City Council Agendas, Packets and Minutes

City of Vermillion Council Agenda 5:30 p.m. Special Meeting Tuesday, August 13, 2024 nd 2 Floor – Powell Conference Room 25 Center St. Vermillion, SD 57069 (The City Council will be conducting an additional budget session on Wednesday, August 14, 2024 at 5:30 p.m. A separate agenda will be posted.) 1. Roll Call 2. Pledge of Allegiance 3. Adoption of the Agenda 4. Visitors to be Heard 5. New Business a. Resolution to authorize the purchase of a portion of Government Lot 5 not included in Outlot L or Parcel A-19-92-51 Vermillion Township from the Wagner Limited Partnership for the installation of sanitary sewer force mains. b. Award a contract for the sanitary sewer force main contract. c. Authorize the transfer of preliminary platted Lots 6-21, Jack Powell Addition to the Vermillion Area Chamber and Development Company. 6. Budget Workshop – 2025 Proposed a. Introduction and Overview b. Special Funds 1. 911 Fund c. Public Safety & Security 1. Police Administration and Investigation 2. Police Patrol 3. Fire and Rescue 4. EMS/Ambulance 5. Emergency Management d. Policy & Administration 1. Code Enforcement e. Human Development and Leisure 1. Public Library f. Special Funds 1. Library Fund g. Utility Fund 1. Joint Powers Landfill 2. Joint Powers Recycling 3. Curbside Recycling h. Enterprise Funds 1. Liquor Store i. Special Funds 1. 2nd Penny 2. BID No. 1 1  j. Debt Service Funds 1. Special Assessments, TIF District No. 5, TIF District No. 6, TIF District No. 7, TIF District No. 8, TIF District No. 9, City Hall Debt, Prentis Park Debt k. Internal Service Fund 1. Unemployment 2. Copy/Fax/Postage 3. Custodial 4. Technology Replacement l. Maintenance & Transportation 1. City Hall Maintenance m. Policy & Administration 1. General Government 2. Finance n. Wrap-up of Budget Items 7. Adjourn Access the City Council Agenda on the web – www.vermillion.us Addressing the Council: Persons addressing the Council shall be recognized. Please raise your hand to be recognized, go to the podium and state your name and address. a. Visitors to Be Heard: Members of the public may speak now on any topic NOT on the agenda. Remarks are limited to 5 minutes and no decision will be made at this time. b. Agenda Items: Public testimony will be taken at the beginning of each agenda item, after the subject has been announced by the mayor and explained by staff. Any citizen who wishes may speak one time for 5 minutes on each agenda item. Public testimony will then be closed and the topic will be given to the governing body for possible action. At this point, only City Council members and staff may discuss the current agenda item unless a Council member moves to allow another person to speak and there is unanimous consent from the Council. Questions from Council members, however, may be directed to staff or a member of the public through the presiding officer at any time. Meeting Assistance: If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City Manager’s Office at 677-7050 at least 3 working days prior to the meeting. Council Meetings: City Council regular meetings are held the first and third Monday of each month at 7:00 p.m. If a meeting falls on a City holiday, the meeting will be scheduled for the following Tuesday. Live Broadcasts of Council Meetings On Cable Channel: Regular City Council 7:00 p.m. meetings are broadcast live on Cable Channel 3. Special City Council Meetings are not televised but open for attendance. Our future as a community depends on recognizing our past. The City of Vermillion exists on the ancestral lands of the Oceti Sakowin and Omaha indigenous people. We honor and appreciate those who have the longest relationship with this place. . 2  5. New Business; item a Council Agenda Memo From: Shane Griese, Utilities Manager Meeting: August 13, 2024 Subject: Land Purchase Resolution Presenter: Shane Griese Background: Historic flooding in June of 2024 damaged all three sanitary sewer force mains beyond a point of repair. A temporary fix has been installed; a permanent solution will need to be completed before winter. Discussion: In order to complete the replacement of the force mains additional land will be required. Staff has contacted the owners of the land north of the Vermillion River and negotiated a purchase price. Financial Consideration: That price is $23,000/tillable acre and $11,750/untillable acre. Platting is underway to determine the exact amount of land to be included in the purchase. That final plat will determine the final purchase price. The final purchase price should not exceed $150,000. This purchase was not included in the 2024 budget. It is also unclear if this purchase would be covered by any FEMA reimbursements in the event that this flood is declared a disaster and eligible for FEMA funding. There are adequate funds in the Wastewater reserve fund to cover this expense. Conclusion/Recommendations: Administration recommends that the City Council approve the attached resolution and allow the City Manager to execute any and all contract documents related to the land purchase.  