Improvement plan inadequate for streets

Gramentz

describes plan

as 'fall-behind'

By RON LARSEN

Journal Staff Writer

NEW ULM -- The New Ulm City Council will dig into a proposed 2004 Capital Improvement Program plan that promises over $5 million in construction for slightly more than $2.4 million in bonding during its March 16 meeting.

While it deals with big numbers, the 2004 CIP plan, being proposed by City Engineer Steve Koehler, is top-heavy with one-of-a-kind projects and doesn't address some ongoing situations the way its author would like.

"In my judgment, the CIP does not provide for enough municipal roadway construction. Roadway decay modeling within the city's Pavement Management System suggests that 8,000 linear feet of local roadways should be reconstructed each year at an estimated cost of $920,000. This CIP provides for reconstruction of only 1,760 linear feet of local roadway," Koehler told the council.

City Manager Brian Gramentz agrees with Koehler that this is a "fall-behind" plan as far as the city's streets are concerned, but this is an issue that only the council can resolve.

"Do we increase this year's bonding to try to keep pace, or do we say, 'We'll go with a lower figure this year and try to catch up later? Usually later never comes, but that's a decision for the council to make," Gramentz said.

Topping the list of "one-of-a-kind" projects, of course, is the Minnesota Department of Transportation's U.S. Highway 14 reconstruction project from the intersection of Seventh North St. to the west city limits. Even though the project is a one-shot deal, it will impact the 2005 CIP, as well.

While the biggest chunk of the project's cost, more than $8 million, will be borne by MnDOT, the city's cost is estimated to top $1 million by $90,600. When Minnesota State Aid System funding totaling $332,450 and $445,000 in PUC water funds are subtracted, however, only $313,150 in bonding money will be required.

Next in line is the New Ulm Recreational Trail (Phase I and Phase 2a) project. Phase I is estimated to cost $665,000, and preconstruction costs for Phase 2a are expected to total $185,000. In both cases, there is enough TEA-21 federal funds, state money in the form of a Department of Natural Resources grant and surplus 2003 bond funding so that neither phase will require 2004 bond funds.

Street, water and sewer improvements on Karl Drive and Meyer Drive to support the Welcome To Our Home assisted living development is estimated to cost $390,000. However, a $150,000 Welcome To Our Home payment in lieu of special assessment reduces the bonding need for that project to $240,000.

Finally, there is the $2,617,055 2004 utility, street and alley improvements -- Group I. When existing Street Department funds, PUC water funds and MnDOT funding are subtracted, bonding totaling $2,025,540, will be required.

The combined bonding needs total $2,578,690. With an estimated $135,000 in construction fund carry-over deducted, the net projected 2004 bonding need for the proposed 2004 CIP is $2,443,690.