City Council Agendas, Packets and Minutes

Unapproved Minutes Council Special Session August 4, 2025 Monday 12:00 noon The special session of the City Council, City of Vermillion, South Dakota was held on Monday, August 4, 2025, at 12:00 noon at the John “Jack” Powell Conference Room. 1. Roll Call Present: Thaler, Leber, Price, Holland, Jennewein, Hellwege, Cheeseman, Murra, Mayor Cole 2. Adoption of Agenda 241-25 Council Member Price moved approval of the agenda. Council Member Thaler seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 3. Visitors to be Heard Jim Peterson, CEO of the Vermillion Chamber and Development Company, introduced two new employees with the VCDC. Council Member Hellwege stated John Prescott and herself were interviewed by KWIT and they are going to be featuring Vermillion as their first stop in profiling area communities. This will air on Friday, August 8th at 9:10 a.m. 4. Tom Street Lift Station Liquidated Damages Discussion – Shane Griese Shane Griese, Utilities Manager, reported on the progress of the Tom Street lift station and additional costs accrued due to the missed deadlines by the contractor. Shane reviewed the timeline and the changes made by the City and contractor. Shane stated that liquidated damages have been tracked since June 2nd, 2024. Discussion followed on the contractor, liquidated damages, and how to move forward with the project. 5. Future Sanitary Sewer Rates – Katie Redden Katie Redden, Finance Officer, reported on the future sanitary sewer rate that needs to be put into place before closing on the $23,100,000 loan for the Wastewater Plant construction. Katie noted that at the August 18th meeting a resolution to increase rates will need to be approved. Katie noted the increased rates do not have to go into effect right way, but the resolution needs to be approved. Katie stated that in April of 2026 the rate will need to be increased 20% to 190% and in April of 2027 the rate will need to be increased 21% to 211% of the water bills. Katie noted that once the project is completed rates can be re- adjusted to accommodate the actual amount of the loan that was taken. Katie reported that rates will be looked at every year to meet requirements. 6. Briefing on the August 4, 2025, City Council Regular Meeting Council reviewed items on the agenda with City Staff. No action was taken. 7. Executive Session per 1-25-2(3) – Legal Matters Thaler moved to go into executive session at 12:55 p.m. for legal matters per 1-25-2(3). Murra second the motion. Motion carried 9 to 0. Mayor Cole declared the Council in executive session. Mayor Cole declared the Council out of executive session at 1:22 p.m. 8. Adjourn 242-25 Council Member Murra moved to adjourn the Council special session at 1:22 p.m. Council Member Price seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. Dated at Vermillion, South Dakota this 4th day of August 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 August 4, 2025 Monday 6:00 p.m. The regular session of the City Council, City of Vermillion, South Dakota was called to order on August 4, 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 A. Minutes of July 21, 2025, Special Session and July 21, 2025, Regular Session 243-25 Council Member Murra moved approval of the July 21, 2025, special session and July 21, 2025, regular session minutes. Council Member Holland seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 4. Adoption of Agenda 244-25 Council Member Price moved approval of the agenda. Council Member Cheeseman seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 5. Visitors to be Heard 6. Public Hearings A. First Reading of Ordinance 1537 to amend Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 rezoning Lot 8A, Block 7, Ericksons Addition; City of Vermillion, Clay County, South Dakota from the GB General Business District to the GI General Industrial District. Jose Domiunguez, City Engineer, reported on the first reading of Ordinance 1537 to amend Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 rezoning Lot 8A, Block 7, Ericksons Addition; City of Vermillion, Clay County, South Dakota from the GB General Business District to the GI General Industrial District. Jose stated the Vermillion Area Chamber and Development Company (VCDC), owner of the land, has requested that the City rezone Lot 8A, Block 7, Ericksons Addition, from the GB General Business District to the GI General Industrial District. Jose noted the lot is roughly 2.42 acres in size. The lot is bounded to the north by Bower Street, to the east by the Vermillion Technology Center, to the south by West Duke Street (only half of the street is constructed, and it functions as an alley), and to the west by Goodwill Industries. Jose noted the City provided the VCDC with information to contact the owners of ten properties that cover 1,508,746 square feet. Jose reported that in order for the Planning and Zoning Commission meeting to occur, the VCDC had to collect signatures from the owners of at least 678,936 square feet, or 45% of the aggregate area. The VCDC collected signatures from five property owners who owned 1,002,182 square feet. Jose noted the areas to the north and west of the lot being considered are zoned GI-General Industrial and the lots to the east and south are zoned GB-General Business. Jose reported the City of Vermillion’s GI General Industrial (GI) District shares most of the uses as the GB General Business (GB) District. The GI District may have some uses that could be incompatible with uses in the GB District. Jose noted in this instance the area is also governed by a set of covenants that also remove uses that are not compatible with commercial uses (e.g. outdoor storage, heavy manufacturing, farm implement sales/services, etc.). Although the City has no control over the covenants, the VCDC does, and they understand dissimilar uses may negatively affect the entire area. Jose stated the VCDC’s request to rezone this lot is to increase the possible uses that may be constructed. This will increase the possibility of the lot being developed. Jose noted this item was considered by the City’s Planning and Zoning Commission at their July 28th meeting. At that meeting, the Commission voted 7-0 to recommend the City Council adopt the rezone as proposed. Jose stated there were two members of the public that spoke in support of the rezoning request, this being the owner. They stated that they agreed with Staff’s reasoning for the rezone and the rezone would allow for additional possible uses to encourage development. 