Informational Meeting

MINUTES Informational Meeting Tuesday, May 23, 2023, at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: David Barranco, Alex Jensen, Rich Merkouris, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr (arr. 4:01 p.m.) Council Members Absent: Sarah Cole Council Chair Marshall Selberg called the meeting to order at 4 p.m. and noted that there was a quorum. 2. Committee/Commission Reports A. Audit Committee: Wednesday, May 17, 2023 (Council Members: Jensen (Chair), Barranco, Merkouris, Neitzert) Councilor David Barranco thanked staff for working through technical difficulties during the meeting. He said the committee received a summary of results from the external auditors; and voted unanimously to move forward with the co-sourcing proposal. 3. Councilor Remarks There was none. 4. Presentations A. Sioux Falls Airport Master Plan Update by Dan Letellier, Sioux Falls Regional Airport Executive Director Presentation: Approximately 15 minutes followed by discussion Letelier said that they have been working on their long-range Master Plan for the past 18-20 months with consultants Mead & Hunt. He reviewed the components that made up the plan. The focus areas of the plan include: the passenger terminal, gates and parking; runways and taxiways; the Air Traffic Control Tower, which is 55 years-old; air cargo; general aviation; and other study elements of compatible land use and sustainability. Expansion is a challenge due to the airfield being surrounded by a river channel, major railroad, arterial street, and the South Dakota Air National Guard. He said they do have adequate runways to meet the current demand. Letelier spoke briefly about the runways and taxiways. He said they were  not the main focus of the Master Plan, because they are in good shape. There has been a spike in usage of the cargo handled by the airport. More than 69 million pounds of freight was transported in 2021. The volume went down in 2022, but the consultants expect freight volume to more than double in the next 20 years. Lettelier said with the addition of Amazon, they are hoping to get Amazon air service. He showed and spoke about some concept expansion renderings of the airfield. Another area of concern is the Air Traffic Control Facility. The tower doesn't have visibility for all aspects of the airfield. He mentioned that five areas have been identified for a new tower location. The FAA is putting together a site selection team, which will meet in July. This is the first step in getting a new control tower. A major focus of the Master Plan is the terminal. The consultants have forecasted close to 1 million passengers utilizing the airport in the next 20 years. Letelier spoke about the $60 million in expansion projects, that have taken place, over the past 10- 12 years. Future expansions will occur in phases and will increase the number of gates to 14. He said a goal is to include international flights, to places like Cancun. The big challenge is to develop a financing plan for the estimated $130 million for Phase 1. Multiple funding opportunities are being considered. Letelier spoke briefly about a Compatible Land Use Plan and a land exchange. Discussion followed regarding expansion costs; becoming more proactive; reacting to growth; how the City can help; number of gates; and turnover time between flights. B. Utility Rate Review Presentation by Mark Cotter, Director of Public Works Presentation: Approximately 15 minutes followed by discussion Cotter said this is something that they do routinely and the last time they brought a rate package forward was in 2019. This will set rates for the next four years and will allow them to sync in with the five-year Capital Plan. He said this will be an abbreviated presentation and the full presentation will occur at the June 6th City Council Meeting. The rate increases will not go into effect until January 1, 2024. A webpage with information regarding the rate increases is available on siouxfalls.org, along with an overstruck/underscore version of the ordinances. Cotter said they have reached out to partners who will be impacted by the change in rates. The following utilities were discussed: Water Purification, Water Reclamation (Sewer), Storm Drainage, Sanitary Landfill, and City Light and Power. All five utilities are self- sustaining. Cotter said that the utility rate increase does not mean a tax increase. The rates pay for operations, maintenance, equipment, and infrastructure projects. He said the rates are routinely evaluated to make sure that they cover expected expenses. The utilities are growing as they gain 900 to 1,200 new customers a year. On a monthly basis they bill more than 60,000 utility accounts. Cotter said if a utility does not need a rate increase, they will not ask for one. There will not be an increase for City Light and Power for the next four-year cycle. He reviewed the proposed increases. In 2024: Water Purification increases by 6% or $1.73; Water Reclamation (Sewer) increases by 6% or $2.29; Storm Drainage increases by 4% or .20 cents; and the Sanitary Landfill increases by $2. A chart was shown with the increases through 2027. Cotter spoke about the drivers for the increases; and provided a brief history of utility rates. Regular reviews of utility rates were implemented in 2006. Cotter spoke briefly about how Sioux Falls compares to other cities for rates. The second reading for the rate increase ordinances will be June 20th.  Discussion followed regarding additional in-depth questions for Finance; rate comparisons to the region; mobile home residents and water usage; is Sioux Falls aggressive enough with water rates; specific rate impacts; number of new customers; and the Landfill not raising rates in nine years. 5. Public Comment There was none. 6. Executive Session A. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters pursuant to SDCL 1-25- 2(3) B. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term "employee" does not include any independent contractor pursuant to SDCL 1-25- 2(1) A motion was made by Council Vice-Chair Merkouris and seconded by Council Member Soehl to enter Executive Session at 4:56 p.m. Roll call vote to enter Executive Session. 7 Yes: Barranco, Jensen, Merkouris, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. 7. Adjournment Seeing no further business, City Council Chair Marshall Selberg adjourned the meeting at 6:01 p.m. Denise D. Tucker, MMC, Assistant City Clerk