Admin Committee Minutes 1996 12-10-96 i
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UNITED CITY OF YORKVILLE
Committee Minutes - Administration Committee Meeting
Date of Meeting: December 10, 1996 Location: 111 W. Fox
Called to order: 6:30 PM Adjourned: 8 :10 PM
Attendees:
Jim Nanninga
Jerry Lynch
Jeff Spang - Left at 7:15 PM
Art Prochaska
Richard Scheffrahn
Bob Johnson (dropped in, about 10 minutes - meeting in progress)
Tony Scott - Kendall County Record
1. SALE OF WALNUT STREET PROPERTY
Prochaska stated the City has a bonafide offer on the Walnut Street property which
meets 80°x6 as required of the 1994 appraisal. Lynch stated that according to what Dan
Kramer told him, there is no time limit on an appraisal or accepting 80% of an appraisal
that is not the most current appraisal. The property has been on the market a long time,
and he did not feel that the property this was compared to was not comparable as it is
located on Route #47. He was in full support of accepting the offer of $165,000. which
is 80.89°x6 of the appraisal. Prochaska stated he would like to work with them, and they
have been approached many time over the years in this regard. The problem has been
funding. He wondered if they would be willing to negotiate, the 3.2 acres at $165,000.
divides out to $51,500. per acre. He didn't feel this met the per acre price they are worth.
Scheffrahn stated that compared to Walker who paid more & had to bring water and
sewer to the site, these lots are worth more. Lynch stated that ,Walker was on Route
#47, and this property has no access. Lynch stated he was ok with trying to find a
middle ground, but didn't want to see them say no thank you and walk. Prochaska would
like to find a middle ground. Spang asked what the current appraisal is. Nanninga
stated it is $291,000. Lynch stated that IDOT is looking at closing Walnut at Route #47.
Prochaska stated the property in this area is not developed, but there must be a middle
ground, some room for negotiating on this. Spang stated that he doesn't disagree with
anything that anyone has said but the City is bound by law to extract a minimum of 80%
of a certified appraisal, and if we think the appraisal is wrong then we need to employ an
expert that has the credentials to prove they are wrong. Otherwise we are bound by that
figure. Lynch stated we are bound by an appraisal. Spang stated yes, and that is the
point. I think in any arbitrated situation the most recent certified credentials appraisal
would carry the majority of the Weight. Lynch stated not ho- ha-, ennkPn With
the City attorney and was told that as long as it is Fsu% of a certified appraisai it is iegai,
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not necessarily the highest one or the lowest one. Spang asked what about its' age? If
you go to a bank they will not lend on an appraisal more than 6 months old, you have to
be re- appraised. Scheffrahn agreed with that, but in this case he questioned the validity
of an appraisal that is over 2 years old. Lynch stated it is legal and can be used
according to the City attorney. Propchaska asked Nanninga to speak to the appraiser
and see if there are some incomparable comparisons and see if there could be some j
adjustments. Spang stated that any appraiser would stand by his appraisal. Prochaska
stated we are considering accepting a very light offer on an old appraisal. Spang
suggested we get another appraisal and get an average of the two. Lynch stated he
would rather see us, with a legitimate offer on the table, go back and see if there is some
room for negotiations, but the current offer meets the legal requirements of the law.
Spang stated that in his opinion the most current appraisal is the most valid appraisal,
and without some more current appraisal showing a lesser value he wouldn't support
anything less that 80°x6 of the current appraisal, simply because that is our responsihilifij,
and to him the most current should be the most accurate. Lynch stated if this offer had
come in a month earlier there wouldn't have been any questions. Spang stated that was
not true. He would have asked for a new appraisal, he would not have accepted an offer
on a two year old appraisal for current value. These people know what this property is
worth and they also know what they are willing to pay, and the fact that it has been on
the market is a concern. However, the only marketing has been a sign overgrown with
weeds directing people to this office. There has been no professional marketing. Lynch
asks if it wasn't listed at one time. Prochaska stated no it was never listed, but there has
been some interest by developers. It isn't as if is was an unknown, there must be a time
limit on an appraisal. We have quite a bit of play between $165,000 and $291,000, an
average would be $245,000 and 80% of that is $196,000. and he would like to see an
offer somewhere between $190,000 and $200,000. Johnson stated he will talk to
Nanninga on this tomorrow. Melissa Barnhardt stopped by and Lynch asked her if there
was any room for negotiation on this price, and she said she would find out. Scheffrahn
stated they also should understand that the sewer and water is in the area, but they will
have to bring it to the property. Spang stated this offer is only 50% of the current
appraisal. Scheffrahn stated that since the appraisal is high and the offer is low they
should be willing to negotiate and if not then get a third appraisal for balance. Spang
said he had a problem with this being 57% of the current appraisal. Prochaska staffed
this appraisal was done for the purpose of listing the property. Take to C.C.W.