245-25 Mayor Cole read the title to the above-mentioned ordinance and Council Member Leber moved adoption of the following resolution: BE IT RESOLVED that the minutes of this meeting shall show that the title to proposed Ordinance No. 1537 entitled An Ordinance to amend Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 rezoning Lot 8A, Block 7, Ericksons Addition; City of Vermillion, Clay County, South Dakota from the GB General Business District to the GI General Industrial District of the City of Vermillion, South Dakota has been read and the Ordinance has been considered to advance to the second reading at this meeting being a regularly called meeting of the Governing Body of the City on this 4th day of August, 2025 at the Council Chambers in City Hall in the manner prescribed by SDCL 9-19-7 as amended. The motion was seconded by Council Member Price. After discussion the question of adoption of the resolution was put to a vote of the Governing Body and 9 members voted in favor of and 0 members voted in opposition to the motion. Mayor Cole declared the motion adopted. 7. Old Business 8. New Business A. Resolution designating the boundaries of Tax Increment Financing District #12 for the property known as Lot 8, Block 1, Cottage Place Addition, City of Vermillion, Clay County, South Dakota. Alex Ruth, Assistant to the City Manager, reported on a resolution to set the boundaries for TIF District #12. Alex stated the City was recently approached by Morgan Theeler, LLP, law firm (applicant) regarding the creation of Tax Increment Financing District #12 (TIF #12). The applicant represents the owner of the property who wants to develop the land for residential uses. Alex noted in 2022, a housing study identified the need for additional housing for all types of housing including single- family and multi-family. The City of Vermillion is actively developing land in different parts of the City to accomplish this goal. The item being discussed would be a privately initiated TIF district. Alex noted to assist with development costs, the applicant is proposing to create a tax increment financing district. The TIF funds would be used for several infrastructure costs related to preparing the site for future uses. Alex noted some of the costs are to grade the site, installation of private water lines and sanitary sewer, storm sewer work, and construction of private parking areas. The TIF funds would not be used for the construction of buildings. Alex stated the Tax Increment Financing (TIF) is a method that stimulates economic development and improves property values over time. Previously, the City utilized TIF districts to aid in the development of projects such as Polaris, Masaba, Vermillion Technology Center, and both phases of the Bliss Pointe housing development. Recently, the City has created four TIFs to help with housing development in the City. One was for the redevelopment of the Jolley School site, another was to cover some of the infrastructure cost of the Jack Powell Addition development, the third was for some improvements related to the residential development being constructed at East Duke Street and Cottage Avenue, and the most recent was for a multi-family housing development on Roosevelt Street. Alex noted the first step to establishing the TIF district was a public hearing before the Planning and Zoning Commission, which was held on July 28, 2025. The hearing was advertised, and notice was sent to the City, School District, County Commission, Water Development District, and the Director of Equalization as required by statute. Alex stated the Commission recommend approval of the creation of the TIF #12 boundaries with a vote of 7-0. The VCDC offered comments in support of the creation of the TIF District. There were no other comments offered. A draft of the TIF Project Plan which will be presented to the Planning and Zoning Commission on August 11th was included in the Council packet. The TIF Project Plan is being updated but the draft was included to provide background on the proposed project. Jim Peterson, Vermillion Chamber and Development Company, stated they are in favor of this due to all current apartment complexes being at max compacity. Don Peterson, Mogan Theeler, LLP, stated he is writing the project plan for this project and wanted to introduce himself. Nick Slattery, AMS, stated that they think this project would make this neighborhood a better space. 246-25 After reading the same once, Council Member Murra moved adoption of the following: RESOLUTION CREATING CITY OF VERMILLION TAX INCREMENT FINANCING DISTRICT NUMBER TWELVE WHEREAS, on July 28, 2025, the Vermillion Planning and Zoning Commission, in accordance with the requirements of SDCL 11-9-3, held a Public Hearing on the creation of a Tax Increment Financing District for an area described as: Lot 8, Block 1, Cottage Place Addition, City of Vermillion, Clay County, South Dakota; and WHEREAS, on July 28, 2025, the Vermillion Planning and Zoning Commission did adopt for recommendation a motion designating a Tax Increment Financing District defined by the following boundary: Lot 8, Block 1, Cottage Place Addition, City of Vermillion, Clay County, South Dakota; and WHEREAS, the City Council finds that: (1) Not less than twenty-five percent (25%), by area, of the real property within the district is a blighted area as defined by SDCL 11-9-9 through 11-9-11 or not less than fifty percent, by area, of the real property within the district will stimulate and develop the general economic welfare and prosperity of the state through the promotion and advancement of