SOUTH DAKOTA STRAIGHT TALK

The high profile Window Renovation Project at the Washington Pavilion found its way into the news again this week.

It was revealed the project’s cost was underestimated by $300,000. Apparently the flub-a-dub was done by one of the Pavilion administrators who forgot to include the cost of labor into the estimate. The Mayor correctly called on the Pavilion’s management to take responsibility for the mistake. A spokesperson for the Pavilion did so, but very meekly calling it “an oversight.”

When the Windows Project was approved, it was a close call and the Council was of differing opinion on whether to include it into the Capital Improvements Budget. I narrowly supported the project, if the funds were available. It made sense to me that a) the Pavilion is a City owned facility b) the Pavilion is one of the cultural centers for the City and the building is used by many (including many out of town guests and school children) and c. the windows would provide for some payback because the resultant energy savings were estimated to be between 5 and 6 percent.

Today I feel differently – not about whether this is a worthy project but about the timing and the added costs. Since the project was approved last year the civic and political landscape has changed. Since last August, the federal subsidy for the Lewis & Clark Water Project has been eliminated from the budget proposed by the Bush Administration, the Army Corps of Engineers has altered the City’s flood plain map, a very unusual, tough and prolonged winter has caused unexpected breakup in our streets. Since last August Citizens have been confronted with much higher energy and gasoline prices and because of their concerns about the direction of the economy they are reluctant to make discretionary expenditures perhaps thus causing the City a slowdown in sales tax revenue growth.

Two things should happen. The Mayor and the City Council should take a breather and re prioritize. Put the windows on hold.

1. Fix the streets, which in part the City Council did recently when extra money was found and they diverted money from the Mayor’s plan for land acquisition.

Sidebar – While on the issue of streets, the local developers have proposed a funding arrangement to help development of streets in new areas. After taking care of these first necessities, the Mayor and Council should find a way to implement this program.

2. The City Government should accept the responsibility to immediately begin construction on the dike / levee system that is needed to protect the City from flooding. In the event of a flood this will prevent possibly the loss of human life but also property damage to homeowners and businesses. Taking care of this problem now will save thousands if not millions of dollars in flood insurance premiums to real property owners. The City could issue general obligation bonds or some kind of hybrid bond if help is available from the State of South Dakota. The promised Federal help would be welcome, but the feds truly are broke and the City should not wait.

3. Find some way to assure that the Missouri River water gets to Sioux Falls via the Lewis & Clark Project. Sioux Falls has become the ward of an unreliable Federal (and again broke) government. We need to make sure this happens. Sioux Falls’ future depends on it.

The windows project and many others in the Capital Improvements Plan are extras – things that would be nice to have but they are not among the government’s first responsibility to help provide for the health and safety of its citizens.

Endbar – The cost estimate fiasco again raises questions about how the Pavilion is managed. The Pavilion receives in excess of $1 million annually as an operations subsidy from the City. The Pavilion has a new CEO, Gary Wood. The cost estimate fiasco gives Wood the opportunity and the public relations cover to make changes if necessary to insure that these kinds of “oversights” don’t happen. It also would provide assurance to the Council that money it entrusts to the Washington Pavilion is being properly managed.