City Council Agendas, Packets and Minutes

Unapproved Minutes City Council Regular Session December 15, 2025 Monday 6:00 p.m. The regular session of the City Council, City of Vermillion, South Dakota was called to order on Monday, December 15, 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 December 1, 2025, Special Session and December 1, 2025, Regular Session 761-25 Council Member Holland moved approval of the December 1, 2025, special session and December 1, 2025, regular session minutes. Council Member Murra seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 4. Adoption of Agenda 762-25 Council Member Price moved approval of the agenda. Council Member Leber seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 5. Visitors to be Heard 6. Public Hearings A. Medical Cannabis License renewals. Katie Redden, Finance Officer, reported on Medical Cannabis License renewals. The ordinance required approval by the City Council for issuance of Medical Cannabis License renewals. The following firms have applied to renew their medical cannabis license: 1 Dispensary Licenses: • Dakota Herb at 112 E Main Street Cultivation Licenses: • Aardvark Alternative Medical Solutions at 828 N Crawford Road • Dakota Natural Growers at 907 N Norbeck Manufacturing: • Dakota Natural Growers at 907 N Norbeck Street Katie noted that during the license period January 1, 2025 to December 31, 2025, all licenses were in active use. Currently, there have been no issues with Medical Cannabis licenses. Discussion followed. 763-25 Council Member Price moved approval of the Medical Cannabis License renewals. Council Member Hellwege seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 7. Consent Agenda Council Member Murra asked for items d and e Resolution Authorizing the Purchase of Dry Ice Blasting Equipment for the Light and Power Department and Resolution Authorizing the Purchase of a High-Voltage Dry Ice Cleaning Equipment Skid for the Light and Power Department be removed from the consent agenda. A. Invoices Payable. A & B BUSINESS, INC COPIER CONTRACT $942.00 ADVANTAGE ARCHIVES, LLC ACCESS TO DIGITAL CONTENT $250.00 AMAZON BUSINESS SUPPLIES $3,004.30 AMERICAN PUBLIC WORKS ASSOC MEMBERSHIP RENEWAL $1,024.00 AMERIFLEX BASE/ADMIN FEES $201.70 ARROW MANUFACTURING SUPPLIES $173.70 AT&T MOBILITY HOTSPOTS $343.88 AUTO VALUE SUPPLIES $1,311.22 AWWA MEMBERSHIP DUES $260.00 BASIN ELECTRIC POWER COOP WORK ORDER CHARGES $653.18 BENJAMIN DELCAMP FITNESS REIMBURSEMENT $262.84 BIERSCHBACH EQPT & SUPPLY SUPPLIES $1,453.17 BILL BROWN SNOW REMOVAL SERVICES $984.00 BLUEPEAK TELEPHONE/INTERNET $5,996.39 BORDER STATES INDUSTRIES INC SUPPLIES $7,604.81 BOUND TREE MEDICAL, LLC SUPPLIES $4,374.85 BROADCASTER PRESS ADVERTISING $1,627.94 BRUNICKS SERVICE INC PROPANE $28.00 2 BUHLS CLEANERS MAT/MOP SERVICE $571.96 BURNS & MCDONNELL PROFESSIONAL SERVICES $19,157.58 BUTCH'S PROPANE INC PROPANE $966.28 BUTLER MACHINERY CO. REPAIRS $1,013.32 CARROLL DISTRIBUTING & CONSTRUCTION MATERIALS $659.99 CASK & CORK MERCHANDISE $2,069.65 CHAMBERLAIN OIL CO SUPPLIES $305.88 CHARGEPOINT CHARGING STATION 2026 $3,420.00 CINTAS SUPPLIES $119.81 CITY OF VERMILLION NOVEMBER LANDFILL HAULING $228.00 CLAY RURAL WATER SYSTEM WATER USAGE $165.20 CLAY UNION ELECTRIC CORP ELECTRICITY $1,885.24 CORE & MAIN LP MATERIALS $511.49 CRARY HUFF LAW FIRM PROFESSIONAL SERVICES $4,856.00 DAKOTA BEVERAGE MERCHANDISE $15,265.56 DAKOTA PC WAREHOUSE EQUIPMENT $13,819.97 DETCO SUPPLIES $485.14 DIGI-TRAX CORP. SUPPLIES $149.50 DOLL DISTRIBUTING LLC MERCHANDISE $3,518.70 DORSEY & WHITNEY PROFESSIONAL SERVICES $17,500.00 DUBOIS CHEMICALS SODA ASH $10,780.00 ECHO ELECTRIC SUPPLY SUPPLIES $12,606.66 EMME SAND & GRAVEL INC TOP DRESSING SAND $1,741.92 ENERGY LABORATORIES TESTING $551.00 ENVIRONMENTAL RESOURCE ASSOCIATES SUPPLIES $1,249.63 ERICKSON SOLUTIONS GROUP PROFESSIONAL SERVICES $1,636.69 FLEETPRIDE MATERIALS $129.99 GLOBAL DIST. MERCHANDISE $336.00 GLOBAL INDUSTRIAL SUPPLIES $463.66 GRAYMONT (WI) LLC CHEMICALS $6,544.96 GREGG PETERS FREIGHT $2,089.79 HANDER INC. PLUMBING & HEATING PROFESSIONAL SERVICES $9,450.00 HARTINGTON TREE LLC TREES/STUMP GRINDING $3,055.00 HAUGER LAWN SERVICE MOWING/SPRAY WEEDS $246.00 HAWKINS INC CHEMICALS $3,783.95 HEIMAN, INC. SUPPLIES $1,250.10 HELMS & ASSOCIATES PARALLEL TAXIWAY $180.27 RECONSTRUCTION HY VEE FOOD STORE SUPPLIES $26.67 INGRAM LIBRARY MATERIALS $484.33 INSURANCE BENEFITS INC. AIRPORT LIABILITY $5,601.00 INTL. ASSOC OF ARSON INVESTIGATORS CHAPTER FEE $103.00 IRONCLAD CONSTRUCTION WINDOWS $2,118.03 3 ISTATE TRUCK CENTER PARTS $245.06 JOHNSEN HEATING & COOLING PROFESSIONAL SERVICES $1,346.09 JOHNSON BROTHERS OF SD MERCHANDISE $30,119.64 JOHNSTONE SUPPLY FILTERS $758.20 JONES FOOD CENTER SUPPLIES $429.33 JP COOKE CO 2026 LICENSE TAGS $90.50 K & M TIRE TIRES $594.40 KIMBALL MIDWEST MATERIALS $183.04 KOMLINE-SANDERSON PARTS $899.51 L.G EVERIST, INC SAND $4,427.25 LAYNES WORLD AWARDS $849.90 LES SCHWAB TIRES $1,212.72 LOREN FISCHER DISPOSAL HAUL CARDBOARD $1,040.00 M & M CONSTRUCTION LLC 2025 MISCELLANEOUS CONCRETE $24,945.22 M.H EBY, INC MATERIALS $21.75 MAMMOTH SPORTS CONSTRUCTION LLC PICKLEBALL/TENNIS PROJECT $144,092.53 MARIAH KOENIG MILEAGE REIMBURSEMENT $120.06 MART BROTHERS CONSTRUCTION PROFESSIONAL SERVICES $104.06 MATHESON TRI-GAS, INC CYLINDER RENTALS $265.95 MATTHEW CALLAHAN MEALS REIMBURSEMENT $108.00 MEDICAL WASTE TRANSPORT, INC HAUL MEDICAL WASTE $315.90 MEDLINE INDUSTRIES, INC SUPPLIES $604.28 MENARDS SUPPLIES $356.91 MERRICK INDUSTRIES CUSTOMER SUPPORT SERVICE $10,744.00 MIDAMERICAN GAS USAGE $2,353.66 MIDCONTINENT COMMUNICATIONS INTERNET SERVICES $481.83 MIDWEST ALARM CO PROFESSIONAL SERVICES $788.18 MIDWEST LABORATORIES, INC SOIL TESTING $358.96 MIDWEST PETROLEUM EQUIPMENT FUEL $790.50 MIDWEST READY MIX & EQUIPMENT ROAD GRAVEL $454.75 MILLBORN SEEDS ADC LANDFILL COVER $13,327.50 MR. GOLF CAR, INC PROFESSIONAL SERVICES $663.06 NCL OF WISCONSIN, INC SUPPLIES $161.00 NEBRASKA JOURNAL-LEADER ADVERTISING $39.95 NETSYS+ PROFESSIONAL SERVICES $184.50 NEW CENTURY FS FUEL $12,645.74 O'REILLY AUTO PARTS PARTS $317.14 OVERDRIVE INC SUBSCRIPTION SD DIGITAL $10,037.64 CONSORTIUM OVERHEAD DOOR OF SIOUX CITY PROFESSIONAL SERVICES $510.00 PANACEA MEADERY LLC MERCHANDISE $180.00 PCC, INC COMMISSION $7,762.19 PHELPS UNIFORM SPECIALISTS UNIFORM CLEANING $199.20 4 PRESTO-X-COMPANY PEST CONTROL $101.10 QUILL SUPPLIES $12.49 REDI TOWING TOWING $150.00 REGENTS OF THE UNIV OF MINNESOTA BARCODE LABELS $107.21 REPUBLIC NATIONAL DISTRIBUTING CO. MERCHANDISE $5,254.24 RESCO SUPPLIES $2,484.36 ROCKMOUNT RESEARCH & ALLOYS, INC SUPPLIES $154.59 RUNNING SUPPLY, LLC SUPPLIES $2,051.42 SANFORD HEALTH SUPPLIES $25.27 SANFORD HEALTH OCC MEDICINE TESTING $821.00 SCHAEFFER MFG. CO SUPPLIES $1,471.75 SD DANR LANDFILL OPERATIONS FEE $3,398.59 SD MUNICIPAL LEAGUE REGISTRATION FEE $199.00 SD PUBLIC HEALTH LABORATORY TESTING $200.00 SD SOCIETY OF FIRE SERVICE INSTRUCTORS MEMBERSHIP DUES $270.00 SOUTHERN GLAZER'S OF SD MERCHANDISE $4,979.83 STAPLES BUSINESS CREDIT SUPPLIES $1,867.91 STEFFEN TRUCK EQUIPMENT PARTS $863.00 STERN OIL CO. FUEL $4,822.34 STEWART OIL-TIRE CO SUPPLIES $174.17 STOCKTON TOWING INC TOWING $300.00 STRYKER SALES CORPORATION PARTS $2,127.80 SUBSURFACE SOLUTIONS, LLC PARTS $674.80 THREAD & INK EMBROIDERY SERVICES $402.73 TRANSPARENT LANGUAGE INC. SUBSCRIPTION $1,000.00 TREVIPAY- WALMART SUPPLIES $869.03 TRUE BRANDS SUPPLIES $701.78 TWIN CITY HARDWARE PARTS $3,523.13 US BANK ADMINISTRATION FEES $850.00 USD WELLNESS CENTER PUNCH PASSES $339.00 USPS-POC POSTAGE FOR METER $700.00 VANDER HAAGS INC. PARTS $255.00 VERIZON CONNECT FLEET USA LLC MONTHLY FEE $79.90 VERIZON WIRELESS CELL PHONES $2,640.12 VERMILLION ACE HARDWARE SUPPLIES $951.80 VERMILLION CHAMBER & DEVELOPMENT CO. BUSINESS IMPROVEMENT DISTRICT $16,666.88 WALKER CONSTRUCTION INC JOLLEY DEMO $51,417.02 WESCO DISTRIBUTION, INC SUPPLIES $223.00 WESTECH ENGINEERING, INC PROFESSIONAL SERVICES $4,173.00 ZIEGLER INC SUPPLIES $831.57 2026 INVOICES CITY OF YANKTON JOINT POWERS $500,000.00 5 SDML WORKERS COMPENSATION FUND WORKERS COMPENSATION $153,821.00 US POSTMASTER FIRST CLASS PRESORT FEE $370.00 B. 2026 Master Fee Schedule; fees set by resolution. C. Resolution authorizing the purchase of a bucket truck for the Light and Power Department. RESOLUTION AUTHORIZING THE PURCHASE OF A LIGHT AND POWER DEPARTMENT BUCKET TRUCK 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 Altec Industries, Inc. for a new Altec AM55- US60 bucket truck for a price of $317,619.00 offers an advantageous price to the City for said item; and WHEREAS, the City has contacted the factory direct dealer in Watertown, South Dakota, who works directly with the Saint Joseph, Missouri, factory and they have agreed to allow the City to purchase a new Altec AM55-US60 bucket truck 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 Altec AM55-US60 bucket truck from Altec Industries, Inc., of Saint Joseph, MO, for a price of $317,619.00. Dated at Vermillion, South Dakota this 15th day of December, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer F. Adoption of the Historic Preservation Commission By-laws. G. Adoption of the Business Improvement District Board No. 2 By-laws. H. County, School, and City combined election agreement. 6 I. Commercial Collector (Waste Hauling) License renewals. Loren Fischer Disposal - Loren Fischer, owner Fischer Disposal, LLC - Lonnie Fischer, operator Waste Connections – Art’s Garbage VGS, Inc for Vermillion Garbage Service Waste Management of Sioux City, Iowa Herm’s Sanitation, Inc. Bubba Dump, LLC – Mark Homes, owner J. Resolution to adjust the City Finance Officer’s salary. RESOLUTION ADJUSTING THE CITY FINANCE OFFICER SALARY WHEREAS, SDCL 9-14-28 provides that the governing body of every municipality shall fix and determine by ordinance or resolution the amount of salaries and compensation of municipal officers; and WHEREAS, the Vermillion City Council did complete a performance evaluation of the City Finance Officer in August 2025 and reviewed the document with the City Finance Officer; and WHEREAS, the City Council desires to increase the compensation of the City Finance Officer. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, that the City will increase the base salary of the Finance Officer by two percent as of January 1, 2026. The Finance Officer will also receive the same cost of living adjustment provided to other City employees as of January 1, 2026. Dated at Vermillion, South Dakota, this 15th day of December, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer K. Resolution to adjust the City Manager’s salary. RESOLUTION ADJUSTING THE CITY MANAGER’S SALARY 7 WHEREAS, SDCL 9-14-28 provides that the governing body of every municipality shall fix and determine by ordinance or resolution the amount of salaries and compensation of municipal officers; and WHEREAS, Vermillion City Council did complete a performance evaluation of the City Manager in August 2025 and reviewed the document with the City Manager; and WHEREAS, the City Council desires to increase the compensation of the City Manager. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, that the City will contribute two percent of the City Manager’s 2026 salary to a 457(b) account owned by the City Manager. The City Manager will also receive the same cost of living adjustment provided to other city employees as of January 1, 2026. Dated at Vermillion, South Dakota, this 15th day of December, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E Redden, Finance Officer 764-25 Council Member Cheeseman moved approval of the Consent Agenda. Council Member Holland seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. 8. Old Business A. Second reading of Ordinance 1549 to Amend Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 Rezoning Lot 1, Block 1, Pollman Addition, City of Vermillion, Clay County, South Dakota, from the NRC Natural Resource Conservation District to the GB General Business District. (Property is located at the northeast corner of the intersection between Princeton Street and South Dakota Highway 50). Jose Dominguez, City Engineer, reported that Mr. Christian Cabrera, representative of the owner, has requested that the City rezone the property located on the northeast corner of Princeton Street and SD Highway 50 from the NRC Natural Conservation District to the GB General Business District. Jose noted the area is roughly 3.00 acres in size and 8 the property is bounded by farm ground to the north, east, and west. South of the property, and across SD Highway 50, are commercial uses. The property to the north and east is within City limits and is in the NRC Natural Conservation District. The area to the south is also within City limits and is within the GB General Business District. However, the land to the west is in the Joint Jurisdiction Zoning Area and it is within the A-1 Agricultural Zoning District. Jose stated this lot was annexed in May 2025 as part of the larger annexation of Marv Tract 1. When property is annexed into the City it is automatically placed in the most restrictive zoning district. Because the owner is requesting to rezone the land within 1-year of the annexation, the owner is not required to collect signatures from nearby property owners. However, the City still must advertise the meeting to rezone the property and place notices on the property. Both have been done. Jose reported that the owners’ desire for rezoning their property is to allow for the future construction of a convenience store, fuel pumps, and car wash. For the owner to be able to accomplish this, rezoning is the first step. If the rezoning is successful, the owners will later approach the City’s Planning and Zoning Commission with a Conditional Use Permit to discuss the gas station use. Jose noted rezoning this property will not be construed as offensive to the neighbors. Currently the property to the west, north, and east is undeveloped farm fields, while to the south, and across the highway, is commercially developed property. 