industrial, commercial, manufacturing, agricultural, or natural resources; and (2) The improvement of the area is likely to significantly enhance the value on all of the other real property in the district; and WHEREAS, there is a demonstrated need for developed housing sites within the community to support business and economic development; and WHEREAS, the City Council finds that the aggregate assessed value of the taxable property in this district plus all other existing districts does not exceed 10% of the total assessed value of the taxable property within the City of Vermillion, Clay County, South Dakota. NOW, THEREFORE BE IT RESOLVED, by the governing body of the City of Vermillion, that Tax Increment Financing District Number Twelve is hereby created in the City of Vermillion, and that such District boundary shall be designated as: Lot 8, Block 1, Cottage Place Addition, City of Vermillion, Clay County, South Dakota. Dated at Vermillion, South Dakota this 4th day of August 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 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. B. Request to close the Pocket Park next to 12 E. Main and a portion of the alley behind Coyote Twin Theater on Saturday, September 27, 2025, from 9:00 a.m. to 8:00 p.m. and on Sunday, September 28, 2025, from 9:00 a.m. to 4:00 p.m. for the Vortex Film Festival. Alex Ruth, Assistant to the City Manager, reported on a request to close the Pocket Park. Alex stated the Vermillion Cultural Association has requested to close the Pocket Park next to 12 E. Main and a portion of the alley behind Coyote Twin Theater on Saturday, September 27, 2025, from 9:00 a.m. to 8:00 p.m. and on Sunday, September 28, 2025, from 9:00 a.m. to 4:00 p.m. for the Vortex Film Festival. Alex noted the alley runs east to west between Elm Street and Center Street. Alex stated the closure would run between the two City Hall parking lots. Alex noted according to the application, the Vermillion Cultural Association staff will plan to stop into Sunde Insurance and the Charcoal Lounge in early September with an info card to make the businesses aware of the closure. The Vermillion Cultural Association staff plan to have outdoor garbage and recycling receptacles throughout the weekend, and the Coyote Twin staff will be instructed Sunday night to do a final sweep of the area, including bringing in the bins. The Vermillion Cultural Association will also have a hose in case there are food spills that need to be washed away. Alex noted the Street, Fire/EMS, and Police departments have all been notified of the closure and they had no concerns. 247-25 Council Member Price moved approval of the request to close the Pocket Park next to 12 E. Main and a portion of the alley behind Coyote Twin Theater on Saturday, September 27, 2025, from 9:00 a.m. to 8:00 p.m. and on Sunday, September 28, 2025, from 9:00 a.m. to 4:00 p.m. for the Vortex Film Festival. Council Member Holland seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. C. Resolution annexing Munger Tract 4 in the SW 1/4 of the SE 1/4 of Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota. (Property located at the NW corner of South Dakota Highway 50 and South Dakota Highway 19). Jose Dominguez, City Engineer, reported on a resolution to annex Munger Track 4. Jose stated at the July 21st City Council meeting, the Council considered the final plat for Munger Tract 4. At that meeting, Staff explained that the City has been working with the owner of the property towards annexing the property. Jose noted it was said that the goal was to annex the property for the purpose of annexing adjacent properties whose owners wish to be annexed and also to have land ready for development when the owner desires. Jose stated the item being considered today is the annexation of Munger Tract 4 as requested by the owner. Munger Tract 4 is 36.58 acres on the northwest intersection of SD Highway 50 and SD Highway 19. Currently, the owners will continue farming the property but want to have the property as ready as possible for future development. Jose noted the owners have submitted their petition to annex the above- mentioned area into the municipal boundaries of Vermillion. If the property is developed, the City will extend utilities to the area so that future lots are serviced. Jose stated the land will enter city limits zoned NRC, Natural Resource Conservation, which is the most restrictive classification and allows farming operations within the City. The land may be rezoned later when it is requested by the owner. Jose noted that the owner has been made aware, has acknowledged, and has agreed that the City may elect to serve the annexed area with City utilities as allowed by South Dakota law or any other agreements that may be in effect between the City and the utility. Jose stated the annexation will lead to an increase in the City’s property tax base. If developed, the area could lead to additional job prospects, new residences, and new utility customers. However, to properly develop this area, the City will need to extend utilities north of SD Highway 50. There are no estimates for any of the extensions as the property owner is not currently interested in developing the property. 248-25 After reading the same once, Council Member Murra moved adoption of the following: RESOLUTION ANNEXING CERTAIN CONTIGUOUS TERRITORY TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA WHEREAS, there has been presented to the Governing Body of the City of Vermillion, and filed with the City Finance Officer, a petition to annex contiguous territory into the corporate limits of the City of Vermillion; and WHEREAS, said petition was signed by the owners of not less than three- fourths of the value of the territory to be annexed and that there are no registered voters residing within the boundaries of the territory to be annexed; and WHEREAS, such an annexation is provided for in SDCL 9-4-1 upon resolution of the Governing Body. NOW, THEREFORE, BE IT RESOLVED, by the governing body of the City of Vermillion, South Dakota that the following territory described as: Munger Tract 4, in the SW ¼ of the SE ¼ of Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota. is hereby included within the corporate limits of the City of Vermillion and the boundary of the City of Vermillion is hereby extended to include such territory. Dated at Vermillion, South Dakota this 4th day of August 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 Price. 