

"So I will read for you what the audit actually says," said Stephenson. "Because I don't see where it says that we paid people twice. So, it says, 'the county made $181,486 payment to Temple & Temple during the audit period that was not included in the agreement. In the agreement, the county was required to furnish stone for installation by the vendor. However, the vendor supplied the stone in contrast to the terms of the contract. The purchase of the stone without a contract is considered non-compliance with competitive bidding process, required by IC 5-22-7'."

"So that means we paid 181,000 –" Shell began.

"– in 2025 –" interjected Wischmeier.

"– And then we came back and paid $277,000 –"

"– in 2026."

"It means we didn't follow the bidding process," said Stephenson.

"That's according to the State Board of Accounts," said Cardwell. "Then after the fact, we came in and did a change order to the project for $277,000 to pay the stone. Well, at that time, keep in mind, [$181,486] had been paid for stone, but then we took another $277,000 out of the county fund and put it back over into that fund... now we turn around and put the $277,000 back in that, which is $97,000 over the $181,000, which in return the county ended up paying twice for it in the end. Two different calendar years... but that part has not been audited yet."

There was then an extensive back-and-forth dialogue over change orders and change-of-scope regarding the BOT, in which Temple stated changes inside a BOT project do not require being re-bid. After that, there was a long discussion in which Commissioners Cardwell and Todd Ewen disagreed over whether or not Commissioner Marshall should have been able to discuss or make decisions on the stone work with Paul Eckert, Temple & Temple's estimator, without bringing it to a government meeting.

"Phil Marshall has been the lead on this project since day one," Commissioner Ewen said. "The commissioners elected him to that position, and have all the confidence in the world. He made the decision on the stone, and that's how it went."

"That was not proper procedure," Cardwell said.

"I just got through telling you –" Ewen began.

"– well, I just got done telling you it wasn't, Todd." Cardwell interjected.

"– Phil was the lead on the project," Ewen continued. "He had the full authority to do as he saw fit."

"Who gave him that authority?" Cardwell asked. "Because I never signed nothing."

Another long argument ensued regarding Commissioner Marshall's appointing as the lead on the BOT project that segued into a discussion about former council members. The full exchange can be found at this link between the 37 minute and 42 minute marks.

Before Ken Temple went back to the gallery, he made two closing comments; the first being one final reiteration that "there is no mystery here," and that "anything, whatsoever you need – email me, come out to the office, I can give you copies of every single thing there is."

"Number two," he continued. "I've lived here my whole life. I love the county. We have got to quit fighting with each other. I go to other counties, I go to other meetings... they talk about us like we're nuts. There's tons of free money [grants] available, and you're gonna have a hard time when we fight like this. You're gonna have a hard time getting it. I'm talking millions upon millions of dollars... but they want people to work together. They want a camaraderie between the different divisions of government. And when we show them what we're doing, you're not gonna get it."

"We are getting a terrible, terrible reputation of just wanting to fight each other. What are we planning for the future? I was in a meeting the other day, and they've got the next two years planned on projects. We're spending all of our time and effort fighting each other. We're not talking about the future. That's what we should be doing – planning the future. What can we do to make Washington County better? We're just trying to destroy it. And you're gonna have to wake up, or we will be the poorest county in the state of Indiana."

"I agree with you, Ken," said Commissioner Cardwell. "I think once we get our procedures implemented, things will run smoothly at that point in time. It's gonna work for everybody."

Commissioner Ewen then brought up having a representative from a real estate firm come to a future council meeting to help start the process of selling the old highway department facility to help pay for finishing the asphalt at the new one so the highway department could get moved in by winter.

"I 100% disagree that we need someone to talk about selling the old property and coming before this council when we don't even have a project out there that's done," said Council President Brad Gilbert. "We are not to that point... that's putting the car before the horse."

Several other council members chimed in, agreeing. A gallery member, Don Gilbert, shouted out that he didn't believe the public or the county wanted the old property to be sold.

"I'm not trying to rush anyone," Ewen said. "I'm simply trying to think ahead about the future a little bit, so we're prepared when the time comes, and just trying to offer a solution to a simple problem, and I'll end at that. Thank you."

The discussion then moved onto the main topic of the meeting, which was the approval of $37,500 to be spent on an independent audit of the BOT project.

Commissioner Ewen stated that he believed it was a waste of money. "I would encourage everyone to learn the numbers and educate themselves. It's been said before, the numbers don't lie. They're all available at the auditor's office, and if some of you would care to take the time to just come in and look at the numbers... we went through an audit by the State of Indiana, which provided everything... you guys have access to all that."

"I'm not going to... pretend that we're perfect and that we didn't make a few mistakes, but they certainly were not of a criminal nature. They were innocent mistakes, and we have worked very hard to try to build this facility for the people in this county, so we can keep the roads clean. And that's all I have to say. Thank you."

