City Council Meeting

MINUTES Regular City Council Meeting Tuesday, September 1, 2020 at 7:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, South Dakota 57104 CALL TO ORDER 1. MEETING ROLL CALL Present: Council Member Rick Kiley (via Telecom), Council Member Greg Neitzert, Council Member Marshall Selberg, Council Member Curt Soehl (via Telecom), Council Member Pat Starr, Council Member Janet Brekke, Council Member Christine M. Erickson (via Telecom), Council Member Alex Jensen, Mayor Paul TenHaken Absent: None 2. INVOCATION  Dorothy TerHorst, Direct Line Prayer Center Partner 3. PLEDGE OF ALLEGIANCE CONSENT AGENDA 4. APPROVAL OF THE CONSENT AGENDA A request was made by Council Member Greg Neitzert to place Sub-Item 24 from Agenda Item 6 on the Regular Agenda for Council Discussion (City Council. Provide legal assistance to the Sioux Falls City Council. Frieberg, Nelson & Ask, LLP. Not to exceed $5,000. Hourly Rate $225/hr. 20-4193). A motion was made by Council Member Selberg and seconded by Council Member Jensen to approve the Consent Agenda. Roll call vote to approve. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 5. APPROVAL OF MINUTES  Budget Hearings of Tuesday, August 18, 2020  City Council Meeting of Tuesday, August 18, 2020  Informational Meeting of Tuesday, August 25, 2020   Joint Council Meeting - Minnehaha County of Tuesday, August 25, 2020  Joint Council Meeting - Lincoln County of Tuesday, August 25, 2020 COMMUNICATIONS 6. Approval of contracts/agreements on the memorandum dated August 28, 2020. A motion was made by Council Member Selberg and seconded by Council Member Jensen to approve Sub-Item 24 from Agenda Item 6. Roll call vote to approve. 7 Yes: Kiley, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. Neitzert was excused from the meeting and the vote on this item pursuant to City Ordinance 30.017. 7. Approval of the SIOUXPERHERO Committee's recommendation that the City Council award the SIOUXPERHERO Citizen Recognition Award to: Tony Sutter. 8. Report of Requests for Quotes for Fuel dated: August 12, 2020; Dyed Diesel (1,000 Gallons), Unleaded (7,000 Gallons); Farstad Oil (Unleaded $1.322 and Dyed Diesel $1.48); Harms Oil (Unleaded $1.5713 and Dyed Diesel $1.4074; Coles Petroleum (Unleaded $1.5425 and Dyed Diesel $1.379); Stern Oil (Unleaded $1.5384 and Dyed Diesel $1.3469). CHS Inc., Howes Oil, and CHS Inc., all no bid. Bid awarded to: Farstad Oil . 9. Sioux Area Metro. Report of Requests for Quotes for Fuel dated: August 14, 2020; 9,000 Gallons of #2 Clear Diesel; Parkland USA/SPF Energy Inc./Farstad Oil (#2 Clear Diesel ($1.576); Harms Oil (#2 Clear Diesel ($1.682665). CHS, Inc., Howes Oil., Petroleum Traders, and Midwest Oil, all no bids. Bid awarded to: Parkland USA/SPF Energy Inc. /Farstad Oil. 10. Report of Requests for Quotes for Fuel dated: August 18, 2020; Unleaded E10 (7,500 Gallons) and Unleaded E30 (1,000 Gallons); Vollan Oil (E10 $1.5221 and E30 $1.4212); Harms Oil (E10 $ 1.5886 and E30 $1.6841); Coles Petroleum (E10 $1.5169 and E30 $1.55); Parkland Oil (E10 $1.531 and E30 $1.4695). Howes Oil, and Olson Inc., both no bid. Bid awarded to: Vollan Oil. 11. Report of Requests for Quotes for Fuel dated: August 20, 2020; Dyed Diesel (7,500 Gallons); Farstad Oil ($1.30); Harms Oil ($1.3354); Stern Oil ($1.3442); Vollan Oil ($1.33); CHS Inc. ($1.36). Howes Oil no bid. Bid awarded to: Farstad Oil. 12. Report of Requests for Quotes for Fuel dated: August 25, 2020; Dyed Diesel (1,000 Gallons) and Unleaded (7,000 Gallons); Farstad Oil (Dyed Diesel $1.375 and Unleaded $1.612); Sterns Oil (Dyed Diesel $1.3559 and Unleaded $1.6551); Harms Oil (Dyed Diesel $1.4228 and Unleaded $1.6878); Coles Petroleum (Dyed Diesel $1.405 and Unleaded $1.661). CHS Inc., Howes Oil and Olson Oil, all no bid. Bid awarded to: Farstad Oil. 13. Letter from the Sioux Falls Board of Ethics to the City Council, dated August 26, 2020. APPLICATIONS 14. Renewal of 2020-21 Retail Malt Beverage/SD Farm Wine License for T Nail Spa, 433 West 69th Street. 