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. Authorization to Notify Electric Cooperative of Intent to Serve Annexed Area (Munger Tract 4 in the SW 1/4 of the SE 1/4 of the Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota). Shane Griese, Utilities Manager, stated the City of Vermillion has provided electrical services to the residents of this community and customers within our service territory since 1915. Shane noted the Light and Power department is a public, not-for-profit electric utility that is owned by the residents of the community. Public power utilities are operated by local governing bodies to provide reliable, responsive, affordable electric services and are directly accountable to the people they serve through open public meetings of the governing body. Shane reported the purpose of this authorization is to notify Clay-Union Electric Corporation (CUE) of the City’s intent to provide the annexed property with City electric service, and to offer to purchase electric distribution properties and service rights within this area per State statute. This coincides with the previous agenda item to annex this portion of land into the city limits. Shane noted by State law, if the City does not notify a rural electric cooperative within one year of annexation of its intent to serve the annexed area, the annexed area shall continue to be served by the rural electric cooperative. CUE is required by State law to acknowledge in writing, receipt of the Notice of Intent within 90 days after receiving it. Shane stated the City has elected to serve all annexed areas since a 1992 State law changed the notification time to one year from annexation. The City is unaware of any CUE customers in the annexed area. Shane noted that per State statute, the City will pay compensation for service rights equal to the sum of twenty-five percent (25%) of the gross revenues received from power sales to consumers of electric power within the annexed area. These revenue payments will not start until a City electric customer service is established in the area during the next eleven years. The City will only be responsible for making lost revenue payments for a maximum of seven years for each new customer. Shane noted the CUE was notified via email on July 22, 2025, that this item would be on August 4th City Council Agenda. The email included a copy of the plat approved by the City Council on July 21, 2025, and a location map. Shane stated the property owner is aware that the City of Vermillion has historically elected to serve all newly annexed areas with electrical services, they were informed of our intent to serve this property as well, and they did not raise any objections. Shane stated that an email was received from Chris Larsen with Clay- Union Cooperative. Shane read the statement that stated Clay-Union is not in favor of the City taking over services. Mayor Cole asked Staff to describe what being a non-profit means. John Prescott, City Manager, stated that the citizens have a larger say on the utilities due to it being a part of the City. John also stated that just under a million dollars is transferred to the general fund to help support other departments within the City such as the Police and Fire. John noted that most city ran utilities do this to help put money back into the community. 249-25 Council Member Leber moved approval to notify the Electric Cooperative of Intent to Serve Annexed Area (Munger Tract 4 in the SW 1/4 of the SE 1/4 of the Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota). Council Member Hellwege seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. E. Agreement with Clay-Union Electric to Transfer Electric Service Territory for Marv Tract 1, in the E 1/2 of the SW 1/4 of Section 12, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota. (Property located at the NE corner of South Dakota Highway 50 and Princeton Street). Shane Griese, Utilities Manager, reported that at the May 19, 2025 meeting, the City Council approved an annexation of the property currently known as Marv Tract 1, into City limits. State law gives municipalities the right to provide utility services to annexed properties within a year of the annexation. At the same May meeting, the City Council approved a Notice of Intent (NOI) to Purchase Service Territory, which was sent to Clay-Union Electric on May 21, 2025. Shane stated Clay-Union Electric acknowledged receipt of the NOI on July 16, 2025. Clay-Union Electric has confirmed there are no existing services on the property. They have existing power lines and materials on the south end of the property, however, this infrastructure does not need to be abandoned or relocated. Shane noted a transfer agreement was drafted by the City and the language in that agreement has been approved by Clay-Union Electric staff. There is no infrastructure that will be transferred, and there is no cost to reintegrate Clay-Union Electric system. A transfer date of September 1, 2025 has been agreed to. Shane stated the City will be responsible for paying annual lost revenue fees in the amount of twenty-five percent (25%) of all sales for a period of seven years for all existing services and any new service that is served within the annexed property during an 11-year period. All the lost revenue charges are based on the City’s electric rate at the time of transfer. Shane noted once approved the agreement will be delivered to Clay-Union Electric for approval by their board. Once all parties have approved the agreement, the transfer agreement will be filed with South Dakota Public Utilities Commission. Shane stated that Chris Larson Larsen with Clay-Union Cooperative sent an email stating he will bring this to his board to be approved. 