By Sara Strong
The city of Luverne is without an administrator effective 5 p.m. Wednesday.

The City Council appointed Assistant County Attorney Jeff Haubrich as interim city administrator. He will lead the search for a new administrator.

After a closed meeting Tuesday night, the Luverne City Council Wednesday met again to finalize the voluntary separation agreement between it and City Administrator Matt Hylen.

The special closed meeting Tuesday night was called by council members Pat Baustian and Tom Martius "to evaluate the City Administrator’s job performance."

Public bodies may close meetings to evaluate the performance of an individual under its authority, then the findings are made public. In this case, there was no evaluation because both parties agreed to negotiate a settlement to have Hylen leave instead.

Hylen said, "I would like to thank the citizens of Luverne for being able to serve them for over seven years. There have been many good times and some challenging times, but overall, this has been an excellent place to work."

A voluntary separation agreement is one of a few ways to end employment of the city administrator. Other options are termination or resignation.

The terms of the separation agreement follow the benefits that would have occurred under a severance package included in his employment agreement with the city.

Hylen will receive six months of salary totalling $38,271.35, and health and life insurance contributions will continue for up to 12 months or until Hylen finds other employment.

In addition, Hylen will receive the standard resignation benefits all city employees receive, including pay for his accrued vacation ($5,524.32) and placing the value of his accrued sick leave into a Health Care Savings plan, which is similar to other cafeteria plans.

The separation agreement comes with a statement that there was no wrongdoing by either party.

Mayor Glen Gust said, "Both the City Council and Mr. Hylen agreed it would be best to end their employment relationship on terms both parties could mutually agree to."

Hylen’s job apparently has been a topic of discussion for some time.

He was earning $75,545 a year in 2002, and in January of this year, outgoing councilmen Keith Erickson and Jim Kirchhofer said they thought Hylen’s salary should be increased.

They said his performance goals were met and that his job evaluations were positive, but Kirchhofer and Erickson failed to get Hylen a raise.

The mayor has the sole authority to increase the administrator’s salary.

More recently, Hylen’s actions in terminating electric department employee Mike Gangestad was determined "wrongful" by an arbitrator.

The arbitrator said Gangestad required only discipline, not discharge, and that Hylen acted too harshly.
Hylen said he stood by his actions.

Since 1996
Hylen came to Luverne with his wife, Angie, early in 1996 after serving as city administrator for Hector, starting in March 1993. Hector had just changed from a city clerk to a city administrator form of government in 1992 and had only a short-term administrator before he took over. The post was developed mostly under Hylen.

Hylen helped establish an Economic Development Authority for Hector during his time there. Hylen also worked as a city manager intern for the city of Moorhead between January 1991 and March 1993.

Former Luverne councilman Everett Brandenburg was a part of Hylen’s job interview team. He said, "He was an excellent person to work with … well advised and bright and just did an excellent job."

Brandenburg said the city’s growth and success in many ways was helped by Hylen’s management of the city.

Brandenburg said he was surprised that the new council members felt comfortable with the "voluntary separation agreement," considering they worked with him so short a time.

"I feel we’re losing a valuable asset in the community. He worked very hard and has a nice family," Brandenburg said.

Realizing he came into the administrator job with little managerial experience, Hylen said Wednesday, "I would extend a special thank you to the original City Council back in 1996 for ‘taking the chance’ on me."

Roberto and Rebecca Cazares put together a construction paper and tissue jellyfish with their daughter Bethany Tuesday during a morning class of Early Childhood Family Education.

By Lori Ehde
Dads are more involved than ever in caring for their children, and it’s becoming apparent in Luverne’s Early Childhood Family Education classes.

The classes are offered through Community Education for parents to learn and share ideas about parenting and for children up to 5 years old to meet and mingle with other children.

Community Education Director Karen Willers said 231 different parents participated in various ECFE classes last year.

That number not only represents a growing interest in ECFE among local families, it also includes 94 different dads participating.

In 1999, only 16 percent of participating parents were dads, compared with 35 percent today.

