City Council Agenda

CITY COUNCIL AGENDA Monday, December 15, 2025 Tea City Hall 600 E. 1st ST. 6:00 PM Page A. CALL TO ORDER B. APPROVAL OF AGENDA C. CITY COUNCIL CONSENT AGENDA Consent Action 1. Approval of December 1, 2025 Minutes 2. Approval of December 15, 2025 Bills December 15, 2025 YTD Revenue December 15, 2025 YTD Expenses 2025 YE Estimated Cash Balances 3. Copy of Personnel - Step Increase(s) 4 4. 2026 Annual Medical Cannabis Business License 5-7 Pure Bliss Cannabis Renewal Application 2026 - agenda version.pdf D. PUBLIC COMMENTS Please State Name and Address (Comments Limited to 5 Minutes) E. PUBLIC HEARING Rezonings 1. 1ST READING: AN ORDINANCE OF THE CITY OF TEA, SD, 8 - 14 REZONING PROPERTY LOCATED AT 1601 EAST FIRST STREET FROM THE R-1 SINGLE FAMILY RESIDENTIAL DISTRICT TO THE I-1 LIGHT INDUSTRIAL DISTRICT, NO. 25-02, AND AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF TEA. Planning Commission (5-0) Recommends Approval, City Staff Recommends Setting 2nd Reading for January 5, 2026. Page 1 of 42  Staff Report REZONE 25-02.pdf REZONE 25-02 Presentation.pdf ORDINANCE 333 - REZONE FROM R-1 TO I-1.docx F. OTHER BUSINESS 1. Copy of Ordinance 332 - 2025 Supplemental Budget - Second 15 - 16 Reading and Adoption 2025 Supplemental appropriation ordiance.pdf 2. 2026 Budget - Street Department Equipment Purchases 17 - 21 Street Dept Pickup State Bid Pricing.pdf Street Dept Mower Quotes.pdf 3. Engineering On Call Agreement - HDR Engineering 22 - 34 FY2026_On-Call Services_Tea SD_Short Form Owner-Engineer Agreement.pdf 4. Police Department - Vehicle Purchase 2026 35 5. Animal Control 2026 Agreement - Sioux Falls Humane Society 36 - 39 Tea_2026_Flat Rate (003).pdf G. STAFF REPORT(S) 1. Community Development Director Report 12-15-25.docx 40 2. City Administrator Report 41 - 42 12.15.25 Council Memos.docx H. ADJOURN Access the City Council Agenda on the web – www.teasd.com In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the meeting, please contact the City Administrator at (605) 498-5195. Anyone who is deaf, hard-of-hearing or speech-disabled may utilize Relay South Dakota at (800) 877-1113 (TTY/Voice). Notification 48 hours prior to the hearing will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Page 2 of 42 Please place your cell phones on vibrate for the duration of the meeting to avoid any unnecessary disruptions. Executive Session: SDCL 1-25-2 (sections 1-5) allows a majority of the body present to vote to close a meeting when discussion revolves around 1)personnel, 3)legal matters, 4)contract negotiations, 5) meetings may also be closed for certain economic development matters marketing or pricing strategies (SDCL 9-34-19). It is the policy (2.11) of the governing board to recess into executive session to discuss personnel issues such as employee qualifications, competence, performance, and character or fitness. Page 3 of 42 Meeting: December 15th, 2025 - Regular Council Meeting From: Justin Weiland, City Administrator BACKGROUND INFORMATION: The City Council implemented a Pay Plan effective on January 1st of 2025. The Pay Plan provides for performance evaluations to occur on the anniversary date of each employee. Employees are eligible for step increases based on performance. Wage increases are effective retroactive to their anniversary dates. a. The following is a report of employees with anniversary dates in December and the step increases and per hour wages that have been adjusted based on performance evaluations completed by Department Heads; Lena Schaunaman 12/5 from Step 13-63 ($29.18) to 13-4 ($29.92); Jacob Kerr 12/12 from Step 14-3 (31.22) to 14-4 ($32.01) FINANCIAL IMPACT: N/A RECOMMENDATION: Recommend the Council approve the Consent Agenda inclusive of the employee step increase. STAFF REFERENCE(S): Justin Weiland, City Administrator; Thad Konrad, Steet Superintendent ATTACHMENT(S): N/A Page 4 of 42 Page 5 of 42 Page 6 of 42 Page 7 of 42 PLANNING COMMISSION Staff Report th Meeting Date: December 9 , 2025 Permit Number: REZONE 25-02 Staff: Albert Schmidt Staff Recommendation: Approval Project: Rezone from R-1 to I-1 Type of Application: Rezone Applicant/Owner: Canam Investments LP / Allen Rippentrop Request: Rezone from R-1: Single Family Residential District to I-1: Light Industrial District to match zoning with abutting west and east zoning and allow for future industrial uses. Location: 1601 E. 1st Street Legal Description: West 370.42’ of the East 2,132.80’ of the North 823.17’ in the NE1/4 of 36-100-51 Lot Area: 12.75 acres Existing Land Use: Single-Family Dwelling Attachments: None City Council 1st Reading: December 15, 2025 Meetings: 2nd Reading: January 2, 2026 Site Description: • Site Zoning District: R-1: Single Family Residential District • Surrounding Zoning and Land Use: o North: R-1: Single Family Residential District o East: LI: Light Industrial o South: LI: Light Industrial o West: LI: Light Industrial • Physical Characteristics: The site is generally sloped from north to south, changing elevation around 20 feet. The site has an existing farmstead with multiple outbuildings. Land Use and Comprehensive Plan Analysis: The existing zoning districts abutting the rezoning portion of the property are Light Industrial and Single Family Residential. The proposed I-1 district matches properties on the south side of the road. The applicant currently owns the land abutting this property on the east, south, and west. The applicant has indicated future plans to clear the site and incorporate it into their existing land as they develop. The Tea 2050 Comprehensive Plan supports this rezone request and shows this area as Light Industrial / Business Park. East 1st Street acts as a collector street in this area that leads from the main commercial corridor to a industrial park with pre-existing single-family houses along the north side of the road that existing prior to annexation into the City of Tea. Ideally, more distance would be provided between land uses but given the existing single-family dwellings were built in close proximity to existing light industrial to the northeast this request seems reasonable, especially when considering that the existing I-1 lands on the south side of 1st Street in this area were approval since the area was annexed into the City a few years ago. Recommendation: Because the subject application is consistent with the intent of the comprehensive plan with regards to transitioning land uses, staff recommends approval of this rezone. Page 8 of 42  Rezone 25-02 Location and Information Page 9 of 42 Location: Page 10 of 42  I-1 I-1 Existing Zoning: PD NRC I-1 I-1 I-1 Currently: R-1 R-1 R-1 R-1 I-1 Proposed: I-1 NRC Page 11 of 42  Future Land Use Map: Page 12 of 42  North Site Pictures West East Page 13 of 42 South  ORDINANCE NO. 333 AN ORDINANCE OF THE CITY OF TEA, SD, REZONING PROPERTY LOCATED AT 1601 EAST FIRST STREET FROM THE R-1 SINGLE FAMILY RESIDENTIAL DISTRICT TO THE I-1 LIGHT INDUSTRIAL DISTRICT, NO. 25-02, AND AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF TEA. BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF TEA, LINCOLN COUNTY, SOUTH DAKOTA: The West 370.42 Feet of the East 2,132.80 Feet of the North 823.17 Feet in the Northeast quarter (1/4) of Section 36 in Township 100 North, Range 51 West of the 5 P.M., Lincoln County, City of Tea, Lincoln County, SD, is hereby rezoned from the R-1 Single Family Residential District to the I-1 Light Industrial District and the official zoning map of the City of Tea is amended to include the rezoning. Adopted this ___ day of _______, 2026. ____________________________ Signed: Casey Voelker Mayor, City of Tea ATTEST: ______________________________ Dawn Murphy Finance Officer, City of Tea Seal First Reading: ________________ Second Reading & Adoption: _____________ Publication: _________________ Effective Date: _______________ Page 1 of 1 Page 14 of 42 Meeting: December 15, 2025 Regular Council Meeting From: Justin Weiland, City Administrator BACKGROUND INFORMATION: Attached is Ordinance No. 332 the 2025 Supplemental Appropriations Ordinance. Annually City’s are required to adopt a supplemental budget that defines each department that has the potential to spend over their allotted general budget. Finance Officer Murphy has prepared the Supplemental Budget Ordinance for 2025. The 2025 supplemental budget reflects the following departments that will see a spending in excess of the original budget; • The Fire Department Budget did not include $25,000 for the EMS Study. • The 85th Street project was end loaded $800,000 into the 2025 budget on items that were not completed in 2024. • The Recreation budget was exceeded by $20,000. • The Street Maintenance Fund saw an excess of $70,000 because of the Heritage Avenue project and the decision to pave both the north and south bound lanes. • The City did not budget an expenditure for TIF #1. The $405,000 is the reimbursement to the developer for their share of the TIF proceeds. The Total of all expenditures in excess of departmental budgets is $1,320,000. The supplemental budget for each department is to be covered the