765-25 Second reading of title to Ordinance No. 1549, entitled An Ordinance Amending City Of Vermillion Code Of Ordinances Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 Rezoning Lot 1, Block 1, Pollman Addition, City Of Vermillion, Clay County, South Dakota, from the NRC Natural Resource Conservation District to the GB General Business District for the City of Vermillion, South Dakota. Mayor Cole read the title to the above-named Ordinance, and Council Member Holland moved adoption of the following: BE IT RESOLVED that the minutes of this meeting shall show that the title to the proposed Ordinance No. 1549 entitled An Ordinance Amending City Of Vermillion Code Of Ordinances Title XV, Land Usage; Chapter 155 Zoning Regulations; Section 155.026 Rezoning Lot 1, Block 1, Pollman Addition, City Of Vermillion, Clay County, South Dakota, from the NRC Natural Resource Conservation District to the GB General Business District was first read and the Ordinance considered substantially in 9 its present form and content at a regularly called meeting of the Governing Body on the 1st day of December, 2025 and that the title was again read at this meeting, being a regularly called meeting of the Governing Body on this 15th day of December, 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: PROPOSED ORDINANCE 1549 AN ORDINANCE AMENDING CITY OF VERMILLION CODE OF ORDINANCES TITLE XV, LAND USAGE; CHAPTER 155 ZONING REGULATIONS; SECTION 155.026 REZONING LOT 1, BLOCK 1, POLLMAN ADDITION, CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA, FROM THE NRC NATURAL RESOURCE CONSERVATION DISTRICT TO THE GB GENERAL BUSINESS DISTRICT. 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, Block 1, Pollman Addition, City of Vermillion, Clay County, South Dakota be hereby excluded from the NRC Natural Resource Conservation District and included in the GB General Business District. Dated at Vermillion, South Dakota this 15th day of December 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 Murra. 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. B. Second reading of Ordinance 1548 – 2025 Supplemental Budget Appropriations Ordinance. 10 Katie Redden, Finance Officer, reported that the Supplemental Appropriations Ordinance is needed to adjust the budget for items that have changed since the revised budget was adopted in September 2025. The agenda memo included an explanation of the individual line-item changes noting that the general fund is projecting to decrease the general fund reserve by $45,366 for 2025. 766-25 Second reading of title to Ordinance No. 1548, entitled An Ordinance Amending 2025 Budget Supplemental Appropriations Ordinance for the City of Vermillion, South Dakota. Mayor Cole read the title to the above-named Ordinance, and Council Member Holland moved adoption of the following: BE IT RESOLVED that the minutes of this meeting shall show that the title to the proposed Ordinance No. 1548 entitled 2025 Budget Supplemental Appropriations Ordinance 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 1st day of December, 2025 and that the title was again read at this meeting, being a regularly called meeting of the Governing Body on this 15th day of December, 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: PROPOSED ORDINANCE NO. 1548 2025 REVISED APPROPRIATION ORDINANCE AN ORDINANCE ADOPTING the 2025 Revised Appropriations Ordinance for the City of Vermillion, South Dakota. BE IT ORDAINED BY THE GOVERNING BODY of the City of Vermillion that the following sums are appropriated to meet the obligations of the municipality. Final Revised Revised 2025 Original 2025 Budget 2025 Budget GENERAL FUND REVENUES: General Property Taxes 3,121,854 3,121,854 3,121,854 Sales Tax 2,423,500 2,423,500 2,423,500 Penalties & Interest 4,500 4,500 4,500 Licenses & Permits 270,300 270,300 281,900 Cable TV Franchise 75,000 75,000 75,000 State Intergovernmental 336,500 376,300 413,800 County Intergovernmental 151,000 153,000 153,000 11 Charges for Goods & Services 908,000 914,100 954,072 Fines & Forfeits 48,000 47,300 47,300 Miscellaneous Revenues 471,193 590,753 863,353 TOTAL GENERAL FUND REVENUES 7,809,847 7,976,607 8,338,279 EXPENDITURES: Policy & Administration: General Government 798,733 819,324 847,026 Finance Office 243,266 243,266 245,286 Engineering 424,021 427,271 429,671 Planning & Zoning 650 650 650 Code Compliance 279,680 302,680 303,580 Community Promotion 229,000 197,105 217,050 Total Policy & Administration 1,975,350 1,990,296 2,043,263 Public Safety & Security: Police Administration & Invest. 713,153 752,621 753,396 Police Patrol 1,614,264 1,608,224 1,643,783 Fire & Rescue 502,332 509,282 521,982 Emergency Management 2,200 2,200 2,200 Ambulance 800,004 809,254 828,454 Total Public Safety & Security 3,631,953 3,681,581 3,749,815 Maintenance & Transportation: Municipal Garage 187,379 186,449 186,449 Municipal Service Center 37,271 36,346 36,346 Street Department 954,155 956,146 956,146 Snow Removal 95,714 95,582 95,582 Sweeping & Mowing 173,923 173,747 173,747 Carpentry 24,025 23,996 23,996 City Hall Maintenance 102,800 108,800 109,550 Old Landfill Maintenance 23,000 23,000 23,000 Old Library 30,000 30,000 32,200 Airport 91,067 91,647 98,647 Total Maintenance & Transportation 1,719,334 1,725,713 1,735,663 Human Development & Leisure Services: Library 720,381 745,159 745,159 Parks & Forestry 503,838 543,611 577,188 Swimming Pool 367,122 362,206 412,176 Recreation 313,184 323,211 324,411 Mosquito Control 16,985 5,992 7,337 National Guard Armory Center 54,400 52,650 54,900 Total Human Development & Leisure 1,975,910 2,032,829 2,121,171 TOTAL GENERAL FUND EXPENDITURES 9,302,547 9,430,419 9,649,912 GENERAL FUND NEEDS (1,492,700) (1,453,812) (1,311,633) Transfer to 911 Fund - Communications (385,489) (385,489) (385,489) Transfer to Prentis Park Debt Service (150,000) (150,000) (150,000) 12 Transfer to Capital Projects STIP 0 (449,000) (636,545) Transfer to TIF 8 - (118,273) (118,273) Transfer from Electric Fund 900,000 900,000 900,000 Transfer from Water Fund 2,306 2,306 2,306 Transfer from Sewer Fund 1,402 1,402 1,402 Transfer from Liquor Fund 365,600 365,600 365,600 Transfer from CP 60,000 60,000 60,000 Transfer from Library Fine & Gift 7,000 7,000 7,000 Transfer from Utilities Engineering Fees 136,387 136,387 136,387 Transfer from BID #1 1,440 1,440 1,440 Appropriation from Reserve STIP - 449,000 636,545 Appropriation from Reserve 554,054 633,439 491,260 GENERAL FUND BALANCE 0 0 0 SPECIAL REVENUE FUNDS SECOND CENT SALES TAX FUND Revenues 2,676,000 2,680,000 2,854,190 Expenditures - Second Cent Sales Tax 2,210,300 3,203,475 3,213,475 Transfer to Bike Path Capital Projects 0 (415) (415) Transfer to Airport Capital Projects (93,600) (91,000) (91,000) Transfer to City Hall Debt Service Fund (314,948) (314,948) (314,948) Transfer to Prentis Park GO Debt Service (46,085) (46,085) (46,085) Transfer to TIF 8 0 (529,293) (529,293) Transfer to Cap Project - Carr Street 0 (23,000) (23,000) Transfer to TIF 9 0 (25,746) (25,746) Transfer to Jack Powell (78,550) (139,113) (50,000) Transfer in Capital Projects 45,000 45,000 45,000 Appropriation from Reserve 22,483 1,648,075 1,394,772 SECOND CENT SALES TAX FUND BALANCE 0 0 0 PARKS IMPROVEMENT FUND Revenues-Recreation Fees 1,000 1,000 3,620 Appropriation from Reserve 0 0 2,231 