BUILDING, GROUNDS AND JAIL COMMITTEE

MEETING MINUTES

June 21, 2007

A regular meeting of the Chippewa County Board of Commissioners’ Building, Grounds and Jail Committee was held on Thursday, June 21, 2007 at the Chippewa County Courthouse in Sault Ste. Marie, Michigan. Commissioner Timmer called the meeting to order at 4:30 p.m. with a quorum present.

MEMBERS PRESENT: Richard Timmer and Ted Postula

MEMBERS ABSENT: Earl Kay

OTHERS PRESENT: Tony Bosbous, Bill Lynn, Clayton McGahey; City Commissioners and Kelly Beaune, Recorder

Additions / Deletions to the Agenda

Commissioner Timmer called for additions or deletions to the agenda.

It was moved by Commissioner Postula, supported by Commissioner Timmer, to approve the agenda as presented. On a voice vote, the motion was CARRIED.

Public Comments

Commissioner Timmer called for pubic comments. No public comments were offered.

Agenda Items: Sheriff Department – cell repairs

The Committee reviewed a proposal breakdown from VanSloten Tile & Floor Covering to repair the showers in cells 1, 2, 3, and 4 with a total materials and labor cost of $3,006.88; which includes $52.18 in taxes. Bids were also sought from Bumstead’s Floors & Moore, Gary Maleport and Johnson Flooring in Cheboygan; with only one response from Gary Maleport declining the job as it is not his expertise. Neither of the other contractors returned calls to set up a time to look at the job after the initial contact was made.

It was moved by Commissioner Postula, supported by Commissioner Timmer, to approve the proposal from VanSloten Tile & Floor Covering at a cost not to exceed $2,954.70 which is the figure less the taxes. On a voice vote, the motion was CARRIED.

City/County Building Appraisal

The Committee met with Sault Ste. Marie Commissioners Tony Bosbous, Bill Lynn and Clayton McGahey to discuss the City/County Building appraisal, which was paid for equally by both the City of Sault Ste. Marie and Chippewa County. Closser Associates completed the appraisal using two approaches to come up with the building value. The following includes statements directly from the appraisal. The cost approach is typically a reliable valuation approach for relatively new buildings that have suffered from little depreciation, the estimate of depreciation in older buildings without good market evidence present becomes increasingly unreliable. The subject building is over 50 years old; however, its useful remaining life was extended a few years ago sue to the installation of air-conditioning and an upgrade to the electrical system. The cost approach figure is $1,420,000. The income capitalization approach is about 16 percent higher than that estimated via the cost approach. Considering the relatively low reliability of the cost approach, this is not really as big a spread as it seems. It is Closser Associates opinion that the main reason for the difference is that by specifying use value rather than market value, typical expenses such as property taxes and an allowance for vacancy did not have to be deducted from gross rental income. The income capitalization approach figure is $1,650,000. The appraisal does not include the contributory value of the new jail building and associated new generator which are solely owned by the county. It does, however, include the underlying land. City Manager Spencer Nebel and the City Commissioner’s were concerned with recouping monies spent on air conditioning the City/County Building in 2004 a cost of $120,209.00(see attached). Discussion continued regarding possible pricing and parking. The City will be providing a letter to the County which will indicated a negotiable purchase price.

Committee and Chairperson’s Comments

No additional comments were offered.

Adjourn

It was moved by Commissioner Postula, seconded by Commissioner Timmer, to adjourn the meeting. On a voice vote, the motion was CARRIED.

Chairman Kay declared the meeting adjourned at 5:25 p.m.

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Kelly J. Beaune, Recorder Richard Timmer, Committee Member