unobligated funds of the general fund. FINANCIAL IMPACT: The Supplemental Budget is to be covered by City unobligated funds. RECOMMENDATION: Recommend the Council approve the second reading and adoption of Ordinance No. 332 the supplemental budget for 2025. STAFF REFERENCE(S): Dawn Murphy, Finance Officer; Justin Weiland, City Administrator ATTACHMENT(S): Ordinance No. 332 2025 Supplemental Budget Ordinance Page 15 of 42  CITY OF TEA, SOUTH DAKTOA ORDINANCE 332 2025 SUPPLEMENTAL APPROPRIATIONS AN ORDINANCE PROVIDING SUPPLEMENTAL APPROPRIATIONS IN THE AMOUNT OF $ 1,320,000 FOR THE YEAR 2025 FROM UNOBLIGATED MONIES. BE IT ORDAINED BY THE CITY OF TEA, SOUTH DAKOTA, that the finance officer is herby authorized and directed to appropriate as shown below: GENERAL FUND #101 422 Fire Department 25,000 ems study 431 Highway & Streets 800,000 85th st. Total General Fund 101 825,000 RECREATION FUND #201 450 Recreation 20,000 TOTAL RECREATION FUND #201 20,000 ST. MAINTENANCE FUND 212 431 Highway/Street 70,000 TOTAL ST. MAINTENANCE FUIND 212 70,000 TIF #1 FUND #222 465 Economic Development 405,000 TOTALTIF #1 FUND #222 405,000 1,320,000 This Ordinance shall take effect upon its passage and publication in accordance with the law. Casey Voelker, Mayor ATTEST: Dawn R. Murphy, Finance Officer First Reading: December 1, 2025 Second Reading: December 15, 2025 Published once at the approximate cost of $_______________ Page 16 of 42 Meeting: December 15th - Regular Council Meeting From: Justin Weiland, City Administrator BACKGROUND INFORMATION: The Street Department has budgeted equipment items within the 2026 budget. Several items require advance ordering in order to receive within the first half of 2026. Superintendent Konrad is submitting two pieces of equipment for consideration of the City Council. 1) Pickup Truck - The 20206 budget includes $50,000 for a new Street Department pickup truck. Attached is the State Bid from Beck Motors for a ¾ Ton Chevrolet Silverado. The base bid cost is $46,781 for a total of $48,616 with the additional options of a Spray on Bid Liner $700, 18” Wheel Upgrade $440 and Full Length Cab Running Boards $695. 2) Mower – The 2026 budget includes $35,000 for the purchase of a new mower. Two quotes were received from Henke Tractor Repair ($30,575) and Plains Power and Turf (38,413;74). Both quotes are for a Tororo 7500 D Series 72 Inch with a Triple Grass Catcher and upgraded Blower. FINANCIAL IMPACT: Items have been budgeted for 2026 within the Street Department. Payments will be made in 2026. RECOMMENDATION: Recommend the Council approve the purchase of a Pickup Truck based on the State Bid from Beck Motors for a ¾ Ton Chevrolet Silverado with the options as listed in the amount of $48,616.00. Recommend the Council in the same motion also approve the purchase of a mower from Henke Tractor Repair in the amount of $30,575. STAFF REFERENCE(S): Justin Weiland, City Administrator; Thad Konrad, City Administrator ATTACHMENT(S): State Bid Price for Pickup, Quotes for Mower Purchase Page 17 of 42 Page 18 of 42 Page 19 of 42 Page 20 of 42 Page 21 of 42 Meeting: December 15th - Regular Council Meeting From: Justin Weiland, City Administrator BACKGROUND INFORMATION: Attached is HDR’s Professional Service Agreement for On Call Services to act as the City of Tea’s Engineer of Record. The City of Tea plans to continue utilizing HDR Engineering to serve as the Engineer of record. HDR has submitted their contract for on call services for 2026. This on call services contract establishes how HDR bills the City of Tea for our requests for their engineering and other consulting services. Please find notes below provided by City Engineer Ben Scholtz. The notes provide an explanation of the staff that typically works in Tea and the On Call category; We had a lot of (standard) rates for a variety of the job descriptions increase by $5-$10 this year, but ones of note for staff that regularly assist Tea are: • Myself (Ben), bills out at $225 as a “Project Manager 4” o Last year my billing rate was $210 ▪ I was promoted to a new role within our department this year, hence the change in billing • Carson bills out at $135 as a “Engineer 2” o Last year Carson’s billing rate was $125 ▪ Carson’s increase is due to his growth in experience • Elizbeth Wright (who’s been helping with our water & wastewater stuff) bills out at $150 as a “Engineer 3” o Last year Elizabeth’s billing rate was $135 ▪ Elizabeth’s increase is also due to her growth in experience – she is VERY efficient • Abby Nelson (who’s been helping with most Drainage related things, include the master plan update) bills out at $165 as a “Engineer 4” o Last year Abby’s billing rate was $165 (same as this year) There are a lot of rates for job descriptions in the attached rate schedule that rarely ever apply to Tea stuff, but they do cover 95% of all potential rates for our staff nationally. Subject to how many things the City has going, these rate changes may or may not impact the overall total cost between HDR and the City…base on our discussions and not (currently) having any major projects happening in 2026 (other than wrapping-up Sundowner Ave), I expect our total cost for the City to be less than it was in 2025. Please note that Brian Street has been removed as an “On-Call” project and the City will be considering a separate Project Contract for the design and construction of Brian Street. FINANCIAL IMPACT: Engineering Costs have been incorporated into 2026 Budget RECOMMENDATION: Recommend the Council review the On Call services agreement between the City of Tea and HDR Engineering and make a motion to approve the 2065 agreement. HDR has and will continue to provide solid engineering expertise for our projects, future growth planning guidance and a professional service that the City of Tea relies upon on a daily basis STAFF REFERENCE(S): Justin Weiland, City Administrator; Ben Scholtz, HDR Engineering Page 22 of 42 ATTACHMENT(S): HDR 2026 On Call Contract Page 23 of 42  SHORT FORM AGREEMENT BETWEEN OWNER AND HDR ENGINEERING, INC. FOR PROFESSIONAL SERVICES AGREEMENT NUMBER THIS AGREEMENT is made as of this ________ day of __________________, 20___, between the City of Tea, South Dakota (“OWNER”), and HDR ENGINEERING, INC., (“ENGINEER” or “CONSULTANT”) for services in connection with the project known as (On-Call Municipal Engineering Services) (“Project”); WHEREAS, OWNER desires to engage ENGINEER to provide professional engineering, consulting and related services (“Services”) in connection with the Project; and WHEREAS, ENGINEER desires to render these Services as described in SECTION I, Scope of Services. NOW, THEREFORE, OWNER and ENGINEER in consideration of the mutual covenants contained herein, agree as follows: SECTION I. SCOPE OF SERVICES ENGINEER will provide Services for the Project, which consist of the Scope of Services as outlined on the attached Exhibit A. SECTION II. TERMS AND CONDITIONS OF ENGINEERING SERVICES The HDR Engineering, Inc. Terms and Conditions, which are attached hereto in Exhibit B, are incorporated into this Agreement by this reference as if fully set forth herein. SECTION III. RESPONSIBILITIES OF OWNER The OWNER shall provide the information set forth in paragraph 6 of the attached “HDR Engineering, Inc. Terms and Conditions for Professional Services.” SECTION IV. COMPENSATION Compensation for ENGINEER’S services under this Agreement shall be on the basis of - per Schedule of Pay Rates (Exhibit C) per the Employee discipline identified, plus reimbursable expenses. The amount of any sales tax, excise tax, value added tax (VAT), or gross receipts tax that may be imposed on this Agreement shall be added to the ENGINEER’S compensation as Reimbursable Expenses. Agreement for Professional Services 1 Page 24 of 42  SHORT FORM AGREEMENT BETWEEN OWNER AND HDR ENGINEERING, INC. FOR PROFESSIONAL SERVICES Compensation terms are defined as follows: Reimbursable Expense shall mean the actual expenses incurred directly or indirectly in connection with the Project for transportation travel, subconsultants, subcontractors, technology charges, telephone, telex, shipping and express, and other incurred expense. ENGINEER will add ten percent (10%) to invoices received by ENGINEER from subconsultants and subcontractors to cover administrative expenses and vicarious liability. SECTION V. PERIOD OF SERVICE Upon receipt of written authorization to proceed, ENGINEER shall perform the services described in Exhibit A within a reasonable period of time. Unless otherwise stated in this Agreement, the rates of compensation for ENGINEER’S services have been agreed to in anticipation of the orderly and continuous progress of the project through completion. If any specified dates for the completion of ENGINEER’S services are exceeded through no fault of the ENGINEER, the time for performance of those services shall be automatically extended for a period which may be reasonably required for their completion and all rates, measures and amounts of ENGINEER’S compensation shall be equitably adjusted. Agreement for Professional Services 2 Page 