RESOLUTION TO AUTHORIZE APPROVAL OF PURCHASE AGREEMENT TERMS AND CONDITIONS, CLOSING, AND PAYMENT FOR LAND REQUIRED FOR SANITARY SEWER FORCE MAINS WHEREAS, the three sanitary sewer force mains were damaged by the June 2024 flooding of the Vermillion River; and WHEREAS, to install new sanitary sewer force mains additional land is needed as the three pipes will be going deeper under the Vermillion River and require additional distance for the pipes to reach the appropriate depth; and WHEREAS, the Wagner Limited Partnership has previously provided an easement for the sanitary sewer system but additional property is required to facilitate the installation of the three new sanitary sewer force mains to a depth to cross under the Vermillion River; and WHEREAS, Scott Wagner on behalf of the Wagner Limited Partnership has had discussions with City personnel about selling several acres of property to accommodate the new depth needed for the force mains; and WHEREAS, a price per acre of $23,000 for tillable farmland and a price of $11,750 per acre for non- tillable farmland has been proposed; and WHEREAS, the exact amount of acres is still being determined and a survey plat for the land is being completed and must be approved by the respective county entities. NOW, THEREFORE, BE IT RESOLVED that the Vermillion City Council accepts the purchase price of $23,000 per acre for tillable farmland and $11,750 per acre for non-tillable farmland, for no more than eight (8) acres of property or a total price not exceeding $150,000 to be platted from the south end of that Part of Government Lot 5 not included in Outlot L or Parcel A 19-92-51 Vermillion Township and authorize the Mayor and/or City Manager to execute a Purchase Agreement upon customary terms and conditions and close said property acquisition; and BE IT FURTHER RESOLVED that the Vermillion City Council herein authorizes payment to the seller for the purchase price with adjustments thereto for customary closing costs, including but not limited to: taxes proration, title insurance costs, closing costs, and recording fee allocations; and BE IT FURTHER RESOLVED that the Mayor and/or City Manager are authorized and directed to take any and all action, and to execute and deliver any and all documents, including but not limited to conveyance documents, agreements, assignments, leases, closing statements, resolutions, and other required documents, and to do all things necessary or appropriate in their discretion to consummate and close the transaction described in the Purchase Agreement and amendments thereto according to their terms. Dated at Vermillion, South Dakota, this 13th day of August, 2024. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY____________________________________ Katie E. Redden, Finance Officer  5. New Business; item b Council Agenda Memo From: Shane Griese, Utilities Manager Meeting: August 13, 2024 Subject: Force Main Replacement Award Presenter: Shane Griese Background: Historic flooding in June damaged all three sanitary sewer force mains beyond a point of repair. A temporary bridge and pipe were installed to convey sewage to the treatment plant in July. That pipeline was not designed for winter operation, and a permanent solution needs to be installed prior to winter. Discussion: On July 1, 2024, an emergency declaration was approved by the City Council. That declaration allowed staff to make emergency procurements as outlined in South Dakota Codified Law 5-18A-9. This allowed staff to make a quicker response by eliminating the public notice requirements for projects of this magnitude. Banner Associates was hired to design the force main replacements and completed the plans on July 31st. Requests for Proposals were sent out to 11 contractors and a pre-proposal meeting was held at the construction site on August 6, 2024. Three contractors attended that meeting. Three proposals were collected and reviewed by Banner on August 9th at 11:30 a.m. A recommendation letter is attached. The low proposal was received from RP Constructors in the amount of $844,831.15. This included costs for both the Base Bid and the Alternate Bid. Financial Consideration: At this point, a disaster declaration has not been issued, therefor no FEMA funding has been allocated. It is anticipated that this work will be covered in the event that a declaration is made. Reserves would be utilized to cover the expenses until additional or alternative funding can be acquired. Conclusion/Recommendations: Administration recommends awarding the Force Main Replacement project to RP Constructors at a cost of $844,831.15.  