City Council Agendas, Packets and Minutes

Unapproved Minutes Council Special Session February 3, 2025 Monday 12:00 noon The special session of the City Council, City of Vermillion, South Dakota was held on Monday, February 3, 2025 at 12:00 noon at the John “Jack” Powell Conference Room. 1. Roll Call Present: Thaler, Leber, Price, Holland, Jennewein, Hellwege, Cheeseman, Mayor Cole Absent: Murra 2. Adoption of Agenda 26-25 Council Member Holland moved approval of the agenda. Council Member Thaler seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. Council Member Murra arrived at 12:01 p.m. 3. Visitors to be Heard June Holloch stated they are here to support the pickleball courts. She is unable to make the evening meeting but wanted to state her support. 4. Department Spotlight - Library Director Daniel Burniston Daniel Burniston, Library Director, went over the staff that the Library currently employs along with the duties that they cover. Daniel went over programs available at the Library and all the services the Library provides. 5. Review of Legislative Bill Adding a Requirement for the Receipt of Raw Materials for Public Improvement Contracts – Mayor Jon Cole John Prescott, City Manager, discussed that this bill came forward due to the sale tax agreements that have taken place since 2014. John stated that current contracts have not shown sales tax being recorded in the respective cities. Jon Cole, Mayor, stated that he has been working with law makers and lawyers to draft language to get supplies delivered to the respective 1 cities projects. Cole stated that this bill is going to be researched and discussed with the contractor’s association. Discussion followed. 6. Briefing on the February 3, 2025 City Council Regular Meeting Council reviewed items on the agenda with City Staff. No action was taken. 7. Adjourn 27-25 Council Member Cheeseman moved to adjourn the Council special session at 12:59 p.m. Council Member Murra seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. Dated at Vermillion, South Dakota this 3rd day of February, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer Unapproved Minutes City Council Regular Session February 3, 2025 Monday 6:00 p.m. The regular session of the City Council, City of Vermillion, South Dakota was called to order on February 3, 2025 at 6:00 p.m. by Mayor Cole. 1. Roll Call Present: Thaler, Leber, Price, Holland, Jennewein, Hellwege, Cheeseman, Murra, Mayor Cole 2. Pledge of Allegiance 3. Minutes 2 A. Minutes of January 21st, 2025 Special Session and January 21st, 2025 Regular Session 28-25 Council Member Thaler moved approval of the January 21st, 2025 special session and January 21st, 2025 regular session minutes. Council Member Jennewein seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 4. Adoption of Agenda 29-25 Council Member Cheeseman moved approval of the agenda. Council Member Holland seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 5. Visitors to be Heard 6. Public Hearings 7. Old Business A. Second Reading of Ordinance 1528 to Amend Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 Rezoning Lots 1 and 2, Block 1, Jack Powell Addition; City of Vermillion, Clay County, South Dakota from the R-3 Residential District to the GB General Business District (lots at the corner of Stanford Street and South Dakota Highway 50). Jose Dominguez, City Engineer, reported on the second reading of Ordinance 1528 to amend Title XV, Land Usage; Chapter 155, Zoning Regulations; Section 155.026 rezoning Lots 1 and 2, Block 1, Jack Powell Addition; City of Vermillion, Clay County, South Dakota from the R-3 Residential District to the GB General Business District. Jose stated the Vermillion Chamber and Development Company (VCDC), owner of the land, has requested that the City rezone Lots 1 and 2, Block 1, Jack Powell Addition, from the R-3 Residential District to the GB General Business District. Lot 1 is roughly 1.69 acres in size, while lot 2 is approximately 1.8 acres. The lots are bounded to the north by SD Hwy. 50, to the east by Stanford Street, to the south by the law enforcement center, and to the west by a future park. Jose stated the surrounding areas to the one being considered are zoned GI-General Industrial (east), GB-General Business (south), and R-3 Residential (west). The area north of the lots is zoned A-1: Agricultural in the Joint Jurisdictional Zoning Area. 3 Jose noted zoning these two lots into the GB General Business district has been the plan since the area was platted in April 2024. The intent of these two lots was to provide space for commercial development at a prominent corner of the community (e.g. the intersection between SD Hwy. 19 and SD Hwy. 50). Jose stated this item was considered by the City’s Planning and Zoning Commission at their January 13th meeting. At that meeting, the Commission voted 7-0 to recommend the City Council adopt the rezone as proposed. There was one member of the public present at the meeting. The individual represented the VCDC and stated they were in favor of the rezoning. 30-25 Second reading of title to Ordinance No. 1528, entitled An Ordinance Amending Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 Rezoning Lots 1 and 2, Block 1, Jack Powell Addition; City of Vermillion, Clay County, South Dakota from the R-3 Residential District to the GB General Business District (lots at the corner of Stanford Street and South Dakota Highway 50) for the City of Vermillion, South Dakota. Mayor Cole read the title to the above-named Ordinance, and Council Member Murra moved adoption of the following: BE IT RESOLVED that the minutes of this meeting shall show that the title to the proposed Ordinance No. 1528 entitled Amending Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 Rezoning Lots 1 and 2, Block 1, Jack Powell Addition; City of Vermillion, Clay County, South Dakota from the R-3 Residential District to the GB General Business District (lots at the corner of Stanford Street and South Dakota Highway 50) was first read and the Ordinance considered substantially in its present form and content at a regularly called meeting of the Governing Body on the 21st day of January, 2025 and that the title was again read at this meeting, being a regularly called meeting of the Governing Body on this 3rd day of February, 2025 at the City Hall Council Chambers in the manner prescribed by SDCL 9-19-7 as amended. BE IT RESOLVED and ordained that said Ordinance be adopted to read as follows: ORDINANCE 1528 AN ORDINANCE AMENDING CITY OF VERMILLION CODE OF ORDINANCES TITLE XV, LAND USAGE; CHAPTER 155, ZONING REGULATIONS; SECTION 155.026 REZONING LOTS 1 AND 2, BLOCK 1, JACK POWELL ADDITION; CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA FROM THE R-3 RESIDENTIAL DISTRICT TO THE GB GENERAL BUSINESS DISTRICT. 