PUC rescinds $25,000 PIP pledge

Panel failed to check legal ramifications of previous decision

By RON LARSEN

Journal Staff Writer

NEW ULM -- Acting on advice from its legal counsel, a chagrined Public Utilities Commission Tuesday night rescinded its earlier approval of a $25,000 donation to Parents in Partnership's proposed nonprofit day-care facility.

"The attorney general has held that public money can only be used for public purposes," said Assistant City Attorney Susan Nierengarten. "In determining how money can be used, it must meet two criteria. It must serve to benefit the community and be directly attributable to government-related purposes.

"While the day-care center may meet the first criteria, it fell short on the second," she added. "I'm also of the opinion that this could be something that could be challenged by auditors, and I don't want to see the commission going through that."

"Is it your opinion that we should not do this?" Commissioner William O'Connor asked.

"Yes," Nierengarten answered.

"When we approved this, I didn't give it a moment's thought," O'Connor said. "I apologize to the commission; I'm an attorney, and I should have recognized this."

The commission had approved the request of Parents in Partnership for a donation to the group's capital fund at its Sept. 25 meeting. Neither Nierengarten nor City Manager Brian Gramentz was able to attend that meeting.

"When I returned the next day and read the report in the newspaper and fielded some calls, I got in touch with our assistant city attorney," Gramentz said.

The result was a request from Nierengarten to the commission to have the action reconsidered Tuesday so that she could present legal information to the commission.

"We all received reaction, a lot of reaction from the public on this," said Commission President Rick Jensen. "In the future, if something like this comes up, we need to table it until we can get a legal opinion."

Commissioners Tom Hendel and James Hogan joined in apologizing to the public for this "error" in judgment. Commissioner Phil Liesch did not attend the September meeting.

In a good news-bad news situation, the commission learned that PU employee Larry Botten who was burned in an electrical accident has been released from the hospital, is home and making "remarkable progress" in his recovery. However, following its investigation into the accident, OSHA has advised the Public Utilities to expect one and possibly two citations.

"We won't know what or how many citations until it is sent out," Gramentz said. "However, our initial meeting with OSHA brought forth changes that we should make. My feeling is that the dollar amounts (of the fines) won't be very high."

In other action, the commission approved the lease/purchase of a new truck to be used by the Street Department in cleaning the sanitary sewers. Payments will run about $31,000 a year for seven years at which time the PU will own the truck. A sinking fund also is being established to buy a replacement truck outright when the time comes.

The commission also received the preliminary 2002 budget and set an informational meeting for 4 p.m. Tuesday, Nov. 13, and another if needed for 4 p.m. Tuesday, Nov. 27, prior to its regular meeting.

The city manager was authorized to prepare specifications, advertise, and open bids for the cable to complete underground cable feeds to 3M and Substation No. 5 and construction necessary to complete the underground feeds to the 3M facility and Substation No. 5, contingent upon receiving a grant from FEMA.