25 of 42  SHORT FORM AGREEMENT BETWEEN OWNER AND HDR ENGINEERING, INC. FOR PROFESSIONAL SERVICES SECTION VI. SPECIAL PROVISIONS IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. City of Tea, South Dakota “OWNER” BY: (signature) NAME: (print) TITLE: (print) ADDRESS: 600 E. 1st Street PO Box 128 Tea, SD 57064 HDR ENGINEERING, INC. “ENGINEER” BY: (signature) NAME: (print) TITLE: (print) ADDRESS: 101 S. Phillips Avenue Suite 401 Sioux Falls, SD 57104 Agreement for Professional Services 3 Page 26 of 42  EXHIBIT A SCOPE OF SERVICES On-Call Municipal Engineering Services shall include, but are not limited to the following Tasks performed during the 2026 calendar year (January 1 to December 31): Task 1 – General Administration (Gen Admin) Activities included under this task include internal accounting and administrative efforts as well as general engineering activities not assigned to additional Tasks further defined below. • Includes assistance for the development of priority projects and Capital Improvement Projects • Includes attendance and support for City Council meetings (2 per month) Task 2 – Planning & Zoning (P & Z) Activities in this task will include efforts to review and approve site plans, subdivision plans, plats, and other City planning activities relating to the City’s comprehensive plan, engineering design standards, developer requirements, zoning ordinances, and any coordination efforts associated with these items with other agencies such as Lincoln County, the City of Sioux Falls, FEMA, etc. • Includes attendance and support for Planning & Zoning Meetings (2 per month April – October and 1 per month, November – March) Task 3 – Environmental Activities in this task will include efforts necessary for environmental agency coordination relating to various tasks and projects that require wetland monitoring, delineation, permit application and review, agency correspondence, etc. Task 4 – Water Activities in this task will include those efforts performed to evaluate, maintain, design, and monitor water facilities within the City. Activities may include efforts required to design, bid, and monitor small utility projects such as water system performance and preparation for State Water Plan application support and project development. Task 5 – Sewers Activities in this task will include those efforts performed to evaluate, maintain, design, and monitor sewer facilities within the City. Activities may include efforts required to design, bid, and monitor small utility projects such as sewer lining, lagoon maintenance, and State Water Plan application support and project development. Task 6 – Streets Activities in this task will include efforts associated with road & street surface maintenance and may include activities such as monitoring and evaluation/inspection of pavement conditions and the design of surface repairs (e.g. micro-surfacing, slurry-seals, mill & overlay, and full-depth pavement repairs), as well as traffic counts, and signal system and street lighting management. • Additional activities within this task are anticipated to include: o Preliminary grade line design for various segments of arterial and collector roadways such as Heritage Parkway, 9th Street, or Main Avenue Page 27 of 42  EXHIBIT A Task 7 – Drainage Activities in this task will include efforts associated with the management and design of drainage facilities including coordination with FEMA, the US Army Corps of Engineers, and other federal, state, and local agencies that govern the boundaries and use of drainage features and facilities, engineered or natural. Additional efforts may include the evaluation, data collection, and design of miscellaneous drainage facilities throughout the City (eg. detention ponds, storm sewer pipes & culverts, etc.) Activities in this task may also include updates to the City’s Master Drainage Plan and evaluation of various drainage area projects including but not limited to the following: • Update City’s 2007 Master Drainage Plan to include additional areas within the Comprehensive Plan area • Manage activities relating to drainage performance along 468th Avenue near High Pointe Street o Includes coordination with the Tea Area School District and USFWS (for Atkins WPA area) • Analyze Potential Semi-Regional Detention Facility downstream of the “Tea Tributary” from the Prairie Trails Development • Continue supporting Developer and City Joint-Detention (Public/Private) Facility adjacent to Nine Mile Creek within the Ninemile Lake subdivision south of 85th Street & east of Heritage Parkway Task 8 - Sidewalks Activities in this task will include efforts necessary to monitor, inspect, design, bid, and coordinate contractor activities relating to sidewalks and shared-use pedestrian and bicycle pathways maintenance and repair. Task 9 – Land Development Activities in this task will include efforts associated with development of a land-use plan (conceptual plans, preliminary development plan, development engineering plan, and construction plan, and site-specific plans) for City owned properties. • Notable properties for this potential support include: o The City’s property located in the northeast quadrant of the Heritage Parkway and Gateway Boulevard intersection. ▪ Design efforts for this development plan will likely include coordination with Local (City and County) and Federal (FEMA) Floodplain managers to manage floodplain impacts relating to the development plans and will likely require CLOMR and LOMR document preparation and review with FEMA to re-map any floodplain/floodway in the area. o Various Parks or recreational facilities o Potential sites/properties for Public-Private Partnerships (PPP) Task 10 – Real Estate Services (RES) Activities in this task will include general real estate services to support the City’s need to coordinate with property owners on various items including but not limited to: annexations, assessments, property acquisitions, property or Right-of-Way vacation, supporting the City’s Legal representatives with relating Real Estate matters, etc. • Depending on the scale of various projects, Real Estate Services may be included as a sub-task in individual project contracts in which RES efforts would be further defined in those contracts specific to each project. Page 28 of 42  EXHIBIT A Task 11 – GIS Mapping Activities in this task include data collection and site/development plan review of new and existing City infrastructure (streets, street lights, traffic signal, storm sewer facilities, water main, sanitary sewer, sidewalks, property pins, etc.) for incorporation into a GIS database. Task 12 – Design Standards Updates Activities in this task will include the review and revisions to the City’s current Engineering Designs Standards to incorporate updates applicable to the current City design approaches and industry standards. Task 13 – Grant Support Activities in this Taks will include assistance for the City to explore and pursue various local, state, and national grant programs to aide in project funding. This may include exploration of grant opportunities, project scoping and narrative development, cost estimation, benefit-cost-ratio analysis, alternatives analysis, or other activities required in grant application descriptions and instructions. In the event the City is selected for a Grant Award, HDR’s assistance for Grant Administration would be negotiated with the City to determine if that support is needed by the Consultant and/or if the work would be continued with an independent project scope outside of the On-Call Services contract. Task 14 – 468th Avenue Activities in this Task will include design support for roadway reprofiling and surfacing improvements to 468th Avenue between 1st Street and Gateway Boulevard. Additional efforts may also include coordination with adjacent property owners (notably the Tea Area School District, the SD Game, Fish, and Parks – RE the Atkins WPA, and Mr. Richard Wallenstein). Task 15 – Kerslake Drainage Channel Activities in this Task will include the evaluation and preliminary design for maintenance efforts relating to the clean-out of the existing drainage channel within the Southwest Industrial Park and the Kerslake Industrial Park between Sundowner Avenue and Bucksnort Junction. • NOTE: HDR collected basic survey data in May/June 2024 to understand the general composition of the existing channel and identify pipe culverts within the drainage channel alignment. Detailed TOPO of the drainage channel was NOT collected with those efforts. Task 16 – Heritage Sewer South Activities in this Task will include sewer basin evaluation for the south and western portions of the community (in conjunction with the recent Comprehensive Plan updates) and design for the extension of a new trunk sanitary sewer main to extend south from the City’s primary lift station at the existing wastewater lagoons and extending south approximately ½ mile to the future intersection with 9th Street. • Should the City choose to progress with this project and pursue construction of this facility in 2026, this Task may also include Bid