4 BE IT ORDAINED, by the Governing Body of the City of Vermillion, South Dakota that the City of Vermillion Code of Ordinances Title XV, Section 155.026, Adoption of Official Zoning Map, be amended as follows: Rezoning Lot 1 and 2, Block 1, Jack Powell Addition, City of Vermillion, Clay County, South Dakota be hereby excluded from the R-3 Residential District and included in the GB General Business District. Dated at Vermillion, South Dakota this 3rd day of February, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer Adoption of the Ordinance was seconded by Council Member Hellwege. Thereafter the question of the adoption of the Ordinance was put to a roll call vote of the Governing Body, and the members voted as follows: Thaler – Y, Leber - Y, Price - Y, Holland - Y, Jennewein - Y, Hellwege - Y, Cheeseman - Y, Murra - Y, Mayor Cole - Y Motion carried 9 to 0. Mayor Cole declared that the Ordinance has been adopted and directed publication thereof as required by law. 8. New Business A. Cotton Park Pickleball/Tennis Court construction agreement with Mammoth Sports. Jim Goblirsch, Parks and Recreation Director, reported on the plans to build a pickleball and tennis court complex. Jim states that due to the new elementary school being built at Barstow Park the tennis courts were removed. Jim noted that members of the public began to inquire about city-owned facilities where tennis and pickleball could be played on separate courts. The request for city-owned facilities has increased each year. In the 2017 Capital Improvement Plan, Parks and Recreation began earmarking funds for new city-owned athletic facilities and continued to do so each year. The request for funding in the Capital Improvement Plan was unable to be carried forward into the budget due to other funding obligations. Jim stated that given the significant public input on the proposed racquet court complex, on December 18, 2024, the Parks and Recreation Director sent a letter to 18 households adjacent to Cotton Park to ensure 5 transparency. The letter outlined recent park enhancements and the planned addition of new tennis and pickleball courts. Jim noted the cost for the project is $1,175,000, this includes engineering, site design, and construction. The United States Tennis Association has awarded the project a $15,000 grant. Dakota Hospital Foundation is providing a $5,000 grant. In addition, an event sponsored by Midwest Ready Mix of Vermillion on January 25, 2025 generated a donation of $9,400. The VCDC Board recently voted to have the remaining $50,000 of the City’s second penny pledge to Vermillion Now 3! allocated to this project. Jim stated the 2024 budget included $720,000 of second penny funding for a racquet complex. This funding was not utilized as the project did not materialize in 2024. The 2024 budget also included approximately $175,000 of second penny funding for the Vermillion hike/bike path project that had to be cancelled due to the flooding. With the carryover of the 2024 funding, grants, and VCDC funding, approximately $974,400 of the total amount is available. Approximately $150,600 of additional funding is needed. The 2025 budget will need to be amended to account for this line- item expenditure. Barb Yelverton of 205 Lewis via zoom stated that they live above Cotton Park. Barb stated they talked with other cities and the problem is noise pollution. Barb said that Library Balls are used to reduce noise levels by 50%. Barb said the City should require this type of equipment. Charles Yelverton via zoom recommended the project not be approved how it is because of the location. Charles stated that this is a poor location and being restricted to city owned property is not a smart choice. Charles talked about noise pollution and discussed foam balls. Kathy Beard says the question to ask is who benefits from this and are lives improved. If you build pickleball courts who benefits from this. Kathy said parks exist for more than recreation and it’s becoming harder to find quiet places. Kathy stated it is noisy and distracting. Kathy said the parks department can use these funds elsewhere. Greg Merrigan, 1414 Crestview Drive, stated that pickleball is growing across the country. Greg stated that this had been a recreation facility with loud noises. Greg stated that currently the high school pickleball court is 400 feet away from the current residence and the courts have been able to coexist with no complaints currently. Greg stated he respects the people that have concerns, but the effects are not going to be as presented. 