Informational Meeting

MINUTES Informational Meeting Tuesday, September 7, 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, Alex Jensen, Rick Kiley, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: None Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Experience Sioux Falls - BID Board: Thursday, August 26, 2021 (Council Member Brekke) Brekke reported on a recent meeting of the Experience Sioux Falls Council. She stated revenues are up 130% and 17 bus tours are expected in the City next month. Overall, conditions are improving from the impacts of the pandemic. 3. Councilor Remarks 4. Presentations A. 2022 Experience Sioux Falls (Convention and Visitor Bureau for Sioux Falls) BID Tax Budget by Teri Schmidt, Executive Director Presentation: Approximately 15 minutes followed by discussion Schmidt began the presentation by reviewing the purpose of the Business Improvement District, as stated in the board's by-laws. Funding is a result of people staying overnight in a hotel room; the stay generates $2 per room per night and a 1% hotel sales tax. The number of visitors has declined over recent years due, in large part, to the impacts of Covid-19 and the lack of special events throughout the City. The decrease in visitors corresponds to a similar decrease in economic impact. The data for 2021, however, only reflects the months of January through July. Hotel taxes also saw a similar decline compared to pre-Covid levels, but appears to be on the rebound this year. These trends are similar to those throughout the State in 2020: there was a 13% decrease in visitors and an 18% decrease in visitor spending. Compared to like cities, Sioux Falls' hotel occupancy rate is 61.6% through July 2021, placing just behind Rapid City, but above nine other cities in a six-state region. Average daily room rates in Sioux Falls also tend to be in the middle of these comparison cities. Schmidt then discussed how the  organization managed through the pandemic. Sioux Falls Alive offered Staycations and Travel packages; promoted safely attending events; paused during the spike; and transitioned to exploring outdoor events. South Dakota Tourism CARES Act funding contributed to national advertising in December with a focus on consumer and business audiences, a long-term message, and new marketing materials. ESF conducted several virtual sales meetings, increased e-mail sends, and took other steps to leverage ongoing programs aimed at increasing tourism in the City and region. She also spoke about the future and the potential impacts the Covid Delta variant may have. For the proposed budget, Schmidt anticipates revenues of $1.78M with expenses going toward administration, the fixed program, convention group supplies, advertising, printing, bidding, travel, and tourism promotion and advertising. Discussion followed about: the status of employees in light of Covid; the number of hotel rooms in the City; the prospects for additional convention space in the near future; and the return on investment of non-digital advertising. B. Vast Broadband – Communication & Design Update by Mike Harry, Chief Business Development Officer; Jeff Seidenfaden, Chief Commercial Officer; and, Cash Hagen, Chief Operating Officer Presentation: Approximately 15 minutes followed by discussion Mark Cotter, Director of Public Works, introduced the topic by reviewing actions taken by the City upon learning of issues associated with the fiber install. Representatives from Vast explained that their mission is to bring best-in-class, reliable, super-fast, affordable broadband service to homes across Sioux Falls through a $60M investment in fiber infrastructure and digital communication. There are currently about 110 citizens of Sioux Falls serving on Vast construction crews throughout the City. In recent weeks, the company has made several improvements to the fiber installation process to include: enhanced communications with residents; replacement of tower pedestals with flush-mount vaults in front and side yards; and smaller tower units in back yards. Several communications will now be sent to residents explaining the install process, what to expect, and timelines. The company has also establish a website to assist residents in understanding the process and to provide appropriate points of contact. Over 900 flush mount vaults have been ordered to replace previously placed pedestals; they will be delivered in three installments with the majority arriving by the end of September. The company has also implemented a weekly leadership review process to address any future feedback or concerns from the community. The following applies to both existing pedestal installations in the expansion project as well as future expansion project installations: 1) all front yard pedestals, in the expansion area, will be removed and replaced with flush-mount vaults with a ground-level profile that will virtually eliminate visibility to the equipment; and, 2) Backyard pedestals or clusters with other utilities will continue to be installed using the tower pedestals. Improved from the original design, these pedestals will be 10” shorter than the originals. Andy Berg, City Engineer, also provided a review of easements on typical residential properties. Discussion followed about: the extensive communication from Vast since concerns grew about the fiber placement; identification fo employees; communications with homeowners already impacted; differences from front, side, and rear yard placement; easement locations; pedestal and vault sizes; marking of pedestals and  vaults; experiences in other markets; the number of pedestals still requiring replacement. 5. Public Comment Will Bushee questioned why permits were issued for the fiber installation, who will hold the company responsible going forward, and how installs by other providers will be handled. Tom Kapusta spoke about his experience with the Vast website, the process for identifying digging hazards, marking of utility boxes/pedestals, and the placement of such equipment on private property versus public property. 6. Adjournment Council Chair Curt Soehl adjourned the meeting at 5:25 p.m. Thomas M. Greco, City Clerk