Aberdeen City Council

AGENDA FOR THE CITY COUNCIL MEETING CITY OF ABERDEEN, SOUTH DAKOTA MONDAY, JULY 1, 2019 AT 5:30 P.M. CITY COUNCIL CHAMBERS, CITY HALL, 123 S. LINCOLN ST. 1. ROLL CALL 2. ADMINISTER THE OATH OF OFFICE TO NEW COUNCIL MEMBERS TRAVIS SCHAUNAMAN, MAYOR OF THE CITY OF ABERDEEN JOSH RIFE, CITY COUNCIL MEMBER – NW DISTRICT 3. PLEDGE OF ALLEGIANCE 4. MINUTES, CITY COUNCIL MEETING OF JUNE 24, 2019 OPEN FORUM 5:30 TO 5:40 P.M. – 1. SEE FORMAT GUIDELINES AT END OF AGENDA 5. OLD BUSINESS A. ORDINANCE NO. 19-06-01 TO REZONE PROPERTY DESCRIBED AS LOT 2, BROWN COUNTY COMMISSIONER’S THIRD SUBD. (1019 – 1ST AVE., SE) FROM (M) DISTRICT TO (I-2) DISTRICT POSSIBLE SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 19-06-01 B. ORDINANCE NO. 19-06-02 TO REZONE PROPERTY DESCRIBED AS LOT 9 AND THE S. 47’ OF LOT 10, BLOCK 24, FIRST ADDITION TO ABERDEEN FROM (C-3/R-4) DISTRICT TO (R-3) DISTRICT (411 AND 413 S. 3RD ST.) POSSIBLE SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 19-06-02 C. ORDINANCE NO. 19-06-03 TO LEASE AIRPORT PROPERTY TO AGTEGRA COOPERATIVE FOR AERIAL AGRICULTURAL SPRAYING OPERATION POSSIBLE SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 19-06-03 6. CONSENT CALENDAR – POSSIBLE APPROVAL A. DESIGNATION OF OFFICIAL DEPOSITORIES: ABERDEEN FEDERAL CREDIT UNION PLAINS COMMERCE BANK CORTRUST BANK SD PUBLIC FUNDS INVESTMENT TRUST DACOTAH BANK US BANK GREAT WESTERN BANK WELLS FARGO BANK GREAT PLAINS BANK WELLS FARGO ADVISORS B. DESIGNATION OF OFFICIAL NEWSPAPER – AMERICAN NEWS C. 2019-2020 RENEWAL OF RETAIL ON-OFF SALE MALT BEVERAGE & SD FARM WINE LICENSE (RB-26355) FOR THE CROWN, LLC DBA DANGER VON DEMPSEY’S PIZZERIA & BREW HAUS, 1023 S. MAIN STREET D. SET HEARING DATE OF JULY 22, 2019 AT 5:30 P.M. FOR THE FOLLOWING: 1. PETITION TO REZONE PROPERTY DESCRIBED AS LOT 2, JENSEN ROCK AND SAND FIRST ADDITION (909 S. 8TH ST.) FROM (I-2) DISTRICT TO (R-3) DISTRICT 2. ORDINANCE AMENDING THE ZONING REGULATIONS OF THE ABERDEEN CITY CODE REGARDING ILLUMINATED AND ELECTRONIC MESSAGE BOARD SIGNS AND SIGNS IN THE ABERDEEN COMMERCIAL HISTORIC DISTRICT. E. LICENSES: 1. EXCAVATOR – JOSH SHAMHART DBA CDL ELECTRIC CO. 2. PRIVATE SECURITY – DUANE ANDERSON 3. PRIVATE SECURITY – DOUGLAS NIEMAN 4. RESIDENTIAL BUILDING CONTRACTOR – MITCHELL WEIDEMAN DBA INTEGRITY SERVICES F. REQUEST FOR STREET USE – ½ BLOCK OF 5TH AVE., SW BETWEEN ALLEY AND S. MAIN ST. FOR MALCHOW’S CRAZY DAYZ SALE ON JULY 12TH AND JULY 13TH Page 1 of 99 06/27/2019 7. NEW BUSINESS A. REQUEST FOR QUALIFICATIONS TO SEEK EPA GRANT FUNDS POSSIBLE APPROVAL TO AUTHORIZE THE CITY MANAGER AND ADMINISTRATIVE STAFF TO SEEK “REQUEST FOR QUALIFICATIONS” FOR A QUALIFIED ENVIRONMENTAL CONSULTING FIRM TO PROVIDE GRANT APPLICATION ASSISTANCE FOR EPA BROWNFIELD GRANT FUNDS B. SDDOT BRIDGE FUNDING AGREEMENT POSSIBLE APPROVAL AND AUTHORIZE THE MAYOR TO SIGN THE FUNDING AGREEMENT WITH SDDOT IN THE AMOUNT OF $99,838.05 C. PURCHASE OF A CATERPILLAR 938M FROM BUTLER MACHINERY COMPANY POSSIBLE APPROVAL TO PURCHASE A CATERPILLAR FROM BUTLER MACHINERY CO. OF ABERDEEN, SD IN THE AMOUNT OF $214,811.00 D. BILLS: APPROVAL OF BILL LIST FOR JULY 1, 2019 E. CITY MANAGER’S REPORT F. EXECUTIVE SESSION TO CONSULT WITH LEGAL COUNSEL REGARDING CONTRACTUAL MATTERS [SDCL §1-25-2(3)] NO COUNCIL ACTION CAN OCCUR DURING EXECUTIVE SESSION BUT COUNCIL ACTION MAY FOLLOW EXECUTIVE SESSION. 8. ADJOURN 1. OPEN FORUM PROVIDES AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS THE CITY COUNCIL WITH QUESTIONS, CONCERNS OR COMMENTS ON ITEMS, WHICH ARE NOT ON THE AGENDA. CITIZENS ARE ASKED TO SIGN UP TO SPEAK PRIOR TO THE OPEN FORUM PORTION OF THE MEETING. OPEN FORUM WILL BE LIMITED TO 10 MINUTES (IF NO ONE IS IN ATTENDANCE FOR THE OPEN FORUM, THE REGULAR MEETING MAY BEGIN) UNLESS A MAJORITY OF THE CITY COUNCIL AGREES TO EXTEND THE TIME PERIOD. THE OPEN FORUM MAY NOT BE USED TO MAKE PERSONAL ATTACKS, TO AIR PERSONALITY GRIEVANCES, TO MAKE POLITICAL ENDORSEMENTS, OR FOR POLITICAL CAMPAIGN PURPOSES. OPEN FORUM WILL NOT BE USED AS A TIME FOR PROBLEM SOLVING OR REACTING TO THE COMMENTS MADE, BUT, RATHER FOR HEARING THE CITIZEN FOR INFORMATIONAL PURPOSES. THE CITY COUNCIL MAY RESPOND WITH REQUEST FOR CITY MANAGEMENT TO FOLLOW UP AND REPORT BACK ON ANY ISSUE RAISED DURING THE PUBLIC ADDRESS TIME. A PRESENTATION MAY NOT EXCEED TWO MINUTES IN DURATION. 2. ADA COMPLIANCE: THE CITY OF ABERDEEN FULLY SUBSCRIBES TO THE PROVISIONS OF THE AMERICAN’S WITH DISABILITIES ACT. IF YOU DESIRE TO ATTEND THIS PUBLIC MEETING AND ARE IN NEED OF SPECIAL ACCOMMODATIONS, PLEASE NOTIFY THE CITY FINANCE OFFICE AT LEAST 8 HOURS PRIOR TO THE MEETING SO APPROPRIATE AUXILIARY AIDS AND SERVICES CAN BE MADE AVAILABLE. THE CITY COUNCIL MEETS WEEKLY ON MONDAYS AT 5:30 P.M. EXCEPT WHEN A HOLIDAY FALLS ON MONDAY, IN WHICH CASE THE MEETING IS HELD AT 5:30 P.M. ON THE NEXT BUSINESS DAY. 3. A COPY OF THE SUBJECT MATTER ON THE CITY COUNCIL MEETING AGENDA IS AVAILABLE FOR PUBLIC DISTRIBUTION AT THE CITY FINANCE OFFICE AND AVAILABLE ON THE CITY’S WEBSITE www.aberdeen.sd.us. Page 2 of 99 06/27/2019 Page 3 of 99 06/27/2019 Page 4 of 99 06/27/2019  17431 