6 Todd Cooper lives on Forest Avenue and asked if the quieter balls are available so there could be a comparison of these balls. Mary Jo Olsen stated this is a great sport and everyone has been very kind. She also noted that it’s a lot of fun to participate in. Mary Jo said they can try playing with the quieter balls to accommodate the citizens that live around there. Shannon Tobin stated she is new in the community and to pickleball. Shannon stated that pickleball is not played year-round and players are not going to be out if there are no lights or if it is too cold out. Shannon noted that if Grow Vermillion could be a part of this plan it will draw families into town. Jim Peterson, VCDC, made comments on behalf of citizens that could not attend. They were in favor of building this facility. Jim also noted that Dave Hertz with Midwest Ready Mix stated they are donating to this project. Jim stated that Dave’s company does a yearly fundraiser, and citizens vote on where the funds should be donated to. Jim noted that this project is in line with the Grow Vermillion campaign and the VCDC board has given $50,000 back for this project. Council Member Hellwege stated she was one of the first members to look at this in April of 2022 and started working with Staff since the loss of recreation space. Hellwege noted the first location was at the Jolley site but was moved away from. Hellwege went over other locations that were brought to the table, and this location was the best option. Hellwege asked how many complaints there have been about the current location of the courts. Hellwege noted she thinks this will improve the lives of Vermillion citizens. Council Member Leber was concerned about the location due to the soil, but after talking with Jim he does not have any concerns about the project. Council Member Jennewein asked about what type of sound barrier would go around the perimeter. Jim noted that there is something that could go around the fence along with noise reduction balls. Jim noted that Staff would investigate other options. Council Member Jennewein asked if the concrete was sound absorbing. Jim noted it does not, but it will have a coating on top of it that may help. 7 Council Member Jennewein stated that the policing of the balls would be impossible so word of mouth would be the solution. Council Member Thaler stated he wanted two emails entered into the minutes: Jason Holoch wrote in support of the pickleball courts. Jason noted that he is an avid coach, player, and enthusiast of pickleball. Jason stated that he has a weekly class at the wellness center and on average 20 students show up to this class. Jason stated that the ghost lines at the VHS tennis courts have been a great asset to the community, but they are tennis courts therefore a facility just for pickleball would be utilized. Jessie Daw wrote that she is a tennis player and a pickleball player. Jessie stated that paddle sports have many health benefits. She noted that a tennis court and pickleball court are needed in Vermillion due to the wear of the current courts. Council Member Murra asked about the bidding process for this project and how they do not have to go to bid for this. Jose Dominguez, City Engineer, noted that they do have the ability to use a Sourcewell contract. Jose noted that cities are allowed to use a design company to get designs and then if they have a construction company the city can use that same company. Jose noted that before the project was looked at the City Attorney approved the approach. Council Member Price thanked everyone for being here. Price stated she does not oppose this project, and that City Staff does a great job, but she will be voting no to represent some members of her ward that are opposed to this. Council Member Murra has spoken to residents that live near this and they have no concerns over the noise. Murra noted that his concern is what is under the ground in the location. Jim Goblirsch went over the engineering study and discussed the possible problems that could happen. Council Member Murra stated he will be voting for this because it is the best location for it. Murra stated it would be a great addition for the community. Council Member Leber stated he had concerns about the soil as well, but the engineers have addressed all the issues they may run into. Leber noted that due to this report he feels there are no concerns. 8 Mayor Cole discussed the donations that are going to be made to the project. 31-25 Council Member Hellwege moved approval of the Mayor to sign the Contract with Mammoth Built for the design/build of a racquet complex for a total cost of $1,175,000. Council Member Thaler seconded the motion. Motion carried 8 to 1. Mayor Cole declared the motion adopted. B. Resolution to amend Electric Vehicle Charging Station rate. Jack Baustian, Assistant to the City Manager, reported that in 2019, the City of Vermillion partnered with South Dakota Department of Agriculture and Natural Resources (DANR) to apply for a Volkswagen (VW) Electric Vehicle Charging Station (EVCS) grant. Jack stated the City has since obtained two charging stations. One is a Level II station in the City Hall parking lot and the other is a Level III located on Princeton Street near Casey’s and Walmart. Jack stated that in discussion with MRES representatives, it was suggested to increase the fee from $13.00 per hour, or as shown in the resolution $3.25 per 0.25 hours. At this rate, the City remains to lose roughly $4,000 per year. The resolution states that on May 1, the rate will increase to $16 per hour or $4.00 per 0.25 hours. The last change will be effective on July 1, moving to $19 per hour or $4.75 per 0.25 hours. Based on the two years of data the City has on the Princeton EV charging station, this rate will assist in covering the cost of power. Additionally, at the June 17, 2024, City Council meeting, a resolution was adopted to amend the electrical rates. The attached resolution would also fall in line with these amendments. If approved, these fee changes would be reflected in the updated fee schedule at the December 2025 City Council meeting. Council Member Holland asked if this is similar to other cities. Jack noted that this is cheaper than other locations. Council Member Holland stated that he would say go to the next level due to losing money with the current raise. Discussion followed on the charging station. 