"This was a council meeting today," Councilperson Preston Shell said to Ewen. "We didn't invite you. You invited yourself to come visit us. So it's strictly up to the council, our decision."

"And speaking as a council member, I'm glad to have you," said council vice-president Gerald Fleming.

Commissioner Cardwell asked for clarification on the $37,500, and if that was the actual amount that would be spent on the independent audit, or if it would just be "up to" $37,500. Councilperson Wischmeier responded that the number was generated by comparative estimates and industry-wide going rates for contractors, attorneys, and accounting firms.

Commissioner Marshall also expressed disdain for the idea of an independent audit, saying that the county already paid $26,000 for the State Board of Accounts audit. Wischmeier responded that the SBOA doesn't review everything, just a random selection.

Councilperson Andrew Davisson brought up that the independent audit would also include an inspection of the new facility. Marshall replied that the council members were invited and encouraged to visit the facility, as well as other county projects. The discussion started to get heated before Council President Gilbert intervened.

"Stop. Please. Let's not talk over each other, not be disrespectful... this is not gonna be a shouting match," Gilbert said. "One at a time, we are willing to discuss this. You're a professional body, we're a professional body."

Councilperson Davisson put a motion on the floor that the council table all discussion related to the independent audit until they get advised and review their legal council. The reason for this was because the law firm of the council's attorney, Alyssa Cochran, was involved with the initial negotiation and review of the BOT project. Cochran explained that there was a difference between negotiating the BOT agreement and inspecting the project itself, so there was not a conflict in her advising the council on how to approve additional appropriations.

After some more discussion, the council voted on the motion. Davisson voted to approve the motion, and the other six council members voted against. The motion was denied.

At this point, Washington County Clerk Stephanie Rockey stood up in the gallery and requested a moment to speak as an elected official. She asked the council and the commissioners to do "whatever you all need to do to gain the confidence of our community".

The meeting was then opened up to public comments around the additional appropriation. Don Gilbert, Lucy Brenton, and Rhonda Greene gave comments, each passionately calling for the independent audit. The gallery applauded after each speaker.

"So at our prior meeting," Gilbert began, "it was proposed by Karen and Preston that we use these additional funds to retain separate legal counsel and other professionals. Karen, will you take the time to elaborate on that and explain the types of professionals you're proposing to be retained, and whether this is intended to encompass an independent financial audit, and/or an audit of the project itself?"

"So the reason we asked for the money was to obtain separate legal counsel, to hire a firm to look into the numbers for where the money was spent, as well as having someone go out there and inspect what we were originally promised versus what we have," Wischmeier replied. "In doing that, there will be transparency between Preston and I and the council, and the public as well. I am more than happy to answer anyone's questions. Our [phone] numbers are on the county website. Feel free to call me if you have questions."

"But what I want to accomplish with that is, I want to work with Mr. [Rick] Voyles, who was originally there when we actually proposed what he wanted out there," she continued. "Nobody's gonna know better about what to have out there than Mr. Voyles himself, who's the superintendent. So, we're gonna be relying very heavily on him for that information."

"I have a question on that," Gilbert interjected. "So, when you said, you're gonna rely on heavily, are you asking for the additional appropriation for you and Preston to lead this committee, or are you wanting to be one of the ones that does the actual work?"

"We'll be leading the committee for it," Wischmeier replied. "So we're gonna be working with him to find an engineer that we know won't have anything to do with [unintelligible] because he works in this every day. I mean, one of the things that makes our current president successful is if he doesn't know something, he hires people who do know what they're doing. And that's kind of the philosophy that I go through life with. So if I don't know a specific engineer or firm, he will, because he deals with that on a day to day basis."

"As far as legal counsel goes," she continued, "I'm relying on whatever you, Alyssa, have put forward as suggestions for that too, but I feel like the attorney's going to come into play very heavily when it comes to having a firm look at the numbers themselves. They would be the best to advise on that because those two are so co-mingled together that if there is a legal issue within those numbers, I feel like the attorney's firm and the auditing firm that looks at those numbers needs to be on the same page. That's one reason, I think, that they need to be together on the same page with that from the beginning. That's one reason I think that, probably, the most important part of this is the attorney, because we have to have someone who's unbiased, has absolutely nothing to do with it, so that they can advise on all of that stuff exactly what we're looking for so that we are following Indiana procedures and laws, and we are making sure that everyone involved in it is transparent and not compromised."

Once Wischmeier was done and the public hearing portion closed, the council took an official vote on approving the additional appropriation of $37,500 to fund an independent audit of the BOT project. It passed unanimously to applause from the gallery.