CITY COUNCIL PROCEEDINGS City Council Chambers, 123 South Lincoln Street, Municipal Building, Aberdeen, South Dakota, June 24, 2019 at 5:30 p.m., regular meeting of the Board of City Council Members, Mayor Mike Levsen presiding. Present at roll call were City Council Members David Bunsness, Alan Johnson, Dave Lunzman, Dennis “Mike” Olson, Mark Remily, Rob Ronayne, Clint Rux, and Jennifer Slaight-Hansen. City Staff present were Lynn Lander, Robin Bobzien, Brett Bill, Jordan McQuillen, Dave McNeil, and Rich Krokel. Mayor Levsen led the Pledge of Allegiance. MINUTES Motion by Johnson, second by Rux to approve the minutes of the City Council Meeting of June 17, 2019, as circulated. All voting aye, motion carried. PROCLAMATION Mayor Levsen read and proclaimed June 24, 2019 as “Dr. Mark Hedges Day”. OPEN FORUM – No one was present. OLD BUSINESS ORDINANCE NO. 19-05-04 Motion by Bunsness, second by Rux to approve second reading and final adoption of Ordinance No. 19-05-04 repealing the extraterritorial zoning jurisdiction of the City of Aberdeen and amending the Aberdeen City Code. Upon roll call, all voting aye, motion carried. CONSENT CALENDAR Motion by Remily, second by Slaight-Hansen to approve the following items on the consent calendar: RENEWAL OF MALT BEVERGE & SD FARM WINE LICENSES – for City Businesses as listed for July 1, 2019 to June 30, 2020: GPM Enterprises, LLC dba 4 ACES Casino, 202 – 6th Avenue, SE Suite B; Heartland Casino LLC dba 6th Ave. Casino, 1923 – 6th Ave., SE #103; 6th Avenue Pit Stop Inc. dba 6th Avenue Pit Stop, 802 – 6th Avenue, SW; Aberdeen Cue Club dba 1603 – 6th Ave., SW; Aberdeen Pit Stop Inc. dba Aberdeen Pit Stop, 2323 – 8th Ave., NE; Rivett Lodging dba Aberdeen Super 8 East Motel, 2401 – 6th Ave., SE; Erickson & Meier, Inc. dba Airport Travel Center, 4707 E. Hwy #12; Aberdeen Ventures LLC dba AmericInn, 301 Centennial Street; APEX Events, LLC dba NSU Barnett Center, 1302 South State Street; BPO Elks Lodge dba 705 Circle Drive; Veinte Inc. dba Black Diamond Casino Suite 1, 102 – 6th Ave., SW; Veinte Inc. dba Black Diamond Casino Suite 2, 102 – 6th Ave., SW; Casey’s Retail Company dba Casey’s General Store, 224 S. Dakota Street; DOM Inc. dba Casino Bleu, 316 S. Wilson Street Suite B; OCHO Inc. dba Casino Korner, 707 N. 2nd Street; NUEVE Inc. dba C- Express 8th Ave., 1202 – 8th Ave., NE; OCHO Inc. dba C-Express N. Second, 711 N. 2nd Street; OCHENTA Inc. dba C-Express State, 524 – 6th Ave., SE; TREINTA Inc. dba C-Express Suite 1, 2303 – 6th Ave., SE; TREINTA Inc. dba C-Express Suite 2, 2303 – 6th Ave., SE; TREINTA Inc. dba C-Express Suite 3, 2303 – 6th Ave., SE; Midwestern-Flack LLC dba Dakota Players Page 5 of 99 06/27/2019  17432 Club, 1715 – 6th Ave., SE Suite A; GPM Enterprises Inc. dba Deuces Wild Casino, 915 – 6th Avenue, SE; Randall Weber dba Eddie’s Northside Sinclair, 208 N. 2nd Street; E-Z Stop Food Marts Inc. dba 421 S. Roosevelt Street; Loebs Investments dba Gas-N Goodies, 1106 S. 5th Street; D & G Investments Inc. dba Grande Casino, 913 – 6th Ave., SE; Guadalajara III Inc. dba Guadalajara Mexican Restaurant, 3015 – 6th Ave., SE #3; Heartland Casino LLC dba Heartland Café & Casino, 1923 – 6th Ave., SE; Heartland Casino LLC dba Heartland Players Club, 1923 – 6th Ave., SE #102; Heartland Casino LLC dba Heartland Players Club 2, 1923 – 6th Ave., SE #100; China Ginger Inc. dba Imperial Buffet, 311 S. Main Street; Midwestern-Flack LLC dba Jokers Wild Casino, 1715 – 6th Ave., SE #B; Ken’s Supermarket Inc. dba Ken’s Bottle Shop, 2105 – 6th Ave., SE; Kessler’s Fuel LLC dba Kessler’s Holiday, 702 – 6th Ave., SE; Kessler’s Inc. dba Kessler’s Liquor, 621 – 6th Ave., SE; Kusler’s C Store dba 602 S. Main Street; Lafayette Casino Corp. dba Lafayette Casino, 3015 – 6th Ave., SE #1; Lafayette Casino Corp. dba Lafayette Casino #2, 3015 – 6th Ave., SE #2; JLM Golf LLC dba Lee Park Pro Shop, 1028 – 8th Ave., NW; ZBC Inc. dba Lucky’s Drinkery, 420 S. Main Street; BONN Express LLC dba Lucky Spot Casino, 801 N. Hwy #281; M & H Gas dba 202 – 6th Ave., SW; Hungry’s Restaurant Inc. dba Marlins Family Restaurant, 604 S. Hwy #281; HUASTEA LLC dba Mazatlan Mexican Restaurant, 1 S. First Street; DOM Inc. dba Moccasin Creek Casino, 1711 – 4th Ave., SE; Ace Boschee dba Moccasin Creek Concessions, 1202 – 10th Ave., SE; Natural Abundance Food Coop dba Natural Abundance, 112 N. Main St. Suite 2; Karla Stangl dba Palm Garden, 602 S. 3rd Street; Melynda Sletten dba Platinum Salon & Spa, 714 S. Main Street; P & M Enterprises Inc. dba R & A Bar, 5 S. Main Street; Arment Investments dba RainForest Casino, 416 S. Dakota St. #3; Regency Midwest Ventures dba Ramkota Inn, 1400 – 8th Ave., NW; HAYJON Inc. dba Rohly’s Bar, 1524 – 6th Ave., SW; Rolling Hills Golf Club LLC dba Rolling Hill Golf Club, 546 Palmer Circle; D & G Investments dba Royale Casino, 202 – 6th Ave., SE; TWO CS Inc. dba Schwan’s Recreation, 714 – 1st Ave., NE; Stacy Gossman dba Scotty’s Bar and Grill, 719 N. Main Street; Slackers Bar LLC dba Slackers, 319 S. Main Street; Sooper Stop Inc. dba Sooper Stop, 19 N. Dakota Street; South C Store Inc. dba South C Store, 