250-25 Council Member Murra moved approval of the agreement with Clay-Union Electric to Transfer Electric Service Territory for Marv Tract 1, in the E 1/2 of the SW 1/4 of Section 12, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota. (Property located at the NE corner of South Dakota Highway 50 and Princeton Street). Council Member Holland seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. F. Easements for repairs along Vermillion River by the South Dakota Street bridge. Jose Dominguez, City Engineer, reported last year the City and the County experienced flooding along the Vermillion River causing serious damage at the City’s Wastewater Treatment Plant and eroded parts of the bank along the Vermillion River. Jose noted due to the erosion, the City had to abandon the reconstruction of the bike path along the river. Similarly to the City, the County experienced severe bank erosion due to the flooding at the South Dakota Street bridge and the Dawson Street bridge. Jose noted to address the damage done to the riverbank and to protect the bridges, the County has been working with FEMA and Ulteig (an engineering consultant) to stabilize and protect the eroded bank around the bridges. Jose stated to complete the bank stabilization and protection, the County will be placing riprap along the bank of the river and in the river channel. The riprap will be placed within permanent easements along the river and bridge. Additionally, temporary easements will be required to access the permanent easements. Jose reported the County is asking the City for two permanent easements and two temporary easements. Following is a table describing the easement: West side of S Dakota St. Temporary 0.465 acres East side of S Dakota St. Temporary 0.505 acres West side of S Dakota St. Permanent 0.061 acres East side of S Dakota St. Permanent 0.143 acres Jose stated anything damaged during construction (e.g. trail, disc golf pad, etc.) will be replaced by the contractor. Additionally, the contractor will be utilizing the south half of the Cotton Park parking lot. This will leave the north half to be used by the public. Jose noted the project is expected to take two to three weeks to be completed. The contractor will not start until after September 1st of this year. 251-25 Council Member Price moved approval of the easements for repairs along the Vermillion River by the South Dakota Street bridge: West side of South Dakota Street. Temporary 0.465 acres; East side of South Dakota Street. Temporary 0.505 acres; West side of South Dakota Street. Permanent 0.061 acres; East side of South Dakota Street. Permanent 0.143 acres. Council Member Jennewein seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. G. Resolution to purchase landfill bale bags. Jose Dominguez, City Engineer, reported on a resolution to purchase landfill bale bags. Jose noted the City would like to utilize a bid awarded by the City of Pierre (Pierre) on June 24, 2025. The contract was awarded by Pierre to Accent Wire-Tie for a price of $4.83 per bag. Jose noted if the City were to use the same bid, and placed the order as soon as possible, it is anticipated the order will be received approximately the second week of December 2025. Jose noted Staff have verified with Accent Wire-Tie that they are willing to honor the bid price offered to Pierre in June. The City has used Accent Wire-Tie in the past and has not experienced issues with deliveries or quality. Jose stated State Statute 5-18-18 allows the City to purchase from the lowest responsible bidder from a contract that was competitively solicited and awarded within the previous 12 months with the concurrence of said bidder. Jose noted the number of bags shipped determines the cost of the semi- load of bale bags to the Joint Powers Landfill fund. The price is $4.83 per delivered bag. A semi-load is 14,400 bags. If the semi-load was delivered to the City the cost would be $69,552.00. The 2025 Joint Powers Landfill budget includes funding for landfill bale bags. 252-25 After reading the same once, Council Member Jennewein moved adoption of the following: RESOLUTION AUTHORIZING PURCHASE OF SOLID WASTE BALE BAGS WHEREAS, SDCL 5-18A-22(3) authorizes a governmental entity to purchase necessary supplies from the lowest responsible bidder from a contract that was competitively solicited and awarded within the previous twelve months with the concurrence of said bidder; and WHEREAS, the City of Pierre, South Dakota on June 24, 2025, awarded Accent Wire-Tie of Texas a bid in the amount of $4.83 per bag delivered; and WHEREAS, the City has contacted Accent Wire-Tie and they have agreed to honor their June 2025 bid price and allow the City to purchase up to 14,400 solid waste bale bags in a semi-load for the awarded prices and terms. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, that the City Finance Officer or City Manager is hereby authorized to purchase up to 14,400 solid waste bale bags in a semi-load from Accent Wire-Tie of Texas at the awarded price of $4.83 per delivered bag and under the same terms as when the City of Pierre, South Dakota awarded a bid to this company on June 24, 2025. Dated at Vermillion, South Dakota this 4th day of August 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 Price. 