15. Special One-Day Liquor License for Great Bear Management Inc., Great Bear Recreation Park, 5901 East Rice Street for a special event on September 18, 2020. NOTICE OF HEARINGS 16. Set a date of hearing for Tuesday, September 15, 2020. Request to add video lottery terminals with 2020-21 Retail Malt Beverage/SD Farm Wine License for Kathmandu Indian Cuisine, LLC, 5310 East Arrowhead Parkway. 17. Set a date of hearing for Tuesday, September 15, 2020. New 2020-21 Retail Malt Beverage/SD Farm Wine License for Lam Spa LLC, The Spa on Phillips, 224 North Phillips Avenue, Suite 110. 18. Set a date of hearing for Tuesday, September 15, 2020. New 2020-21 Retail Malt Beverage/SD Farm Wine License and New 2021 Retail Wine License for West Mall Theatres Inc., West Mall 7 Theatres, 2101 West 41st Street, Suite 33. 19. Set a date of hearing for Tuesday, September 15, 2020. Special One-Day Wine Licenses and Special One-Day Off-Sale Package Wine Licenses for 69th Street Looks Market to be operated at Avera Heart Hospital, 4500 West 69th Street, for special events on September 16 & 30, 2020. 20. Set a date of hearing for Tuesday, September 15, 2020. Special One-Day Liquor Licenses for T Slat Inc, JJ’s Wine Spirits & Cigars to be operated at Sanford Event Barn, 2510 East 54th Street North, for special events on September 19 and 26, 2020. 21. Set a date of hearing for Tuesday, September 15, 2020. Special One-Day Wine License for Downtown Sioux Falls Inc., to be operated at the following locations: BluMoon Designs, 421 North Phillips Avenue, Suite 115; 8th & Rail Road Center, 401 East 8th Street, Suite 200A; Atoley Spa, 317 South Phillips Avenue; Bechtold’s Jewelry, 325 South Phillips Avenue; Chelsea’s Boutique, 220 South Phillips Avenue; Great Outdoor Store, 201 East 10th Street; Home Porch Gifts, 217 South Phillips Avenue; Layered Elements, 701 North Phillips Avenue, Suite 135; Lauriebelle’ Boutique, 206 South Phillips Avenue; MK Threads, 421 North Phillips Avenue, Suite 112; Rehfeld’s Art & Framing, 431 North Phillips Avenue, Suite 101; Say Anything Jewelry, 225 South Phillips Avenue; Simply Perfect, 401 East 8th Street, Suite 108; Sticks & Steel, 401 East 8th Street, Suite 118; Swamp Daddy’s, 421 North Phillips Avenue, Suite 105; Common Sense, 400 South 2nd Avenue; TH Grey, 330 South Phillips Avenue; Mint+Basil, 207 South Phillips Avenue; JH & Sons, 216 South Phillips Avenue; Bloom Room Boutique, 701 North Phillips Avenue, Suite 155, for an Art & Wine Walk on October 2, 2020. 22. Set a date of hearing for Tuesday, September 15, 2020. Transfer of 2020 Package Liquor License and 2020 Retail Wine License from Luciano’s North LTD, Luciano’s  North, 431 North Phillips Avenue, to Luciano’s North LTD, Luciano’s North, 720 South Highline Place (CUP not required). REGULAR AGENDA 23. APPROVAL OF THE REGULAR AGENDA A motion was made by Council Member Selberg and seconded by Council Member Jensen to approve the Regular Agenda. Roll call vote to approve. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 24. PUBLIC INPUT Bob Carlson, Stacy Surat, and Jeremy Hegg spoke about their support for the Municipal Band. Bob Kolbe spoke about the Invocation, the Ethics Board, ballot boxes, and public comment at Council Meetings. David Zokaites spoke about city laws. Trisha Callaghan spoke about the need for ballot boxes for the November election. Sierra Broussard spoke about police department activity with massage parlors and human trafficking in the city. Tim Stanga spoke about cleaning up the neighborhoods in the Whittier area of Sioux Falls and the COVID virus. Rhanda Heller spoke about illegal massage therapists in Sioux Falls. Dennis Haugen spoke about news