City has plate full with capital projects

By RON LARSEN

Journal Staff Writer

NEW ULM -- With the City Council's approval this week of capital improvement projects totaling $2.9 million, the wheels are starting to move to implement a nearly $2 million bond issue to fund these projects.

City Engineer Steve Koehler projects an estimated $938,400 in funding available to reduce the city's bonding need. These funding sources include a $271,400 contribution from the Utilities Department and $140,000 from the Street Department's Other Contractual Services account.

The bulk of the CIP projects total comes from the city's annual utility, street and alley improvements group. Estimated projected project cost is $2,057,904, with $411,400 of that amount being covered by anticipated funding sources, leaving $1,646,504 to be obtained through the sale of bonds.

Anticipated construction start-up on the New Ulm Recreational (bike) Trail pushes the total project cost to $2,907,904, with $938,400 covered by existing funding sources.

Construction costs, including engineering, associated with building phase 1 of the bike trail are expected to total $665,000 with that amount being offset by $425,000 in federal TEA-21 funds. In addition, $102,000 is expected from the Minnesota Department of Natural Resources in trail grant aid. This leaves $138,000 to be obtained through bonding.

Koehler also wants to get rolling on preconstruction projects associated with phase 2a this year. That adds another $185,000, all of which will have to be bond funding.

With everything being on the table for budget cuts at the state level, the availability of DNR funds remains in doubt. While the DNR grants were expected to survive the first round of budget cutting for this biennium, they might become inviting targets of budget slashers in reducing the $4 billion-plus projected deficit in 2004-2005.

However, Koehler told the councilors "to my knowledge phase one is on track." The phase covers about five miles of trail.

The 2003 utility, street and alley improvements -- group 1 encompass 12 projects across the community.

On Jefferson Street from 11th South to 6th South streets and on 6th and 7th South streets between Jefferson and Payne streets, work includes sanitary sewer main/trunk line and water main replacement, sanitary sewer and water end service replacement, reconstruction of the existing roadway second including replacement of concrete curb and gutter and other streets and lighting improvements.

That project alone is projected to cost $911,892 with a projected bonding need of $599,392.

Then, there are smaller projects with water mains, sidewalks, bituminous pavement and the like on German Street from 19th to 20th South streets and 16th to 19th South streets, 19th South Street from Minnesota to German Street, Loretto Street between 7th and 8th North streets and Hoffman Road, Stoneridge Drive and Boulder Drive in Hoffman's Third Addition.

Alley improvements, storm sewer construction rerouting alley storm sewer from State Highway 14 to 14th North and State Street, sidewalk improvements at seven locations and work connected with the trap range and the BMX track round out the projects list.

The estimated $2,057,904 cost of these group 1 projects also includes $85,746 in estimated miscellaneous expenses.