Council Working Session

MINUTES Council Working Session Wednesday, January 18, 2023 at 3:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Present: David Barranco, Sarah Cole, Alex Jensen, Rich Merkouris, Greg Neitzert, Curt Soehl Absent: Marshall Selberg, Pat Starr 2. Discussion Topic(s) Item 2D was heard at this time. See Item for information discussed. A. Status Update of the Appropriated CARES Act and ARPA Funds Shawn Pritchett, Director of Finance, reviewed a copy of an exhibit that is included in the monthly reports called “American Recovery Plan Act (ARPA) and Local Government Assistance (LGA) Project Summary”. Pritchett noted that December data was not included as the Audit is not completed at this time. Also noted some numbers may be subject to change based on quality control and timelines needed. Pritchett discussed the areas that are noted on the chart providing status updates on their existing funds and progress. The end date for the ARPA funds is 12/31/24 for the obligations to be contractually obligated. He noted that the ‘Eat Well Sioux Falls’ program has not yet received a lot of applications, but this may be due to some possible duplication with other entities. This may lead to some funding availability/reallocation for homeless strategies and street teams. Pritchett provided a further breakdown of funds for the Core Neighborhood Acquisition and Accessible Housing Initiative and the Safety and Home Grant Program. An update included noting that the Police Chief is working on a crime prevention/public safety development plan that will be brought forward to the Council for consideration in February or March 2023. Discussion was held regarding: the deadline for the funds to be used; possible activity by Congress that could impact the funds or extend the deadline for the funds; the relationship between the timelines for the 7th Street Cul De Sac project and the project with the 6th Street Bridge; the process used for determining which projects would receive the ARPA and LGA funds; the possibility of expanding the Public Safety Home Ownership Program to include teachers as well as the existing police officer and first responder groups; and compliments were extended to the Finance Department for their efficiency in setting up these programs and the ability to provide good clarity and communication with the Council on these reports. B. Status of Currently Funded Projects: 2023 and Previous Appropriations Pritchett reviewed a chart called “Anticipated BID Schedules for Major Projects”. The chart focused on Parks & Recreation and Highways & Streets listing the individual projects, their budgets (noting this can change due to bidding and cost changes), and bidding timelines. Pritchett reviewed the timelines for the projects. Discussion followed regarding: the 85th Street and Cliff Avenue Intersection Improvements; the Barb Iverson Skate Plaza which included background data and how the plaza got its name; a request for the process for submitting bids and how the public can access this data; and an update on the process for sidewalk repairs with an indication this update will come before the Council at an future Informational Meeting. Mark Cotter, Director of Public Works, provided detailed information regarding the sidewalk repair procedures noting their Federal agreement is to update 10% of sidewalks each year – so far there are 63,000 parcels in town; a future realignment of La Mesa with Sertoma Avenue; and the replacement of a stoplight at the 41st and Bahnson Avenue. Cotter explained that there are only 1 or 2 vendors in the country that make this type of street light/signal and this is impacted also by supply shortages, etc. Also discussed was a request for an update on potholes at a future Informational Meeting; a brief update on road projects for the next year or two. Council Chair Curt Soehl said that he and Council Member Alex Jensen will receive updates regarding the bidding process in the future. C. Estimated Year End (2022) Capital and General Fund Balances Pritchett reviewed a chart called the unaudited December 2022, “Municipal Sales/Use Tax Collections (Accrual Basis)” specifically noting Sales/Use Tax at 12.2%; Entertainment Tax was up 14.5%; and Lodging Tax was up 19.9%. Pritchett then reviewed three charts showing changes and fluctuations by year for Sales Tax Collections without Audits and Entertainment Tax Collections without Audits. Pritchett reviewed an updated December Sales Tax Changes (By Industries) 2022 vs. 2021 which illustrates industries experiencing reductions and industries experiencing growth. Discussion was held regarding: $800K General Fund reallocation to other projects; being aware of upcoming labor negotiation timelines regarding COLA’s; the Sales Tax bill on food and 0% provision; levying and a new property tax bill; and the timeline for bidding high risk projects. D. Quality of Life Bonds/Aquatics Don Kearney, Director of Parks and Recreation, provided updates regarding soliciting consultant services to design projects; the Master Plan timeline; the planning of indoor and outdoor options as top priorities. No one knows the cost estimates at this point. Additional plans are to replace the wading pool at McKennan Park and to look for private support opportunities to change the skating rink to refrigerated ice so it could provide year-round ice skating. Kearney noted that schematic designs are needed for cost estimates, after which we will have better information on how to make decisions.  Kearney stated that he read documentation dated back to 2000, that was when the City first started talking about replacing aquatic facilities. Right now, there is no hard and fast deadline on the replacement date as time is first needed to meet with consultants, conduct community outreach with the neighborhoods to involve them in the process, develop site and master plans, determine which pools replacements are needed most and to determine cost estimating. Consultants should be on board by the end of March 2023, and Kearney stated that the middle of the summer to make decisions. Discussion was held regarding the bidding and cost escalation for pool expenses, citing projects in Fargo, ND, and Marshall, MN, as examples, compared to the outdoor aquatic center building of Yankton, SD, in 2018; the option of having refrigerated ice facilities in other parts of the city and the need to review them based on use, popularity, cost, and if there is donor support; the suggestion was made that the Quality of Life Bond contain one subject vs. several; several councilors expressed a need for another pool on the south side of the City; whether or not repurposing land is better or buying new parcels for new pools or putting in pools on land that is currently owned; the suggestion was made to start low cost improvements now, such as shade structures, instead of waiting. A recommendation was made that the Quality of Life Bond should be for something that is accessible to everyone in the public and not just for people that play golf. Has there been time spent on repurposing space around town, such as existing retail and commercial indoor space (this was answered regarding the fact that some indoor space has 30’ columns and would be difficult to use for open floor space needs); Council Member Rich Merkouris noted that he had recently visited Edinborough Park in Edina, MN, which serves as a hotel, a Senior Living Center, and a Community Pool. He noted this was an amazing private/public partnership and it would be interesting if the City could develop something similar; the suggestion was made that the Council submit a listing to the administration within the next 30 days of what their top 3-4 priorities would be before any of the design process starts, noting that, after the cost estimates and designs are done, this may be too late to provide any input for changes; an inquiry was made about how much the existing Arena is used for indoor space and recreational needs. E. 2024 Budget Priorities - Capital and Operational David Bixler, Budget Analyst for the City Council, stated this was an opportunity for the Council Members to discuss any priority items for the 2024 Budget that have not been discussed today. Discussion was held regarding: a fund for cost escalations within the Capital Budget; upcoming negotiations with the labor unions; identifying funding options that the Homeless Task Force recommended; local dollar allocation needs for housing; public safety issues regarding prison paroles, etc.; acceleration on the report to work stations for law enforcement; inflation concerns regarding capital projects; having a healthy level in reserves; and full time wages and upcoming negotiations for staff. 3. Public Comment There was none. 4. Adjournment The Working Session was adjourned at 4:29 p.m. Tamara Jorgensen, Assistant City Clerk