With increasing research pointing to the importance of fathers’ relationships with their children, Willers said she’s pleased to see so many local dads involved in the classes.

"It’s really significant because the role of fathers is different," she said.

"Our issues used to deal with moms going to work and getting dads to help out more at home. … Now, they’re actively involved in raising the children, and the dads are really enjoying being involved."

She said it warms her heart to see dads reading to children on their laps during ECFE interaction time.
"That’s got to be a positive thing for self-esteem," she said.

Bonding with Daddy
"I just love spending time with the kids," said Luverne’s Evan Verbrugge, who has been attending ECFE with his children since his son, Riley was born seven years ago.

Verbrugge, a Rock County sheriff’s deputy, now goes to ECFE with their daughter Emma.

"We thought it was a good way for us to meet other parents, and I thought it was a good way for other people to meet me outside of my uniform, not in a squad car."

He and his wife, Missy, share parenting duties with their alternative schedules, so they wanted their children to have social exposure that they weren’t getting in a daycare setting.

"It is tough being a parent and having to do it by yourself is no picnic," he said. "Missy and I sometimes say that we are single parents because I take care of the kids during the day and she takes care of them at night."

At the same time, he said the arrangement has given him the opportunity to be close to this children.

"The thing that I remember the most from my father was that no matter what the reason, he was always there. I want to be remembered liked that, that I was always there for my children," he said.

"Time with them is too short and they just make me laugh. They can be a handful sometimes, but they know that they are loved."

Jason Aanenson, also a deputy, attends ECFE regularly with his wife, Sheila, and their girls Samantha, 5, and Emily, 2 1/2.

"It’s been good for the kids," he said. "Any way we can get a little head start with them will benefit them down the road."

He said he enjoys the one-on-one time with the girls that the program encourages, and also the parenting tips other parents share.

"It’s for anybody who wants to take a proactive role in parenting their kids can benefit from this," Aanenson said. "It’s not a big time commitment. It’s helped me bond with girls. It lets them know I’m interested in them and that I’m there for them."

He said the program has helped him become a better dad. "I would encourage any dad to come, even if you’re the only one there," he said. "It’s a good time."

Parents share tips on potty training, temper tantrums, bedtime, etc.

The classes are structured to allow parent-child interaction, followed by class time when the children have their learning time away from parents, and parents have time for their own learning.

"The parent discussion time is designed so parents can learn from each other, with some serving as positive role models for the group," Willers aid.

"That’s the No. 1 thing that works well for ECFE. That’s why attaching funding to free and reduced meals could affect this essential element."

Funding for ECFE could be in jeopardy if Gov. Pawlenty’s budget proposal is approved.

"You’d take away the opportunity to learn positive things from each other," Willers said.

"The whole idea is support and encouragement from each other and spending time with your kids. … We’re not just for families in crisis, like some programs are set up."

Willers said whether the dads are at ECFE with their kids or not, she hopes all men in the community are understanding their importance in families.

"Little boys are going to feel they’re important to a family other than for bringing home a paycheck," Willers said.

By Sara Strong
It isn’t one of the anniversaries that Brad and Amy (Dispanet) Ver Steeg celebrate.

At this time last year, they were mourning their business, or what was left of it, after a fire March 18 and 19. The Magnolia Steak House was first damaged by fire and then soaked with water, and makes them go down in local history as owners of one unlucky family business.

It was the second fire that destroyed the Magnolia Steak House; the first was in 1988 in the town of Magnolia.

It brought the Dispanet family business to Luverne, which Brad and Amy bought from Tim and Sue Dispanet in March 2001.

"Now we’ve been open longer than we’ve been closed, so that’s a good thing," Amy said.

The fire was caused by neon that lit the green stripes along the roofline. The conclusion was that wet snow conducted electricity between some wires and started the fire in the roof.

Smoke detectors and other alarm systems didn’t go off, making it that much more remarkable that employee Sue Erwin noticed smoke coming off the roof and called 911 at closing time.

"Nobody was hurt," Amy said, "and obviously, you can rebuild a building."