32-25 After reading the same once, Council Member Price moved adoption of the following: 9  RESOLUTION AMENDING FEES FOR THE LEVEL III ELECTRIC VEHICLE CHARGING STATION WHEREAS, the City Council establishes rates and fees for services provided by the City; and WHEREAS, the City operates a Level III Charging Station on Princeton Street and must establish fees for it; and WHEREAS, rates and fees are established to recover the increased costs of providing such a service. NOW, THEREFORE BE IT RESOLVED, by the Governing Body of the City of Vermillion, South Dakota, at a regular meeting thereof in the Council Chambers of said City at 6:00 p.m. on the 3rd day of February 2025, that rates be established as follows for services provided after February 3, 2025: Light and Power: Effective February 4, 2025, Level III Electric Vehicle Charging Fee: $3.25 per 0.25 hours. Effective May 1, 2025, Level III Electric Vehicle Charging Fee: $4.00 per 0.25 hours. Effective July 1, 2025, Level III Electric Vehicle Charging Fee: $4.75 per 0.25 hours. Dated at Vermillion, South Dakota this 3rd day of February 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer The motion was seconded by Council Member Hellwege. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 9 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. 10 C. Resolution authorizing the purchase of a Backhoe for the Water Department. Jose Dominguez, City Engineer, reported on a resolution to purchase a backhoe for the Water Department. Jose noted the City has several options when purchasing equipment or vehicles. 1. Procure bids based on the requirements set forth in 5-18A; or 2. Purchase from an already awarded contract that was awarded within 12 months if the awarded bidding process in 5-18A was followed (5- 18A-22(3)); or 3. Purchase from a purchasing agency (5-18A-37); or 4. Purchase from the State contract list as long as the purchased item is at, or below, the price on the State contract list (5-18C-8); or Jose noted the City avoids procuring bids because this requires considerable Staff time and additional resources to develop the specifications, advertise the bid documents, and evaluate the bids. Rather, the City tries to purchase directly from a local vendor, from an already awarded contract, from the State list, or from a purchasing agency. Jose stated Staff proposes utilizing a Sourcewell bid awarded to Caterpillar for the purchase of a new Caterpillar 420XE POW backhoe with new attachments. The cost for this new equipment, including the attachments, is $166,791.16. The attachments included in the quote are a fork, three buckets of different sizes, and a snowplow. Additionally, they have offered to take the City’s current backhoe and attachments for a trade-in value of $58,050. The net trade-in value would bring the cost of the equipment down to $108,741.16. The local dealer for Caterpillar, Butler CAT from Sioux Falls, SD, will honor the Sourcewell bid. 33-25 After reading the same once, Council Member Murra moved adoption of the following: RESOLUTION AUTHORIZING THE PURCHASE OF A WATER DEPARTMENT BACKHOE WHEREAS, SDCL 5-18A-37 authorizes a governmental entity to participate in cooperative purchasing agreements and conduct purchasing transactions under a joint agreement in this or any other state; and WHEREAS, the City of Vermillion has reviewed and determined that the bid awarded by Sourcewell to Caterpillar for a new Caterpillar 420XE POW with attachments for a price of $166,791.16 offers an advantageous price to the City for the said item; and 11 WHEREAS, the City has contacted Butler CAT, of Sioux Falls, SD, and they have agreed to allow the City to purchase one backhoe with the attachments for the awarded price and terms as they have contracted with Sourcewell; and WHEREAS, the bid from Butler CAT, Sioux Falls, SD, also includes a trade-in value for the City’s 2018 Case 590 SN backhoe and attachments of $58,050. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, that the City Finance Officer is hereby authorized to purchase a new Caterpillar 420XE POW with attachments from Butler CAT, Sioux Falls, SD, for a net price of $108,741.16 after trade-in. Dated at Vermillion, South Dakota this 3rd day of February, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer The motion was seconded by Council Member Leber. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 9 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. D. Resolution authorizing the purchase of a Motor Grader for the Street Department. Jose Dominguez, City Engineer, reported on a resolution for the purchase of a Motor Grader for the Street Department. Jose Dominguez, City Engineer, reported on a resolution to purchase a backhoe for the Water Department. Jose noted the City has several options when purchasing equipment or vehicles. 1. Procure bids based on the requirements set forth in 5-18A; or 2. Purchase from an already awarded contract that was awarded within 12 months if the awarded bidding process in 5-18A was followed (5- 18A-22(3)); or 3. Purchase from a purchasing agency (5-18A-37); or 4. Purchase from the State contract list as long as the purchased item is at, or below, the price on the State contract list (5-18C-8); or 12 Jose noted the City avoids procuring bids because this requires considerable Staff time and additional resources to develop the specifications, advertise the bid documents, and evaluate the bids. Rather, the City tries to purchase directly from a local vendor, from an already awarded contract, from the State list, or from a purchasing agency. Jose stated Staff proposes utilizing a Sourcewell bid awarded to Caterpillar for the purchase of a new Caterpillar 150JOY-BR motor grader. The cost for this new equipment is $425,847.12. Although they have offered to take our existing motor grader as trade-in for a price of $64,250, Staff believes that selling the equipment through an online auction would generate additional funds. The local dealer for Caterpillar, Butler CAT from Sioux Falls, SD, will honor the Sourcewell bid of $425,847.12. 