NEW BEAUTIFUL BUILDING FOR VICTORIA
COMBINING A WATER TREATMENT PLANT & FIRE STATION

It's taken a while because Victoria city councilmembers wanted to do the right thing for both its citizens of today and its citizens of tomorrow. 
In mid October, Victoria city council-members had unanimously voted to allow bids on the joint water treatment plant/fire station facility to lapse on November 9th.  Received on September 9th, they would have expired in 60 days.
With this motion [on October 14th] Councilmember Terry Bishop proposed the combined project be "decoupled and redesigned" so that the two facilities might be separated rather than joined by a mezzanine addition, a common roof, and meeting rooms.  Separating them would make the project less expensive today.
However, at the end of October [on October 28th], city councilmembers were presented with a whole new set of circum-stances, which led them to accept the low bid on the conjoined project.
The combined construction project was awarded to Borson Construction out of Bloomington, MN.  The contract award is for $8,427,000 -- but adds up to 9,523,680 with the whole package that includes a new well (Well #4) at $265,180 and new raw and trunk watermain at $831,500.
Engineering and contingency fees, however, add another $1 million in costs, which makes the total bill around $10.5 million.  Since the bond is only for $9.5 million, considerations became necessary.

Councilmember Bishop had summar-ized the three council concerns on October 14th:  "I think the bids coming in one million dollars over budget is a concern for all councilmembers, the Fire Department sees it [the proposed addition] as unfunctionable, and there's the sugges-tion that the Metropolitan Council won't allow us to grow."
Councilmember Bishop could not be present at the following council meeting on October 28th when the 4-0 vote gave approval to the project.  Both Mayor Jerry Bohn and City Administrator Steve Sarvi said they had spoken with Mr. Bishop prior to the meeting but his mind could not be turned despite new information.
The three large concerns related to the project were re-addressed on October 28th after councilmembers and staff met with top people at the Metropolitan Council and top people at the Victoria Fire Department.

1) Cost
The City of Victoria has already sold bonds for a $9.5 million project which are currently invested and must be used within three years.  But, as previously reported and stated, the project bids came in $1 million higher than estimated.  The total package, with engineering fees, is now $10.5 million.
HOWEVER, Administrator Sarvi on October 28th stated, "There shouldn't be any doubt in the council's mind that these were good bids.  Six bids came in and they were in the same ballpark.  Water revenues can be used to pay for most of it.  I recommend you proceed with the low bid and work with the contractor if there's an item we don't need at this time.  We certainly advocate accepting the bid."
City Planner Mark Kaltsas pointed out that a new fire station would normally have to be funded with an increase in taxes, but this new fire station as proposed, combined with the water treatment plant, could be mostly funded with water revenue.
"Almost all costs in this project are being caused by the fact that we're build-ing a water treatment plant," said Mark.  "They are all structural changes with the exception of the mezzanine, which is a completely additional item that can't be paid out of the water revenue.  Only that piece can't be justified with water funds, but almost a million dollars for the fire station can be paid out of water revenue.  The lighting, the sprinkling, the roof all need to be redone on the fire station because we are building the water treat-ment facility."
Mark said that the cost of the mezzanine space -- that space that will connect the existing fire station to the new water treatment facility -- is about $250,000.
Administrator Sarvi said the city can use the fire truck fund to pay for the mezzanine
Councilmember Mary Thun pointed out, "There's $400,000 in that truck fund."  She also stated, "We never really set a budget for this project.  The $9.5 million is what we bonded for.  I can vote for this project, knowing we can take out any item that is not needed at this time."
City Engineer Jack Griffin referred to "Alternate #8" in the bid package, worth $33,000, that could be reduced by going with a lesser generator.  Mary Thun sug-gested that $30,000 for accent lighting might be delayed for a while.  She also referred to the aesthetics of the combined facility, that it is much more attractive than a downgraded separated facility.
Councilmember Thun added that it does not "seem quite right" for the city to have required Cabin Fever, the Victoria Auto Haus, and Wensmann Homes to go the extra mile to make their buildings aesthetically pleasing, and then let the city itself get by with an inferior project.  She said the city's two-building project "looks better connected."
Stated Mayor Bohn, "It compares favorably to the facilities in Plymouth, Eagan, and Minnetonka.  This project would require no tax increase.  Two-thirds of its cost will be charged to new housing and one-third to those who use the most water."

2) Fire Department
The two-hour workshop on October 14th had brought out all kinds of possible scenarios and also the surprising new information that the Victoria Fire Depart-ment was not happy with the layout and design of the interior space for the proposed fire station addition.
Fire Chief Gary Sohns said on October 14th, "The Fire Department has some concerns with the layout.  I guess we're not happy with the plan.  We weren't involved until late.  Functionally, it's not a smooth operation." 
That same evening Councilmember Thun said, "I'd like to have a functional building that the firemen like.  I'm uncomfortable voting for something that Gary [Chief Sohns] is not in love with."

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