Still serving
Since its fire last year, most changes in the Magnolia Steak House aren’t noticeable to the average customer. Things like the improved kitchen facilities and added space behind the bar don’t get a lot of attention.

What’s gotten a lot of attention from owners Brad and Amy is customer and employee loyalty.

"If it was an Applebee’s that burnt down, I don’t think we would’ve seen what we did," Amy said.

"We had calls from people in Sioux Falls and e-mails from all over. We were getting flowers sent to us. … It says a lot about longevity and we reopened for the people."

Travelers to and from the annual Sturgis, S.D., bike rally were among those to take notice. "Sturgis is always a big thing and we had a sign out that said ‘Sorry, stop again next year.’ The construction workers were always getting asked," Amy said.

Besides those travelers off the interstate, there was constant checking to see when they would reopen.
They finally started serving customers again Aug. 28. (The meat market was the only area of the business never interrupted by the fire or reconstruction.)

Demolition work took up six weeks of the project’s time. At one point, the building was down to studs and concrete floor.

Other than appearances, there are some minor menu changes and Killian’s Irish Red got on tap just in time for St. Patrick’s Day.

The 2002 rebuild was a big undertaking, but it let the Ver Steegs put their own mark on the building: a slightly updated style reflected on the walls, layout, seating and carpet.

Even though the core of the building is different because of all the renovation work, reminders of a fire are still on the bar — which has a darker section of wood from the first blaze.

The Magnolia fire in 1988 was also started by an electrical short.

By Lori Ehde
Luverne Public Utilities Director Red Arndt submitted a letter to City Hall this week announcing his pending retirement.

"It is with great regret and anticipation that I submit this letter of resignation, effective Sept. 30, 2003," he wrote in a letter addressed to City Administrator Matt Hylen.

The letter was dated March 10, but received on file at City Hall March 17.

Arndt was hired as public utilities director for the city on Oct. 30, 1989.

"It has been my genuine pleasure to work for the City of Luverne for the past 14 years," he wrote.

"Many projects have been accomplished during that time with the help of knowledgeable staff and a progressive City Council."

His letter spoke of good times ahead for Luverne.

"The way it looks, the future will be just as exciting with the new hospital, the building of the Lewis and Clark Rural Water System and the completion of the electrical systems upgrade," Arndt wrote.

"All of these projects will definitely move Luverne ahead of other cities into the 21st Century."

He told Hylen the Sept. 30 effective date would give him time to wrap up several projects he’s currently working on.

"If I may be of assistance in the hiring process or training of my replacement, please know that I will gladly make myself available in order to make this a smooth transition."

Arndt’s letter makes no reference to the troubled city electrical department.

Gangestad:
‘It’ll be nice now’
His timing coincides with an arbitrator’s recent ruling to rehire electric worker Mike Gangestad, who had been "wrongfully terminated."

Gangestad’s termination last spring was issued in the wake of two OSHA citations and $58,000 in fines for the city of Luverne following accidents in October and December 2001 when one man was killed and another lost his forearm.

Arndt received a five-day suspension, but Gangestad told the Star Herald in a Feb. 27 story he thought Arndt should have accepted more responsibility for the accidents.

"I think he’s retiring to save his ass from getting fired," Gangestad said Wednesday.

"If they know he’s leaving voluntarily the incentive to fire him is greatly diminished."

Since the arbitrator’s ruling, the city has been negotiating with Gangestad’s union representative on a possible severance package instead of hiring him back.

Meanwhile, Gangestad remains on paid leave until that agreement is final.

"They have to pay me until the day I go back to work," he said, "so I’m sitting here getting paid."

With City Administrator Matt Hylen leaving his position (see related story) and Arndt’s notice of retirement, Gangestad said there’s more incentive for him to return to work.

"It’ll be nice now," he said. "It’ll be just like before, only better."

By Lori Ehde
Special education accounts for nearly $1.4 million of Luverne School District’s $8.7 million general fund budget.

When District Finance Officer Marlene Mann took a question from a resident about special education funding, she decided to answer for school board members as well.