1020 S. Main Street; I-90 Fuel Services dba Starlite Truckstop, 602 S. Hwy #281; Target Stores dba Target, 3316 – 7th Ave., SE; Brass Kettle LLC dba The Brass Kettle, 322 S. Main Street; R & F Inc. dba White House Inn, 500 – 6th Ave., SW. SET HEARING DATE – of July 8, 2019 at 5:30 p.m. for the following applications: Special Retail On-Sale Liquor Licenses for Aberdeen Downtown Association on July 11th for Summer Concert Series, S. Main Street from Railroad Ave. to 1st Ave.; August 2nd for Summer Concert Series, S. Main Street from Railroad Ave. to 1st Ave.; August 23rd and August 24th for Sizzlin Summer Nights, S. Main Street from Railroad Ave. to 6th Ave.; Retail On-Off Sale Malt Beverage & SD Farm Wine License and Retail On-Off Sale Wine & Cider License for Family Dollar Store of South Dakota, LLC dba Family Dollar, 412 – 6th Ave., SW. SET HEARING DATE – of July 15, 2019 at 5:30 p.m. for a petition to vacate public right-of- Page 6 of 99 06/27/2019  17433 way for 16’ wide public alley right-of-way within Block 27, First Addition to Aberdeen, commencing at the South side of 4th Ave., SE public right-of-way and continuing South 300’ to 5th Ave., SE public right-of-way (403, 413, 419, and 423 S. Main St., 12 – 4th Ave., SE, and 408, 410, and 420 S. Lincoln St.) PLATS – 1) Verne Little Subdivision in the City of Aberdeen, in the NW ¼ of Sec. 13, T123N, R64W of the 5th P.M., Brown County, SD (510 N. Main St.); 2) HAPI 2019-2 Subdivision to the City of Aberdeen, in the N ½ of Sec. 13, T123N, R64W of the 5th P.M., Brown County, SD (324 N. Washington St.); Mestas Addition, in the SW ¼ of Sec. 26, T124N, R64W of the 5th P.M., Brown County, SD (12888 and 12892 Laura Lane); Meadowlark Acres Second Addition to Aberdeen, in the NW ¼ of Sec. 22, T123N, R63W of the 5th P.M., Brown County, SD (5206 and 5210 Kingfisher Ave., NE) with the stipulation that one of the two water/sewer services is retired from service; 5) B and P Holm Addition to the City of Aberdeen, in the SE ¼ of Sec. 7, T123N, R63W of the 5th P.M., Brown County, SD (1003 N. Roosevelt St.) with the stipulation that the petitioners have sidewalk installed, where missing, along all the platted rights- of-way within five years of the plat filing date; 6) HAPI 2019-1 Subdivision to the City of Aberdeen, in the SW ¼ of Sec. 13, T123N, R64W of the 5th P.M., Brown County, SD (411 S. 3rd St.) with the stipulation that the accompanying petition to rezone is also accepted. LICENSE – Motor Bus Driver – Mark Christianson DEPARTMENTS’ BOARD REPORTS AND MINUTES – Aberdeen City Planning Commission Meeting Minutes; Board of Zoning Adjustment Meeting Minutes; Brown County/Aberdeen City Planning Commission Meeting Minutes; K.O. Lee Aberdeen Public Library Board of Trustees Meeting – receive and place on file. All voting aye, motion carried. NEW BUSINESS ORDINANCE NO. 19-06-01 City Planning/Zoning Director Brett Bill presented a petition to rezone the property described as Lot 2, Brown County Commissioner’s Third Subdivision (1019 – 1st Ave., SE) from (M) Municipal, State, and County Use District to (I-2) Unrestricted Industrial District. Motion by Rux, second by Johnson to approve first reading of Ordinance No. 19-06-01 to rezone the property as requested. Upon roll call, all voting aye, motion carried. ORDINANCE NO. 19-06-02 City Planning/Zoning Director Brett Bill presented a petition to rezone the property described as Lot 9 and the S. 47’ of Lot 10, Block 24, First Addition to Aberdeen (411 and 413 S. 3rd Street) from (C-3 Central Business District/R-4 Special Density Residential District) to (R- 3) High Density Residential District. Motion by Johnson, second by Lunzman to approve first reading of Ordinance No. 19-06-02 to rezone the property as requested. Upon roll call, all voting aye with Ronayne abstaining, motion carried. ORDINANCE NO. 19-06-03 Page 7 of 99 06/27/2019  17434 Transportation Director Rich Krokel asked the Council to approve first reading of Ordinance No. 19-06-03 to lease Airport property to AGTEGRA Cooperative for an aerial agricultural spraying operation. Motion by Bunsness, second by Johnson to approve first reading of Ordinance No. 19-06-03 as requested. Upon roll call, all voting aye, motion carried. PUBLIC HEARING ON SALE OF FEDERAL BUILDING PROPERTY Mayor Levsen opened the hearing for questions or comments on the sale of the Old Federal Building surplus property at 102 – 4th Avenue, SE. City Manager Lynn Lander explained the sale of the property to Kiefer Enterprises, LLC for the purchase price of $850,000. Mayor Levsen closed the hearing. Motion by Rux, second by Bunsness to approve the sale to Kiefer Enterprises, LLC, or its assignee, APO, LLC, for the purchase price of $850,000, less closing costs, of the real property declared surplus by the Council by Resolution No. 18-07-03R and described as Lots 3 and 10, Block 28, First Addition to Aberdeen, Lots 1, 2, 3, 4, 5, and 6, Hagerty’s Subdivision of Lots 1 and 2, Block 28, First Addition to Aberdeen, and Lots 7, 8, 9, 10, 11, and 12, Hagerty’s Subdivision of Lots 11 and 12, Block 28, First Addition to