Letting support and construction administrative services, and construction survey/staking support. Other Tasks Additional Tasks may be generated (at the request of the Owner, or by the Engineer) to track other activities not included in the list above and/or to track specific activities that may result in greater efforts requiring further, specific definition(s). Page 29 of 42  EXHIBIT B HDR Engineering, Inc. Terms and Conditions for Professional Services 1. STANDARD OF PERFORMANCE 6. SERVICES AND INFORMATION The standard of care for all professional engineering, consulting and related OWNER will provide all criteria and information pertaining to OWNER's services performed or furnished by ENGINEER and its employees under this requirements for the project, including design objectives and constraints, Agreement will be the care and skill ordinarily used by members of space, capacity and performance requirements, flexibility and expandability, ENGINEER’s profession practicing under the same or similar circumstances at and any budgetary limitations. OWNER will also provide copies of any the same time and in the same locality. ENGINEER makes no warranties, OWNER-furnished Standard Details, Standard Specifications, or Standard express or implied, under this Agreement or otherwise, in connection with Bidding Documents which are to be incorporated into the project. ENGINEER’s services. OWNER will furnish the services of soils/geotechnical engineers or other 2. INSURANCE/INDEMNITY consultants that include reports and appropriate professional ENGINEER agrees to procure and maintain, at its expense, Workers' recommendations when such services are deemed necessary by Compensation insurance as required by statute; Employer's Liability of ENGINEER. The OWNER agrees to bear full responsibility for the technical $250,000; Automobile Liability insurance of $1,000,000 combined single limit accuracy and content of OWNER-furnished documents and services. for bodily injury and property damage covering all vehicles, including hired vehicles, owned and non-owned vehicles; Commercial General Liability In performing professional engineering and related services hereunder, it is insurance of $1,000,000 combined single limit for personal injury and property understood by OWNER that ENGINEER is not engaged in rendering any type damage; and Professional Liability insurance of $1,000,000 per claim for of legal, insurance or accounting services, opinions or advice. Further, it is protection against claims arising out of the performance of services under the OWNER’s sole responsibility to obtain the advice of an attorney, this Agreement caused by negligent acts, errors, or omissions for which insurance counselor or accountant to protect the OWNER’s legal and ENGINEER is legally liable. If flying an Unmanned Aerial System (UAS or financial interests. To that end, the OWNER agrees that OWNER or the drone), ENGINEER will procure and maintain aircraft unmanned aerial OWNER’s representative will examine all studies, reports, sketches, systems insurance of $1,000,000 per occurrence. OWNER shall be made drawings, specifications, proposals and other documents, opinions or advice an additional insured on Commercial General and Automobile Liability prepared or provided by ENGINEER, and will obtain the advice of an insurance policies and certificates of insurance will be furnished to the attorney, insurance counselor or other consultant as the OWNER deems OWNER. ENGINEER agrees to indemnify OWNER for third party personal necessary to protect the OWNER’s interests before OWNER takes action or injury and property damage claims to the extent caused by ENGINEER's forebears to take action based upon or relying upon the services provided by negligent acts, errors or omissions. However, neither Party to this ENGINEER. Agreement shall be liable to the other Party for any special, incidental, 7. SUCCESSORS, ASSIGNS AND BENEFICIARIES indirect, or consequential damages (including but not limited to loss of use OWNER and ENGINEER, respectively, bind themselves, their partners, or opportunity; loss of good will; cost of substitute facilities, goods, or successors, assigns, and legal representatives to the covenants of this services; cost of capital; and/or fines or penalties), loss of profits or revenue Agreement. Neither OWNER nor ENGINEER will assign, sublet, or transfer arising out of, resulting from, or in any way related to the Project or the any interest in this Agreement or claims arising therefrom without the written Agreement from any cause or causes, including but not limited to any such consent of the other. No third party beneficiaries are intended under this damages caused by the negligence, errors or omissions, strict liability or Agreement. breach of contract. The employees of both parties are intended third party beneficiaries of this waiver of consequential damages. 8. RE-USE OF DOCUMENTS All documents, including all reports, drawings, specifications, computer 3. OPINIONS OF PROBABLE COST software or other items prepared or furnished by ENGINEER pursuant to this Any opinions of probable project cost or probable construction cost provided Agreement, are instruments of service with respect to the project. by ENGINEER are made on the basis of information available to ENGINEER ENGINEER retains ownership of all such documents. OWNER may retain and on the basis of ENGINEER's experience and qualifications, and copies of the documents for its information and reference in connection with represents its judgment as an experienced and qualified professional the project; however, none of the documents are intended or represented to engineer. However, since ENGINEER has no control over the cost of labor, be suitable for reuse by OWNER or others on extensions of the project or on materials, equipment or services furnished by others, or over the any other project. Any reuse without written verification or adaptation by contractor(s') methods of determining prices, or over competitive bidding or ENGINEER for the specific purpose intended will be at OWNER's sole risk market conditions, ENGINEER does not guarantee that proposals, bids or and without liability or legal exposure to ENGINEER, and OWNER will actual project or construction cost will not vary from opinions of probable cost defend, indemnify and hold harmless ENGINEER from all claims, damages, ENGINEER prepares. losses and expenses, including attorney's fees, arising or resulting therefrom. 4. CONSTRUCTION PROCEDURES Any such verification or adaptation will entitle ENGINEER to further ENGINEER's observation or monitoring portions of the work performed under compensation at rates to be agreed upon by OWNER and ENGINEER. construction contracts shall not relieve the contractor from its responsibility for 9. TERMINATION OF AGREEMENT performing work in accordance with applicable contract documents. OWNER or ENGINEER may terminate the Agreement, in whole or in part, by ENGINEER shall not control or have charge of, and shall not be responsible giving seven (7) days written notice to the other party. Where the method of for, construction means, methods, techniques, sequences, procedures of payment is "lump sum," or cost reimbursement, the final invoice will include all construction, health or safety programs or precautions connected with the services and expenses associated with the project up to the effective date of work and shall not manage, supervise, control or have charge of construction. termination. An equitable adjustment shall also be made to provide for ENGINEER shall not be responsible for the acts or omissions of the termination settlement costs ENGINEER incurs as a result of commitments contractor or other parties on the project. ENGINEER shall be entitled to that had become firm before termination, and for a reasonable profit for review all construction contract documents and to require that no provisions services performed. extend the duties or liabilities of ENGINEER beyond those set forth in this Agreement. OWNER agrees to include ENGINEER as an indemnified party 10. SEVERABILITY in OWNER’s construction contracts for the work, which shall protect If any provision of this agreement is held invalid or unenforceable, the ENGINEER to the same degree as OWNER. Further, OWNER agrees that remaining provisions shall be valid and binding upon the parties. One or ENGINEER shall be listed as an additional insured under the construction more waivers by either party of any provision, term or condition shall not be contractor’s liability insurance policies. construed by the other party as a waiver of any subsequent breach of the same provision, term or condition. 