At the Thursday, March 13 School Board meeting, Mann said Luverne receives nearly $900,000 in revenues to fund its special education services.

The majority of this, $721,000, comes to the district in the form of state aid.

Roughly $72,000 is compensation from area districts and Southwestern Mental Health for special ed services the district provides.

About $106,000, or 12 percent, comes in the form of federal aid.

As a side note, when the federal government started requiring schools to provide special education services, it promised to fund 40 percent of those mandated costs.

In Luverne, if federal support for special education funding increased from the current 12 percent to the promised 40 percent, the district would receive roughly $234,000 more in revenues to help fund the mandates.

On the expenditure side, Luverne School District spends nearly $1.4 million on special education services. Here’s how the expenditures break down:

Speech: $142,794. Of that, $138,094 is for salaries and benefits, and 4,700 is for supplies and equipment.

Developmentally and cognitively impaired — Mild: $183,010. Of that, $178,010 is for salaries and benefits, and 5,000 is for supplies and equipment.

Developmentally and cognitively impaired: $284,088, all of which is for salaries and benefits (for 23 people, mostly paraprofessionals).

Physically impaired: $44,800, of which $42,925 is for salaries and benefits and $1,875 is for supplies and equipment.

Deaf and hard of hearing: $1,450. The district contracts for this service.

Learning disabilities: $162,003, of which $159,403 is for salaries and benefits and $2,600 is for supplies and equipment.

Emotionally and behaviorally disabled: $76,117, of which $74,517 is for salaries and benefits and $1,600 is for supplies.

Early childhood special education (preschool): $110,053, of which $101,909 is for salaries and benefits and $8,144 is for supplies.

Special education in general: $319,164. Of this, $273,264 is for tuition for students to attend out-of-district schools, $42,000 is for the day treatment program provided by Southwestern Mental Health, and $3,900 is for supplies.

Special education transportation: $69,751, for bringing students to schools in Sioux Falls, Worthington, Faribault and special routes to Luverne.

Presenting these figures for school board members, Mann pointed to nearly $500,000 more in expenditures than revenues in the district’s special education budget.

She said some of the special ed students generate special aid reimbursements from the government, but after that’s considered, the district still covers a $383,586 gap.

As of March 2002, the district paid $245 per pupil in excess for special education.

"That’s a good part of the our budget we don’t get asked about that much," Mann said Thursday. "I wanted to show you how we realize that money and what we do with it."

Unappropriated operating funds
This led to Mann’s next topic, Luverne School District’s rapidly decreasing operating funds.

She told board members that in 1999, Luverne School District’s unappropriated operating funds balance was $1,583,849. Today it’s down to $991,244, and dropping.

"We are on a slide that I think we need to keep our eyes wide open for," Mann said.

In light of state plans to reduce and withhold education funding, Mann said the operating fund is more important than ever.

For example, the state aid for 2002 was $5,840,282, of which 10 percent was withheld until October. That amounts to $584,028 the district was short until October.

The state general aid for 2003 is $8,211,982 (the amount is higher because school funding shifted from local property taxes to state sales and income tax this year).

If 10 percent of that was withheld until October this year, that would amount to $821,198 the district would be short for four months.

The money needs to be reported as receivable in the fund balance on June 30, but the district won’t receive it until October.

What’s worse, Mann said, is 17 percent is being withheld this year until October, which comes to nearly $1.4 million.

"So we better have a fund balance to draw from," Mann said. "I present this to you because I want your hearts to race a little bit too. I don’t want to be in this alone."

By Sara Strong
Rock County Engineer Mark Sehr presented the five-year construction plan at Tuesday’s County Board meeting.

Sehr said the planned projects for 2003 assume that state funding remains the same as projected. They are:

Three miles of County State Aid Highway (CSAH) 4 west from Luverne to CSAH 11, including grade and surface work

Five miles of CSAH 3 from Iowa to CSAH 15, including mill and overlay

Three miles of CSAH 8 from CSAH 9 to CSAH 3, including mill and overlay

Seven miles of CSAH 17 from Iowa to Interstate 90, including mill and overlay

Bridge replacement .8 mile west of CSAH 9 in Vienna Township

Bridge replacement .9 mile west of CSAH 9 in Vienna Township

Bridge replacement 1 mile north and 1.1 mile east of Beaver Creek.

