Victoria MN Newspaper

BIDS CONTINUED.

The bid package includes earthwork and site utilities ($42,807 from Olson Construction out of Cologne), building construction ($1,229,500 from RAM General Contracting out of Winsted), fire protection ($31,800 from Viking Automatic Sprinkler out of St. Paul), and plumbing and HVAC ($298,900 from Weidner Plumbing and Heating out of St. Cloud.)

Said Mr. Uram, "Bids were higher than anticipated on the Electrical for City Hall. We would like to rebid it, to be received by May 15th."

As Mr. Uram reported, five bid packages came in on City Hall with 11 contractors participating. Seven bid packages came in on the Public Works facility with 24 contractors participating.

As far as how to deal with a relocation of the Public Works facility on the Bavaria Road property, Mr. Uram suggested the city go through a change order process to handle the changes that might arise because of a relocation of pad site.

Said City Attorney Mike Norton, "That would be a relatively insignificant amount compared to rebidding."

Said Mr. Sonnichsen, "Rebidding would mean a delay of a month or two, going into the winter months. My recommendation is to award the contracts for the building and direct staff to work with the architect for a review plan. Contractors can submit what cost of the changes would be."

NO ONE SPEAKS AT PUBLIC HEARING

COUNCIL VOTES 5-0 TO ISSUE FINANCING BONDS

Council held a public hearing on April 14th in regard to financing a new City Hall and Public Works facility. No one asked to speak during the hearing and it was closed in less than a minute.

After some discussion, council then voted 5-0 to approve the issuance of General Obligation Capital Improvement Bonds to finance the new City Hall and the new Public Works Facility, both expected to be constructed and completed in 2014.

Maximum amount of the principal to be financed is $5,615,000. It should be paid off in 20 years.

Said City Manager Don Uram, "We've been working on the City Hall and Public Works building for several years. Our goal is to reduce that maximum amount."

Rusty Fifield, financial advisor from Northland Securities, explained that under state statute, cities cannot incur debt in excess of 3% of the assessors Estimated Market Value. He said the City of Victoria's Estimated Value for taxes payable in 2014 is $1,020,438,500. This means that Victoria's total amount of outstanding debt cannot exceed $30,613,155. The city currently (as of April 1st) has a debt of $114,000 subject to the legal debt limit.

Mr. Uram explained, "The legal debt limit is based solely on general obligation debt, which is 100% paid by tax. The only debt we have paid entirely by tax is our payment to Three Rivers Park District for the 13.5 acre land swap deal. We will make final payment to them this year.

As reported by city staff, "The estimated maximum annual principal and interest payments is $399,135."

Mr. Fifield pointed out that if a petition requesting a vote on the issuance of the bonds is filed after the public hearing, the city may consider alternative financing called Lease Revenue Bonds, which are not subject to a referendum. "These are less secure to the bondholders and more expensive for the city by $660,000," he said.

The petition would need to be signed by 5% of the number of residents who voted in the last election and be received by the city within 30 days of hearing -- in other words, by May 14th. In the 2012 election, 4,464 residents voted.

Mr. Uram said a referendum could be scheduled for August 12th.

PETITION GOING AROUND TOWN

ASKING RESIDENTS FOR AN EXTRA $600,000

The Victoria City Council meeting on the night of the Monday, April 28th, ended with a singular position taken by Councilmember Joe Pavelko.

"There is a petition going around for a reverse referendum and I want you to know that I signed it," he said. "Hopefully, if there are enough signatures, we can let the people sign and embrace it." He asked fellow councilmembers to also sign the petition and to ensure that there is a referendum. He said the Council shouldn't fear a petition.

The petition pertains to the financing of the new City Hall and Public Works Facility. Bids for their construction were awarded with a 5-0 vote on April 14th. The buildings will be constructed regardless of petition or possible referendum.

Council also voted 5-0 on April 14th to issue capital improvement bonds to finance the $5.6 million package. This was the least expensive financing route, saving Victoria taxpayers over $600,000 over the life of the bond.

There have been other 5-0 votes regarding site plans and building materials to be used on the new public facilities.

Click here to continue Petition Around Town.