34-25 After reading the same once, Council Member Murra moved adoption of the following: RESOLUTION AUTHORIZING THE PURCHASE OF A STREET DEPARTMENT MOTOR GRADER WHEREAS, SDCL 5-18A-37 authorizes a governmental entity to participate in cooperative purchasing agreements and conduct purchasing transactions under a joint agreement in this or any other state; and WHEREAS, the City of Vermillion has reviewed and determined that the bid awarded by Sourcewell to Caterpillar for a new Caterpillar 150JOY-BR motor grader for a price of $425,847.12 offers an advantageous price to the City for the said item; and WHEREAS, the City has contacted Butler CAT, of Sioux Falls, SD, and they have agreed to allow the City to purchase one motor grader for the awarded price and terms as they have contracted with Sourcewell. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, that the City Finance Officer is hereby authorized to purchase a new Caterpillar 150JOY-BR motor grader from Butler CAT, Sioux Falls, SD, for a price of $425,847.12. Dated at Vermillion, South Dakota this 3rd day of February, 2025. 13  THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer The motion was seconded by Council Member Hellwege. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 9 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. E. Resolution approving the Issuance of Sale of Tax Incremental Revenue Bonds for TIF #9. John Prescott, City Manager, reported on a resolution approving the issuance of a revenue bond. John noted the City of Vermillion acquired the Jack Powell Addition located west of Stanford Street and south of SD Highway 50 in late 2022. The area consists of the new Law Enforcement Center, two commercial lots, three multi-family lots, thirty-two single family lots – both attached and detached, and park area. The TIF plan proposes that the City Council annually consider, during the budget process, making advances to the TIF fund for an interest only payment to the bond holders until the TIF revenues are sufficient to make the payments. John stated the City utilized alternative funding options prior to going towards bond issuance. The South Dakota Housing & Development Authority (SDHDA) grant and loan, Light & Power internal loan, and Second Penny Fund assisted in funding this project. There is an additional SDHDA loan the City has access to for Phase II of James Street construction. In short, the City prioritized funding sources in order of interest rate and availability. John noted for the City to issue a bond, a resolution is required to be adopted which becomes effective 20 days after publication. The attached resolution, which has been reviewed by the City Attorney, was prepared in consultation with Bond Council, Meierhenry Sargent, LLP, to provide for the issuance of up to $750,000 of tax incremental bonds to be repaid from the tax increment revenues collected from TIF #9. John noted that following the effective date of the bond resolution, Meierhenry Sargent, LLP will prepare the bonds for the negotiated sale to the local entities. 14 35-25 After reading the same once, Council Member Murra moved adoption of the following: RESOLUTION GIVING APPROVAL TO THE ISSUANCE AND SALE OF TAX INCREMENTAL REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $750,000, PLUS COSTS OF ISSUANCE, TO FINANCE PROJECT COSTS, AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS AND DECLARING OFFICIAL INTENT TO REIMBURSE NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Vermillion as follows: 1. Declaration of Necessity. The City of Vermillion (the "City") find and declares a necessity to issue tax increment revenue bonds in connection with Tax Increment District Number 9 and use the proceeds therewith to pay for project costs with regard to the Jack Powell Addition as defined in the project plan (the "Project") which Project has been approved and copies of project plan are on file with the Finance Officer open to public inspection. 2. Authority. The City is authorized to issue its tax increment revenue bonds to finance project costs pursuant to Section 11-9-33 of the South Dakota Codified Laws. Pursuant to Chapter 11-9 of the South Dakota Codified Laws (the "Act") the City proposes to issue municipal tax incremental revenue bonds (as herein authorized, the Tax Incremental Revenue Bonds, or the "Bonds") to finance all or a portion of the Project costs. The City is authorized by the Tax Incremental Act to pledge a special fund into which the City will deposit the tax increment (as defined by the Act). 3. Authorization to Issue the Bonds. The City does hereby authorize the issuance of the tax increment revenue bonds in an amount not to exceed $750,000, plus costs of issuance, (the “Bonds”) in one or more series upon such terms and in such amounts as are negotiated with the purchasers of the Bonds. 4. Negotiation and Sale of the Bonds. It is hereby determined to be necessary and in the best interests of the City and its inhabitants that the City Council authorize, issue and sell the Bonds (the “Bonds”) to in order to finance a portion of the cost of the Project. The Mayor, City Manager, and Finance Officer are authorized to negotiate the sale and terms of the Bonds subject to the limitations of the law and this resolution. The Bonds may take the form of a developer’s agreement. 5. No Election Required. The Bonds may be issued by the City without an election pursuant to SDCL 11-9-34. 6. Terms of Bonds. The City Council hereby authorizes the issuance of the Bonds. The principal amount of the Bonds shall not exceed any statutory or constitutional debt limitation and be in such amounts as will be retired with the tax increment revenues. The Bonds 15  shall have maturities and interest rates as negotiated by the Mayor, City Manager, and Finance Officer. The Bonds shall be prepared under the direction of the Finance Officer and shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor, City Manager, and the Finance Officer and countersigned by the facsimile or manual signature of an attorney actually residing in the State of South Dakota and duly licensed to practice therein. 