Aberdeen, together with all of the vacated alley lying adjacent to said Lots, all according to the plats thereof of record, Brown County, South Dakota, and to authorize the Mayor and City Manager to execute documents necessary to conclude the sale of the real property. All voting aye, motion carried. HEARING ON TRANSFER OF MALT BEVERAGE LICENSE Mayor Levsen opened the hearing on a transfer of Retail On-Off Sale Malt Beverage & SD Farm Wine License with Video Lottery from Veinte Inc. dba Black Diamond Casino at 120 – 6th Ave., SW Suite 2 to 1202 – 8th Ave., NE Suite 2. No one was present to testify in opposition to the transfer of the malt beverage license so Mayor Levsen closed the hearing. Motion by Ronayne, second by Remily to approve the location transfer of the Malt Beverage & SD Farm Wine License with Video Lottery for Veinte Inc. dba Black Diamond Casino from 120 – 6th Ave., SW Suite 2 to 1202 – 8th Ave., NE Suite 2. All voting aye, motion carried. HEARING ON SPECIAL LIQUOR LICENSES Mayor Levsen opened the hearing on requests for Special One-Day Retail On-Sale Liquor Licenses for Aberdeen Area Chamber of Commerce’s Business After Hours Events on July 11th at 1st Ave., SE between S. Main Street and Market Street including a Community Event Permit application; August 8th at Aberdeen Flying Service, 4400 – 6th Ave., SE #AA; Sept. 12th at NSU Science Center, 1200 S. Jay Street; Oct. 10th at Pierson Ford Show Room, 701 Auto Plaza Drive; and Nov. 14th at Aberdeen Civic Arena, 203 S. Washington Street. No one was present to testify in opposition to the requests for special liquor licenses so Mayor Levsen closed the hearing. Motion by Olson, second by Remily to approve the Special One-Day Liquor Licenses and the Community Event Permit for Aberdeen Area Chamber of Commerce’s Business After Hours Events as requested. All voting aye, motion carried. COMMUNITY EVENT PERMIT Page 8 of 99 06/27/2019  17435 Motion by Ronayne, second by Rux to approve a Community Event Permit for the Yelduz Shriners Midwest Shrine Association Summer Parades on August 1st and August 3rd including street closures from Presentation College going South on Main Street to Railroad Avenue and from 24th Avenue, NE to North Dakota Street to 22nd Avenue NE to 24th Avenue, NE during the parades. All voting aye, motion carried. SUBMISSION OF PROPOSALS FOR 2020 PROMOTION FUND BUDGET City Manager Lynn Lander explained the document prepared of proposals submitted by the City Council for the 2020 Promotion Fund Budget in the amount totaling $1,213,000. Lander asked the Council for preliminary approval of the 2020 Promotion Fund Budget median calculations as presented for inclusion in the 2020 Budget Proposal. Motion by Ronayne, second by Rux to approve of the 2020 Promotion Fund Budget median calculations for inclusion in the 2020 Budget Proposal. Bunsness questioned the ordinance passed previously regarding the 100% sales tax rebate and refund from the Promotion Fund. The second 50% of the rebate was to come from the 3rd penny and Bunsness reminded the Council of the obligation. Motion by Bunsness, second by Ronayne to amend the Promotion Fund Budget calculation proposals moving $18,000 from unexpended fund balance to Aberdeen Development Corporation Sales Tax Rebate. All voting aye, motion carried. On the original motion to approve the 2020 Promotion Fund Budget median calculations as amended for inclusion in the 2020 Budget Proposal to be delivered by the City Manager on July 29, 2019, all voting aye, motion carried. REAPPOINTMENTS TO LIBRARY BOARD Motion by Rux, second by Johnson to reappoint Troy McQuillen to the K.O. Lee Aberdeen Public Library Board of Trustees for another three-years ending June 30, 2022. All voting aye, motion carried. Motion Slaight-Hansen, second by Ronayne to reappoint Peter Ramey to the K.O. Lee Aberdeen Public Library Board of Trustees for another three-years ending June 30, 2022. All voting aye, motion carried. CHANGE ORDER/PAYMENT FOR ACCESSIBLE QUADRANT IMPROVEMENTS City Engineer Robin Bobzien presented Change Order #2 in the amount of $46,275.90 and Payment Request #2 in the amount of $75,690.24 to Wright & Sudlow for work on the Accessible Quadrant Improvements Project. Motion by Olson, second by Ronayne to approve Change Order #2 in the amount of $46,275.90 and Payment Request #2 in the amount of $75,690.24 to Wright & Sudlow as requested. Upon roll call, all voting aye, motion carried. PAYMENT FOR STREET MAINTENANCE CONCRETE REPAIR City Engineer Robin Bobzien presented Payment Request #3 in the amount of $45,738.99 to CWF Masonry & Construction for work on the Street Maintenance Concrete Repair Project. Motion by Ronayne, second by Bunsness to approve Payment #3 in the amount of $45,738.99 to CWF Masonry & Construction as requested. Upon roll call, all voting aye, motion carried. Page 9 of 99 06/27/2019  17436 BILLS Motion by Slaight-Hansen, second by Lunzman to approve payment of the bills listed for June 24, 2019, and any additions thereto, such bills having been audited by the Finance Officer and fully itemized and authorize the Mayor