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. H. Presentation of the Proposed 2026 Budget. John Prescott, City Manager, reported that each year the City Staff prepares a proposed budget for the next fiscal year. John noted that the proposed budget document for 2026 was presented to the City Council tonight to provide the Council time to review the document prior to the budget meeting. John noted that the actual discussion and presentation of the respective departmental budgets will take place on Tuesday, August 12th, 2025, in the City Council Chambers at City Hall at 4 p.m. I. Declaring a piece of equipment surplus. Jose Dominguez, City Engineer, reported on declaring a 2004 Caterpillar 140H motor grader surplus. Jose stated since 2021 the City has used the online auction site Purple Wave due to issues with selling large pieces of equipment in the local market. Jose noted Purple Wave is an online auction service specializing in vehicles and equipment and was recommended to City Staff by other governmental entities. Purple Wave charges a 10% fee to the purchaser on the highest bid. Selling items through auction does not require the equipment to be appraised. However, it does require that the vehicle/equipment be sold to the highest bidder. The winning bid may be less than the City expected thus negatively impacting the Equipment Replacement Fund. Information and photos of the equipment are included in the packet. Jose stated the sale proceeds from the equipment will go to the Equipment Replacement fund or to the funds that originally purchased the equipment/vehicle. 253-25 Council Member Cheeseman moved to declare the 2004 Caterpillar 140H motor grader surplus. Council Member Jennewein seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. J. Memorandum of Understanding with FOP Lodge #19 for Vacation Buyback and Longevity Pay. John Prescott, City Manager, reported on a Memorandum of Understanding with FOP Lodge #19 for Vacation Buyback and Longevity Pay. John noted the two items discussed by the Labor and Finance Committee and FOP were longevity pay and a vacation buyback program. A longevity pay program is an item that has been discussed for several years. A pilot vacation buyback program was tried in 2022. The language that the Labor and Finance Committee worked out was: Vacation Buyback: City will purchase back up to 20 hours one time a year. Employees will need to complete the designated form and submit it by September 1 of each year. Payment for vacation buyback will be completed by the end of September of each year. The vacation buyback hours are not considered hours worked and eligible to be considered in the overtime calculation. The vacation buyback hours will be taxed at the normal rate. To participate in the program, an employee needs to have a minimum of 20 hours of vacation left in their vacation leave bank after the buyback is completed and have a minimum of 300 hours in their sick leave bank. Longevity Pay: The City Council may annually consider the allocation of a sum of funding to be used for longevity pay. The City Manager and Finance Officer will determine the allocation of any longevity award to be made to qualifying employees. Eligibility for longevity pay may vary depending on the amount of funding available and number of employees. Minimum qualifications for longevity pay include being capped on the pay scale for at least 3 years and 15 years of consecutive employment with the City of Vermillion. The length of employment with the City and length of time at the top step will be considered in determining the amount of longevity pay for each eligible employee. Longevity pay will be made with a December paycheck each year. 254-25 Council Member Price moved approval of the Memorandum of Understanding with FOP Lodge #19 for Vacation Buyback and Longevity Pay. Council Member Leber seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 9. Bid Openings A. Wastewater Treatment Facility Improvement Project. Shane Griese, Utilities Manager, stated the existing Wastewater Treatment Facility was put into service in 1984. Shane noted large-scale improvements were made in 2004 and again in 2008 and in 2022 a Facility Plan was performed on the Wastewater Treatment Facility. That plan looked at the existing equipment and infrastructure and evaluated the facilities’ ability to meet existing and future permit requirements. Shane noted the Facility Plan was presented to the public at the December 19, 2022, City Council meeting, and a funding application was submitted in the beginning of 2023. In March of 2023 the City was awarded a $21,960,000 SRF loan to fund the project. After the award of funding, Staff requested Banner Associates to develop an agreement for the engineering of Phase 1 of the Wastewater Treatment Facility Improvement Project. Shane noted that the engineering agreement was approved at the July 3, 2023 City Council meeting in the amount of $3,103,000. Design of the improvement project began soon after that award. Shane stated in September of 2023 the City applied for an EDA grant to help with the funding of the project. On June 25, 2024, it was announced that the City of Vermillion was awarded a $5 million dollar grant from the EDA. Shane noted the project was advertised as required by State Statute (twice in the local newspaper). The plans and specifications were sent to three plan houses and supplied to 48 contractors and suppliers. Shane stated the project design was completed by Banner in the spring of 2025 and plans were reviewed by the State of South Dakota Department of Agriculture and Natural Resources. The project’s advertisement for bids was published on June 6th and June 23rd. On July 8th a well-attended pre-bid conference and walk through was held for interested parties. Shane noted On July 22, 2025, at 2:00 p.m. four bids were collected and opened for the WWTF Improvement Project. The low bid was received from PKG Contracting of Fargo, ND in the amount of $20,869,000. Banner Associates has reviewed the bids and submitted a letter of recommendation which has been included for review. Shane stated the WWTF Improvement Project is a large-scale improvement project which is scheduled for final completion in October of 2027. This completion date will be subject to change depending on the date the Notice to Proceed is completed. 