5. CONTROLLING LAW This Agreement is to be governed by the law of the state where ENGINEER's services are performed. Page 30 of 42  EXHIBIT B 11. INVOICES 15. HAZARDOUS MATERIALS ENGINEER will submit monthly invoices for services rendered and OWNER OWNER represents to ENGINEER that, to the best of its knowledge, no will make payments to ENGINEER within thirty (30) days of OWNER's hazardous materials are present at the project site. However, in the event receipt of ENGINEER's invoice. hazardous materials are known to be present, OWNER represents that to the best of its knowledge it has disclosed to ENGINEER the existence of ENGINEER will retain receipts for reimbursable expenses in general all such hazardous materials, including but not limited to asbestos, PCB’s, accordance with Internal Revenue Service rules pertaining to the support of petroleum, hazardous waste, or radioactive material located at or near the expenditures for income tax purposes. Receipts will be available for project site, including type, quantity and location of such hazardous inspection by OWNER's auditors upon request. materials. It is acknowledged by both parties that ENGINEER’s scope of services do not include services related in any way to hazardous If OWNER disputes any items in ENGINEER's invoice for any reason, materials. In the event ENGINEER or any other party encounters including the lack of supporting documentation, OWNER may temporarily undisclosed hazardous materials, ENGINEER shall have the obligation to delete the disputed item and pay the remaining amount of the invoice. notify OWNER and, to the extent required by law or regulation, the OWNER will promptly notify ENGINEER of the dispute and request appropriate governmental officials, and ENGINEER may, at its option and clarification and/or correction. After any dispute has been settled, without liability for delay, consequential or any other damages to OWNER, ENGINEER will include the disputed item on a subsequent, regularly suspend performance of services on that portion of the project affected by scheduled invoice, or on a special invoice for the disputed item only. hazardous materials until OWNER: (i) retains appropriate specialist OWNER recognizes that late payment of invoices results in extra expenses consultant(s) or contractor(s) to identify and, as appropriate, abate, for ENGINEER. ENGINEER retains the right to assess OWNER interest at remediate, or remove the hazardous materials; and (ii) warrants that the the rate of one percent (1%) per month, but not to exceed the maximum rate project site is in full compliance with all applicable laws and regulations. allowed by law, on invoices which are not paid within thirty (30) days from the OWNER acknowledges that ENGINEER is performing professional date OWNER receives ENGINEER’s invoice. In the event undisputed services for OWNER and that ENGINEER is not and shall not be required portions of ENGINEER's invoices are not paid when due, ENGINEER also to become an “arranger,” “operator,” “generator,” or “transporter” of reserves the right, after seven (7) days prior written notice, to suspend the hazardous materials, as defined in the Comprehensive Environmental performance of its services under this Agreement until all past due amounts Response, Compensation, and Liability Act of 1990 (CERCLA), which are have been paid in full. or may be encountered at or near the project site in connection with ENGINEER’s services under this Agreement. If ENGINEER’s services 12. CHANGES hereunder cannot be performed because of the existence of hazardous The parties agree that no change or modification to this Agreement, or any materials, ENGINEER shall be entitled to terminate this Agreement for attachments hereto, shall have any force or effect unless the change is cause on 30 days written notice. To the fullest extent permitted by law, reduced to writing, dated, and made part of this Agreement. The execution OWNER shall indemnify and hold harmless ENGINEER, its officers, of the change shall be authorized and signed in the same manner as this directors, partners, employees, and subconsultants from and against all Agreement. Adjustments in the period of services and in compensation shall costs, losses, and damages (including but not limited to all fees and be in accordance with applicable paragraphs and sections of this Agreement. charges of engineers, architects, attorneys, and other professionals, and Any proposed fees by ENGINEER are estimates to perform the services all court or arbitration or other dispute resolution costs) caused by, arising required to complete the project as ENGINEER understands it to be defined. out of or resulting from hazardous materials, provided that (i) any such For those projects involving conceptual or process development services, cost, loss, or damage is attributable to bodily injury, sickness, disease, or activities often are not fully definable in the initial planning. In any event, as death, or injury to or destruction of tangible property (other than completed the project progresses, the facts developed may dictate a change in the Work), including the loss of use resulting therefrom, and (ii) nothing in this services to be performed, which may alter the scope. ENGINEER will inform paragraph shall obligate OWNER to indemnify any individual or entity from OWNER of such situations so that changes in scope and adjustments to the and against the consequences of that individual’s or entity’s sole time of performance and compensation can be made as required. If such negligence or willful misconduct. change, additional services, or suspension of services results in an increase or decrease in the cost of or time required for performance of the services, 16. EXECUTION an equitable adjustment shall be made, and the Agreement modified This Agreement, including the exhibits and schedules made part hereof, accordingly. constitute the entire Agreement between ENGINEER and OWNER, supersedes and controls over all prior written or oral understandings. This 13. CONTROLLING AGREEMENT Agreement may be amended, supplemented or modified only by a written These Terms and Conditions shall take precedence over any inconsistent or instrument duly executed by the parties. contradictory provisions contained in any proposal, contract, purchase order, requisition, notice-to-proceed, or like document. 17. ALLOCATION OF RISK OWNER AND ENGINEER HAVE EVALUATED THE RISKS AND 14. EQUAL EMPLOYMENT AND NONDISCRIMINATION REWARDS ASSOCIATED WITH THIS PROJECT, INCLUDING In connection with the services under this Agreement, ENGINEER agrees to ENGINEER’S FEE RELATIVE TO THE RISKS ASSUMED, AND AGREE comply with the applicable provisions of federal and state Equal Employment TO ALLOCATE CERTAIN OF THE RISKS, SO, TO THE FULLEST Opportunity for individuals based on color, religion, sex, or national origin, EXTENT PERMITTED BY LAW, THE TOTAL AGGREGATE LIABILITY OF or disabled veteran, recently separated veteran, other protected veteran and ENGINEER (AND ITS RELATED CORPORATIONS, SUBCONSULTANTS armed forces service medal veteran status, disabilities under provisions of AND EMPLOYEES) TO OWNER AND THIRD PARTIES GRANTED executive order 11246, and other employment, statutes and regulations, as RELIANCE IS LIMITED TO THE LESSER OF $1,000,000 OR ITS FEE, stated in Title 41 Part 60 of the Code of Federal Regulations § 60-1.4 (a-f), § FOR ANY AND ALL INJURIES, DAMAGES, CLAIMS, LOSSES, OR 60-300.5 (a-e), § 60-741 (a-e). EXPENSES (INCLUDING ATTORNEY AND EXPERT FEES) ARISING OUT OF ENGINEER’S SERVICES OR THIS AGREEMENT REGARDLESS OF CAUSE(S) OR THE THEORY OF LIABILITY, INCLUDING NEGLIGENCE, INDEMNITY, OR OTHER RECOVERY. ENGINEER’S AND SUBCONSULTANTS’ EMPLOYEES ARE INTENDED THIRD PARTY BENEFICIARIES OF THIS ALLOCATION OF RISK. 18. LITIGATION SUPPORT In the event ENGINEER is required to respond to a subpoena, government inquiry or other legal process related to the services in connection with a legal or dispute resolution proceeding to which ENGINEER is not a party, OWNER shall reimburse ENGINEER for reasonable costs in responding and compensate ENGINEER at its then standard rates for reasonable time incurred in gathering information and documents and attending depositions, hearings, and trial. Page 31 of 42  EXHIBIT B 19. NO THIRD PARTY BENEFICIARIES 24. EMPLOYEE IMMUNITY Except as otherwise provided in this Agreement, no third party beneficiaries The parties to this Agreement acknowledge that an individual employee or are intended under this Agreement. In the event a reliance letter or agent may not be held individually liable for negligence with regard to certification is required under the scope of services, the parties agree to use services provided under this Agreement. To the maximum extent permitted a form that is mutually acceptable to both parties. by law, the parties intend i) that this limitation on the liability of employees and agents shall include directors, officers, employees, agents and 20. UTILITY LOCATION representatives of each party and of any entity for whom a party is legally If underground sampling/testing is to be performed, a local utility locating responsible, and ii) that any such employee or agent identified by name in service shall be contacted to make arrangements for all utilities to determine this Agreement shall not be deemed a party. Specifically, in the event that all the location of underground utilities. In addition, OWNER shall notify or a portion of the services is performed in the State of Florida, the following