7. Form of Bonds. The Bonds shall be prepared in substantially the form filed with the Finance Officer and open to public inspection. 8. Registration. The City hereby appoints in accordance with Chapter 6-8B its Finance Officer as paying agent, registrar and transfer agent (the "Registrar") for the Bonds. The City reserves the right to appoint a financial institution as Registrar upon thirty (30) days’ notice. 9. Security Provisions; Funds and Accounts and Other Covenants and Determinations. a. Pledge Tax Increments. Pursuant to the Act, the City shall receive Tax increments as defined by the Act. All Tax Increments shall be placed in the Tax Incremental Revenue Bond Fund Number 9 (the “Bond Fund”). The Bond Fund is irrevocably pledged and appropriated to, and shall be deposited to the Bond Fund. For purposes of this Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or hereafter issued pursuant to this Resolution. The Bond Fund shall be used and applied only in the manner and order hereinafter set forth. The holders of the Outstanding Bonds shall have a lien against the Bond Fund for payment of the principal and interest and may either at law or in equity protect and enforce the lien. b. Bond Fund. The Finance Officer is hereby authorized and directed to establish and shall maintain a special account, the Bond Fund, as a separate and special fund in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Tax Increments, as hereinafter defined, shall be credited, as received, to the Bond Fund. Within the Bond Fund are various separate accounts to be maintained by the City. i. Project Account. There is hereby created and established as an account of the Bond Fund, a "Project Account". There shall be credited to the Project Account the proceeds from the sale of the Bonds remaining after payment of the expenses of issuing the Bonds. All moneys credited to the Project Account shall be applied solely to the payment of the costs of the Project. For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing 16  the Project including cost of labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Project, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Project. All sums derived from the investment of moneys in the Project Account shall remain in and become part of such account. Upon completion of the Project and when all costs of the Project have been paid, any balance remaining in the Project Account shall be credited to the Principal and Interest Account hereinafter established. ii. Principal and Interest Account. There is hereby created and established as an account of the Bond Fund, a "Principal and Interest Account." Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of any accrued interest received from the Purchaser. Periodically, as needed there shall be withdrawn from the Bond Fund Number 9 and credited to the Principal and Interest Account an amount which will equal at least the next principal and interest payment. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due. c. Subordinate Lien Bonds. After making the above required payments, any remaining Tax Increment shall be used for the payment of the principal of and interest on any additional Tax Incremental revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds. d. Deposit and Investment of Funds. The Finance Officer shall cause all moneys pertaining to the Fund to be deposited and invested in accordance with South Dakota law. 10. Tax Matters. The Interest on the Bonds shall be excludable from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (“the Code”) and applicable Treasury Regulations (the “Regulations”). The City designates the bonds as “Qualified Tax-Exempt Obligations” under the Code. Notwithstanding this section, the Bonds may be issued as Taxable. 11. Defeasance. When all the Bonds issued have been discharged as provided in this section, all pledges, covenants, and other rights granted by this resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by providing to the Paying 17  Agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its liability with reference to all Bonds which are called for redemption on any date in accordance with their terms by depositing funds with the Paying Agent on or before that date in accordance with their terms by depositing funds with the Paying Agent on or before that date, in an amount equal to the principal, interest, and premium, if any, which are then due thereon, provided that notice of such redemption has been duly given. The City may also at any time discharge this issue of Bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or United States government obligations which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to provide funds (without an reinvestment) sufficient to pay all principal, interest and premiums, if any, to become due on all Bonds on and before maturity, or, if a Bond has been duly called for redemption, on or before the designated redemption date. 12. Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the state of South Dakota does pledge to and agree with the holders of any obligations issued under 11-9 that the state will not alter the rights vested in the bond holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. 13. Certification of Proceedings. The officers of the City are authorized and directed to prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the City relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officer's books and records or are otherwise known to them. All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the correctness of the facts recited therein and the action stated therein to have been taken. The City does hereby declare its official intent to reimburse the capital expenditures made with respect to the Project with proceeds of the Bonds. 14. Retention of Bond Council. Meierhenry Sargent LLP is hereby retained as bond counsel for the Tax Increment Bonds and the Mayor, 18  City Manager, and Finance Officer are authorized to enter into an engagement letter with the firm. 15. Authorization of City Officials. The Mayor, Finance Officer, and City officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the actions authorized herein. 