February 19, 2015
The Ellettsville, Indiana, Town Council met for a special session at 6:30 p.m. on Monday, February 19, 2015, at the Fire Department Conference and Training Facility
Roll Call: Scott Oldham, President; Scott Thomas, Vice President; Dianna S. Bastin and David Drake. Kevin Farris was late. Jim Davis, Town Manager; Sandra Hash, Clerk-Treasurer, Darla Brown, Town Attorney and Rick Coppock, Bynum Fanyo and Associates, Town Engineer, were also present.
Supervisors Present: Michael Farmer and Jeff Farmer of Bynum Fanyo Utilities.
Jim Davis, Town Manager, explained a conversation with Alan Holmes in which he advised they had hired their own appraiser for the property who said it is worth approximately $580,000. Mr. Drake asked the average of the Town’s appraisals of the property. Mr. Davis replied it is $553,625. Mr. Holmes wants $250,000 for both owners of the property, $10,000 earnest money and the buyer to pay all other costs associated with the purchase. Mr. Davis thinks the costs for surveys, title insurance and closing costs will be under $10,000. Ms. Brown advised Dan Stewart gave a quote of $1,678 to handle the closing, title search and title commitment. Mr. Davis noted Bynum and Fanyo will do the survey. Mr. Coppock advised when the title search is completed they will know what to include in the survey. Mr. Oldham asked how much the survey will cost. Mr. Coppock answered they will need a few surveys which will cost approximately $6,000. Mr. Oldham asked if the $10,000 escrow is part of the $500,000 cost for the property. Mr. Davis answered yes. Mr. Drake asked Jeff Farmer if Utilities can afford to take this money out of their funds. Mr. Farmer answered yes. Mr. Drake asked if doing so will cause an adverse effect on their funds. Mr. Farmer replied it will leave approximately $245,000 in each account for operating which is a little lower than the state would like to see but it is short term. Mike Farmer commented they have $900,000 in the equipment replacement fund but they will not withdraw any money from it. Mr. Davis said it will be approximately three months for the money to be withdrawn and returned to Utilities. Ms. Brown understands the money will be returned to Utilities when the bonds go on the market. The point of doing this is so that the loan resolution will be part of the bond documents when they go on the market. When the bonds are closed they will pay back Utilities. Mr. Oldham asked if this will cause complications with the Indiana Utilities Regulatory Commission (“IURC”). Ms. Brown answered no. Mr. Drake asked if a remonstrance will have to be filed against the bonds to be issued. Ms. Brown said not if it is under $2,000,000. The $500,000 is part of the $2,000,000 so $1,500,000 will be for the municipal building. As early as possible a survey will have to be done to divide the land for the municipal building and Utilities. Utilities can buy it back or divide it. Mike Farmer said Utilities can retain part of the land so it will not be part of the original purchase.
Jeff Farmer, Bynum Fanyo and Associates, is uncertain 10,000 square feet can be built with $1,300,000. Mike Farmer remarked they want to build a Town Hall they can use for the next 20 to 30 years. Jeff Farmer asked what the deed will state if Utilities and the civil side each own fifty percent. Ms. Hash answered it will say the Town of Ellettsville.
Scott Thomas asked if they are going with the bond rather than the United States Department of Agriculture (“USDA”) they previously discussed. Mike Farmer replied if the Town goes with an R & D Loan it will be in the form of a bond. An R & D loan is half a percent higher in interest rates than open market. His thoughts are twenty acres will be for the Utilities service building, service center, garage and water tower.
Scott Oldham asked how much it will cost to construct the building. Mr. Davis said it will be $1,300,000 to $1,400,000 for 10,000 feet. Mr. Coppock stated they have used Garmong on a few projects for design-build. Essentially, the Town would set its parameters for the building and then solicit bids for the project. The company will build the building and have an architect design it. With a design-build project they will know up front what they’re going to get for $1,300,000.
Scott Oldham entertained a motion to adopt a counter-offer of $490,000 with $10,000 in escrow. Dianna Bastin made a motion to adopt a counter-offer of $490,000 with $10,000 in escrow. David Drake seconded. Roll Call Vote: Scott Oldham – yes; Scott Thomas - yes; Dianna Bastin – yes and David Drake – yes. Motion carried 4-0.
Darla Brown, Town Attorney, spoke with Pete King about USDA and rural development loans and he said to talk to Craig McKowan. Mike Farmer added there might be grants for furniture, equipment or the Heritage Trail available. Mr. Oldham asked if the property the Town is going to purchase could adjoin the Heritage Trail. Mike Farmer has discussed this with the trail people and Senior Housing representatives. Mr. Davis noted Senior Housing will not be joining in the purchase of the land with the Town. Mr. Oldham said the Boys and Girls Club is interested in purchasing a portion of the property. It will be worth it to try and get the Boys and Girls Club to purchase the property. Jeff Farmer commented they are thinking it could also be a community center. Mr. Davis will talk to the Post Office and Township Trustee about relocating to the property. Mr. Oldham added the school is also interested in the property. Mr. Thomas is concerned about parceling the property. Mr. Oldham said there’s a portion with the sink hole he thought would be appropriate for the Boys and Girls Club because it was going to be a park.
Scott Oldham said they have an idea of a building within a building. They would have a 10,000 feet shell and finish only 6,000 to 8,000 feet and use the remainder for storage and preserve the ability to grow. Mike Farmer said they also need to think about the outside as well because community events may relocate to the Town Hall property.
Jeff Farmer asked if the extra expenses will go in the bond. After a discussion, it was decided they will need to make a plan. Mr. Oldham reiterated his concern of not doing anything to cause problems with the IURC. Ms. Brown explained counsel and the accountant know what they’re doing and have not expressed any concerns.
Rick Coppock, Bynum Fanyo and Associates, Town Engineer, suggested having the Planning Director start on annexation of the property.
Jim Davis advised the Metropolitan Planning Organization (“MPO”) has requested a Town Council member be appointed to their board to replace Dan Swafford. The meetings are 1:30 p.m. on the first Friday of every month. Scott Thomas volunteered to serve on the MPO board.
Scott Oldham entertained a motion for Scott Thomas to serve on the MPO board. Kevin Farris made a motion for Scott Thomas to serve on the MPO board. Scott Oldham seconded. Roll Call Vote: Scott Oldham – yes; Scott Thomas - yes; Dianna Bastin – no; Kevin Farris – yes. Motion carried 3-1. (Prior to this motion, David Drake left the meeting.)
Dianna Bastin made a motion to adjourn. Scott Thomas seconded. Scott Oldham adjourned the meeting at 7:17 p.m.
Scott Oldham, President F. Scott Thomas, Vice-President
Dianna S. Bastin David Drake
G. Kevin Farris Sandra C. Hash, Clerk-Treasurer, IAMC, MMC