Expenditures - Parks Improvements 1,000 1,000 5,851 Appropriation to Reserve 0 0 PARKS IMPROVEMENT FUND BALANCE 0 0 0 BBB SALES TAX FUND Revenues 462,000 462,000 462,000 Expenditures 343,600 423,849 431,919 Appropriation to Reserve (118,400) (38,151) (30,081) BBB SALES TAX FUND BALANCE 0 0 0 13 911 FUND - COMMUNICATIONS Revenues 385,489 385,489 385,489 Expenditures 770,978 770,978 770,978 Transfer from General Fund 385,489 385,489 385,489 911FUND FUND BALANCE 0 0 0 BUSINESS IMPROVEMENT DISTRICT #1 Revenues 72,000 72,000 72,000 Expenditures 70,560 70,560 70,560 Transfer to General Fund 1,440 1,440 1,440 Business Improvement District #1 Fund Balance 0 0 0 STORMWATER MAINTENANCE FUND Revenues - Stormwater Fees 412,551 384,325 384,325 Expenditures: 95,994 45,994 45,994 Transfer to Powell (316,557) (111,698) (145,056) Appropriation from Reserve 0 (226,633) (193,275) STORMWATER FEE FUND BALANCE 0 0 0 LIBRARY FINE AND GIFT FUND Revenues- Library Fine & Gifts 16,300 23,800 27,325 Expenditures - Library 9,300 15,000 19,000 Transfer to General Fund 7,000 7,000 7,000 Appropriation from Reserve 0 (1,800) (1,325) LIBRARY FINE AND GIFT FUND BALANCE 0 0 0 SPECIAL REVENUE - TIF District No. 5 Revenues 104,510 103,255 103,255 Expenditures 104,510 103,255 103,255 SPECIAL REVENUE - TIF 5 FUND BALANCE 0 0 0 DEBT SERVICE FUNDS DEBT SERVICE--SPECIAL ASSESSMENT FUND Revenues 74,950 77,650 77,650 Expenditures 3,515 3,515 3,515 Transfer to Sales Tax Fund (45,000) (45,000) (45,000) Appropriation to Reserve (26,435) (29,135) (29,135) DS SPECIAL ASSESSMENT FUND BALANCE 0 0 0 14 DEBT SERVICE-- TIF District No. 6 Revenues 429,484 274,021 513,351 Expenditures 429,484 274,021 513,351 DEBT SERVICE - TIF 6 FUND BALANCE 0 0 0 DEBT SERVICE-- TIF District No. 7 Revenues 112,938 179,027 179,027 Expenditures 112,938 179,027 179,027 Advance from Sales Tax 0 0 0 DEBT SERVICE - TIF 7 FUND BALANCE 0 0 0 DEBT SERVICE-- TIF District No. 8 Revenues 60,000 60,000 60000 Transfer to Sales Tax 60,000 60,000 60000 Advance from Sales Tax 0 505,000 505000 Appropriation to Reserve (505,000) -505000 DEBT SERVICE - TIF 8 FUND BALANCE 0 DEBT SERVICE-- TIF District No. 9 Revenues 0 0 0 Expenditures 78,550 25,746 25746 Advance from Sales Tax 78,550 25,746 25746 DEBT SERVICE - TIF 9 FUND BALANCE 0 0 0 DEBT SERVICE - CITY HALL Revenues 20,000 20,000 20,000 Expenditures 334,948 334,948 334,948 Transfer from Second Cent Sales Tax Fund 314,948 314,948 314,948 DEBT SERVICE - CITY HALL FUND BALANCE 0 0 0 DEBT SERVICE - PRENTIS PARK GO BOND Revenues 0 0 0 Expenditures 196,085 196,085 196,085 Transfer from Second Penny Sales Tax Fund 46,085 46,085 46,085 Transfer from General Fund Malt Beverage 150,000 150,000 150,000 Appropriation to Reserve 0 0 0 DEBT SERVICE - PRENTIS PARK BOND FUND 0 0 0 CAPITAL PROJECTS FUNDS CAPITAL PROJECTS FUND - AIRPORT Revenues 1,346,400 1,309,000 1,309,000 15 Expenditures 1,440,000 1,400,000 1,400,000 Transfer from Second Cent Sales Tax Fund 93,600 91,000 91,000 CP AIRPORT FUND BALANCE 0 0 0 CAPITAL PROJECTS FUND - STIP Revenues 0 0 0 Expenditures 0 472,000 636,545 Transfer from Second Penny 0 23,000 23,000 Transfer from STIP 0 449,000 613,545 CP STIP FUND BALANCE 0 0 0 CAPITAL PROJECTS FUND - JACK POWELL ADDITION Revenues 2,248,000 1,247,709 1,522,899 Expenditures 2,538,600 1,827,660 2,047,095 Transfer from Electric 0 329,140 329,140 Transfer In 290,600 250,811 195,056 CP JACK POWELL ADDN FUND BALANCE 0 0 0 CAPITAL PROJECTS FUND - BIKE PATH Revenues 104,082 0 0 Expenditures 350,000 10,000 10,000 Appropriation from Reserve 0 9,585 9,585 Transfer from Second Cent Sales Tax Fund 245,918 415 415 CP BIKE PATH FUND BALANCE 0 0 0 CAPITAL PROJECTS FUND - Jolley Addition Revenues 0 795,347 795,347 Expenditures 0 913,620 913,620 Transfer from Second Cent Sales Tax 0 118,273 118,273 CP JOLLEY ADDN FUND BALANCE 0 0 0 INTERNAL SERVICE FUNDS (Information Only) Copier - Technology Fax- Equipment Unemploymen Replacemen t Postage Custodial Replacement t Fund Fund Fund Fund Fund Revenues Internal Dept Charges - 16,000 95,690 729,747 81,471 Interest on Investments 500 - - 75,000 4,000 16  Other Revenues - - - 200,000 - Total Revenues 500 16,000 95,690 1,004,747 85,471 Expenditures Personnel - - 44,781 - 80,190 Operating Expenses 2,182 14,700 49,400 - 1,560 Capital - - - 969,810 - Total Expenditures 2,182 14,700 94,181 969,810 81,750 Transfer in - - - - 0 (To) From Reserve 1,682 (1,300) (1,509) (34,937) (3,721) Fund Balance 0 0 0 0 0 UTILITY AND ENTERPRISE FUNDS (Information Only) Curbside Golf Electric Water Wastewater Joint Powers Liquor Course Recycling Fund Fund Fund Fund Fund Fund Fund Revenues Sales 6,489,000 2,098,000 2,002,857 1,345,000 1,879,000 1,092,240 146,000 Surcharge 915,000 635,000 413,500 - - - - Other Revenue 1,090,000 69,100 11,800 895,000 - 72,709 500 Interest 470,000 101,000 159,000 130,000 14,000 24,000 3,000 Grants - - 305,000 102,200 - - - Total Revenues 8,964,000 2,903,100 2,892,157 2,472,200 1,893,000 1,188,949 149,500 Expenditures Personnel 1,188,023 793,532 606,389 701,759 - 582,672 127,415 Operating Expenses 4,693,990 1,250,358 827,219 1,326,469 1,519,470 727,783 25,363 Capital 1,050,320 3,499,055 7,424,107 643,341 10,000 47,592 - Debt Service - 81,452 285,325 650,273 - - - Debt Service Surcharge 681,395 235,669 291,015 - - - - 17 Total Expenditures 7,613,728 5,860,066 9,434,055 3,321,842 1,529,470 1,358,047 152,778 Transfers Out (981,833) (29,583) (28,679) - (363,530) - - Transfers In - - - - - - - Bond Proceeds - 3,050,000 5,650,000 409,100 - - - (To) From Reserve (368,439) (63,451) 920,577 440,542 - 169,098 3,278 Fund Balance 0 0 0 0 0 0 0 The City Manager is directed to certify the following dollar amount of tax levies in ordinance to the Clay County Auditor: General Fund $3,121,854 General Obligation Bond 0 and to levy taxes for Tax Incremental Financing Districts No. 5, No. 6, No. 7, No. 8, No. 9, and No. 10. Dated at Vermillion, South Dakota this 15th day of December 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 Price. 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. 9. New Business 18 A. Resolution authorizing a payment agreement with Clay County for the Law Enforcement Center. John Prescott, City Manager, reported on a payment agreement with Clay County for the Law Enforcement Center. John stated that the City and County will soon begin discussions about the City paying for the cost of construction for the Vermillion Police Department and the shared space such as Emergency Communications. The City anticipated making a payment in 2025 and budgeted to do so. While meetings on the amount due have not been held, there has been discussion about the City making a payment in 2025 to start paying down the upcoming debt. The County proposes the agreement included to facilitate the 2025 payment. John then went on to state the terms of the payment agreement and continued by explaining that the County had a special meeting on December 15th at 8:00 a.m. and approved the proposed payment agreement. John then elaborated that the City has budgeted $600,000 in the 2025 budget, and that the payment will be applied toward the City’s share of the LEC debt service for construction costs. 