or City Manager to sign, and the Finance Officer to countersign, all warrants for payment of the following approved bills: Northwestern Energy 23,434.63; Nationwide Employee Benefits 470.88; Neil & Joan Bellikka 30,713.19; Verizon Wireless 31.89; J & K Mowing Service 512.50; LTK Heating & Cooling 3,206.64; CVB 28,870.80; Business Improvement Dist. 9,120.37; UPS 227.75; Brian Jarvis 155.40; Jordan Kruthoff 21.00; Kevin Vandarwarka 193.20; Baymont Inn & Suites 139.98; B & B Contracting 107,431.82; DeGroot Concrete & Construction, LLC 9,537.35; First Premier Bank 21.16; Vic Fischbach 41.31; Jean Speidel 40.58; Dean Kiefer 37.86; Jon Malsam 65.87; Wayne Pitz 25.11; Norm Fjelstad 40.18; Mary Job 44.47. Upon roll call, all voting aye, motion carried. PAYROLL Motion by Rux, second by Olson to approve the payroll for the period from June 9, 2019 through June 22, 2019 and city share of social security, old age & survivor’s insurance, retirement, health and life insurance: Wells Fargo 165,974.15; SD Retirement 75,977.05; Governing Body 3,192.28; City Manager 8,313.35; City Attorney 6,873.75; Finance 14,130.07; HR 7,643.83, Building 1,711.35; Computer 4,530.70; Planning/Zoning 14,905.27, Chris Brick 23.97 hr; Engineering 13,601.20; Police 133,719.19, Jordan Lemke 26.46 hr, Jordan Majeske 26.46 hr, Fire 106,822.35, Housing/Building 6,395.35; Street 28,828.61; Traffic 11,492.08; Solid Waste 25,516.90; Transportation/Ride Line 17,448.32, Library 27,003.35; Parks, Rec & Forestry 229,586.50, Ellen Dinger 12.75 hr, Alex Harper 10.25 hr, Linda Heiser 12.25 hr, Cynthia Jones 12.75 hr, John Litwiller III 10.50 hr, Catherine Tramonte 12.00 hr, Airport 18,644.17; Pipe 31,592.35; Water Treatment 17,639.25, David Flanigan 13.00 hr; Meter 1,574.40; Water Reclamation 21,818.46, Christopher Holmes 19.68 hr; Pump 17,346.61, Old Federal Crths Bldg 1,619.60. Upon roll call, all voting aye, motion carried. CITY MANAGER’S REPORT Lynn Lander gave the City Manager’s Report and announced upgrades to the City Council Meeting live on TV, Midco Channels 9 and 589, and on NVC, Channel 7, and a farewell event on Thursday, June 27th, at the Library in recognition of Mayor Levsen’s and Slaight- Hansen’s years of service to the community. There being no further business, motion by Ronayne, second by Bunsness to adjourn the meeting. All voting aye, motion carried. Prepared by Mary Campton for the Finance Office. /s/ Jordan McQuillen, Deputy Finance Officer. Page 10 of 99 06/27/2019 5A Page 11 of 99 06/27/2019 Page 12 of 99 06/27/2019 Page 13 of 99 06/27/2019 Page 14 of 99 06/27/2019 Page 15 of 99 06/27/2019 5B Page 16 of 99 06/27/2019 Page 17 of 99 06/27/2019 Page 18 of 99 06/27/2019 Page 19 of 99 06/27/2019 Page 20 of 99 06/27/2019  City of Aberdeen Request for Council Action Agenda Item No. Meeting Date: July 1, 2019 5C Agenda Section Old Business Originating Transportation Director Dept: City Attorney Ord. / Res. Ordinance No. 19-06-03 Prepared by: City Attorney No. of 2 Presented by: Transportation Director Attachments City Attorney Item: Possible second reading of an ordinance to lease airport property to Agtegra Cooperative for aerial agricultural spraying operation. City Manager’s Proposed Action: Motion by second by to approve second reading and final adoption of Ordinance No. 19-06-03. Overview: This ordinance is required by Aberdeen City Code § 2-81 in order to lease City lands for a period longer than one year. The Airport Advisory Board previously recommended approval of an Aerial Agricultural Spraying Operation Lease with Agtegra Cooperative. The proposed Ordinance adopts and approves the leasing of 10,000 square feet of airport land to Agtegra for that purpose, such lease to expire on December 31, 2023. Primary Issues/Alternatives to Consider: N/A Budgetary/Fiscal Issues: Attachment: 1. Ordinance No. 19-06-03 2. Exhibit 1 - Land Lease Agreement – Airport Lease #83 Rev 7/09 Page 21 of 99 06/27/2019 Passed First Reading: June 24, 2019 Passed Second Reading: Final Adoption: Published: Effective Date: ORDINANCE NO. 19-06-03 AN ORDINANCE APPROVING LEASE OF HANGAR AREA TO AGTEGRA COOPERATIVE TO CONDUCT AERIAL AGRICULTURAL SPRAYING OPERATION WHEREAS, the City of Aberdeen owns the real property comprising the Aberdeen Regional Airport (hereafter “Airport”) described as Lot 1, Aberdeen Regional Airport Subdivision, in Sections 21, 22, 27, and 28, Township 123 North, Range 63 West of the 5th P.M., Brown County, South Dakota (hereafter “airport land”); and WHEREAS, the City is authorized by SDCL §§ 9-12-5.1 and 50-6A-40 to lease its municipally-owned airport property; and WHEREAS, pursuant to Aberdeen City Code § 2-81(a)(7), the City by ordinance may lease its municipally-owned real property for a term longer than one (1) year; and WHEREAS, the City desires to lease to Agtegra Cooperative certain airport land upon which Agtegra will conduct an aerial agricultural spraying operation, all upon the rates, terms, and conditions set forth in the Land Lease Agreement – Airport Lease #82 attached hereto as Exhibit 1. [Such lease shall not be published with this Ordinance