ENGINEER of the presence and location of any underground utilities located provision shall be applicable: on the OWNER’s property which are not the responsibility of private/public THE PARTIES ACKNOWLEDGE THAT PURSUANT TO APPLICABLE utilities. ENGINEER shall take reasonable precautions to avoid damaging FLORIDA STATUTES AN INDIVIDUAL EMPLOYEE OR AGENT MAY NOT underground utilities that are properly marked. The OWNER agrees to waive BE HELD INDIVIDUALLY LIABLE FOR NEGLIGENCE WITH REGARD TO any claim against ENGINEER and will indemnify and hold ENGINEER SERVICES PROVIDED UNDER THIS AGREEMENT. To the maximum harmless from any claim of liability, injury or loss caused by or allegedly extent permitted by law, the Parties intend i) that this limitation on the liability caused by ENGINEER’s damaging of underground utilities that are not of employees and agents shall include directors, officers, employees, agents properly marked or are not called to ENGINEER’s attention prior to beginning and representatives of each Party and of any entity for whom a Party is the underground sampling/testing. legally responsible, and ii) that any such employee or agent identified by name in this Agreement shall not be deemed a Party. The Parties further 21. UNMANNED AERIAL SYSTEMS acknowledge that the Florida statutes referred to above include but are not If operating UAS, ENGINEER will obtain all permits or exemptions required limited to: §558.0035(1)(a)-(e);§471.023(3)(an engineer is personally liable by law to operate any UAS included in the services. ENGINEER’s operators for negligence except as provided in § 558.0035); §472.021(3) (surveyor and have completed the training, certifications and licensure as required by the mapper); §481.219(11)(architect and interior designer);§481.319(6) applicable jurisdiction in which the UAS will be operated. OWNER will obtain (landscape architect); and §492.111(4) (geologist). any necessary permissions for ENGINEER to operate over private property, and assist, as necessary, with all other necessary permissions for operations. 22. OPERATIONAL TECHNOLOGY SYSTEMS OWNER agrees that the effectiveness of operational technology systems and features designed, recommended or assessed by ENGINEER (collectively “OT Systems”) are dependent upon OWNER’s continued operation and maintenance of the OT Systems in accordance with all standards, best practices, laws, and regulations that govern the operation and maintenance of the OT Systems. OWNER shall be solely responsible for operating and maintaining the OT Systems in accordance with applicable laws, regulations, and industry standards (e.g. ISA, NIST, etc.) and best practices, which generally include but are not limited to, cyber security policies and procedures, documentation and training requirements, continuous monitoring of assets for tampering and intrusion, periodic evaluation for asset vulnerabilities, implementation and update of appropriate technical, physical, and operational standards, and offline testing of all software/firmware patches/updates prior to placing updates into production. Additionally, OWNER recognizes and agrees that OT Systems are subject to internal and external breach, compromise, and similar incidents. Security features designed, recommended or assessed by ENGINEER are intended to reduce the likelihood that OT Systems will be compromised by such incidents. However, ENGINEER does not guarantee that OWNER’s OT Systems are impenetrable and OWNER agrees to waive any claims against ENGINEER resulting from any such incidents that relate to or affect OWNER’s OT Systems. 23. FORCE MAJEURE ENGINEER shall not be responsible for delays caused by factors beyond ENGINEER’s reasonable control, including but not limited to delays because of strikes, lockouts, work slowdowns or stoppages, government ordered industry shutdowns, power or server outages, acts of nature, widespread infectious disease outbreaks (including, but not limited to epidemics and pandemics), failure of any governmental or other regulatory authority to act in a timely manner, failure of the OWNER to furnish timely information or approve or disapprove of ENGINEER’s services or work product, or delays caused by faulty performance by the OWNER’s or by contractors of any level or any other events or circumstances not within the reasonable control of the party affected, whether similar or dissimilar to any of the foregoing. When such delays beyond ENGINEER’s reasonable control occur, the OWNER agrees that ENGINEER shall not be responsible for damages, nor shall ENGINEER be deemed in default of this Agreement, and the parties will negotiate an equitable adjustment to ENGINEER’s schedule and/or compensation if impacted by the force majeure event or condition. Page 32 of 42  EXHIBIT C SCHEDULE OF PAY RATES HDR Engineering 2026 Hourly Billing Rates Billing Rate Billing Rate Billing Title Billing Title Per Hour Per Hour Managing Principal 310 Environmental/Hydrologist/Geologist 8 240 Project Manager 7 290 Environmental/Hydrologist/Geologist 7 225 Project Manager 6 260 Environmental/Hydrologist/Geologist 6 210 Project Manager 5 240 Environmental/Hydrologist/Geologist 5 195 Project Manager 4 225 Environmental/Hydrologist/Geologist 4 170 Project Manager 3 210 Environmental/Hydrologist/Geologist 3 150 Project Manager 2 195 Environmental/Hydrologist/Geologist 2 130 Project Manager 1 180 Environmental/Hydrologist/Geologist 1 110 Engineering 11 290 Economist 4 220 Engineering 10 260 Economist 3 190 Engineer 9 240 Economist 2 160 Engineer 8 225 Economist 1 130 Engineer 7 210 Surveyor 5 190 Engineer 6 195 Surveyor 4 170 Engineer 5 180 Surveyor 3 150 Engineer 4 165 Surveyor 2 130 Engineer 3 150 Surveyor 1 110 Engineer 2 135 Construction Manager 6 260 Engineer 1 125 Construction Manager 5 245 System Integrator 4 230 Construction Manager 4 235 System Integrator 3 195 Construction Manager 3 215 System Integrator 2 175 Construction Manager 2 205 System Integrator 1 155 Construction Manager 1 185 CADD/GIS Technician 6 185 Strategic Comm/Graphic Designer 4 165 CADD/GIS Technician 5 165 Strategic Comm/Graphic Designer 3 145 CADD/GIS Technician 4 150 Strategic Comm/Graphic Designer 2 130 CADD/GIS Technician 3 135 Strategic Comm/Graphic Designer 1 105 CADD/GIS Technician 2 120 Commercial Mgmt/Project Controls 6 310 CADD/GIS Technician 1 110 Commercial Mgmt/Project Controls 5 280 Technician 5 170 Commercial Mgmt/Project Controls 4 250 Technician 4 150 Commercial Mgmt/Project Controls 3 220 Technician 3 135 Commercial Mgmt/Project Controls 2 190 Technician 2 115 Commercial Mgmt/Project Controls 1 160 Technician 1 105 Project Controller 150 Right of Way 5 195 Project Accountant 120 Right of Way 4 180 Project Assistant 115 Right of Way 3 155 Admin Assistant 85 Right of Way 2 135 Right of Way 1 120 Right of Way Coordinator 115 Page 33 of 42  EXHIBIT C Rates shall be adjusted annually. HDR may hire contract workers that will be assigned a billing rate based on this rate sheet. HDR has technical experts in various geographic locations that may be utilized based on specific project need. This specialized expertise will be billed at the below rates. Description Billing Rate/Hour Technical Expert 9 375 Technical Expert 8 355 Technical Expert 7 335 Technical Expert 6 315 Technical Expert 5 305 Technical Expert 4 285 Technical Expert 3 265 Technical Expert 2 245 Technical Expert 1 225 REIMBURSABLE EXPENSES Reimbursable Expense shall mean actual expenses incurred for travel, hotel, printing, meals, subconsultants, shipping, and other incurred expense. If negotiated with Owner in the contract, HDR will add an agreed to percentage mark-up to subconsultant invoices to cover administrative expenses and vicarious liability. Specialty equipment charges apply to specific equipment used on the project. Expenses Rate Traffic Counting Equipment $120.00 per hour Survey/GPS Equipment $50.00 per hour Robotic Total Station $50.00 per hour Side-by-Side Utility Vehicle $25.00 per hour Handheld GPS $20.00 per hour Drone $275.00 per day HDR Vehicle Mileage $0.75 per mile Personal Vehicle Mileage IRS Rate per mile Page 34 of 42 Meeting: December 15th - Regular Council Meeting From: Justin Weiland, City Administrator BACKGROUND INFORMATION: The City has budgeted for the purchase of one new vehicle in 2026. Police Chief Quigley has requested the City Council consider the purchase of two vehicles in 2026. Consideration of the purchase of an additional police vehicle is because the Ford Interceptor model will be receiving an upgraded body design in 2027. This creates an issue for the City’s ability to transfer the interior and exterior equipment from an existing vehicle into a new Interceptor as the old equipment will not fit into the new vehicle. The purchase and installation of new equipment to fit a new 2027 model is estimated to cost between $15,000 and $20,000. The City Council could consider the purchase of an additional Interceptor in 2026 in order to save on the purchase of new external and interior equipment. FINANCIAL IMPACT: The City has budgeted $50,000 for one vehicle. A decision to purchase