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It was back in October of 2009 that the Yellow Medicine East School Board voted to go forward with a multi-million dollar project that would bring the elementary, middle and high school buildings up to Minnesota Department of Education (MDE) Health and Safety code standards.
And it was in May of 2010 that the first lawsuit was brought forth by two district taxpayers working to halt it.
Two summers later and the approximately $10 million project is complete. Yet, still, a lawsuit remains.
On Tuesday, October 25, Judge Randall Slieter heard testimony during a one day, limited trial over a portion of the project still in dispute.
At the heart of the trial are questions as to whether the district acted within state health and safety improvement parameters on a $2.85 million portion of the project that, amongst other items, included the installation of hot water pipes and sprinkler systems.
Under the state’s alternative facilities authority, if school projects meet certain health and safety improvement criteria the district is permitted to levy the cost of the improvements without having to hold a public referendum.
In a previous trial, Slieter ruled that the approximately $7.2 million remaining in expenditures, which included a new heating, cooling and ventilation system at the elementary and high school, were funded within limitations.
The YME district and its attorney, Eric Quiring, have maintained that all improvements have adhered to state protocol.
Adding credence to this claim is the experience of engineering firm, Energy Systems Group (ESG) by Honeywell of Golden Valley, YME Superintendent Al Stoeckman says. The firm had worked within Health and Safety guidelines for a number of Minnesota districts before designing the YME project that has been reviewed and approved by both the district’s bond consultant, Ehlers and Associates of Minneapolis, and the Minnesota Department of Education (MDE).
“Everything was done in accordance with what the state requires us to do,” said Stoeckman who was reached by phone after the trial.
Representing district taxpayers are Patrick McCoy and Scott Wintz. Plaintiff attorney Kevin Stroup has shown his clients to be unmoved by such assertions. Not only did the district usurp the public’s power by going beyond health and safety parameters, but it did so with questionable financial considerations and under the guise that the improvements were mandated, he said.
Expanding on the latter two statements, Stroup explained that the ventilation improvements were not required by the state and, according to Stoeckman, went so far as to challenge the school to produce documentation of a single instance in which the ventilation resulted in a sick child while in court.
Stoeckman acknowledged that while the ventilation system was not mandated, it was MDE policy that schools address air quality needs when undertaking significant capital improvement projects. These needs were proven by an air quality study performed at both schools well before the health and safety project, he said.
As for the finances, Stroup commented that health and safety statutes require schools to be devoid of finances that could provide for projects, yet the district had a capital operating reserve of just over $500,000 and a general fund balance of $1.3 million as of June 30.
Stoeckman said that YME’s balance sheet would not be different than those of other districts across the state. He said the capital operating reserve set aside funds for planned and emergency projects while general fund balance is for operations and cash flow.
Funded by near-zero interest federal Qualified Zone Academy Bonds, Stoeckman noted that the district would save approximately $4.7 million over the 15-year life of the bonds which fund the $10 million project.
Quiring said, that overall, there was little new information that came before the judge and the limited trial was mainly held to provide clarification on specific issues that would allow Slieter to make a ruling.
That judgement is expected to occur within 90 days of the trial. If found to be in the favor of McCoy and Wintz, it would create an awkward set of circumstances as to the appropriate recourse for the pair. The primary assertion of the plaintiffs is that improvements should have required a referendum, but today the project is already complete and the majority of bonds sold.
Stoeckman said the district would appeal a decision that was not in YME’s favor. Meanwhile, Stroup said his clients had not made decision, as of yet, whether to make an appeal if the judge should rule against the plaintiffs.
It was back in October of 2009 that the Yellow Medicine East School Board voted to go forward with a multi-million dollar project that would bring the elementary, middle and high school buildings up to Minnesota Department of Education (MDE) Health and Safety code standards.
And it was in May of 2010 that the first lawsuit was brought forth by two district taxpayers working to halt it.
Two summers later and the approximately $10 million project is complete. Yet, still, a lawsuit remains.
On Tuesday, October 25, Judge Randall Slieter heard testimony during a one day, limited trial over a portion of the project still in dispute.
At the heart of the trial are questions as to whether the district acted within state health and safety improvement parameters on a $2.85 million portion of the project that, amongst other items, included the installation of hot water pipes and sprinkler systems.
Under the state’s alternative facilities authority, if school projects meet certain health and safety improvement criteria the district is permitted to levy the cost of the improvements without having to hold a public referendum.
In a previous trial, Slieter ruled that the approximately $7.2 million remaining in expenditures, which included a new heating, cooling and ventilation system at the elementary and high school, were funded within limitations.
The YME district and its attorney, Eric Quiring, have maintained that all improvements have adhered to state protocol.
Adding credence to this claim is the experience of engineering firm, Energy Systems Group (ESG) by Honeywell of Golden Valley, YME Superintendent Al Stoeckman says. The firm had worked within Health and Safety guidelines for a number of Minnesota districts before designing the YME project that has been reviewed and approved by both the district’s bond consultant, Ehlers and Associates of Minneapolis, and the Minnesota Department of Education (MDE).
“Everything was done in accordance with what the state requires us to do,” said Stoeckman who was reached by phone after the trial.
Representing district taxpayers are Patrick McCoy and Scott Wintz. Plaintiff attorney Kevin Stroup has shown his clients to be unmoved by such assertions. Not only did the district usurp the public’s power by going beyond health and safety parameters, but it did so with questionable financial considerations and under the guise that the improvements were mandated, he said.
Expanding on the latter two statements, Stroup explained that the ventilation improvements were not required by the state and, according to Stoeckman, went so far as to challenge the school to produce documentation of a single instance in which the ventilation resulted in a sick child while in court.
Stoeckman acknowledged that while the ventilation system was not mandated, it was MDE policy that schools address air quality needs when undertaking significant capital improvement projects. These needs were proven by an air quality study performed at both schools well before the health and safety project, he said.
As for the finances, Stroup commented that health and safety statutes require schools to be devoid of finances that could provide for projects, yet the district had a capital operating reserve of just over $500,000 and a general fund balance of $1.3 million as of June 30.
Stoeckman said that YME’s balance sheet would not be different than those of other districts across the state. He said the capital operating reserve set aside funds for planned and emergency projects while general fund balance is for operations and cash flow.
Funded by near-zero interest federal Qualified Zone Academy Bonds, Stoeckman noted that the district would save approximately $4.7 million over the 15-year life of the bonds which fund the $10 million project.
Quiring said, that overall, there was little new information that came before the judge and the limited trial was mainly held to provide clarification on specific issues that would allow Slieter to make a ruling.
That judgement is expected to occur within 90 days of the trial. If found to be in the favor of McCoy and Wintz, it would create an awkward set of circumstances as to the appropriate recourse for the pair. The primary assertion of the plaintiffs is that improvements should have required a referendum, but today the project is already complete and the majority of bonds sold.
Stoeckman said the district would appeal a decision that was not in YME’s favor. Meanwhile, Stroup said his clients had not made decision, as of yet, whether to make an appeal if the judge should rule against the plaintiffs.