but shall be on file with the Finance Office.] NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF ABERDEEN that airport land totaling 10,000 square feet shall be leased to Agtegra Cooperative upon the rates, terms, and conditions set forth in the Land Lease Agreement – Airport Lease #82, and any addenda thereto, such lease being hereby approved and adopted, and incorporated herein by reference. BE IT FINALLY ORDAINED that the City Manager and Airport Manager are authorized to execute all documents necessary to finalize such lease and the City Council hereby approves and ratifies such lease if previously executed. Page 1 of 2 Ordinance No. 19-06-03 Page 22 of 99 06/27/2019 Passed First Reading: June 24, 2019 Passed Second Reading: Final Adoption: Published: Effective Date: Mayor, Travis Schaunaman ATTEST: Karl Alberts, Finance Officer Page 2 of 2 Ordinance No. 19-06-03 Page 23 of 99 06/27/2019  Exhibit 1 to Ordinance No. 19-06-03 LAND LEASE AGREEMENT For Aerial Agricultural Spraying Operation Airport Lease #82 Agtegra Cooperative The parties to this lease agreement (“Lease”) are as follows: A. The CITY OF ABERDEEN, a South Dakota municipal corporation, hereinafter referred to as City, whose present address is: Airport Manager, Aberdeen Regional Airport, 4740 6th Ave SE, Aberdeen, SD 57401. B. AGTEGRA COOPERATIVE, a South Dakota cooperative, hereinafter referred to as Lessee, whose present address is: 908 Lamont Street, Aberdeen, SD 57401. WHEREAS, the City owns the Aberdeen Regional Airport situated at 4740 6 th Ave SE, Aberdeen, in Brown County, South Dakota; and WHEREAS, the Lessee herein desires to maintain aircraft at said airport and for that purpose desires to lease sufficient land to operate an aerial agricultural spraying operation; and THEREFORE, in order to authorize the leasing of ground, the parties do in mutual consideration of the promises herein contained agree as follows: I. PURPOSE The Lessee will furnish all materials and supplies for spill containment and storage for aerial agricultural spraying operations at the Aberdeen Regional Airport at Aberdeen, South Dakota. The leased premises will be used for aerial agricultural spraying operations according to plans to be approved by the Aberdeen Airport Board and on file with the Airport Manager. City is under no obligation to allow Lessee to expand beyond the original approved plans. II. TERM The Lessee does hereby lease a total of 10,000 square feet from the City for the period ending December 31, 2023, hereafter the leased premises, as identified on Exhibit A attached hereto. III. RENTAL AMOUNT Lessee shall pay to City a lease rental annually in advance, upon signing this Lease or at the beginning of each Calendar Year, in the following amounts: Page241 ofof995 Page 06/27/2019 Aerial Applicator Land Lease – Agtegra Air, LLC  $0.17 per square foot in Year 2019 $0.19 per square foot in Year 2020 $0.21 per square foot in Year 2021 $0.23 per square foot in Year 2022 TO BE DETERMINED in Year 2023. Lessee agrees that the rental amount per square foot in Year 2023 shall be determined and set by the Aberdeen City Council after review and consideration by the Airport Board of any rental increase. IV. FUEL FLOWAGE FEES In addition to the annual rent and any other expenses incurred herein, Lessee shall pay a City Fuel Flowage Fee not to exceed $0.03 per gallon on all fuel purchased at the Aberdeen Regional Airport. V. ALTERATION OF CONTRACT OR PROPERTY Under no circumstances shall the terms and specifications be altered in any respect without the expressed written permission of the Aberdeen Regional Airport Board, and the Lessee may not alter the leased premises at a later time without the written permission of the Aberdeen Regional Airport Board. VI. IMPROVEMENTS AND ASSIGNMENTS This Lease shall be assignable by the Lessee after giving written notice to the Aberdeen Regional Airport Board and approved by the Airport Board and City Council. It shall be the responsibility of the Lessee to restore the leased premises and any adjacent areas disturbed to its original condition prior to any such assignment. VII. PROPERTY MAINTENANCE The Lessee shall be obligated to keep the leased premises and approaches in a clean and orderly condition and in a good state of repair, to include regular mowing of grass areas and snow removal on approaches. Lessee shall be required to perform whatever reasonable maintenance City deems necessary. If said maintenance is not undertaken or commenced by Owner within 10 days after receipt of written notice, City shall have the right to enter upon the demised premises and perform the necessary maintenance, the cost of which shall be borne by the Lessee. Lessee will pay City the greater of the applicable equipment and labor rates set forth in the annual City fee schedule on file with the Finance Office or the actual cost incurred by City in providing equipment, labor, or contractor services for the City-provided service. City may also include charges for Airport Operations and Maintenance Staff, Airport Administration, Airport Rescue and Fire