ANNUAL LIQUOR FEES TOTAL $14,770
FROM VARIOUS VICTORIA ESTABLISHMENTS
Councilmembers approved liquor licenses that will bring $14,770 in annual liquor license fees to the city, effective July 1st, 2004, through June 30th, 2005, pending reception of certificates of liability insurance and approval of the Alcohol and Gambling Enforcement Division.
Fee for an on-sale intoxicating liquor license is $3,300.  It was requested by Schmitty's, Victoria House, Deer Run Golf Club, and Floyd's.
Fee for an off-sale intoxicating liquor license is $100.  It was requested by Schmitty's, Hi-5 Liquors, Victoria House, and Floyd's.
Fee for a Sunday liquor license is $200.  It was requested by Schmitty's, Victoria House, Deer Run Golf Club, and Floyd's.
Fee for an on-sale non-intoxicating 3.2 event liquor license is $10.  It was re-quested by St. Victoria Parish and the Victoria Vics baseball team.
Fee for an off-sale non-intoxicating 3.2 liquor license is $50.  It was requested by Twin Cities Avanti Stores.
Fee for a club license is $300, re-quested by the Victoria Lions Club.

VICTORIA TRIS SOMETHING NEW
A GUARANTEED INVESTMENT CONTRACT
Council authorized the investment of Water Revenue Bond proceeds in an in-strument known as a Guaranteed Invest-ment Contract (GIC).  This is something new for the City of Victoria.

As reported by Paul Donna, the city's financial advisor, "Currently the city does not allow this.  The Guaranteed Invest-ment Contract, known as GIC, is an in-strument that cities and schools use tailored to short term.  It is basically an uncollateralized investment contract."
"We encourage you to look at this," he advised.  "The process is competitive.  We solicit bids.  It allows full flexibility to write checks for expenses in the build-ing of the water treatment plant.  We can assist the city in putting this together."
Asked Councilmember Terry Bishop, "What is the downside?"
"It's not FDIC insured," said Mr. Donna.  "It's not sponsored by the government.  It's a contract with a private institution.  The risk is if the company goes bankrupt or out of business and you're not able to recover your principal." 
But, he said, these companies have Triple A ratings and the contracts are short term.  Also, it's not for everyone because "usually $5 million is the cutoff amount."

CONTINUED ISSUES AT THE CHANNEL
BETWEEN LAKES AND CITY AND MR. NELSON
The channel between Lake Virginia and Lake Minnetonka in Victoria contin-ues to bring problems to the adjacent property owner and also the City of Vic-toria. 
Most recently, channel resident Pete Nelson sent a letter to 14 different agencies that cast the City of Victoria in a negative light because the channel issue remains unresolved.
Also most recently, Councilmember Richard has chaired a group of people who volunteered to dialogue and resolve the situation at the channel.
Stated Councilmember Tieden on June 24th, "When I found out that this letter came out, I was a bit surprised.  I was, frankly, disappointed, and it sort of negated my efforts.  I've asked the city to gather the history so we could address issues ... It really does disappoint me ... A telephone works both ways ... I still want you to know that I'm available ... It would have helped me if you would have called me about the direction you were going to take."
Said Mr. Nelson,  "We would like to work with you, make no mistake about it.  MnDOT and several agencies will be out on Monday morning at 10:30 to see the situation.  You are invited.  I'm doing what I can to move these agencies along.  Something has got to change.  This is the only city on Lake Minnetonka that puts sediment in and doesn't take it out.  Is the City of Victoria willing to participate in the cleanup?"
Mayor Jerry Bohn stated that there are two different issues on the table -- the nearby road construction and the channel.  "What we are doing there is only going to improve the situation."
City councilmembers will sign and send a letter to each of the 14 agencies "to respond, to give a representation of facts from the council's viewpoint, so they have the accurate information coming from the city."

COMPENSATING THE VICTORIA HOUSE
TRYING TO SETTLE THINGS IN TIME FOR DINNER
Council authorized the payment of $15,000 to the Victoria House for half the construction cost of the patio in front of its building.  The city will also pay $1,000 to the Victoria House for miscellaneous expenses.  In addition, the city will pay the Victoria House $1.75 per square foot for each of the 1,400 square feet in the sidewalk easement.

All of the above payments are related to the city's downtown reconstruction project.  The first two payments are con-tingent upon the Victoria House signing a settlement agreement and final inspection.  The third payment is in acceptance of an offer from the Victoria House.
Stated City Attorney Mike Norton, "My understanding is that there will be some disagreement and issues with the settlement agreement."  For example, he said, there is suggestion from the Vic-toria House that the city was at fault when someone fell at their entry last year and "they're not willing to indemnify the city should there be fault litigation in that regard."
Also, said Attorney Norton, "They believe the city removed the property irons and didn't replace them.  It is a fair-ly substantial amount of money to replace the corner irons."
Added City Planner Mark Kaltsas, "Right now we're not sure their handicap ramp is in compliance, and they have to put tempered glass in the window by the ramp."
Several councilmembers responded to the ongoing situation ...
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