Dist. 88 approves reduced levy

Coils freeze

in elementary

schools

By FRITZ BUSCH

Journal Staff Writer

NEW ULM -- The Dist. 88 School Board unanimously approved a resolution Monday, reducing the 2004 Levy Certification Payable 2005 by $1,023,451.

The resolution, made by Susan Nierengarten and seconded by Sheldon Rieke, set the levy at $3,275,553.21 which was $1,023,451 less than the maximum levy amount of $4,299,004.21.

The new amount was a 60 percent reduction of the total levy and came about due to a mold abatement settlement agreement. The reduction came out of the district's health and safety account.

Nierengarten said the district would not levy for mold, but rather use the lawsuit proceeds to reduce the tax levy.

"This will significantly reduce taxes for people," Superintendent Harold Remme said. "We don't know the total percentage yet. Brown County would have those figures."

At its last meeting, the board approved a $2.85 million mediated settlement lawsuit with five defendants in a lawsuit related to 1997 and 1998 school construction projects.

The district launched its lawsuit in December 2002, after the discovery of extensive mold growth in district facilities built by the defendants.

The district sued the contractors in the projects, arguing that defective designs, defective construction, failure to report problems and related issues caused the mold growth.

Design professionals Wold and BKBM offered to settle their liability for $1.6 million. Minnetonka Plumbing, Paape Energy Services and Diamond Energy jointly offered to settle their liability for $1.25 million.

School district attorney Shamus O'Mear said the settlement agreement did not represent an admission of guilt by the contractors. It capped months of investigations, expert testimony and other legal proceedings, O'Mear said.

Several contractors involved in the suit, either directly or indirectly as subcontractors, were not part of the settlement.

Contractors Heymann Construction and Feder Plumbing and Heating did not present offers sufficient to support a recommendation for acceptance, according to the district's lawyers.

Two other contractors, Gag Sheet Metal and United Electric Company/Magic Aire, did not present offers.

Litigation with contractors that did not settle will continue with a trial date set for next April.

* Prior to the board action on the levy, district facilities director Scott Hogen told the board that frozen coils in air handling units were discovered Monday at Washington and Jefferson Elementary schools. Repairs were completed at Washington but not at Jefferson. If heat is not restored at Jefferson Monday night, classes would not be held there Tuesday.

Hogen said two of the three coils at Jefferson were repaired Monday while the third coil remained in the shop.

"There was no heat in the new (school) addition," Hogen said. "We're trying to thaw lines with large propane heaters. If we don't get heat in the line, we'll have to shut down domestic water."

Fritz Busch can be e-mailed at fbusch@nujournal.com.