Fighting Staff, and City Police at the hourly rates specified in the City fee schedule. City will add 10% to all fees to cover City administration and overhead. Lessee shall pay City for the service or response within twenty (20) days of Page252 ofof995 Page 06/27/2019 Aerial Applicator Land Lease – Agtegra Air, LLC receipt of invoice. City is not required to give 10 days’ written notice in the event of a cleanup required under Section XIV herein. City will not be liable for any damages situated within the leased premises as a result of negligence of Lessee to maintain said leased premises. It is understood by the Lessee that this Lease is subject to applicable Airport Regulations and Procedures, City, State and Federal regulations. Any breach of this provision shall allow the City to cancel this Lease as hereinafter provided. VIII. HAZARDOUS STORAGE The Lessee may not under any circumstances store gasoline or any other inflammable liquid within the leased premises other than (1) gasoline stored on-site, which must be contained within NFPA-approved fuel tanks; (2) such fuel as may be incidentally stored within the operating tanks of an aircraft situated on the leased premises or fuel as may be temporarily stored to refill the operating tanks of an aircraft; or (3) as otherwise provided in this Lease. The Lessee shall not store any other substance or material in the leased premises which would create a fire hazard not usual to agricultural operations; this includes long term storage of motor vehicles, oil products, and building materials. The Lessee shall not park or store vehicles, trailers, tractors, or any other apparatus outside of leased premises. Vehicles, trailers, tractors, or other apparatus parked outside of leased premises will be ticketed and towed at Owner’s expense. IX. INSURANCE At all times during the term of this Lease and any extended renewal term thereof, the Lessee shall be obligated to carry liability insurance for at least $2,000,000.00 per occurrence, and at least $4,000,000.00 if the policy has an aggregate limit, for any personal injury or property damage for which the Lessee might become liable due to the possession, operation, and maintenance of the leased premises. In addition, the City of Aberdeen shall be listed as an additional insured. Proof of compliance with this provision shall be filed at all times during the term of this Lease or any extension thereof with the Lessee filing a certificate of insurance, certifying that said insurance is in full force and effect. X. INDEMNITY The Lessee shall hold the City harmless from any and all liability arising out of the Lessee’s possession, maintenance, and operation of the leased premises, except to the extent caused by a third-party not under the control of, or contracted by, Lessee. XI. RELOCATION POTENTIAL If a substantial change is made by the City at the airport so as to necessitate a change in location of the leased premises, the City shall have the right to require the relocation of the leased premises covered by this Lease to another location provided for agricultural operation and Lessee shall have the right to terminate this Lease upon City’s written notice to change the location of the leased premises. If the City requires Page263 ofof995 Page 06/27/2019 Aerial Applicator Land Lease – Agtegra Air, LLC the removal, however, the City shall be obligated to furnish the Lessee with another area of at least equal size and nature. If relocation is required by the City, said relocation shall be accomplished within 180 days after written notice from the City to the Lessee without any interruption of Lessee’s use of the leased premises. XII. PERSONAL STORAGE It is understood that the purpose of this Lease is to allow the Lessee to maintain its own aircraft and under no circumstances may the Lessee conduct any business or advertise any services other than aerial spraying or application related services from the premises being leased herein without express written authority of City. XIII. TERMINATION/CANCELLATION If the Lessee breaches this Lease in any respect by failing to perform any one or more of the obligations of the Lessee as provided herein or should breach any one or more of the other provisions of this Lease, the City shall have the right to terminate this Lease by giving the Lessee a period of 30 days within which to remedy the breach of this Lease. This notice will be given by the City by mailing the notice to the Lessee at his post office address as revealed by this Lease or any writing subsequently filed by the Lessee, with the City, changing the address. If the Lessee fails to remedy the breach of this Lease all rights and interest of the Lessee shall cease. If additional time in excess of 30 days is necessary to remedy the breach the Lessee shall apply for an extension of time in which to comply and in no event shall the time be extended for more than 100 days. Said application shall be submitted to the Airport Board for approval. Lessee shall also be able to terminate this Lease for convenience once a year by providing sixty days