5. New Business; item c Council Agenda Memo From: John Prescott, City Manager Meeting: August 13, 2024 Subject: Memorandum of Understanding with the VCDC to transfer Jack Powell Addition property Presenter: John Prescott Background: In September 2022, the City was the successful bidder at auction in acquiring nearly 50 acres of property at the southwest corner of the intersection of SD Highway 19 / Stanford Street and SD Highway 50. Immediately following the auction, the City Council identified four goals for the property: a potential location for the law enforcement center, housing development, park space, and a couple of commercial lots. Since that time, some of the steps that have taken place include starting construction of the law enforcement center, the property being annexed and rezoned, the platting of the property has taken place, a TIF district has been created, and infrastructure work is in process with a November 2024 completion date. Discussion: The 2022 housing study identified the need for housing to meet the needs of the population at all stages of life. A developer recently approached the City about applying for housing tax credits through the South Dakota Housing Development Authority. Their plan is to offer 20 senior housing units through the construction of 10 duplex structures. Each half of the duplex unit would have two bedrooms, washer/dryer, reinforced space that can serve as a storm shelter, and an oversized single-car garage. The attached MOU will provide for the transfer of the land to be final platted as Lots 6-21 of Block 4 in the Jack Powell Addition. Transferring the property to the VCDC will facilitate the application for tax credits. Tax credit awards are competitive and based on the number of points accumulated. The application is due August 31, 2024, with announcement of the awards being made in November 2024. There would be no compensation paid to the City upon the transfer of the land. The City would receive the full purchase price minus any sale transaction costs once the land sells. The City maintains the right to have the land revert back if the conditions of the MOU are not met.  5. New Business; item c As the land would no longer be publicly held, the VCDC would be responsible for the property taxes. If the tax credit application is successful, the property would only be held by the VCDC until May 2025 when the transfer to the developer is finalized. Financial Considerations: All money from the lot sales will be used to pay off the TIF debt. Conclusion/Recommendations: Administration recommends approval of the Memorandum of Understanding to transfer the land to be final platted as Lots 6-21 of Block 4 in the Jack Powell Addition to the Vermillion Area Chamber and Development Company. Prepared by: The City of Vermillion 25 Center Street Vermillion, SD 57069 605-677-7050 QUIT CLAIM DEED The City of Vermillion, a South Dakota Municipal Corporation, GRANTOR, of 25 Center Street, Vermillion, South Dakota 57069, for and in consideration of One Dollar ($1.00) and other good and valuable consideration, CONVEYS and QUIT CLAIMS to Vermillion Area Chamber and Development Company, a South Dakota non-profit corporation, GRANTEE, of 2 E. Main Street, Vermillion, South Dakota 57069, the following described real estate in the County of Clay in the State of South Dakota legally described as: Lots 6 – 15, Block 4 and the south 120 feet of the east 318 feet of Tract 2, Jack Powell Addition, City of Vermillion, Clay County, South Dakota Dated this ____ day of August 2024. TRANSFER TAX: None. Exempt Per SDCL §43-4-22(2) GRANTOR: FOR THE CITY OF VERMILLION ______________________________ Jonathan D. Cole, Mayor ______________________________ Katie E. Redden, Finance Officer State of South Dakota ) ) SS. County of Clay ) On this ____ day of August 2024, before me, the undersigned officers, personally appeared Jonathan Cole and Katie Redden, who acknowledged themselves to be the Mayor and City Finance Officer of the City of Vermillion, by the City Council on motion made and second, authorized Jonathan D. Cole as Mayor and Katie E. Redden as City Finance Officer, to execute the forgoing Quit Claim Deed on behalf of the City of Vermillion.  