2. LAND CASH ACCOUNT
Nanninga stated there needs to be a checking account set up for the Recreation Board,
Scheffrahn stated it would be easier to keep records. Nanninga stated it was just a
hassle getting release through City Council. Prochaska stated he had no problem with
this and asked who would be authorized to sign. Nanninga stated it should be one City
Council member and one Recreation Board member. Prochaska stated that on any
items not budgeted in the fiscal year they would still have to go to City Council.
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Nanninga asked Prochaska to get with Kim to get more specific information. On agenda
for C.O.W.
3. OLD COURTHOUSE
Nanninga stated this is on the agenda as an ongoing project, and he met with Otis
Elevators and is reporting on the cost. Approximately $38,000. plus block wails around
it and the shaft. They will have to go 4' into basement floor and build a room for it. That
will be between $80,000. - $85,000. enclosure and all. The Police Department wants
the entire lower floor, and there will be a ramp for handicapped. Dettmer wanted a small
corner for his offices on that floor, but the Police have replied that they want it all. We will
rent to Dettmer, and a couple others. Perhaps The Chamber of Commerce. The
bathrooms are big enough, they just have to be reconfigured to meet the handicapped
requirements. Kendall County not moving now until April 97. Will update each meeting.
The roof will need to be repaired, the County is doing nothing now, and $10,000 estimate
for windows repair.
4. CODIFICATION
Will cost $5,000. to get caught up. Revised budget reflects $3,000. so we need to
budget $3,000. for next years budget. System is in place to keep it going. This can
continue on a quarterly basis.
5. BUDGET
Nanninga stated that Paul Stepasin of Pandolphi feels something is strange here,
perhaps in the computer system. He feels very strongly in getting this resolved. Over
the next three months Beth,one of the auditors,will help Kim set up a manual, _
procedures and closing out the books. Paul will come on the first visit at no charge as
he feels very strongly this be done. Beth will come three times for $400. per day. Total
$1200.00. Scheffrahn stated they are much better than the last auditors. Nanninga
stated he had a short report. General fund revenues are at:
Finance 59% expenditures
Police 62% expenditures
Street 44% expenditures
Building & Zoning 65°x6 expenditures
Health & Sanitation 50% expenditures
Total Expenditures at 57 %.
Prochaska stated by the end of the month he would like to see an up to date budget
report. Pandolphi is shooting for next week. Prochaska stated we are getting very close
to being straightened out.
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6. OUTSIDE EMPLOYMENT
Sample ethics from other towns. Sandy will get those to the committee members.
7. JOB DESCRIPTIONS
Job descriptions have been distributed for Water and Sewer Departments.
8. COMMUNICATIONS TOWERS
Kramer asked for this to be on agenda, and is now asking to have it removed. He was
going to have these guidelines faxed, but it turned out it was 100 sheets so now is
mailing it. City needs guidelines. Dan will bring this to Administration Committee
Meeting.
9. TREASURER'S REPORT
There are reports for September and October. The big issue here is why there was such
a large negative balance, and the belief was that it was borrowed against and never paid
back. That is the one fund that should be addressed. Prochaska asked if we knew
where the funds were owed to. Scheffrahn stated Kim is in the process of doing that.
That is an old debt that was carried. It seems that we collected fees for the YBSD in one
month and then paid those fees the next month. This fund holds the money as it is
transferred through the City books, so it should maintain a small balance. One problem
is we have been collecting for the Sanitary District for some time now, and paying the
monies that should have been collected, whether or not we had in fact collected it. That
has gone on for many years. Prochaska stated that this could have been what happened
over the years, and also perhaps not charging those fees against him when they were
collected. Scheffrahn stated we have lost value here. Sewer and Water were borrowed
against and needs to be repaid. Wants to address individual fund items in January.
Some items we should do away with, some items we should add. We have a Beecher
Bldg. fund. Another is a building reserve fund. He would like to address each fund. On
for next City Council, Prochaska wants to get working on Building fund.
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Minutes by:
dra Marker
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