New Prague Council awards $4.27 million street contract, upholds tobacco citation and approves several transfers and leases

The New Prague City Council on March 11 awarded the 2025 street and utility project to Holtmeyer Construction, upheld an administrative citation against New Prague Tobacco for a tobacco sale to a minor, approved a fund transfer that closes the CIP 02/2007 account, extended a three‑year agricultural lease on 39 acres of city athletic-complex land, approved termination of a separate lease at 411 Fifth Avenue NW and adopted a personnel handbook change allowing limited compensatory time.

The council’s actions came after project and enforcement updates from city staff and a lengthy discussion about regional training facilities for police and fire departments. Councilmembers emphasized public-notice steps and that several items will generate further follow up with residents or outside agencies.

City engineer Chris (City Engineer) told the council that 10 bids opened on Feb. 21 for the 2025 stream utility project and all were below the engineer’s estimate. “The low bid is in the amount of $4,268,296.04, and that's from Holtmeyer Construction,” Chris said, adding the low bid was roughly $1 million under the engineer’s estimate. He recommended the city award the project to Holtmeyer, noting the firm previously completed a 2023 street project for the city.

Chris said Holtmeyer had indicated, if awarded, it would likely begin work in early to mid‑May, depending on scheduling. He also said the city uses recent comparable bids and a modest inflation adjustment to build engineer's estimates and that, in this case, unit prices and total bids came in lower than anticipated. The council approved the award and passed the related resolution.

On enforcement, Tim (Police Chief) summarized an administrative citation issued Jan. 24 under city ordinance 117.05(a)(1) for the alleged sale of tobacco or nicotine products to a person under 21 on Jan. 6. The citation was the third in 36 months for New Prague Tobacco. Tim said staff and the police chief recommended a 30‑day suspension with review after the business resumed operations. New Prague Tobacco requested an appeal but did not appear at the hearing. Councilmember Sean moved to uphold the citation; the motion was seconded and carried.

Finance and property actions passed with motions from councilmembers. Staff described CIP 02/2007 as carrying a fund balance that accumulated after the 2007 project came in under budget; auditors advised that the surplus may be reallocated. Council approved a resolution to transfer the balance into the equipment fund and close the CIP 02/2007 account, with staff noting the transferred funds could be moved later if future priorities require it.

On land use, the council approved extending a three‑year lease (2026–28) for the athletic-complex acreage with the existing lessee, Mr. Dan Sullivan (lessee), at a proposed rate of $2.40 per acre. Staff said the city’s property-tax cost for the land was roughly one quarter of the annual rent collected and that neighboring counties’ cropland rents helped inform the rate. The council also moved to terminate the separate month‑to‑month lease for the building on the fire-station property currently occupied by Tom Masberg (lessee), initiating the 90‑day termination timeline described in that agreement to allow for police‑station planning on the site.

The council tabled a liquor-license renewal for the Rusty Spoke (Rusty Spoke/Don’t Be Lion LLC) until the March 17 meeting to allow the business more time to remedy ongoing code violations (refuse and inoperable vehicles) that staff said are moving through the court process. Staff said letters were sent and the property owner has been notified; the city will revisit the permit at the next meeting.

On personnel policy, staff proposed allowing employees to elect limited compensatory time in lieu of overtime pay, with a cap of 40 hours earned in a calendar year and supervisor approval required before comp time accrual. The council approved the handbook update as written. Staff and council discussed monitoring the city’s liability for accrued comp time and the need to track the benefit on department ledgers.

In a nonbinding, extended discussion, police and fire chiefs described how the regional training facility (RTF) run under the SCALE umbrella is used by New Prague public safety staff and what alternatives might cost. Tim said the department uses the RTF range and scenario rooms now and values the ability to schedule and the consortium’s priority access; Steve (Fire Chief) said the fire department uses the RTF tower for live‑fire and scenario training two to three times a year but often prefers rentals because some training costs are reimbursable by the state only when invoiced as rentals. Councilmembers asked staff to return with a formal recommendation at the first April meeting so the city’s position can be represented in SCALE discussions about membership and facility upgrades.

On a municipal code change suggested by residents, staff said the city’s current ordinance prohibits domesticated livestock and similar animals within city limits and that any change to allow backyard chickens would require a planning‑commission public hearing and two council readings. Staff outlined a timeline: planning commission discussion in March, council consideration in early April, a planning‑commission public hearing in April (if council directs staff to proceed), two council readings in May and, if enacted, publication and effective date approximately mid‑June.

A handful of residents addressed the council during public comment, raising sidewalk‑maintenance questions and thanking staff for responsiveness. Staff said neighborhood meetings related to the street project would be scheduled as contractor schedules become available and that the upcoming meeting would likely be the fourth neighborhood meeting on the project.

Votes at a glance

- Award contract: 2025 Stream/Utility Project to Holtmeyer Construction, low bid $4,268,296.04 — motion carried (mover: Sean; second: Maggie). - Tobacco citation: Uphold administrative citation against New Prague Tobacco under ordinance 117.05(a)(1); recommended suspension 30 days with review — motion carried (mover: Sean; second: Maggie). - CIP transfer: Resolution to transfer and close CIP 02/2007, moving balance into the equipment fund — motion carried (mover: Sean; second: Sean (second stated); staff: Rob and Ken presented). - Athletic-complex lease: Extend three‑year lease (2026–28) at $2.40/acre to current lessee (Dan Sullivan/Lanesburg Farms) — motion carried (mover: Rick; second: Sean). - Rusty Spoke liquor license: Renewal tabled to March 17 to allow property cleanup and court process updates — motion carried (mover: Council; second: Maggie). - Termination of lease at 411 Fifth Ave NW: Council approved initiating 90‑day termination notice to lessee Tom Masberg to clear site for potential police‑station planning — motion carried (mover: Sean; second: Maggie). - Personnel handbook: Adopt compensatory‑time policy (up to 40 hours/year, supervisor approval required) — motion carried (mover: Staff; second: Rick).

(For items above, recorded motions and seconds were read into the record during the meeting; votes were taken by voice with no recorded roll-call in the transcript excerpt provided.)

Ending

Councilmembers said staff will return with more details where requested, including a formal recommendation on RTF membership costs and a schedule for neighborhood meetings tied to contractor timelines. The council adjourned after asking staff to continue work on the sidewalk policy during the city’s zoning-code update and to bring chicken‑ordinance materials forward per the timeline described.