255-25 Council Member Hellwege moved approval of the low bid received from PKG Contracting of Fargo, ND in the amount of $20,869,000. Council Member Cheeseman seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. B. Jolley Addition lots. Alex Ruth, Assistant to the City Manager, reported on bids received for lots at the City owned Jolley Addition. Alex stated the process for selling municipal-owned land is governed by SDCL 6-13. To proceed with the sale of Lots 1-13, Block 1, Jolley Addition, the following steps were taken: the City Council formally declared Lots 1-13, Block 1, Jolley Addition as surplus property on May 19, 2025, and had the site appraised on June 16, 2025. The Surplus Property Committee appraised Lots 1-13, Block 1, Jolley Addition at a range from $28,000 to $30,000 depending on lot size and location. Alex stated the City opened bids for the thirteen lots on July 30th at 2:00 p.m. Three bids were received from Angela Anderson. Ms. Anderson only intended to purchase one lot, so she ranked her bids by preference. Her preferred bid was for Lot #2, and she was the highest and only bid at $36,784. Alex stated the objective of selling this property is to grow the tax base within City limits. Terms of this bid require the buyer to pull a building permit on the property on or before March 1, 2026, and begin construction on the property prior to June 1, 2026. If these terms are not met, the City reserves the right to re-purchase the property at 75% of the purchase price. This re-purchase right will also be included in the Warranty Deed to Buyer. Alex noted other terms of this agreement include closing on or before September 30, 2025, with possession to immediately follow, the buyer and seller equally splitting title insurance, real property being sold “AS IS”, seller/buyer default plans, and adhering to the covenants that dictate the styles of houses to be constructed. Alex reported the City will continue to market the remaining twelve lots and bring any offers to the City Council for approval consideration. Having the City continue to market the lots will help with the education and understanding of following the covenants that were created through the work of the Historic Preservation Commission. The covenants are of high importance to the Commission. Nick Slattery, AMS Buildings Systems, asked if moving forward the City will be selling this and he stated it takes a period of planning to get a house planned. Nick stated it takes 30-60 days to plan a house. Nick stated the two clients he has would like to have a contingency offer to plan it out and then purchase the lot after. John Prescott, City Manager, stated that since the bids were opened that City can now take offers that can be contingent and if after the amount of days pass from the contingency then they can back out. 256-25 Council Member Price moved approval of the bid from Angela Anderson for Lot #2 at the price of $36,784. Council Member Jennewein seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. C. Fuel Quotes. Katie Redden, Finance Officer, read the monthly fuel quotes and recommended the low quote of New Century FS on Item 3 and 4, SE Farmers Coop on items 1 and 2. Item 1 - 4,350 gal. unleaded 10% ethanol: Brunick Service $2.72, FS New Century $2.679, Stern Oil $2.98, SE Farmers Coop $2.609 Item 2 – 1,000 gal. unleaded gasoline regular: Brunick Service $3.07, FS New Century $3.119, Stern Oil $3.29, SE Farmers Coop $2.909 Item 3 – 3,000 gal. No. 2 diesel fuel-dyed: Brunick Service $2.88, FS New Century $2.719, Stern Oil $2.87, SE Farmers Coop $2.879 Item 4 - 1,000 gal. No. 2 diesel fuel-clear: Brunick Service $3.16, FS New Century $2.99, Stern Oil $3.41, SE Farmers Coop $3.149 257-25 Council Member Price moved approval of the low quote of New Century FS on items 3 and 4, and SE Farmers Coop on item 1 and 2. Council Member Hellwege seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 10. City Manager's Report A. John reported on two meetings or events before the next City Council meeting on August 18:  The Planning & Zoning Commission meets on Monday, August 11 at 5:30 p.m. One item on their agenda is to consider the Project Plan for Tax Increment Financing District #12 which is on the west side of the 500 block of Cottage Avenue. This item may advance to the City Council’s August 18th agenda. The City’s Planning & Zoning Commission will be starting the meeting as a Joint meeting with the County Planning Commission. They will be discussing an amendment to the JJZA zoning ordinance to amend Light Industrial district zoning to include train car repair and maintenance station as a permitted use.  City’s Historic Preservation Commission meets on Wednesday, August 13, 2025 at 9 a.m. B. John stated the next City Council meeting on August 18th will begin as a Joint meeting with the Clay County Commission. The item to be reviewed is an ordinance amendment to the JJZA zoning regulations to allow train car repair and maintenance station as a permitted use in the Light Industrial zoning district. C. John noted the County and City representatives of the JJZA review committee have met. The meetings have been productive and positive. The intent is to continue to have JJZA and the respective Planning Commissions and governing bodies will be reviewing proposals to clarify in the document the working relationship. D. John reported at the June 16th meeting that the purchase of the new landfill dozer would be funded by a SD DANR loan of $409,100, a DANR grant of $102,200, and trading in the current bulldozer with a value of $127,850. The trade-in value of the current bulldozer is less than reported but will not be less than $110,000. The difference will be made up with Joint Powers reserve funding. E. John reminded the public that High Street from the north side of the Southeast Public Transit driveway to West Cherry Street will be closed from Thursday, August 7 at 7:00 a.m. to noon on Sunday, August 10 for the Clay County Fair. F. John stated one term is available on the Human Relations Commission due to a resignation. Expression of Interest forms for a one-year term expiring in May 2026 will be accepted through Thursday, August 21, 2025. Anticipate that an appointment will be made at the September 2, 2025, City Council meeting. G. John reported that one three-year term on the Business Improvement Board #1 is available. The term is reserved for an owner or manager of a lodging property participating in the BID collection. Expression of Interest forms will be accepted through Thursday, August 21, 