767-25 Council Member Jennewein asked what the exact amount would be. Mayor Cole stated that the City will not know the exact dollar amount that is due yet. Chairman of the Clay County Commissioners, Travis Mockler, explained that paying the $600,000 now will save the City money on future interest. Council Member Cheeseman asked if it would be an overpayment? Travis Mockler stated that it would not be, and that the excess will be amortized next year. Council Member Cheeseman asked when the City could expect final numbers. Travis Mockler was hopeful that it would be January of 2026. After reading the same once, Council Member Thaler moved adoption of the following: PAYMENT AGREEMENT This PAYMENT AGREEMENT (this "Agreement"), dated as of the 15th day of December, 2025 (the "Effective Date"), is entered into by the City of Vermillion, South Dakota ("City"), having an address at 25 Center Street, Vermillion, South Dakota 57069, and Clay County, South Dakota ("County"), 19 having an address at 211 West Main Street, Vermillion, South Dakota 57069 (collectively, the “Parties”). RECITALS WHEREAS, in 2022, County voters approved bonds, authorizing the construction of a Law Enforcement Center (the “LEC”); and WHEREAS, the LEC serves as the main operational center for the Clay County Sheriff’s Office, the Clay County Jail – operating under the authority and direction of the Clay County Sheriff – the Vermillion Police Department, the Clay Area Emergency Services Communication Center, and Clay County Emergency Management; and WHEREAS, This Agreement provides a mechanism for the City to make an initial payment in 2025 toward its share of the newly constructed LEC facility costs (the “2025 Payment”), while recognizing that a comprehensive ownership, operational, and cost-sharing agreement (“Final Agreement”) will be negotiated and finalized by the Parties once final construction costs of the LEC are known; and WHEREAS, the Parties agree that the 2025 Payment shall be applied toward the City’s total share of the project cost, which total share of the project cost shall be outlined in the Final Agreement. NOW THEREFORE, in considerations of the mutual agreements contained herein, the Parties agree as follows: I. 2025 City Payment. The Parties agree to the following terms as it relates to the 2025 payment: a. the 2025 Payment shall be an amount determined by the City; b. the 2025 Payment shall be applied toward the City’s share of the LEC debt service for construction costs; c. any interest earned on the City’s 2025 Payment shall also be credited to City’s share of the LEC debt service for construction costs; d. when the final cost allocations of the LEC are determined, the 2025 Payment shall reduce the City’s remaining obligation accordingly; e. the 2025 Payment shall not establish, define, or limit the City’s ownership share or operational rights within the LEC; f. the 2025 Payment shall be submitted to the County no later than December 31, 2025, unless extended by written agreement. II. Final Agreement. The Parties agree to continue to negotiate in good faith to finalize the Final Agreement. III. Term. This Agreement becomes effective upon approval and signature by each of the Parties. 20 IV. Governing Law and Venue. This Agreement shall be governed by and interpreted in accordance with the laws of the State of South Dakota. Venue shall be in a court of competent jurisdiction in Clay County, South Dakota V. Binding Effect. This Agreement shall be for the benefit of, and be binding upon, the Parties and therefore constitutes the entire agreement between the Parties. No modification of this Agreement shall be binding unless signed by each of the Parties. VI. Severability. If any provision of this Agreement is found to be invalid or unenforceable, only that provision shall be inoperative, and the remainder of the Agreement shall continue in full force and effect. VII. Entire Agreement. The Parties acknowledge that this Agreement constitute the full and final agreement between them, superseding all prior negotiations and all prior or subsequent oral agreements. This Agreement may be amended only by written agreement and executed by each of the parties hereto. IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first written above. CLAY COUNTY, SOUTH DAKOTA By:__________________________ Name: Travis Mockler Title: Chairman of the Clay County Board of Commissioners CITY OF VERMILLION, SOUTH DAKOTA By:__________________________ Name: Title: The motion was seconded by Council Member Leber. Discussion followed and the question of the adoption of the payment agreement 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 agreement was adopted. B. Resolution adjusting Water Tapping fees for new construction. Shane Griese, Utilities Manager, stated that many sections of the City Code contain language that indicates that there is a fee set by 21 resolution, and that the City began solely utilizing this approach when the code was revised in 2008. Shane continued that in 2023 water tapping fees were increased to account for increasing costs of materials. He explained that at the same time, options were added for taps with or without the need for excavating equipment. Staff have found that the option “with or without” equipment is not necessary, and a tapping fee for larger diameter services is also being added. He added that if the attached resolution is approved, the City comprehensive fee schedule will also be updated to reflect the changes. Shane added that the Resolution outlines the specific fee amendments, and that Administration recommends approval of the Resolution. 768-25 After reading the same once, Council Member Jennewein moved adoption of the following: RESOLUTION AMENDING FEES FOR WATER AND SEWER TAPS AND STREET CUTS WHEREAS, Sec. 53.055(e), Sec. 53.016(b) and Sec. 96-36 of the 2008 Revised Ordinances of the City of Vermillion allow the City Council to establish and change water tapping fees, sewer tapping fees and fees to cut and repair pavements. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, South Dakota, at a regularly called meeting thereof in the Council Chambers of said City at 6:00 p.m. on the 15th day of December 2025 that fees be established or changed as follows: WATER (Add excise tax to all fees) Water Tapping Fee for 1” far side service shall be: $2,222.00 plus meter, node, spud, and flange cost Water Tapping Fee for 1” near side service shall be: $1,369.60 plus meter, node, spud, and flange cost Water Tapping Fee for over 1” service shall be charged for time and materials plus 20%, plus the cost of meter, node, spud, and flange cost Water Tapping Fee for all services over 2” shall be: $1,500.00 plus meter, node, spud, and flange cost SEWER (Add excise tax to all fees) Sewer Tapping Fee for 4” or 6” service to clay or PVC sewer shall be: $250.00 STREET (Add excise tax to all fees) 22  Fixed Cost Unit Cost Minimum Charge Sawing Asphalt $78.00 $12.00/LF Sawing Concrete $78.00 $12.00/LF Cutting Asphalt with Colter $156.00 $6.00/LF Patching Preparation $156.00 $18.00/SY $306.00 Asphalt Placement $174.00 $13.00/SY/IN $324.00 BE IT FURTHER RESOLVED, that the effective date of the above-listed fees is December 15, 2025 and that said fees shall be collected before work is done. If pavement patching quantities cannot be accurately determined before the cut is made, this fee shall be computed and billed after quantities are determined. Dated at Vermillion, South Dakota this 15th day of December, 2025. FOR 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. C. Resolution adjusting Electrical fees for new construction. Shane Griese, Utilities Manager, explained that the Resolution included amends portions of Section 51.32 Special Service, and that this Resolution updates fees associated with electrical service charges that were last updated years ago. He added that these electrical fees are typically charged on new construction and remodel projects on residential and commercial properties in Vermillion. Shane stated that if the Resolution is approved, the City Comprehensive Fee Schedule will also be updated to reflect the changes. Shane then stated that the Resolution outlines the specific fee amendments, and that Administration recommends approval of the resolution. 769-25 23 After reading the same once, Council Member Holland moved adoption of the following: RESOLUTION AMENDING FEES FOR SPECIAL SERVICE WHEREAS, Sec. 51.32 (B), Sec. 51.32 (C), Sec. 51.32 (D), Sec. 51.32 (F)(1), Sec. 51.32 (F)(2) of the 2008 Revised Ordinances of the City of Vermillion allow the City Council to establish and change Special Service fees for electrical services. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, South Dakota, at a regularly called meeting thereof in the Council Chambers of said City at 6:00 p.m. on the 15th day of December, 2025 that fees be established or changed as follows: 51.32 (B) Special Service (Temporary Electrical Service During Construction) - Cost of Materials and Labor and Not Less Than $100 51.32 (C) Special Service (Drop and Reinstall Service) - $100 51.32 (D) Special Service (Undeveloped Residential Lot) - 200 Amps-$500, 400 Amps-$700 51.32 (F)(1) Special Service (Single Phase Commercial or Industrial Service) - $1,000.00 plus 50% of meter cost 51.32 (F)(2) Special Service (Three Phase Commercial or Industrial Service) - $1,500 First 100 Amps, $200 each additional 100 Amps, plus 50% of meter cost BE IT FURTHER RESOLVED, that the effective date of the above-listed fees is December 15, 2025, and that said fees shall be collected before work is done. Dated at Vermillion, South Dakota this 15th day of December 2025. FOR 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 24 voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. D. Agreement with Banner Associates for the design and construction services of the new Light and Power Building. Shane Griese, Utilities Manager, stated that Light and Power has been planning for a new building for over 10 years. In 2025, the Department requested qualifications and quotes from engineering and architectural firms to perform a study to identify options for a new building. Following that process, Banner Associates was selected to perform a preliminary study to identify future locations and create proposed designs for a future building. Shane explained that a small group of City Staff worked through the design options with Banner and came to an agreement on a preferred selection. On December 1, 2025, the City Council was given a presentation at the noon meeting reviewing the selected option and the proposed schedule and gave Staff guidance on the next steps to take. Council unanimously agreed to move forward with the new building and directed Staff to take the necessary steps to continue the process. Shane added that following that meeting, City Staff met with Banner to work through the scope and to reduce the cost of the project. Staff requested that Banner prepare an agreement to perform all the architectural and engineering needs for the new building and site surrounding the building. The agreement includes a lump sum of $312,600.00 to cover design and construction services, and the design and construction services expense has decreased from 7% to 6%. Shane explained that the project is scheduled to begin in early 2026, design and bidding phases are set to be completed by spring of 2026 with construction starting in the summer of 2026 and completion scheduled for summer of 2027. Discussion Council Member Holland asked if the money is only for the new building, or if any of it will go towards the old building. Shane confirmed that the cost is only for the new building. 770-25 Council Member Price moved approval of the agreement. Council Member Leber seconded the motion. Motion carried 9 to 0. Mayor Cole declared the motion adopted. E. Resolution approving Longevity Pay amount for 2025. 25 John Prescott, City Manager, stated that at the July 21, 2025 City Council meeting, the Council approved a Memorandum of Understanding with AFSCME Local 1052 for 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, and that the length of employment with the City and length of time at the top step will be considered in determining an amount of Longevity Pay for each eligible employee. Longevity Pay will be made with a December paycheck each year. John then explained that there are approximately 13 employees who may qualify and that their eligibility is being confirmed. Staff suggests the City Council authorize an amount not to exceed $7,500, and that administration recommends approval for awarding Longevity Pay to eligible employees. Council Member Leber asked if the pay would happen each year for each employee. John explained that if an employee is eligible, they would get the payment each year. Mayor Cole asked if the Council would decide to continue the Longevity Pay during the budget process each year. John stated that Mayor Cole was correct, and that only full-time employees are eligible. Council Member Cheeseman asked if it would be one check every year, or if there would be multiple checks. John explained that there would be one check at the end of the year. 771-25 After reading the same once, Council Member Thaler moved adoption of the following: RESOLUTION APPROVING THE 2025 LONGEVITY PAY AMOUNT WHEREAS, at the July 21, 2025 City Council meeting, the Council approved a Memorandum of Understanding (MOU) with AFSCME Local 1052 for Longevity Pay; and 26 WHEREAS, the City Council may annually consider the allocation of a sum of funding to be used for Longevity Pay; and WHEREAS, the City Manager and Finance Officer will determine the allocation of any longevity award to be made to qualifying employees; and WHEREAS, eligibility for Longevity Pay may vary depending on the amount of funding available and number of employees; and WHEREAS, 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; and WHEREAS, the length of employment with the City and length of time at the top step will be considered in determining an amount of Longevity Pay for each eligible employee; and WHEREAS, Longevity Pay will be made with a December paycheck each year; and WHEREAS, the City Council would like to offer Longevity Pay for all eligible full-time employees. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, South Dakota, at a regularly called meeting thereof in the Council Chambers of said City at 6:00 p.m. on the 15th day of December, 2025 that the City Council authorizes an amount not to exceed $7,500.00 for awarding Longevity Pay to eligible full-time employees. Dated at Vermillion, South Dakota this 15th day of December 2025. FOR 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. 27 F. Resolution authorizing the purchase of Dry Ice Blasting Equipment for the Light and Power Department. Jose Dominguez, City Engineer, explained that in the past few years, the City has experienced electrical power outages. Regular cleaning of the equipment would help reduce one possible cause of an outage, but the City does not currently own the necessary equipment to clean electrical equipment in the field. The buildup of dirt can damage the equipment. The City could hire out the cleaning of electrical equipment or purchase the cleaning equipment and perform the work with City crews. The cost of hiring out the cleaning is not as cost effective. Jose stated that there are several options available when purchasing the equipment, they range from purchasing from an already awarded contract to developing specifications and going out to bids. There is another option that is seldomly used by the City and that is to purchase from a sole source vendor without going to bids. The sole source vendor is SPI Utilities, a Canadian company that manufactures industry specific high- voltage dry ice cleaning equipment. SPI Utilities partners with other companies for parts of the final product, and one of the partners is the U.S. based manufacturer of the actual dry ice blasting equipment. The City could purchase all the equipment directly from SPI Utilities, however the City would incur additional costs due to the existing tariffs, so to lower the cost, City Staff is proposing to purchase the dry ice blasting equipment directly from the U.S. manufacturer. The City would then hire SPI Utilities to come to Vermillion to finish constructing the skid with the City provided dry ice blasting equipment. Jose stated that the City contacted Cold Jet, from Loveland, Ohio, to purchase an Aero 2 PCS Ultra with an AC 300, After Cooler, for the price of $61,050.00. If purchased, the equipment would be shipped to the City for installation on the skid by SPI Utilities. The Council will consider another agenda item for the purchase of the skid with the remaining equipment from SPI Utilities. The Light and Power Department has budgeted $175,000 for the purchase of high-voltage dry ice cleaning equipment, and that the $61,050 for the dry ice blasting equipment will be paid from the Light and Power fund, and the remaining money will be used to purchase the other equipment from SPI Utilities. Council Member Murra expressed concern about putting equipment on the consensus agenda and not completely understanding the purchase. He also asked what the lifespan of the equipment was. Jose stated that the City plans to replace this equipment every 15 years, and it will go into the Equipment Replacement Fund. Council Member Murra stated that we have gone a long time without the equipment and asked why we need it now. 28 Jose replied that the City has had recent outages related to maintenance issues that could be fixed by periodically cleaning the switches. He also said that they have looked into a service company, but it is more expensive to hire them than to purchase this equipment. Council Member Cheeseman asked if there are any other cities that have the equipment. Jose responded that there is a city that does have it, but they are not willing to rent it to us. Council Member Holland asked if we could allow other cities to rent it from us. Jose noted that it is possible, but the City would rather not. Council Member Cheeseman asked if the outages damage the switches over time, and if it would be cheaper to buy this equipment now rather than replacing the switches over time. Todd Halverson explained that the city had to replace a switch this year, and it would be cheaper to purchase the cleaning equipment now rather than replace more switches in the future. He added that this is newer technology, so it was not possible to purchase this until recently, and that is why it has not been done in the past. Council Member Leber asked about the legality of splitting up the equipment. Jose indicated that while the item is sold as a package, each item is also sold separately, so there should not be any legal problems. The City Attorney agreed with Jose that there should not be legal issues. Council Member Holland asked if it will be delivered and set up by the company. Jose explained that it would be delivered, and upon delivery, the vendor would help set up the equipment, and train employees on it. Mayor Cole asked about the number of outages there have been. Todd Halverson responded that there were three outages last year, two of them could have been prevented if they were cleaned periodically. Mayor Cole wanted to know what the time frame was for receiving the equipment. 29 Jose stated that it would be here after the second quarter of 2026, so around July of 2026. Mayor Cole pointed out that there is a one-year warranty, and it will sit for months before being used if it is a seasonal machine. Mayor Cole also asked, if the equipment is purchased now, would the city be subject to current tariffs or the tariffs in effect at the time of delivery. Jose responded that we would be subject to tariffs at the time of the equipment crossing the border. Mayor Cole asked if the equipment can be used separately. Jose explained that the equipment cannot be used separately. Council Member Jennewein asked if we are locking in the price by purchasing now. Jose responded that we are locking in the price, but not the tariffs. Mayor Cole reviewed different warranty options. Staff clarified warranty details. Council Member Jennewein asked if it is just a seasonal project for the department. Todd Halverson stated that it is not a seasonal product and can be used year-round. 772-25 After reading the same once, Council Member Holland moved adoption of the following: RESOLUTION AUTHORIZING THE PURCHASE OF LIGHT AND POWER DEPARTMENT DRY BLASTING EQUIPMENT WHEREAS, SDCL 5-18A-8 authorizes a governmental entity to purchase unique supplies without competition if the supplies are of such a unique nature that the supplier is the only practicable source; and WHEREAS, the City of Vermillion has reviewed and determined that Cold Jet of Loveland, OH, is the only supplier of a dry ice blasting equipment used by SPI Utilities for the high-voltage dry ice cleaning of electric equipment; and 30 WHEREAS, Cold Jet is willing to sell to the City a new Aero 2 PCS Ultra with an AC 300, After Cooler, for a price of $61,050.00 which offers an advantageous price to the City for said item; and 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 Aero 2 PCS Ultra with an AC 300, After Cooler from Cold Jet, from Loveland, OH, for a price of $61,050.00. 