When asked if the market is going up or down, Mr. Donna replied, "Insurance rates since March have spiked substantially.  My best guess is that rates will continue to rise over the summer.  We're still at a low point over twenty years.  I don't think municipali-ties should play the market.  You can bring all three issues to the market in June or wait until July 23rd for the last two issues."
Regarding the 20-year versus 15-year financing of bonds, Mr. Donna said, "The 20-year schedule buys you some flexibility.  It depends on your confidence in the reven-ue stream.  You can also pay off or pay down the 20-year issue after eight years."
Most of the revenue for the street and utility improvements will come from assess-ments ranging from $6,000 to $9,000 to benefiting property owners.  Most of the revenue for the water treatment plan will be paid from water use charges and permits for houses built in Victoria each year.  Revenue for the capital equipment purchases will come from city property taxes and will be paid off in five years.
LaTour Construction was awarded the contract for the Street and Utility Improve-ments.

ANOTHER ATTRACTIVE CITY ENTRANCE
DESIGNING THE WATER TREATMENT FACILITY
The proposed water treatment plant was presented to Victoria councilmembers on May 27th in attractive drawings from all vantage points. 
The 9,000-square foot facility will be constructed next to the Victoria Fire Station on Highway 5, with a 3,000-square foot addition connecting the two buildings.  The current Fire Station is just under 7,000 square feet.
Dean Johnson of TKDA, the city's engineering firm, made the presentation.  Said Mr. Johnson, "We've located the site and identified the elements.  It is a joint fa-cility.  We're here to make sure the materi-als and design meet with your approval."
"Right now we've made no access be-tween the two facilities," he said.  "They will be two separate elements operating on the same site, structurally connected."
The facility will be made of brick, stone, and metal panels, "all durable sustain-able materials."  Samples were shown to the councilmembers.
Said Mr. Johnson, "We're basically looking for feedback from the council.  There is another month or so left of design work.  The landscape designers haven't had their chance yet.  There will probably be more landscaping and buffering when it's finished than there is today."
Councilmember Mary Thun asked why there was no inside connection being made between the fire station and the water treat-ment plant.  Jack Griffin, the city's engineer with TKDA, replied, "It has to do with Homeland Security."  The protection of water supply is a national security issue.
Mary asked if there was still going to be a community space as previously planned.  City Planner Mark Kaltsas said there will be a "community learning room" on the back side of the facility where park-ing space for the public can be created.
Mary also commented that the entire facility seems to consist of flat roofs.  The flat roof of the fire station has been notori-ous for leaking. 
Mr. Johnson said these new flat roofs will have greater pitch, greater drainage, better membrane, and shouldn't leak
"What kind of a warranty is there?" asked Councilmember Dave Lindgren.
"It's a 15-year warranty," said Mr. Johnson.
Stated Councilmember Richard Tied-en, "I'm very impressed with the design."
Design work continues.  According to Mark, groundbreaking will probably occur this summer, in August.

UPDATING THE PUBLIC WORKS DEPARTMENT
FROM SAFETY EQUIPMENT TO SNOWPLOWS
On May 26th Bruce Osborn, the city's Public Works Superintendent, received approval on requests for the Department.
1) Council authorized matching city funds of $3,779 for the purchase of safety equipment including nonflammable cabinets and safety storage cans.  The matching grant comes from the MN Occupational Safety Health Association (OSHA).
Reported Bruce, "This is recommended by our insurance company.  It eliminates the hazards of putting different chemicals in the same cabinets.  I'm asking for approval and acceptance of this grant."
Mayor Jerry Bohn asked Bruce in the future to tell councilmembers about grant applications in advance so the city budget can reflect possible expenditures.
2) Council approved, at a cost of $4,800, city purchase of a Polaris ATV.  Said Bruce, "This is a unit the Fire Department had.  It was donated to them.  We've used it in the past for spot-spraying our wetlands.  It could be used by Mark to inspect sites like Kelzer's Pond.  It can be used for watering flowers up high on our new street lights.  It's about $8,000 brand new with the wench."
In responding to questions Bruce said, "It would also be available to the Fire De-partment.  The Fire Department bought a Kawasaki Mule and are selling this one.  The Lions gave money to them to upgrade to the Kawasaki."  The vote to approve city purchase of the Polaris was 3-1.  Mary Thun voted against the purchase.  Terry Bishop was absent.  The $4,800 will come out of the Public Works budget.
3) Council approved the purchase of a new Kubota zero turn lawnmower at the low bid of $11,711 from Lano Equipment at Shakopee.
"This will make mowing all of our tot lots much easier and it won't rip up the sod," said Bruce.  "It's easier to maneuver and more efficient in small areas.  It's been in the capital improvement plan for a num-ber of years."
4) Council approved the purchase of a 2005 Chevrolet 3500 HD pickup truck with snowplow from Lenzen Chevrolet at a price not to exceed $32,000. Said Bruce, "I could not get the 2004 models anymore.  They've taken the 2004 bid price and added a 2% increase since the numbers weren't in yet on the 2005 models.  It's been a challenge."
"This is a replacement for an existing pickup," he added.  "The front end has collapsed twice with the snowplow and it's dripping a quart of oil every time we use it."  Bruce said life expectancy for the new truck will probably be ten years.

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