2025. Anticipate that an appointment will be made at the September 2, 2025, City Council meeting. H. John noted a plat for Lot 1, Block 1 Pollman Addition was administratively approved today. The 3-acre plat is at the northeast corner of SD Highway 50 and Princeton Street. Staff could approve due to the size and no right-of-way was needed to dedicate it. PAYROLL ADDITIONS AND CHANGES Ambulance: Caiden Patrick $17.00/hr, $17.00/hr training, $25.50/hr holiday, Spencer Pigman $17.00/hr, $17.00/hr training, $25.50/hr holiday; Library: Steven Chinn $20.66/hr 11. Invoices Payable 258-25 Council Member Price moved approval of the following invoices: A & M SERVICES, INC UNIFORM CLEANING $149.60 AMAZON BUSINESS SUPPLIES $1,499.27 A-OX WELDING SUPPLY CO CARBON DIOXIDE $4,255.99 AT&T MOBILITY HOTSPOTS $302.29 AUTO VALUE PARTS $1,035.61 BANNER ASSOCIATES, INC JACK POWELL STAKING $1,117.80 BARKLEY ASPHALT STREET MIX $1,641.24 BIG SKY COMMUNICATIONS INC EQUIPMENT $2,375.00 BILL BROWN PROFESSIONAL SERVICES $1,050.00 BLUEPEAK TELEPHONE/INTERNET $4,053.92 BOMGAARS SUPPLIES $952.99 BORDER STATES INDUSTRIES INC SUPPLIES $1,929.16 BOUND TREE MEDICAL, LLC SUPPLIES $3,298.53 BRIAN MOORE SAFETY BOOTS REIMBURSEMENT $99.25 BRUNICKS SERVICE INC PROPANE $80.00 BUTLER MACHINERY CO. CATERPILLAR $425,847.12 CAPITAL ONE SUPPLIES $1,932.64 CASK & CORK MERCHANDISE $458.70 CHESTERMAN CO MERCHANDISE $40.00 CHRISTENSEN RADIATOR & REPAIR REPAIRS $72.25 CINTAS SUPPLIES $166.39 CITY OF VERMILLION CITY DEPARTMENTS POSTAGE $1,120.38 CITY OF VERMILLION CITY UTILITY BILLS $47,668.75 CONVERGINT TECHNOLOGIES LLC ALARM MONITORING $420.00 CORE & MAIN LP WATER MAIN PROJECT $38,321.68 CORE-MARK MIDCONTINENT, INC MERCHANDISE $4,249.90 DAKOTA BEVERAGE MERCHANDISE $14,168.16 DAKOTA PC WAREHOUSE EQUIPMENT $144.98 DEMCO SUPPLIES $109.18 DENNIS MARTENS MAINTENANCE $833.34 DUBOIS CHEMICALS SODA ASH $10,780.00 ECHO ELECTRIC SUPPLY SUPPLIES $3,089.56 ENGRAVER'S EDGE NAME TAG $24.30 EPG COMPANIES, INC REPAIRS $3,902.42 ERICKSON SOLUTIONS GROUP PROFESSIONAL SERVICES $1,496.55 FIRST BANK & TRUST-VISA TRAVEL/TRAINING/SUPPLIES $12,855.51 GALLS INCORPORATED UNIFORMS $195.09 GEOTEK ENGINEERING JACK POWELL DEV - CONCRETE TEST $1,725.00 GRAINGER SUPPLIES $117.80 GRAYMONT (WI) LLC CHEMICALS $6,458.88 GREGG PETERS FREIGHT $1,518.13 GREGG PETERS RENT $3,450.00 HACH CO EQUIPMENT $2,785.00 HAWKINS INC CHEMICALS $5,010.12 HEIMAN FIRE EQUIPMENT EQUIPMENT $672.85 HY VEE FOOD STORE SUPPLIES $411.90 IBKUL CORP MERCHANDISE $87.00 INGRAM MATERIALS $2,578.98 JACOB HOFFMAN REIMBURSEMENT - TUITION $1,326.00 JASPER ENGINEERING & EQUIP CO PROFESSIONAL SERVICES $1,905.40 JAY'S PLUMBING REPLACED DRAINS $206.30 JIM GOBLIRSCH REIMBURSEMENT-CONCESSIONS MERCH $110.81 JOHN A CONKLING DIST. MERCHANDISE $5,876.95 JOHNSEN HEATING & COOLING PROFESSIONAL SERVICES $4,093.40 JOHNSON BROTHERS OF SD MERCHANDISE $10,581.86 JOHNSON CONTROLS SERVICE AGREEMENT $2,960.27 JONES FOOD CENTER SUPPLIES $309.47 JOSH ANGLIN REPAIRS $2,375.00 LAYNES WORLD PHOTO PLATE $10.00 LEISURE LAWNS, LLC PROFESSIONAL SERVICES $98.00 LOFFLER COPIER CONTRACT $137.00 LOU'S GLOVES SUPPLIES $396.00 MAMMOTH SPORTS CONSTRUCTION LLC PICKLEBALL/TENNIS PROJECT $425,921.40 MATHESON TRI-GAS, INC SUPPLIES $135.62 McLAURY ENGINEERING PLAT $2,103.75 MEDICAL WASTE TRANSPORT, INC HAUL MEDICAL WASTE $292.50 MEDLINE INDUSTRIES, INC SUPPLIES $1,156.04 MENARDS SUPPLIES $25.96 MIDWEST TURF & IRRIGATION MATERIALS $1,194.54 MIDWEST UNDERGROUND REPAIRS/PARTS $1,085.30 NCL OF WISCONSIN, INC CHEMICALS $794.13 NEBRASKA JOURNAL-LEADER ADVERTISING $124.65 NETSYS+ PROFESSIONAL SERVICES $3,509.25 ODEYS INC MATERIALS $2,257.50 OKOBOJI WINES-SD MERCHANDISE $243.00 O'REILLY AUTO PARTS PARTS $297.92 PAULSEN MIDWEST LANDSCAPING CO BIKE PATH & PARK BENCH ADJ $24,306.56 PCC, INC COMMISSION $6,126.39 PEPSI COLA OF SIOUXLAND MERCHANDISE $1,884.10 PING/KARSTEN MFG CORP MERCHANDISE $555.83 PLAIN TALK PUBLISHERS SUBSCRIPTION $128.00 PRESSING MATTERS GOLF SCORE CARDS $1,981.00 PRESTO-X-COMPANY PEST CONTROL $176.09 QUADIENT FINANCE USA, INC PD POSTAGE $400.00 QUADIENT LEASING USA, INC POSTAGE METER LEASE PAYMENT $269.73 QUILL SUPPLIES $384.92 REDI TOWING TOWING $750.00 REPUBLIC NATIONAL DISTRIBUTING CO. MERCHANDISE $2,101.95 REQUIP, LLC CYLINDER REBUILD $18,636.44 REVOLT ELECTRICAL SERVICES, INC PROFESSIONAL SERVICES $2,975.00 RS PLUMBING SERVICES LABOR/SUPPLIES $1,198.86 RUNNING SUPPLY, LLC SUPPLIES $1,929.35 SCP DISTRIBUTORS LLC, BRANCH 725 SUPPLIES $104.74 SD ELECTRICAL COMMISSION WIRING PERMITS $400.00 SD PUBLIC ASSURANCE ALLIANCE CATERPILLAR COVERAGE $701.83 SD PUBLIC HEALTH LABORATORY TESTING $200.00 SECURITY SHREDDING SERVICES SHREDDING CONTAINERS $40.00 SERVICE MASTER OF SE SOUTH DAKOTA CUSTODIAL $4,015.71 SOUTHERN GLAZER'S OF SD MERCHANDISE $2,179.38 STAPLES BUSINESS CREDIT SUPPLIES $1,116.30 STERN OIL CO. SUPPLIES $2,421.35 STOCKTON TOWING INC TOWING $450.00 STUART C. IRBY CO. MATERIALS $102.00 SUN MOUNTAIN MERCHANDISE $190.80 TASTE OF HOME BOOKS BOOKS $30.98 THE LUMBERYARD LLC SUPPLIES $211.68 TITAN MACHINERY-SIOUX FALLS PARTS $854.60 TITLEIST-ACUSHNET COMPANY MERCHANDISE $458.62 ULINE SUPPLIES $3,361.60 US KIDS GOLF MERCHANDISE $48.39 US POSTMASTER POSTAGE FOR UTILITY BILLS $1,600.00 USD SPEECH/LANGUAGE/HEARING CENTER EVALUATION $150.00 VERIZON WIRELESS CELL PHONES $2,353.93 VERMEER HIGH PLAINS PARTS $308.30 VERMILLION ACE HARDWARE SUPPLIES $860.22 VERMILLION CHAMBER & DEVT CO. VERMILLION BUCKS $85.00 VGS INC MONTHLY HAULING $1,935.36 WALKER CONSTRUCTION INC JOLLEY DEMO $66,411.94 WALSH POLYGRAPH LLC PRE-EMPLOYMENT POLYGRAPH EXAM $633.50 WESCO DISTRIBUTION, INC SUPPLIES $4,861.15 WILLIAMS & CO. 2024 AUDIT $4,500.00 ZACHARY HAMMOND OPERATOR EXAM REIMBURSEMENT $60.00 ZIEGLER INC MATERIALS $114.35 ZIMCO SUPPLY CO MATERIALS $7,506.00 Council Member Hellwege seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 12. Consensus Agenda - None 13. Adjourn 259-25 Council Member Murra moved to adjourn the Council Meeting at 7:14 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 4th day of August 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 ___________.