reports showing rioting in the country. Buck Underwood spoke about a veteran taking care of and cleaning a vandalized sign in Sioux Falls. Mr. Underwood has a token for the veteran to be given at a later time. He shared an experience of returning from the Vietnam War and the lack of respect in society. Sub-Item 24 from Agenda Item 6 was heard at this time. See Item 6 for action taken. UNFINISHED BUSINESS 25. Transfer of 2020 Retail Wine & Cider License and 2020-21 Retail Malt Beverage/SD Farm Wine License from Red Sea Pub LLC, 921 East 8th Street, to Red Sea Pub Inc., 921 East 8th Street. 26. Transfer of 2020 Retail Wine & Cider License from Munce Spa Inc., Spa 2000, 224 North Phillips Avenue #110, to Lam Spa LLC, Spa 2000, 224 North Phillips Avenue #110. 27. Transfer of 2020 Retail Wine & Cider License & 2020-21 Retail Malt Beverage/SD Farm Wine License from Urban Chislic LLC, 441 West 85th Street, to Urban Chislic LLC, 431 West 85th Street. 28. Request to add video lottery terminals with the 2020-21 Retail Malt Beverage/SD Farm Wine License for Urban Chislic LLC, 431 West 85th Street. 29. Transfer of 2020 Retail Liquor License, including video lottery terminals, from MG Oil Company, Bubba J’s, 114 North Indiana Avenue, to MG Oil Company, The 18th Amendment 2, 1301 West 41st Street, Suite 100, with Conditional Use Permit (12449- 2020) being approved on August 5, 2020. 30. New 2020 Retail Malt Beverage/SD Farm Wine License for MG Oil Company, Bubba J’s, 114 North Indiana Avenue. 31. Request to add video lottery terminals with the 2020-21 Retail Malt Beverage/SD Farm Wine License for MG Oil Company, Bubba J’s, 114 North Indiana Avenue. 32. Special One-Day Wine License for Wine Time on Main to be operated at Washington Square 8th Floor Common Area, 350 South Main Avenue, for a special event on September 3, 2020. 33. Special One-Day Malt Beverage and Special One-Day Wine Licenses for Washington Pavilion Management Inc., to be operated at LG Everist, 350 South Main Avenue, Suite 400, for a special event on September 9, 2020. A motion was made by Council Member Selberg and seconded by Council Member Jensen to approve Items 25 through 33. Roll call vote to approve. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. INTRODUCTION AND ADOPTION OF ORDINANCES ORDINANCE SECOND READINGS 34. 2nd Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, AMENDING THE CODE OF ORDINANCES OF THE CITY BY AMENDING CHAPTER 150: BUILDING, SUBCHAPTER ELECTRICITY, BY ADOPTING THE 2020 NATIONAL ELECTRICAL CODE AND AMENDMENTS THERETO. A motion was made by Council Member Neitzert and seconded by Council Member Selberg to adopt Ordinance No. 68-20.  Roll call vote to adopt. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 35. 2nd Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, REZONING PORTION OF PROPERTY LOCATED AT 7525 S. GRAND ARBOR PL. FROM THE RA-2 APARTMENT RESIDENTIAL—MODERATE DENSITY DISTRICT TO THE RA-1 APARTMENT RESIDENTIAL—LOW DENSITY DISTRICT, NO. 12556-2020, AND AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF SIOUX FALLS. The Planning Commission recommends approval (5-0). A motion was made by Council Member Jensen and seconded by Council Member Neitzert to adopt Ordinance No. 69-20. Roll call vote to adopt. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 36. 2nd Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, REZONING PORTION OF PROPERTY LOCATED SOUTH OF W. FRANK BOYCE DR., NORTH OF W. MADISON ST., AND WEST OF N. TERRY AVE FROM THE C-2 COMMERCIAL—NEIGHBORHOOD AND STREETCAR DISTRICT TO THE I-1 LIGHT INDUSTRIAL DISTRICT, NO. 12480-2020, AND AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF SIOUX FALLS. The Planning Commission recommends approval (5-0). A motion was made by Council Member Selberg and seconded by Council Member Jensen to adopt Ordinance No. 70-20. Roll call vote to adopt. