Council delays

skate park

By RON LARSEN

Journal Staff Writer

NEW ULM -- The proposed skateboard park "ate the asphalt" Tuesday night in the face of growing concerns within the city council that the city may not have enough cash in reserve to finance the three sales tax referendum construction projects.

After an extended debate over delaying bids for the skate park until after the bids are let for the big-three projects, a motion by Councilor Ron Fleischmann to approve design No. 1 and bid letting in August failed on a two-three vote.

A motion to amend Fleischmann's motion by Councilor Ruth Ann Webster to continue the bid letting until such time as staff considered it safe to do so had failed earlier.

Council President Dan Beranek continued as point man for the delay, after first raising concerns at the council's June 5 meeting.

"I think we can all agree that the skateboard park could not be built for use this year anyway so it would be prudent to delay construction until at least next spring so that we'll know what we need to complete the three sales tax projects," he said.

While agreeing that Beranek had a point about the skateboard not being complete for use this season, Fleischmann said, "I very much disagree with your second point, however. I feel that the council made a promise to move forward with the project with the funds that are now available. I definitely feel that we need to be promise-keepers."

"It isn't the first time we have had to delay a project," Beranek responded. "I think we should give ourselves all the options possible with these big projects."

"We made a promise to build the skateboard park, and we should keep it," Fleischmann said.

"I don't know who made the promises. Maybe you did, but I certainly didn't," Beranek said.

"I believe we decided this $100,000 would be spent on those who don't use other services," Councilor Clark Tuttle said. "I think we will effectively kill it if we don't do it (set the bid letting) tonight."

"We're talking about keeping our cash reserves," Beranek responded. "If the skate park doesn't get built next spring or the next year or the year after that, that's the way it is."

Ironically, the skateboard park which has been estimated to cost slightly over $100,000 had already attracted $15,000 toward construction in private donations.

Earlier in the meeting, the city council had accepted a low bid of 4.7960 percent for the sale of $7.5 million in Sales Tax/General Obligation Bonds as part of the sales tax projects financing. That was below the pre-sale estimate of 5 percent, prompting Beranek to note that would save the city money in project debt-service costs.

The winning bid was submitted by U.S. Bancorp Piper Jaffray, Inc., Minneapolis; Wells Fargo Brokerage Services, Minneapolis; Morgan Keegan & Company, Memphis, Tenn.; along with Citizens State Bank & Trust, Citizens Bank and United Prairie Bank, all of New Ulm.

Jon Burmeister, senior managing consultant for Public Financial Management, Des Moines, Iowa, who handled the sale, said the A1 rating assigned to the bonds by Moody's Investors Services was a testimonial to the city's management, and he urged the city "to continue its conservative fund balances."

Councilor Joel Albrecht noted that Moody's in its report called attention to the city's "proven, sound fiscal management strategy. That's a real compliment to the city administration."

The council also approved the low bid of $127,671.50 submitted by M R Paving & Excavating, Inc., New Ulm, for the 2001 Street Improvements-Group II project. M R Paving's bid was the lowest of three submitted and came in at 6 percent under engineer's estimate.

In other action, the council:

* Approved Joel Albrecht's request for a simple lot division creating two lots out of three and taking 5 feet from lots 6 and 7 and adding it to lot 5, Block 1, Witt's Addition.

* Ordered the grading, aggregate base, bituminous base, concrete curb and gutter, concrete sidewalk, concrete driveway pavement, bituminous surfacing, storm sewer, boulevard restoration and street lighting on Doris Drive from the KC Road to 365 feet south in Hoffman's Second and Third Additions. The city had received a petition for the project signed by 100 percent of the affected property owners.

* Granted general 75 licenses to businesses and organizations ranging from sale of non-intoxicating liquor to cigarettes to tree service and ambulance.

* Granted a taxi license for the coming year to Kato Cab, doing business as New Ulm Taxi, and appointed a five-member committee including Beranek and Albrecht and the top three city officials to meet with the owner in an attempt to work out a way for the taxi company to remain in business. It presently gets an annual subsidy from the city amounting to slightly more than $6,000.

* Approved temporary construction easements for 2001 Utility, Street and Alley Improvements-Group I.

* Approved the city manager's decision to be excluded from membership in the Public Employees Retirement Association.