16. Declaration of Official Intent. This Resolution is also intended to be the declaration of official intent under 26 CFR § 1.150-2. The reimbursement shall relate to the Project above mentioned. The maximum principal amount Bonds expected to be issued for reimbursement is not to exceed $750,000. Dated at Vermillion, South Dakota this 3rd day of February, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer The motion was seconded by Council Member Holland. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 9 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. F. Resolution declaring Official Intent to Reimburse Expenditures for TIF #9 Project Costs. John Prescott, City Manager, reported on a resolution declaring intent to reimburse expenditures for TIF #9. John stated that to finance a portion of the project costs for the Jack Powell Addition, the City will be issuing Tax Increment Financing bonds. John noted the resolution authorizing the bonds will be considered earlier on the meeting agenda and will become effective 20 days after publication (March 6, 2025). It is anticipated that closing on the bond sale will be 30-45 days after the effective date. As previously stated on item 8e, the City utilized alternative funding options prior to going towards bond issuance. The South Dakota Housing & Development Authority (SDHDA) grant and loan, Light & Power internal loan, and Second Penny Fund assisted in funding this project. There is an additional SDHDA loan the City has access to for Phase II of James Street construction. In short, the City prioritized funding sources in order of interest rate and availability. 19 36-25 After reading the same once, Council Member Leber moved adoption of the following: A RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE EXPENDITURES FOR TIF 9 PROJECT COSTS WHEREAS, the City of Vermillion, South Dakota (the "City") intends to incur and pay, or has incurred and paid, capital expenditures grants aggregating approximately $750,000 (the "Capital Expenditures") for the Tax Increment District #9 for Jack Powell Addition project (said property, project or program is hereinafter referred to as the "Project"); and WHEREAS, payment of the Capital Expenditures Grants will be, or has been, financed, in whole or in part, on an interim basis from moneys other than proceeds of a borrowing (collectively, the "Temporary Advances"); and WHEREAS, it is reasonably expected that the Temporary Advances will be reimbursed with the proceeds of one or more borrowings not later than 18 months after the later of (i) the date on which the first Capital Expenditure financed by a Temporary Advance was paid, or (ii) the date on which the Project is placed in service or abandoned (but in no event more than 3 years after the date on which the first Capital Expenditure financed by a Temporary Advance was paid); and WHEREAS, except for architectural, engineering and similar preliminary expenditures incurred prior to the acquisition or commencement of construction of the Project (but not including land acquisition, site preparation and other similar costs incident to the acquisition or commencement of construction of the Project), this Resolution is being adopted prior to or within 60 days after the payment of the first Capital Expenditure financed by a Temporary Advance; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Vermillion hereby declares its official intent for purposes of Treasury Regulation Section 1.150-2 to reimburse the Capital Expenditures Grants for the Project financed by Temporary Advances with the proceeds of one or more borrowings, the maximum aggregate principal amount of which is not expected to exceed $750,000. Dated at Vermillion, South Dakota this 3rd day of February, 2025. 20  THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer The motion was seconded by Council Member Cheeseman. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 9 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. 9. Bid Openings A. Jolley Elementary School – Asbestos Abatement. Jose Dominguez, City Manager, reported on a BID received for removing the asbestos from Jolley Elementary School. Jose noted the City sent the plans and specifications to 9 plan houses and 9 contractors. Out of those sent, the City received seven bids for the bid opening on January 29th. The bids received were from:  Prairie Environmental Consulting, Sioux Falls, SD, for $49,500  Earth Services & Abatement, Des Moines, IA, for $53,000  Environmental Services, Norfolk, NE, for $70,620  Environmental Plant Services, St. Paul, MN, for $78,398  VCI Environmental, Lino Lakes, MN, for $87,924  Horsley Specialties, Rapid City, SD, for $88,280 The City received a seventh bid from Sterling Systems, Maple Grove, MN. However, this bid was void because the bid was not accompanied by an appropriate bid bond. 37-25 Council Member Price moved approval of the low bid from Prairie Environmental Consulting out of Sioux Falls, SD for $49,500. Council Member Hellwege seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. B. Fuel quotes. Katie Redden, Finance Officer, read the monthly fuel quotes and recommended the low quote of FS New Century on Item 1, 2, and 3. 21 Item 1 - 4,350 gal. unleaded 10% ethanol: Brunick Service $3.10; Stern Oil $2.78, FS New Century $2.669; Item 2 – 3,000 gal. No. 1 & 2 diesel fuel-dyed average price: Brunick Service $3.20; Stern Oil $3.03, FS New Century $2.859; Item 3 - 3,000 gal. No. 1 & 2 diesel fuel-clear average price: Brunick Service $3.60; Stern Oil $3.29, FS New Century $3.139 38-25 Council Member Price moved approval of the low quotes of FS New Century on Items 1, 2, and 3. Council Member Thaler seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 10. City Manager's Report A. John reported upcoming meetings before the next City Council meeting on February 18th.  