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 37. 2nd Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, REZONING PORTION OF PROPERTY LOCATED WEST OF N. SIX MILE RD. AND NORTH OF E. 10TH ST. FROM THE AG AGRICULTURE AND RD-2 TOWNHOME RESIDENTIAL— SUBURBAN DISTRICTS TO THE RS SINGLE-FAMILY RESIDENTIAL—SUBURBAN DISTRICT, NO. 12438-2020, AND AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF SIOUX FALLS. The Planning Commission recommends approval (5-0). A motion was made by Council Member Selberg and seconded by Council Member Jensen to adopt Ordinance No. 71-20. Roll call vote to adopt. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 38. 2nd Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, REZONING PORTION OF PROPERTY LOCATED AT 4800 E. 41ST ST. FROM THE O OFFICE DISTRICT TO THE RA-1 APARTMENT RESIDENTIAL—LOW DENSITY DISTRICT, NO. 12431-2020, AND AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF SIOUX FALLS. The Planning Commission recommends approval (6-0) with the following condition(s): 1. 6' screen fence along the east property line; 2. 18' setback from the building to the east property line.  A motion was made by Council Member Erickson and seconded by Council Member Neitzert to adopt Ordinance No. 72-20. A motion was made by Council Member Kiley and seconded by Council Member Starr to amend by adding the following condition: add a one foot berm in the area designated. Roll call vote to amend. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. Roll call vote to adopt, as amended. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. ORDINANCE FIRST READINGS 39. 1st Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, APPROVING THE FIRST AMENDMENT TO OPTION TO PURCHASE REAL ESTATE FROM THE CITY. Recommendation: Set a date of 2nd Reading for Tuesday, September 8, 2020. A motion was made by Council Member Brekke and seconded by Council Member Jensen to set a date of hearing for Tuesday, September 8, 2020 for Item 39. Roll call vote to set a date of hearing. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 40. 1st Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, APPROVING FIRST AMENDMENT TO DEVELOPMENT AGREEMENT. Recommendation: Set a date of 2nd Reading for Tuesday, September 8, 2020. A motion was made by Council Member Selberg and seconded by Council Member Brekke to set a date of hearing for Tuesday, September 8, 2020 for Item 40. Roll call vote to set a date of hearing. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 41. 1st Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, DECLARING CERTAIN REAL PROPERTY OF THE CITY SURPLUS AND APPROVING THE OFFER TO PURCHASE AND DEVELOPMENT AGREEMENT. Recommendation: Set a date of 2nd Reading for Tuesday, September 8, 2020. A motion was made by Council Member Brekke and seconded by Council Member Jensen to set a date of hearing for Tuesday, September 8, 2020 for Item 41. Roll call vote to set a date of hearing. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. 42. 1st Reading: AN ORDINANCE OF THE CITY OF SIOUX FALLS, SOUTH DAKOTA (THE “CITY”), AUTHORIZING THE ISSUANCE OF ITS SALES TAX REVENUE BONDS (THE “SERIES 2020 BONDS”); AUTHORIZING THE USE OF THE PROCEEDS THEREOF TOGETHER WITH ANY OTHER AVAILABLE FUNDS TO (1) DESIGN, CONSTRUCT, EQUIP AND/OR FURNISH A NEW PUBLIC SAFETY TRAINING AND METRO 911 PSAP FACILITY AND, SUBJECT TO AVAILABILITY OF FUNDS, PAY THE COSTS OF DEMOLITION OF THE OLD FIRE TRAINING SITE AND POLICE GUN RANGE LOCATED AT 3401 N. WESTERN AVE., (2) REFUND ALL OR A PORTION OF ONE OR MORE OF THE OUTSTANDING CITY OF SIOUX FALLS (A) SALES TAX REVENUE BONDS, SERIES 2009A, (B) SALES TAX REVENUE BONDS, SERIES 2009B-1 AND (C) TAXABLE SALES TAX REVENUE BONDS (RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS), SERIES 2009B-2 AND (3) PAY THE COST OF ISSUANCE THEREOF; PLEDGING A PORTION