IN WITNESS WHEREOF, I hereunto set my hand and official seal. ______________________________ Notary Public (Seal) My Commission Expires _________  Jack Powell Addition Property MEMORANDUM OF UNDERSTANDING WHEREAS, a June 2022 housing study identified the need to develop a variety of housing options and housing for community members at all stages of life; and WHEREAS, in September 2022 the City was the successful bidder at auction in acquiring nearly 50 acres of property at the southwest corner of South Dakota Highway 50 and South Dakota Highway 19 (Stanford Street); and WHEREAS, the City Council upon purchase of the property in September 2022 identified the goals for the property as a possible site for the law enforcement center if approved by the voters in November 2022, the development of housing, provide additional park space, and potentially a couple of commercial lots; and WHEREAS, the property has been annexed into City limits, rezoned, platted, a tax increment financing district created to fund infrastructure, and infrastructure work is underway with a November 2024 completion date; and WHEREAS, the City Council has declared Blocks 1, 2, 3, 4 and 5 in the Jack Powell surplus and established a price to sell Lots 6 – 21 inclusive of Block 4; and WHEREAS, to assist a Developer who is working to construct 20 senior housing units and is pursuing an application for competitive housing tax credits awarded by the South Dakota Housing Development Authority; and WHEREAS, in order to facilitate the transfer of the Lots 6 – 21 inclusive of Block 4 in the Jack Powell Addition from the City to the VCDC to assist in the development of senior housing and in order to reduce to writing the contractual obligation established by the VCDC and the City. NOW, THEREFORE, this Memorandum of Understanding (MOU) and legally binding contract is entered into by and between the Vermillion Area Chamber and Development Company and the City of Vermillion to set forth, in writing, general terms of the property transfer and the marketing of the property as follows: 1. All parties to this agreement recognize that this is a legally binding contract granting an opportunity for the VCDC to own a portion of the Jack Powell Addition property. 2. The City will transfer ownership of Lots 6-21 of Block 4 in the Jack Powell Addition to the VCDC upon ratification of this MOU by the VCDC Board of Directors, all pursuant to SDCL 9-27-36 and SDCL 11-9-2. The transfer is contingent on the following qualifications: a. The VCDC agrees to work with the Developer to document ownership of the property and will before August 28, 2024, approve an Option to Purchase of not less than $500,000 for Lots 6 – 21 of Block 4 in Jack Powell Addition subject to the award of SDHDA tax credits in November 2024. 1  b. The VCDC will keep the property taxes current on all of the lots transferred to the VCDC as part of this MOU. c. The VCDC will remit the full proceeds of the sale of the lots minus reasonable sale expenses such as title search fees, filing fees, etc. to the City within 30 days of closing. 3. The City, upon sixty days' notice to the VCDC, has the right to take back ownership of any and all property transferred by the City to the VCDC through this MOU owned by the VCDC at the time of the notice. The VCDC agrees not to enter into any sale agreements during the sixty-day period after the notice has been provided by the City. 4. As a condition of the sale of any of the lots to a third party by the VCDC, the VCDC will require, in the sale agreement, that the owner must take out a building permit within one year of the date of sale and that all building activity related to the building permit be completed within twenty-four months of the date of issue. Failure to meet this requirement shall be a condition for ownership to revert back to the VCDC or its successor. Dated this 13th day of August, 2024. CITY OF VERMILLION, a municipal VERMILLION AREA CHAMBER Corporation of the State of South Dakota & DEVELOPMENT COMPANY By ______________________________ By ___________________________ Dated: ___________________________ Dated:________________________ 2