two vehicles would require a supplement to the 2026 budget. RECOMMENDATION: This has been posed as an option for the Council to consider. The staff wanted to bring the information to the Council for the ability to save $20,000 in the purchase of all new equipment in 2027. Recommend the Council discuss this issue and make a decision whether or not to pursue the purchase of two Police Vehicles in 2026 or to continue with the purchase of one. STAFF REFERENCE(S): Justin Weiland, City Administrator; Jessica Quigley, Police Chief ATTACHMENT(S): N/A Page 35 of 42 Meeting: December 15th - Regular Council Meeting From: Justin Weiland, City Administrator BACKGROUND INFORMATION: Attached is the Sioux Falls Humane Society Contractor for 2026. The Sioux Falls Humane Society has submitted their contract for 2025 services. SFHS has submitted a $200 per month increase for their services from $800 to $1,000 per month. The City is also responsible to pay after hours fees of $120 per hour. This is an increase from $90 per hour in 2025. The City does have an option of contracting as an hourly service and being billed hourly. However, there is a difference in service between the hourly rate and the monthly contract. As an example, SFHS will set and check live traps for stray cats, house and maintain animals during bite instances, respond to calls from residents and many other services within the monthly set fee contract. The hours and mileage spent conducting all calls are inclusive within the contract. In an hourly contract the SFHS will charge the $65.00 per hour plus mileage to respond to all calls. They will not respond to citizen calls and the PD and City staff will have to make decisions each animal related incident. It is also important to note that the City of Tea has seen significant increased call volume from year to year. It is also important to consider circumstances that have occurred in the previous year such as a severe dog bite or vicious animal declaration. Hourly costs for these types of instances could create significant costs in excess of a monthly contract. FINANCIAL IMPACT: Humane Society Service budgeted for 2026. RECOMMENDATION: Recommend the Council approve the 2026 contract for services with the Sioux Falls Humane Society. Although this increase is again in excess of previous years, the service they provide is essential. SFHS is the only option animal control option in our Sioux Falls and surrounding region. The SF Humane Society provides our community with a very necessary and important service. They are always professional and responsive to the handling of these sometimes complex matters. The City of Tea continues to have a very positive working relationship with the Sioux Falls Humane Society and are appreciative to their service to our community. STAFF REFERENCE(S): Justin Weiland, City Administrator ATTACHMENT(S): Sioux Falls Humane Society Annual Contract Page 36 of 42  ANIMAL CONTROL SERVICES AND IMPOUNDMENT FACILITY OPERATIONS AGREEMENT For the Year 2026 This agreement is made and entered into as of the 1st day of January, 2026, by and between the CITY OF TEA, SOUTH DAKOTA, hereinafter referred to as the “City” and the SIOUX FALLS AREA HUMANE SOCIETY, hereinafter referred to as the “SFAHS”. WHEREAS, SFAHS has established and is maintaining a shelter and impoundment facility (the “Facility”) where animals, which have been picked up pursuant to the City ordinances, brought in by public citizens, or otherwise abandoned at the facility are cared for and handled pursuant to such ordinances and state laws; and WHEREAS, the City believes that SFAHS is an appropriate party for handling animal related issues; and NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties agree as follows: SECTION 1. Animal Care and Control Services. (a) SFAHS shall be responsible for responding to animal-related calls referred by the City or local Law Enforcement Officers. The City will be responsible for the enforcement of the animal control laws. SFAHS may perform all other animal related services and obligations delegated to SFAHS by the City at the discretion of SFAHS, including, but not limited to the following specific duties: a. Humane Officers: SFAHS provides trained and commissioned Humane Officers whom are appointed pursuant to SDCL 40-2-6 for the City. Humane officers shall perform the following services in and for the City: i. Work closely with local Law Enforcement for sheltering of animals that have been taken into custody by citizens and referred to the City for handling. Records of these actions shall be prepared and maintained and appropriate copies provided to the City. 1. Animals will be returned to their owners or keepers immediately, if possible. If the return of the animal is appropriate, and if a violation has occurred, a summons and complaint may be issued by the Humane Officer to the owners or keepers if citations have been made available for use. 2. Animals which cannot be returned to the owners or keepers will be impounded by the officers at the Facility for a period of five (5) days if the animal has identification in the form of implanted microchip or identification tags only, or for three (3) days if the animal does not have identification. ii. Attempt to give emergency treatment to all injured animals reported to SFAHS. Animals that have, in the opinion of a Licensed Veterinarian or Humane Officer, sustained terminal injuries may be euthanized pursuant to SDCL 40-1-13. iii. Respond to animal related problems referred to SFAHS by the appropriate dispatch department, including, but not limited to, City or Local Law Enforcement, however if the complaint violates any section of SDCL Chapter 40 and an animals well-being is compromised, Humane Officers may respond at their discretion. iv. Cooperate with Law Enforcement and the City Attorney’s Office in the prosecution of violations of the various animal control ordinances of the City, and County State’s Attorney for State Violations. Page 37 of 42  v. Maintain personnel and equipment available for 24-hour emergency animal rescue services in the case of injured, aggressive, neglected animals, or at law enforcement request, seven days a week, pursuant to SDCL 40-1-4. vi. Maintain personnel and equipment available for operations regarding nuisance animal complaints, stray animals, or ordinance enforcement during business hours of 8am-5pm only. SECTION 2. Facility and Services. (a) Facility: a. SFAHS shall provide all physical plant and equipment for the operation of the Facility, which is located at 3720 E Benson Rd, Sioux Falls, SD 57104. (b) Operation of the Facility: a. SFAHS staff will not be responsible for determining the validity of stray animals brought to the facility by citizens or Law Enforcement Officers. Additionally, SFAHS staff will not turn away any supposed stray animal brought to the facility by any citizen from within this listed jurisdiction and the City will be charged accordingly for animal care. b. SFAHS will not release any animal placed in the Facility, except to the owner, until applicable impoundment period has been satisfied. Animals released from impoundment immediately become property of SFAHS. c. SFAHS may charge, collect, and retain for its own use as part of the consideration for this contract all costs incurred from all persons who redeem impounded animals. The impound fee, if applicable, shall be returned to the City less a ten (10%) administration fee. d. SFAHS is authorized to collect from the owner of the animal all reasonable and necessary costs associated with providing emergency treatment to an injured or diseased impounded animal. SECTION 3. Financial Obligations of the City. (a) The City shall pay to SFAHS for such services performed during the hours of 8:00am to 5:00pm a flat rate of $1000.00 per month. For said services performed during the hours of 5:00pm and 8:00am the rate shall be $120.00 per hour plus current IRS Mileage Rate. Rates shall be based upon quarter-hour increments. The City shall pay such sums within 30 days after receipt of invoice from SFAHS. (b) SFAHS houses animals at the shelter under the terms of this Agreement. Owners reclaiming their animals will be responsible for applicable impound and boarding fees, disease prevention, and necessary medical care provided at the following rate for all cases of impoundment, including animals received directly via citizen drop off at the Facility if origin location is within this listed Jurisdiction: a. Boarding: $15.00 per day, per animal, housing and materials. b. Disease Prevention: $20.00 per animal, administered upon intake to protect population of animals housed in the Facility. c. Additional Medical Care provided: treatment advisement by on-staff Licensed Veterinarian or Emergency Care Provider offsite, fees determined on a case-by-case basis. d. The City remains responsible for the hourly rate and current IRS mileage fees if applicable (c) Any large-scale investigation and seizures of animal(s) will be a joint effort between Law Enforcement, Humane Officers, and the City/States Attorney. Costs associated with