Eight other various township bridge replacements

Total costs for all the 2003 projects is $3,450,000. After various aids are applied, local costs are $80,000.

Equipment purchase
The Rock County Board of Commissioners approved a request from the Highway Department to accept the high bid on a diesel track loader for the Transfer Station.

Highway Department employees said they preferred the CAT model to a similar John Deere because of predicted lower maintenance costs and greater trade-in value.

The Deere model has German parts that employees are unaccustomed to, and the CAT has extra protection package for the heavy wear transfer station vehicles get.

The county was spending $15,000 to $20,000 annually on its 1989 Fiat’s maintenance.

The CAT model the Board approved purchasing cost $219,383 after a trade-in for $4,500.

The John Deere model would have cost $198,300 and would have given the county $7,500 in trade-in value.

Both offered guaranteed maintenance agreements: CAT was for $1,250 and Deere was for $5,000.

The county is financing a portion of the purchase: the CAT rate was at 4.5 percent and the Deere was at 4 percent. The county will pay $100,000 down and finance the remainder.

By Lori Ehde
If anyone’s interested in starting a home-based day care operation in Rock County, there’s never been a better time.

According to Carol Wulf, who licenses home child care operations at Family Services, the demand for quality child care in Rock County has hit an all-time high.

Of 49 licensed Family Child Care providers in Rock County, only 19 have current vacancies. Of those, only eight slots are available for infants (children under 12 months) and toddlers (children 12 to 24 months).

While there are some vacancies, many of the well-established child care homes have long waiting lists.

To address the dilemma, Southwest Child Care Resource and Referral, in conjunction with Rock County Human Services, will host a meeting from 1 to 3 p.m. Saturday, March 29, in the Rock County Human Services Building, 2 Roundwind Drive, Luverne.

Wulf said she hopes the meeting will be a catalyst for some local residents who have been thinking about starting a child care business.

She said a big hurdle for many would-be day care providers is having a home that meets code for space, exits and fire guidelines.

In addition, she said, not everyone is suited for the demands of caring for multiple children.

"It’s their job, their business. They’re required to have training in CPR and SIDS," Wulf said.

"They’re running accounting programs and figuring out state food reimbursements. It’s a lot to keep track
of and it’s all done after day care hours, so it’s quite a commitment. You have to enjoy it to make it work."

She advises new child care providers to start out small — with maybe one family in addition to their own children. Wulf said adjusting to a day care business is an adjustment for the provider’s entire family, and it’s best to test the waters slowly.

Anyone interested in becoming child-care providers are encouraged to attend and meet with Wulf, referral staff and with licensed family child-care providers on March 29.

"This is an opportunity for anyone interested in caring for children to talk with others in the profession and learn what resources are available to them to start in this rewarding career field," said Cindy Collins of Child Care Resource and Referral.

Wulf can be reached at 283-5070, and Collins can be reached at (507)637-8599.

Luverne Elementary first- and fourth-graders present their music program, "It’s Saturday," to a large crowd of parents and grandparents Friday in the elementary school gym. The musical, directed by Seana Graber and Beth Capistran, included numbers such as "Toon Time" with Tango Dancers and Looney Tune Kids, "Time to Spare," "Boogie Woogie Piano Teachin’ Man," "The Chore Song," "My Mother, The Coach" and "Slumber Party Tonight." Pictured at right are (from left) Blake Richters, Alex Hylen, Christopher Hoogland, Jonathan Ehde, Cole Walgrave, Blake Stegenga and Dalton Javner. About 200 students were involved in the production.

Photo by Lori Ehde

Amy Dispanet Ver Steeg co-owner of the Magnolia Steak House, stands behind the new bar area as the anniversary of the fire that nearly destroyed the business approaches. She said the process of starting over has brought to light the loyalty of Mag customers. Story inside.

Photo by Sara Strong