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. Dated at Vermillion, South Dakota this 15th day of December 2025. FOR THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA By____________________________ Jonathan D. Cole, Mayor ATTEST: By_________________________________ Katie E. Redden, Finance Officer G. Resolution authorizing the purchase of a High-Voltage Dry Ice Cleaning Equipment Skid for the Light and Power Department. Jose Dominguez, City Engineer, continued from the conversation on agenda item 9.F, stating that the City contacted SPI Utilities, from Alberta, Canada, to purchase a skid with an air compressor, insulated dry ice blasting tool, and generator, which will come from Ohio. The price for all items is $94,156.50. This includes a Fire ‘N’ Ice skid package, a Twister T185 Air Compressor, a Fire ‘N’ Ice 37.5 KV-Insulated Dry Ice Tool package, and training/installation. This is for both quotes and does not include the tariffs or exchange rates. However, because the final product is coming from Canada, tariffs are applied prior to shipping the items from Canada into the USA. The tariff amount will remain unknown. Additionally, although the estimate given by SPI is in U.S. dollars, the price is in Canadian dollars. SPI applied an exchange rate to give the City the estimate in U.S. dollars. The amount to be paid at the end will be based on the exchange rate at that time. 31 Jose stated that due to these two unknowns the estimate from SPI has a not-to-exceed value of $131,000. A final invoice with documentation on how much the tariffs increase the cost will be received prior to issuing the final payment. The documentation will ensure that the total paid does not exceed the estimate. There are no other manufacturers of the insulated dry ice blasting tool used to clean electric equipment. Jose explained that the Light and Power Department has budgeted $175,000 for the purchase of high-voltage dry ice cleaning equipment. The not to exceed quote of $131,000 for the skid and $61,050 for the dry ice blasting equipment will be greater than the budgeted amount. When these items were budgeted for there were no tariffs on Canadian goods. More than likely the amount budgeted will need to be revised; however, this increase is unknown since the tariff increase, and the exchange rate are unknown. 773-25 After reading the same once, Council Member Cheeseman moved adoption of the following: RESOLUTION AUTHORIZING THE PURCHASE OF LIGHT AND POWER DEPARTMENT HIGH-VOLTAGE DRY ICE CLEANING SKID WHEREAS, SDCL 5-18A-8 authorizes a governmental entity to purchase unique supplies without competition if the supplies are of a unique nature that the suppliers are the only practicable source; and WHEREAS, the City of Vermillion has reviewed and determined that SPI Utilities, Alberta, Canada, are the only supplier of a skid that includes the insulated dry ice blasting tool and an air compressor; and WHEREAS, SPI Utilities would be traveling to Vermillion, SD, to construct the skid with the City supplied dry ice blasting equipment previously purchased by the City; and WHEREAS, SPI Utilities is willing to sell to the City a new Fire ‘N’ Ice skid package, a Twister T185 Air Compressor and generator, a Fire ‘N’ Ice 37.5 KV-Insulated Dry Ice Tool package, training to use the equipment, to travel to Vermillion, SD, to construct the skid and to install the City supplied dry ice blasting equipment, for a price of $94,156.50, not including tariffs or changes in the exchange rates; and WHEREAS, SPI Utilities has also offered a not to exceed price of $131,000 for the same items that includes possible increases due to tariffs and changes to the exchange rates; and 32 WHEREAS, SPI Utilities will also provide documentation showing what increases are due to tariffs and changes to the exchange rates prior to the City issuing the final payment. 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 Fire ‘N’ Ice skid package, a Twister T185 Air Compressor and generator, a Fire ‘N’ Ice 37.5 KV-Insulated Dry Ice Tool package, training to use the equipment, to travel to Vermillion, SD, to construct the skid and to install the City supplied dry ice blasting equipment, for a price not to exceed of $131,000. Dated at Vermillion, South Dakota this 15th day of December 2025. FOR 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 Thaler. 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. Bid Openings 11. City Manager's Report A. John reported City offices will close at noon on Wednesday, December 24 and remain closed through December 25. Offices are open on December 26. B. There will not be curbside recycling collection on Thursday, December 25 or Thursday, January 1, 2026. A collection will be held on Monday, December 29, 2025, for the Thursday route as a substitute for these two Thursday collections. C. The Christmas tree collection site is open through Monday, January 12, 2026. Real Christmas trees with all wrapping, lights, and decorations removed may be taken to the site on the south side of Broadway Street just west of Dakota Street and deposited for free. 33 D. The Library is conducting their annual services survey. Participants are asked to complete the survey by December 31, 2025. E. Reminder that sidewalks are to be cleared 24 hours after the end of a snow event. Please clear the sidewalk from side to side and all the way to the street if you have a corner lot. Snow should be stored on your property. Please make sure to clear the full width of the sidewalk and, if appropriate, please clear all the way to the street or alley opening. F. There is one opening on the City’s Historic Preservation Commission for a term expiring in September 2027. Please submit an Expression of Interest form by 5:00 p.m. on Monday, December 29, 2025. Anticipate an appointment at the January 5, 2026, meeting. G. Raffle notification: Clay County Agricultural Fair Association will be selling tickets for $5 each, $20 for 5 tickets, or a bundle for $130. Each Wednesday from February 11, 2026 to August 5, 2026 there will be a drawing. Weekly winners will receive a $50 gift card to the host location. The 52 winners will be invited to a drawing on August 15 where the weekly winners will each draw a card. The individual who draws the 4 of Clubs will be the overall winner and will receive half of the final pot – estimated to be $15,000. Proceeds go to make updates to the livestock buildings on the fairgrounds. PAYROLL ADDITIONS AND CHANGES Engineering: Shane Griese $43.30/hr, Nick Steuernagle $25.47/hr, Travis Taggart $26.99/hr; Communications: Kerrigan Hoesing $22.10/hr; Volunteer Firefighters: Donnie Arena, Shawn Cottrell, Xiyuan Liu, Pablo Lozano, Caiden Patrick 12. Adjourn 774-25 Council Member Murra moved to adjourn the Council meeting at 6:52 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 day of December 15, 2025. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Katie E. Redden, Finance Officer 34 Published once at the approximate cost of ___________. 35