large-scale investigations are not included in the monthly flat-rate service fee and will be billed separately to the City and paid to the Sioux Falls Area Humane Society. Charges for these investigations will be assessed in accordance with the established rates for boarding, disease prevention, and medical care outlined in Section (b), in addition to any legal, labor, or operational costs directly incurred by SFAHS during the course of the investigation or seizure. Page 38 of 42  a. The City or its legal entities shall remain responsible for collecting restitution from the owner(s) of the affected animal(s), including but not limited to boarding, medical, legal, and labor costs. SECTION 4. Further Obligations and Agreements. (a) SFAHS shall not be mandated to perform any service that contradicts the organizations values and mission, and SFAHS appointed Humane Officers shall operate by all policies outlined within SDCL Chapter 40. (b) Through the duration of the Agreement SFAHS shall carry at its own expense a general liability insurance policy for bodily injury and property damage. (c) SFAHS, its members, and employees work for SFAHS and do not have the status, rights, or benefits afforded to employees of the City. By virtue of this agreement it is expressly understood and agreed that SFAHS shall perform all undertakings and professional services herein prescribed and contemplated as an independent contractor. (d) SFAHS records with respect to all matters covered by this contract shall, for a period of three (3) years, be made available for audit and inspected by the City at any time during normal business hours. The City shall give written notice 48 hours before an audit begins. (e) No waiver of any breach of any provision of this contract constitutes a waiver of any other or subsequent breach thereof. SECTION 5. Finalization. (a) It is hereby agreed by and between the parties that strict and timely compliance with the pertinent laws of the State of South Dakota, ordinance of the City, administrative directives of the City and the provisions of the Agreement. (b) The City has the right to terminate this Agreement, at a formal meeting, adopting a motion electing so to terminate, and SFAHS has the right and option to terminate this Agreement by action of its Board of Directors. The effective date of any such termination shall be no less than 30 days from the date of delivery of the notice that such action has been taken. (c) This agreement ends on December 31st, 2026, unless renewed or extended in written agreement of both parties. (d) This agreement shall be binding on and inure to the benefit of the successors and assigns of the parties hereto. IN WITNESS WHEREOF, the parties hereto have subscribed this Agreement by the duly authorized officers thereof on the day and year first above written. The City of ______________, South Dakota Sioux Falls Area Humane Society By: ______________________ Executive Director Signature: __________________________ Signature: __________________________ Jami Gates Grieve Page 39 of 42 City Council Report Meeting Date: December 15th, 2025 Staff: Albert Schmidt – Community Development Director To: Mayor and Council Members Significant Building None Permit Activity Since Last Meeting: Special Project: Res. Zoning District Updates – Home Builders Association Meeting 1-13-26: Next Steps: Staff will be reaching out to the Home Builders Association and some active community members for comments. After that formal public hearing and adoption. Snow Removal: Multiple snow events have already happened in the City. There have been 6 complaints so far this winter season, 1 of which resulted in the City having a contractor remove snow at a residential property where the school bus picks up kids to remove snow and ice down to the concrete. This property had now removed snow all season, the bill for work exceeded $600. City staff is working on trying to remind property owners of the requirement to remove snow from sidewalks and crosswalk access. The City only goes after correction at locations where complaints have been filed. ISO Meeting 12-11-26: Staff meet with Verisk staff about Building Code Effective Grading Schedule 4-year review. Because the City will start residential plan reviews on January 1, 2026 it’s anticipated that our BCEGS score will substantially improve. Upcoming Projects: Residential Zoning District Updates – 1st Quarter 26’ 2027 Permit Fee Schedule – 3rd Quarter 26’ Page 40 of 42  MEMORANDUM TO: Mayor Casey Voelker. Council Members; Lynn DeYoung, Josh Chapman, Aaron Otten, Jim Erck, Terry Woesnner, Ruby Zuraff. Finance Officer, Dawn Murphy. Planning Director, Albert Schmidt. FROM: Justin Weiland, City Administrator RE: City Administrator Report – Regular Council Meeting on December 15, 2025 DATE: December 12, 2025 __________________________________________________________________________________ ADMINISTRATOR REPORT A. City of Tea/Chamber Strategic Planning Session – Recap: The Sioux Metro Growth Alliance has hosted a Strategic Planning Session between the City of Tea and member of the Chamber for Development Board. Thirteen total were in attendance at the planning session. The two hour discussion included breaking into groups that discussed a future vision for Tea, Challenges in Collaboration between the Chamber and the City and Gaps in Support. All three groups consisted of both City and Chamber representatives. Following these discussions, the groups collaborated to share their findings and discuss ways to collaborate and place organizations responsibilities on each of the tasks and goals that were identified. It was determined that two hours was not enough time to fully grasp and flush out the issues the community is facing. A future meeting to continue the discussion will occur sometime in February or March. This strategic session marked the first time in several years that the City and the Chamber sat down and had an overarching goals discussion. It was discovered that the communication between both organizations can be increased to better understand the current and future vision of each group. This was a great first step towards creating more collaboration and communication between the City and the Chamber. Both groups are looking forward for a continued discussion organized by Nate Welch at SMGA. B. TIF Amendments: City Administration was attempting to bring forward proposed Tax Increment Financing District amendments to the Council for consideration prior to the end of 2026. There have been a few complications as the staff and consultants work through bringing official proposals to the Council for approval. Specifically, the City was considering amendments to the project costs for TIF #2 and #3. State statute allows to amend TIF projects costs up to 35% in excess of the original TIF Plan. Analyzing the values within TIF District #2 and the original project costs of $5.189 million. TIF #2 has the capacity to increase up to the 35% amendment cap. Based on the projects listed in the original TIF Plan, the City is working with our TIF consultant Tobin Morris to potentially redraft the plan with more details on the public expenditures as the original plan was not detailed. The intention is to have an amendment for consideration to the Council in the first quarter of 26’. The TIF#3 analysis has shown that the public improvement costs of $36.485 million are not supported by the current values. Therefore, the TIF #3 consultant Tom Grimmond does not recommend an amendment that would increase the eligible project costs. Therefore, City Administration will not be developing a TIF #3 amendment for Council consideration. Another TIF related update - City staff is continuing discussions with the Commerce addition property owners as well as Serenity development for a proposed TIF District #4. The intent of TIF #4 _______________________________________________________________________________________ City of Tea December 15th, 2025 City Administrator Report Regular Meeting Page 41 of 42  is for the buildout of utilities, Nine-Mile Creek crossing and extension of Brian Street between Heritage Ave and Sundowner. The discussions have been positive and annexations and development agreement details are moving for potential adoption in the first quarter of 26’. C. Election Schedule: The 2025 legislative session required local governments to hold elections during June Primaries or the General Election in November. The City of Tea does not have an election scheduled in 2025, therefore we are not required to make a decision today on when our local election will be held. The Tea Area School District has made a decision to hold their election during the June primary. The City of Sioux Falls has also made the same decision. The Council should continue to mull over the two option and be prepared to declare the dates of the 2026 election towards the middle of 2025. D. SMGA Growth Summit - Recap: _______________________________________________________________________________________ City of Tea December 15th, 2025 City Administrator Report Regular Meeting Page 42 of 42