written notice prior to the annual effective date of this Lease. XIV. FEDERAL HAZARDOUS STORAGE COMPLIANCE Lessee shall not use, generate store, treat, dispose of or otherwise introduce into, or on or about the leased premises any Hazardous Substances, as hereinafter defined, nor shall Lessee cause or permit any other person or entity to do so without written authorization of City, except as otherwise provided in this Lease. “Hazardous Substances” shall include any waste, substance, pollutant, contaminant or solid waste as defined in the Comprehensive Environmental Response, Compensation and Liability Act, 42 U. S. C. Section 9601 et seq., and any other applicable federal, state or local laws or ordinances, and in the rules and regulations thereunder, as may be amended, supplemented or superseded from time to time, or any other substance which may at any time be a violation or support a claim or cause of action under common law or any federal, state or local environmental statute, regulation, ordinance or other environmental regulatory requirement, whether currently or as a result of future removal. However, the foregoing restrictions shall not apply to the storage and use of approved agricultural chemicals, products and materials in reasonable quantities. Lessee shall handle and store all Hazardous Substances in accordance with all rules and regulations of the South Dakota Department of Natural Resources (SDDNR) and Environmental Protection Agency (EPA), and shall maintain proper labeling of all said Hazardous Page274 ofof995 Page 06/27/2019 Aerial Applicator Land Lease – Agtegra Air, LLC Substances in accordance therewith. Lessee agrees to clean up all Hazardous Substances on the leased premises, if caused or permitted by Lessee, or if Lessee shall otherwise be responsible therefor, in a manner which shall comply with all applicable environmental laws and requirements. The provisions of this paragraph regarding environmental matters shall survive the expiration or sooner termination of this Lease. XV. AIRPORT RULES AND REGULATIONS City must provide Lessee with a copy of all rules and regulations adopted by the Aberdeen Airport Board and/or the Aberdeen City Council affecting Lessee's occupancy and Lessee must abide by them. Each party shall abide by all local, state and federal regulations and laws at all times. Any fine administered to City by state or federal agencies due to Lessee's failure to comply with any local, state, or federal law or regulation shall be charged to Lessee. XVI. RADIO REQUIREMENT Lessee shall have operating radio equipment to broadcast on the Common Traffic Advisory Frequency (122.7) in any plane landing at or operated within the secured airport area. IN WITNESS WHEREOF, the parties have hereunto set tbewUqands on this day of 2019. / \ AGTEGR COOPERATIVE Datex \ont~' Chris PearsoijfChief Executive Officer and Treasurer CITY OF ABERDEEN Date: Rich Krokel, Transportation Director The foregoing Lease is hereby approved and ratified by the City Council of Aberdeen, South Dakota, this day of 2019. Lynn Lander, City Manager ATTEST: Karl Alberts, Finance Officer Page 5 of Page 28 of99 5 06/27/2019 Aerial Applicator Land Lease - Agtegra Air, LLC  Exhibit A Land Lease Agreement For Aerial Agricultural Spraying Operation - Agtegra Cooperative- Agtegra space Page 29 of 99 06/27/2019 Page 30 of 99 06/27/2019 Page 31 of 99 06/27/2019 Page 32 of 99 06/27/2019 Page 33 of 99 06/27/2019 Page 34 of 99 06/27/2019 Page 35 of 99 06/27/2019 Page 36 of 99 06/27/2019 Page 37 of 99 06/27/2019 Page 38 of 99 06/27/2019 Page 39 of 99 06/27/2019 Page 40 of 99 06/27/2019 Page 41 of 99 06/27/2019 Page 42 of 99 06/27/2019 Page 43 of 99 06/27/2019 Page 44 of 99 06/27/2019 Page 45 of 99 06/27/2019 Page 46 of 99 06/27/2019 Page 47 of 99 06/27/2019 Page 48 of 99 06/27/2019 Page 49 of 99 06/27/2019 Page 50 of 99 06/27/2019 Page 51 of 99 06/27/2019 Page 52 of 99 06/27/2019 7A Page 53 of 99 06/27/2019 Page 54 of 99 06/27/2019 Page 55 of 99 06/27/2019 Page 56 of 99 06/27/2019 Page 57 of 99 06/27/2019 Page 58 of 99 06/27/2019 Page 59 of 99 06/27/2019 Page 60 of 99 06/27/2019 Page 61 of 99 06/27/2019 Page 62 of 99 06/27/2019 Page 63 of 99 06/27/2019 Page 64 of 99 06/27/2019 Page 65 of 99 06/27/2019 Page 66 of 99 06/27/2019 Page 67 of 99 06/27/2019 Page 68 of 99 06/27/2019 Page 69 of 99 06/27/2019 Page 70 of 99 06/27/2019 Page 71 of 99 06/27/2019 Page 72 of 99 06/27/2019 Page 73 of 99 06/27/2019 Page 74 of 99 06/27/2019 Page 75 of 99 06/27/2019 Page 76 of 99 06/27/2019 Page 77 of 99 06/27/2019 Page 78 of 99 06/27/2019 Page 79 of 99 06/27/2019 Page 80 of 99 06/27/2019 Page 81 of 99 06/27/2019 Page 82 of 99 06/27/2019 Page 83 of 99 06/27/2019 Page 84 of 99 06/27/2019 Page 85 of 99 06/27/2019 Page 86 of 99 06/27/2019 Page 87 of 99 06/27/2019 Page 88 of 99 06/27/2019 Page 89 of 99 06/27/2019 Page 90 of 99 06/27/2019 Page 91 of 99 06/27/2019 7B Page 92 of 99 06/27/2019 Page 93 of 99 06/27/2019 Page 94 of 99 06/27/2019 Page 95 of 99 06/27/2019 7C Page 96 of 99 06/27/2019 Page 97 of 99 06/27/2019 Page 98 of 99 06/27/2019 7D Page 99 of 99 06/27/2019