Human Relations Commission – Thursday, February 6 in Mamura Conference room at 5:30 p.m.  Historic Preservation Commission - Wednesday, February 12 in Powell Conference Room at 9:00 a.m. B. John stated that Kidder Street from the west line of the intersection with Court Street west to the alley between Court Street and Market Street will be closed from 8:00 a.m. to 4:00 p.m. on Saturday, February 15 for the SD Special Olympics Polar Plunge. C. John noted City Offices are closed on Monday, February 17 for Presidents Day. D. John stated the next City Council meetings are on Tuesday, February 18. The evening meeting will begin with a joint meeting with the Clay County Commission at 6:00 p.m. The meeting is to consider the second reading of an ordinance to rezone property approximately 1/4 mile north City limits on the west side of SD Highway 19. Once the joint meeting with the Clay County Commission is completed, the regular City Council meeting will begin. E. John reported on a raffle notification: Vermillion After Prom is selling up to 500 raffle tickets at $1 each, 3 for $10, or 7 for $20. The prize is 4 PRCA ProRodeo Tickets and a parking pass for the event at the Sioux City events center on either February 14 or 15, 2025. The total value is approximately $200. The drawing will be on February 11, 2025. Proceeds will help support Vermillion After Prom and post prom events, activities, prizes, and food. 11. Invoices Payable 39-25 Council Member Price moved approval of the following invoices: 22 A & B BUSINESS, INC COPIER CONTRACT $209.46 A & M SERVICES, INC UNIFORMS $183.83 AMAZON BUSINESS SUPPLIES $1,415.92 ANDREW WICKRE SAFETY BOOT REIMBURSEMENT $125.00 AUTO VALUE PARTS $169.21 BLUEPEAK TELEPHONE/INTERNET $5,097.02 BOMGAARS SUPPLIES $199.99 BOOKS BY TERRALL BOOKS $19.37 BORDER STATES INDUSTRIES INC SUPPLIES $65.92 BUTCH'S PROPANE INC PROPANE $3,497.08 CAPITAL ONE SUPPLIES $1,319.11 CARMEUSE SYSTEMS INC PARTS $1,381.00 CASK & CORK MERCHANDISE $2,148.42 CENTURYLINK TELEPHONE $53.95 CENTURYLINK TELEPHONE $449.42 CHAD CHRISTOPHERSON SAFETY GLASSES REIMBURSEMENT $218.00 CHRISTENSEN RADIATOR & REPAIR PARTS $179.70 CITY OF VERMILLION CITY DEPARTMENTS POSTAGE $1,335.38 CITY OF VERMILLION CITY UTILITY BILLS $38,669.76 CLAY COUNTY TREASURER REAL ESTATE TAX $7.52 CLUB CADDIE NEW CUSTOMER REMOTE LAUNCH $750.00 COYOTE SPORTS PROPERTIES SPONSORSHIP $2,000.00 DAKOTA BEVERAGE MERCHANDISE $8,067.25 DAKOTA PC WAREHOUSE EQUIPMENT $179.96 DALE HUSBY MEALS REIMBURSEMENTS $114.00 DENNIS MARTENS MAINTENANCE $833.34 DREW CORRELL 2025 BOOT REIMBURSEMENT $114.99 ELECTRIC PUMP, INC REPAIRS $2,323.70 ERIC McPHERSON MEALS REIMBURSEMENTS $114.00 ERICKSON SOLUTIONS GROUP PROFESSIONAL SERVICES $1,586.05 FIELDS OUTDOOR ADVENTURES, LLP SUPPLIES $3,167.34 FIRST BANK & TRUST-VISA TRAVEL/TRAINING/SUPPLIES $11,563.95 GALLS INCORPORATED UNIFORMS $247.94 GLOBAL DIST. MERCHANDISE $174.00 GOLDSTAR PRODUCTS INC SUPPLIES $1,999.00 GRAYMONT (WI) LLC CHEMICALS $6,222.98 GREGG PETERS FREIGHT $1,434.17 GREGG PETERS REIMBURSEMENT FOR CASH DRAWER $11,614.98 HAWKINS INC CHEMICALS $3,439.30 HELMS & ASSOCIATES VERMILLION AIRPORT AWOS III $4,483.40 HY VEE FOOD STORE SUPPLIES $15.98 23 ILEETA 2025 INTERNATIONAL TRAINING CONF $440.00 INGRAM LIBRARY MATERIALS $2,930.92 INTL. ASSOC FOR PROPERTY & EVIDENCE, INC MEMBERSHIP RENEWAL $65.00 ISTATE TRUCK CENTER PARTS $25.02 JOHN A CONKLING DIST. MERCHANDISE $2,447.55 JOHNSEN HEATING & COOLING REPAIR - SERVICE @ ARMORY BOILER $2,499.09 JOHNSON BROTHERS OF SD MERCHANDISE $19,364.88 JOHNSON CONTROLS SERVICE AGREEMENT $2,119.56 JONES FOOD CENTER MISC SUPPLIES $195.97 JOSH ANGLIN REPAIRS $2,500.00 JUSTICE TOBIN BOOT REIMBURSEMENT $150.00 KIMBALL MIDWEST SUPPLIES $155.00 MOCIC 2025 MEMBERSHIP $150.00 NEBRASKA JOURNAL-LEADER ADVERTISING $35.95 NETSYS+ PROFESSIONAL SERVICES $762.50 NEW CENTURY FS FUEL $842.60 O'REILLY AUTO PARTS PARTS $24.36 ORINDA STEENECK PROFESSIONAL SERVICES $30.00 PANACEA MEADERY LLC MERCHANDISE $720.00 PING/KARSTEN MFG CORP MERCHANDISE $713.59 QUADIENT LEASING USA, INC POSTAGE METER LEASE $269.73 QUILL SUPPLIES $735.15 QUINCY IHNEN REFUND PARKING TICKET OVERPAID $5.00 REDI TOWING TOWING $750.00 REPUBLIC NATIONAL DISTRIBUTING CO. MERCHANDISE $4,479.07 RIVERSIDE HYDRAULICS & LABS INC REPAIRS $628.79 RUNNING SUPPLY, LLC PARTS $973.71 SD MUNICIPAL LEAGUE LEGISLATIVE DINNER $90.00 SERVICE MASTER OF SE SOUTH DAKOTA CUSTODIAL $3,867.50 SOUTHERN GLAZER'S OF SD MERCHANDISE $4,337.74 STAPLES BUSINESS CREDIT SUPPLIES $1,428.13 STATE HYGIENIC LABORATORY WATER TESTING $760.50 STOCKTON TOWING INC TOWING $450.00 TEVIN MIELITZ BOOT REIMBURSEMENT $150.00 THE LUMBERYARD LLC MATERIALS $21.90 THE RETROFIT COMPANIES, INC PROFESSIONAL SERVICES $577.00 TLC PROPANE PROPANE $30.00 TODD HALVERSON MEAL REIMBURSEMENTS $68.00 TOTAL FLOORING TILE & LABOR FOR WOMEN'S $6,900.47 BATHROOM TOTAL RESPONSE SOFTWARE RENEWAL & TRAINING $4,778.40 24 TRAVIS TARR MEAL REIMBURSEMENTS $68.00 TWO WAY SOLUTIONS PROGRAMMING OF NEW RADIO $90.99 TYLER TECHNOLOGIES TRANSACTION FEES $643.75 US POSTMASTER POSTAGE FOR UTILITY BILLS $1,525.00 USA BLUEBOOK PARTS $2,385.94 USD WELLNESS CENTER PUNCH PASSES $753.30 UTILITY ASSOCIATES INC UNFORMS $33.00 VERIZON WIRELESS CELL PHONES $2,639.19 VERMILLION ACE HARDWARE EQUIPMENT $1,176.70 VERMILLION CHAMBER & DEVELOPMENT CO. BUSINESS IMPROVEMENT DISTRICT $13,279.40 VERMILLION GARBAGE SERVICE MONTHLY HAULING $840.42 VERMILLION HOUSING AUTHORITY AUDIT CONTRIBUTION $5,397.78 VERMILLION ROTARY CLUB DUES/MEALS $163.25 ZIEGLER INC PARTS $5,223.07 Council Member Thaler seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 12. Consensus Agenda - None 13. Adjourn 40-25 Council Member Murra moved to adjourn the Council meeting at 7:37 p.m. Council Member Leber seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. Dated at Vermillion, South Dakota this 3rd day of February, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer Published once at the approximate cost of ___________. 25