City Council Meeting

OFFICIAL PROCEEDINGS CITY OF HERREID, SOUTH DAKOTA September 6, 2023 The Herreid City Council was called to order by Mayor Gary Weismantel on the above date at 7:31pm at City Hall. The following members were present: A. Dupper, K. Rossow, L. Fuehrer, B. Rossow, and B. Vander Vorst. P. Weisbeck was absent. Also present were: K. Hall, Finance Officer; Brett Van Vugt, Maintenance; Orland Geigle, Prairie Pioneer; and Karen Speidel, Selby Record; Ryan Goehring, citizen; and Chad Edwards, Maguire Iron who joined via video call at 8:00pm. Moved by K. Rossow, seconded by Fuehrer to approve the agenda. All members present voted aye; motion carried. Moved by Dupper, seconded by Vander Vorst to approve the minutes from the August 8, 2023 and August 22, 2023 meetings. All members present voted aye; motion carried. K. Rossow moved, B. Rossow seconded to approve the following regular August claims. All members present voted aye; motion carried. Claims for August 2023 24/7 Gas Fuel $56.64 Agtegra Chemicals $661.48 Associated Pool Builders Chlorine/Chemicals $1,980.00 Cahill Bauer & Associates 2022 Audit $3,500.00 Campbell County Bank June/July ACH Fees $70.80 Campbell County Sheriff Services $2,828.96 Curtis Rud Oil Propane-Pool $1,598.50 Elmers Welding Repairs/Labor $385.00 Financial Agent Payroll Taxes $4,292.68 Fresh Start Market Supplies $277.23 Heartland Waste Garbage Collection $4,725.00 Herreid Lumber Supplies $140.08 Herreid Super Stop Fuel $444.88 Huber & Son Repairs $407.02 MDU Utilities $2,104.75 Prairie Pioneer Publishing $541.28 Premier Equipment Equipment Parts $80.69 Quill Corp Supplies $276.52 Runnings Parts $13.18 Sanford Paving Project Overpayment Refund $409.63 Servall Rugs $33.68 SD Dept of Agriculture Permit Fees $200.00 SD Dept of Health Sampling Fees $15.00 SD Dept of Revenue Sales Taxes $673.25 SD Retirement Retirement $1,041.40 Uline Supplies & Materials $98.53 USDA Loan Payments for Sewer Projects $7,727.00 Valley Telco Utilities $422.18 Visa Parts-Supplies-Equipment $1,642.88 WEB Water Bulk Water $11,036.96  August Payroll Finance Office $2,608.34 Streets $2,114.75 Water $1,381.30 Sewer $1,381.30 Pool $9,311.87 Parks $156.67 Cemetery $156.67 Sheriff’s Report: No Report Problem Resolution Forms: • Addressed one problem resolution that was submitted concerning unlicensed abandoned vehicles as well as logs and limbs that have overgrown weeds and grass growing around them which would be a place for rodents, mice, snakes, etc. to live. The council determined that this issue is a city code violation and that a notice should be sent to the resident in violation. The notice would give an allotted time for compliance before action would be taken. Building Permits: None Public Comments: • Heard a concern from resident Ryan Goehring about the proposed water rate change and water usage rate restructure change. He felt that the city has water loss problems and was concerned that maybe the city is in essence covering the loss by charging the residents more. Members of the council and the mayor explained that the rate increase was due to upcoming WEB Water rate increases. They also explained that the city is working on identifying and correcting several water loss issues, including putting a new meter on the pool and Fire Hall, and that this was not an attempt to pass the water loss costs along to the residents. FO Hall informed everyone that he has found several instances of meters not reading correctly which has in essence resulted in the city giving away water, and that he and B. Van Vugt are working on correcting the issues. Mayor Weismantel explained that he had conferred with surrounding cities and that almost all are charging a flat rate for usage starting at the first gallon and were not including free water with the base rate. The base rate is simply to cover the costs associated with maintaining the system and the usage rates are what covers the purchased water from WEB. Goehring thanked the council for their time and the council thanked Goehring for his attendance. • Discussion was held about a “No Parking” sign that has been put up at an alley (not a through alley) near the school. It was noted that the city did not put the sign there, but that it has been placed there by a resident. It was also noted as a reminder that according to city code, it is illegal to park in or block any alleys. Old Business: • Pool – Heard that the Associated Pool Builders will be on site in the next couple of days to drain and winterize the pool. Also heard that Inside & Out LLC is expected to be on site soon, as agreed, to remove and repair a section of the concrete at the pool. While that section of concrete is open, the electricians will repair an electrical connection that needs repaired according to the SD Electrical Commission. Once that connection is repaired and verified by two separate engineering firms, the Commission will issue approval and the concrete will then be repoured correctly. Among the concrete repairs, Inside & Out will also be repairing other issues within the bathhouse that were previously discussed. New Business: • Held the first reading of the 2024 Appropriations Ordinance. Total appropriations for the General fund are expected to be $644,958 with $189.460 coming from unapplied cash, $315,500 from sales tax, and $139,998 from tax levies. The Sewer fund is expected to have $198,000 in appropriations and revenue, and The Water fund is expected to have $202,500 in appropriations and revenue. Both the Sewer fund and the Water fund are self-supporting funds. • Held the first reading of the Code Adopting Ordinance #2023-03. This ordinance is for the adoption of the official code that is an updated version (recodification) of the original city code (laws/ordinances). Once passed and adopted, the new code will be available on the city's website. That will provide anyone access to all codes and any future changes to the code. FO Hall noted that the recodification project was started back in 2019 and this is the final step in that project. • Held the first reading of the Water Rates & Structure Ordinance #2023-04. This ordinance addresses the changes to the water base rates and also the restructuring of the usage rates and how water usage will be billed. The current base rate for in-city- limits is $30 and $40 for out-of-city-limits. Upon passage, the new rates will be $32 and $42. Currently, water usage is billed in a tiered system with the first 3000 gallons being included with the base rate. Upon passage, there will be no tiered system, there will be a simple flat rate beginning at the first gallon. The flat rate per 1000 gallons will be $7 for in-city-limits and $8 out-of-city-limits. • Mayor Weismantel read the Capital Outlay Accumulation Resolution # 2023-05. Motion was made by B. Rossow and seconded by K. Rossow to approve the resolution. All members present voted aye; motion carried. The purpose of this resolution is to accumulate and earmark designated amounts of city funds to cover the costs of future projects and purchases. This capital outlay accumulation will help cover the future cost of replacing the city maintenance truck and the cost of replacing the swimming pool liner. • Motion was made by K. Rossow, seconded by B. Rossow to renew the $125,000 savings CD for one year. All members present voted aye; motion carried. • Heard that code enforcement will be in town next week. Discussion was held on the current properties in violation. The council’s code enforcement committee will meet with the code enforcement officer after his visit to be updated on which properties have complied and which have not complied with previous notice letters. • Heard that FO Hall has one quote in so far for the city’s 2023-2024 propane contract. He expects to receive at least two others and will bring it before the council for decision at that time. • Met via Zoom with Chad Edwards from Maguire Iron concerning a potential water tower refurbish project proposal. Edwards detailed the proposal that included sandblasting and repainting the exterior, installing up-to-code proper venting, installing a proper access ladder to meet safety standards, and more. This project would help prolong the life of the tower and bring it up to AWWA and OSHA standards. The proposed project total is $219,928 but would be billed annually at $54,982. Edwards informed that the project would take about 4-6 weeks and that they have systems available that ensure normal water service to residents during the project. He also informed the council that Maguire Iron has successfully refurbished many other water towers across the state and in other states. If accepted and approved, the project would start in 2024. The council made no formal motions for acceptance and approval of the project, but did move to allow WEB engineers to look at the feasibility of connecting directly to Agtegra and Herreid Livestock Market. That would allow the current water tower to still provide the needed capacity for the city and help alleviate the water pressure issues in town. That motion  was made by K. Rossow, seconded by Vander Vorst. All members present voted aye; motion carried. Maintenance Report: Discussed jetting culverts before winter, a drain issue near the Baptist church, and pool winterization. Finance Report: Reviewed the financial reports and delinquent utility accounts. The next meeting will be a special meeting scheduled for Wednesday, Sept 27th at 7:30pm to discuss the 2024 Budget. The next regularly scheduled Council meeting will be Monday, Oct. 2nd at 7:30pm With no further business, the meeting was adjourned at 9:15pm APPROVED: _________________________________________ Gary Weismantel, Mayor ATTEST: __________________________________ Keith Hall, Finance Officer This institution is an equal opportunity provider. Resolution No. 2023-05 CAPITAL OUTLAY ACCUMULATIONS A RESOLUTION ESTABLISHING A CAPITAL OUTLAY ACCUMULATION FOR GENERAL FUND SWIMMING POOL LINER REPLACEMENT AND CITY MAINTENANCE TRUCK REPLACEMENT WHEREAS, the City Council of the City of Herreid, South Dakota, has determined that improvements, equipment, land and buildings are necessary to preserve, upgrade and maintain the general fund operations of the City; and, WHEREAS, the City Council of the City of Herreid has determined that there are not sufficient funds within the general fund to proceed with said general fund improvements, equipment, land and buildings; and, WHEREAS, the City Council of the City of Herreid, the authority of SDCL 9-21-14.1, authorizes the accumulation of funds for capital outlay purposes to make general fund improvements, equipment, land and buildings; and, WHEREAS, the City Council of the City of Herreid acknowledges that, according to SDCL 9-21-14.2, the accumulations must be expended within sixty (60) months from the date of resolution establishing said accumulations and any accumulated funds deemed no longer necessary shall revert to the general fund; and, WHEREAS, as required by SDCL 9-21-14.1 and 9-21-14.2, City Council of the City of Herreid establishes that the maximum amount of the total general fund capital outlay accumulations shall not exceed $40,000.00 for Swimming Pool Liner Replacement; and, WHEREAS, as required by SDCL 9-21-14.1 and 9-21-14.2, City Council of the City of Herreid establishes that the maximum amount of the total general fund capital outlay accumulations shall not exceed $45,000.00 for City Maintenance Truck Replacement; and, WHEREAS, according to the standard accounting principles as established by the South Dakota Department of Legislative Audit by the direction of South Dakota Codified Law, said capital outlay accumulations shall be a part of the general fund as an assigned cash account; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Herreid, South Dakota, that capital outlay accumulations in the general fund be established and that the Finance Officer is hereby authorized and directed to budget and accumulate $8,000.00, beginning with the 2024 appropriations for the Swimming Pool Liner Replacement and $15,000.00 for the City Maintenance Truck Replacement for a total of $23,000.00. Dated this 6th day of September, 2023.