THE CHALLENGE OF A CIRCUS
A GOOD IDEA, BUT MAYBE NOT THIS YEAR
At a previous city council meeting, Tammy Abrahamson, the city's Parks and Recreation Director, was directed to try to negotiate a better deal with the Jose Cole Circus before being invited to bring ele-phants to the Victoria Field House.  The circus asks for 75% of gate receipts, leav-ing the city only 25% plus much work and expense.
Reported Tammy on February 12th, "Jose Cole is not willing to negotiate." 
Stated City Planner Mark Kaltsas, "There is potentially a group of business owners who might pledge to make it happen, to financially step up and cover certain expenses.  There is still a huge unknown about how much staff time and work is involved.  Basically, they would give us money to make it a go.  We'd still need to advertise, sell tickets, and so on.  The last event here, Victoria On Ice, took a huge amount of time to organize."
Commented Mayor Jerry Bohn, "We don't just need the dollars.  We need somebody to champion it."  Said Councilmember Terry Bishop, "It's a good idea but maybe not this year."

IMPROVEMENTS TOTAL $9.2 MILLION
FOR WATER TREATMENT, 4TH WELL, TRUNK WATERMAIN
Reported City Engineer Jack Griffin on February 12th, "We've completed the preliminary design report and are prepar-ing separate bids and awards for three separate contractors, and therefore there are three separate resolutions before you."
With three separate motions that evening, councilmembers authorized the improvement and preparation of plans and specifications for 1) Victoria's very first water treatment plant, 2) its fourth muni-cipal well, and 3) related watermain and trunk watermain. 
Total cost of all the above is project-ed to be approximately $9.2 million plus financing charges.  Of the total amount, said Engineer Griffin, approximately 26% is being built to serve existing residents.  Much of the cost will be picked up by new developers and property owners through their water core charges. 
According to City Planner Mark Kalt-sas, "The core charge is the amount paid to the city to allow a resident to hook up to the city water.  The cost does not include the actual construction of the hookup to the home.  There are different charges for different types of conditions.  The fee for new developments is $5,000 for water core.  For existing residents with a well, the core charge is $3,000."
Some municipal water cost is also picked up by residents through water usage fees.

Water treatment plant:

The full size water treatment plant that can accommodate 1.2 million gallons of treated storage, costing approximately $6.2 million, will be constructed adjacent to the Victoria Fire Station on Highway 5.  It will actually be connected to the fire station through the addition of two garage stalls and storage area for the fire department and overall roof improvement.
Stated Mayor Jerry Bohn, "We want the same architecture throughout, and it will be an upgrade so it looks more like it belongs in a residential neighborhood."
The large treatment facility will house a control room, laboratory, alarms, office space for catalogs and records, aerators, detention tank, filters, clear well, community education room, locker space, meter mechanical room, electrical room to control power distribution, garage space, backwash tank, pumping gallery, space for a generator in the event of power outage, hallways, chlorine room, scrub room, chemical room to add phosphates, and other spaces and amenities.
The treatment plant will remove iron and manganese from the water but not calcium.  Residents will still need or want a water softener to increase "softness."
As for the addition to the Victoria Fire Station, "The Fire Department will be putting together a wish list.  Basically we are giving them the space," he said.

Well Number Four:

The city's fourth well, estimated to cost approximately $338,000, will be drilled on city property near the large water tower next to the Holy Family Catholic High School.   Land purchase was not required for this property, having already been given to the city by HFCHS.  This new well will ensure that the city can maintain a firm pumping capacity to meet peak daily demands. 
Said City Engineer Griffin, "Victoria is experiencing very high summer peaks."  Along these lines, he suggested a higher surcharge for those residents who have a lot of summer use.
Mayor Bohn agreed that such a charge would help pay for water improve-ments as well as help make people con-serve water.  "Here in Victoria we use three times the average rate, and five times more in the summer!" he stated.  "Why should old timers in a little tiny house pay to subsidize those with big lawns who constantly water them?"
No water surcharge is being approved at this time.  The new well and treatment plant won't be online until the fall of 2005.  Much of the city's water revenue comes from the water hookup charges which are paid by each new property developer/homeowner.
A pilot well also needs to be drilled at a cost of $22,000.

Raw Watermain:

Watermain needs to be constructed from the treatment facility to all of the city wells.  This approximate length of pipe is projected to be 4,600 feet at an approximate cost of $550,000.   

Financing the project:

Paul Donna, the city's financial con-sultant, presented a couple of financing scenarios for councilmembers to consider.  He said that, in fact, what the city does is "covenant to repay a debt service from the collection of revenue, and if need be the city will tax to provide a sufficient revenue stream.  It would require a refer-endum to pay for it out of taxes.  But you certainly have enough revenue to cash flow the new debt and the old debt.  It will cash flow just using the core charge.  Raising rates would be an added revenue source."
Mr. Donna said that financing at an interest rate of 3.77% is available on a 15-year bond issue.  On a 20-year bond issue the financing would be at 4.25%.  "There is certainly more pressure today for interest rates to go up rather than down," he stated.  "You'd be providing more flex-ibility for the city at 20 years.  Basically, you're buying flexibility.  Typically, you can have a prepay in eight years without a penalty."
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