Informational Meeting

MINUTES Informational Meeting Tuesday, July 20, 2021 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Janet Brekke, Christine M. Erickson, Rick Kiley, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: Alex Jensen Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Councilor Remarks Soehl recognized Assistant City Clerk Denise D. Tucker's recent achievement of becoming an Athenian Fellow and being inducted into the International Institute of Municipal Clerks' Athenian Leadership Society. Tucker is the only IIMC member in South Dakota to achieve this distinction. Council Member Rick Kiley spoke about events he participated in this weekend, which included: the 31st Anniversary Celebration of the Americans with Disabilities Act; a State Bridge Naming Ceremony to honor Staff Sgt. Jeremy Vrooman; and a Tribute to Fallen Soldiers at The Alliance, which was conducted by a group of Oregon motorcycle riders who are traveling across the country recognizing 70 fallen soldiers and families. Two local soldiers were recognized, one being Robb Rolfing, son of former City Councilor Rex Rolfing. City Council Member Christine M. Erickson announced that last night Councilor Alex Jensen and his wife, Nikki, welcomed their second son, George William. 3. Presentations A. June 2021 Financial Results by Shawn Pritchett, Director of Finance Presentation: Approximately 10 minutes followed by discussion Pritchett began his presentation by stating this will be the last financial report until after the August Budget Hearings. The July report will be sent via email and report presentations will resume in September. He noted that this report is the same as previous ones as there has been no major material changes in the economic condition of the City. Overall there remains slow labor force growth, escalating inflation, record permits continuing throughout this year, increasing sales and entertainment taxes, and expenses coming in within expectation. Pritchett said  there is some growth with the Labor Force and we are up 8% since this time last year with the pandemic and 3.3% above the average of 2019. Unemployment remains low at 2.5%, about .5% below the State, and 3% below the rest of the nation. The Inflation rate in June was 5.4% over June of 2020. It's up 5% from May. Gasoline and used cars are driving forces. Building Permits YTD Building Valuations are continuing to move forward at a record pace. Sioux Falls YTD Residential Permits (Units) show that there have been more multi-family permits issued in the past six months than the last two years combined. Sales Tax Collections w/out Audits show that the City is up 28% compared to June 2020 and up more than 16% for June 2019. Entertainment Tax Collections w/out Audits is recovering due to lodging and restaurants. Pritchett said that we are still seeing a stimulus impact in the Industry Taxable Sales Data. Lodging Tax Receipts are up 252% over 2020. He said that we are at the breakeven point for Lodging BID Tax Receipts. Pritchett said we have collected 54% of the General Fund - Revenues YTD; and have expended 39% of the General Fund - Expenditures YTD. The majority of the expenditures are coming from police and parks. Discussion followed, regarding: appreciation for information being sent to the Council ahead of time; good to see a rebound being made in entertainment and hospitality taxes; update on ARPA funds; lost revenue calculator; the new Public Safety Center; and lumber prices. B. Investing in the Long Term Care of City Facilities by Tom Huber, Assistant Director of Finance Presentation: Approximately 20 minutes followed by discussion Huber began his presentation by giving a brief history of Centralized Facilities. He said it was established in 2021; and was designed to take a coordinated approach to managing the care, maintenance, and growth of the City's facility infrastructure for today and tomorrow. The City has 39 primary facilities, which range from City Hall to the Landfill Scale House. Huber said each facility plays a vital role in service to the public. The update is about investing in the facilities for the long term. Centralized Facilities takes care of everything from the roof of a building to HVAC to sidewalks. The department has 27 full-time positions and are in the process of hiring skilled trade workers, like electricians and carpenters. Huber said the Custodial Care staff are considered building ambassadors and are in a position to recognize early needs of the buildings. He reviewed the list of priorities for the Centralized Facilities, which included: Build a team of trades professionals to efficiently complete projects, both large and small; Continue to centralize R&M for building, structures, and mechanical systems across the City; Position Facilities Management to proactively help lead long-term centralized asset management (it's not just day-to-day repairs); Prioritized and coordinated approach to maintaining, improving, and expanding our existing facilities; and Establish a sustainable and prioritized funding strategy. Huber said that they are able to do a lot of projects on their own, thus they don't have to waste time waiting on a contractor. Huber said the first thing that they need to do with the facilities is to maximize the space that we have. He said that some people had to co-utilize the same spaces during the pandemic. Facility Condition Assessments took place in 2016 (most City buildings) and 2020 (a few centralized building and Park assets). Huber said the assessments were not intended to determine effective utilization; and did not determine impact of growth in facility needs. They did learn that the facilities are in good condition but there is work to do. They will need to modernize and expand to meet changes in  service and growth. Huber cited the proposed Public Safety Building as a good case in point. He then spoke about the Blocking and Tackling Project Plan (Fluid) and some proposed projects for the next four years. A Centralized Facilities Fund was established in 2021 and it provides one-time funding for major renovations and improvements. Huber said that there are opportunities to fund larger projects. Discussion followed regarding: how to keep a rolling list of acquired facilities, projects and priorities; having the list approved by the public; applause for undertaking this project; legacy issues; an opportunity for the Council to put some structure into place; requirements and a codification proposal; noting that this is important work in light of the hundreds of structures, etc., owned by the City; the process for deciding the priority order of projects; the Entertainment Tax Fund and what buildings it covers; how to decide if a contractor or the City staff works on a project; the Blocking and Tackling Project Plan; keep buildings on a database; utilizing Facilities Dude; creating a comprehensive list of Park assessments; ADA concerns; and what constitutes a facility. 4. Public Comment There was none. 5. Adjournment Council Chair Curt Soehl adjourned the meeting at 5:13 p.m. Denise D. Tucker, MMC, Assistant City Clerk