OF THE SALES AND USE TAX PROCEEDS OF THE CITY TO THE PAYMENT OF SAID SERIES 2020 BONDS; FIXING THE TERMS OF SUCH SERIES 2020 BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF ONE OR MORE SUPPLEMENTAL INDENTURES TO THE AMENDED AND RESTATED INDENTURE OF TRUST ENTERED INTO BY THE CITY TO SECURE SALES TAX BONDS; AUTHORIZING THE SALE, EXECUTION, AND DELIVERY OF SUCH SERIES 2020 BONDS IN AN AMOUNT SUFFICIENT TO (I) FUND A DEPOSIT OF BOND PROCEEDS IN AN AMOUNT NOT TO EXCEED $50,000,000 TO A CONSTRUCTION FUND TO FINANCE SUCH PROJECT, (II) FUND DEPOSITS TO THE APPLICABLE REDEMPTION ACCOUNTS TO REDEEM ANY SUCH REFUNDED BONDS, (III) PAY COSTS OF ISSUANCE OF SUCH SERIES 2020 BONDS, AND (IV) FUND CAPITALIZED INTEREST, IF ANY, AND A DEBT SERVICE RESERVE FUND; AND AMENDING CERTAIN COVENANTS IN THE AMENDED AND RESTATED INDENTURE WITH RESPECT TO ADDITIONAL BONDS AND ESTABLISHING A COMMON DEBT SERVICE RESERVE FOR ADDITIONAL. Recommendation: Set a date of 2nd Reading for Tuesday, September 8, 2020. A motion was made by Council Member Kiley and seconded by Council Member Brekke to set a date of hearing for Tuesday, September 8, 2020 for Item 42. Roll call vote to set a date of hearing. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. HEARINGS AND RESOLUTIONS 43. A RESOLUTION APPROVING THE 2020–2021 BUDGET FOR THE SIOUX FALLS CONVENTION & VISITORS BUREAU BUSINESS IMPROVEMENT DISTRICT. A motion was made by Council Member Brekke and seconded by Council Member Jensen to adopt Resolution No. 95-20. Roll call vote to adopt. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. RESOLUTION NO. 95-20 A RESOLUTION APPROVING THE 2020–2021 BUDGET FOR THE Sioux Falls CONVENTION & VISITORS BUREAU BUSINESS IMPROVEMENT DISTRICT. WHEREAS, pursuant to Resolution No. 86-10, the City of Sioux Falls adopted a resolution of intent to establish the Sioux Falls Convention & Visitors Bureau (CVB) Business Improvement District; and WHEREAS, in accordance with Chapter 9-55 of the South Dakota Codified Laws, the CVB Business Improvement District has imposed an occupational tax of two dollars ($2.00) per night per rented room for all lodging rooms within the CVB Business Improvement District to market and promote the visitor industry in the city of Sioux Falls and increase the room night sales of lodging facilities within the CVB Business Improvement District; and WHEREAS, the CVB Business Improvement District Board of Directors has developed an annual budget that is subject to City Council approval; NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF SIOUX FALLS, SD: That the budget dated October 1, 2020, through September 30, 2021, is hereby approved. Date adopted: 09/01/20. Paul TenHaken, Mayor ATTEST: Thomas Greco, City Clerk 44. A RESOLUTION REAPPOINTING AN AUDIT COMMITTEE MEMBER TO THE CITY COUNCIL AUDIT COMMITTEE. A motion was made by Council Member Selberg and seconded by Council Member Jensen to adopt Resolution No. 96-20. Roll call vote to adopt. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. RESOLUTION NO. 96-20 A RESOLUTION REAPPOINTING AN AUDIT COMMITTEE MEMBER TO THE CITY COUNCIL AUDIT COMMITTEE. BE IT RESOLVED BY THE CITY OF SIOUX FALLS, SD: That it gives its advice and consent to the following member to serve on the Audit Committee pursuant to Sections 32.017 and 32.018 of the Code of Ordinances of Sioux Falls, SD: Name Committee Term Rose Grant Audit Committee Appointed for a term from September 2020 to August 2023. Date adopted: 09/01/20. Paul TenHaken, Mayor ATTEST: Thomas Greco, City Clerk NEW BUSINESS There was none. ADJOURNMENT A motion was made by Council Member Jensen and seconded by Council Member Neitzert to adjourn at 9:00 p.m. Voice vote to adjourn. 8 Yes: Kiley, Neitzert, Selberg, Soehl, Starr, Brekke, Erickson, Jensen; 0 No: (None). Motion Passed. Tamara Jorgensen, MMC, Assistant City Clerk