City Council Agendas, Packets and Minutes

Unapproved Minutes City Council Regular Session January 20, 2026 Tuesday 6:00 p.m. The regular session of the City Council, City of Vermillion, South Dakota was called to order on January 20, 2026 at 6:00 p.m. by Mayor Cole. 1. Roll Call Present: Thaler, Leber, Holland, Jennewein, Hellwege, Cheeseman, Murra, Mayor Cole Absent: Price 2. Pledge of Allegiance 3. Minutes A. Minutes of January 5, 2026, Special Session and January 5, 2026, Regular Session. 15-26 Council Member Holland moved approval of the January 5, 2026, special session and January 5, 2026, regular session minutes. Council Member Cheeseman seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. 4. Adoption of the Agenda 16-26 Council Member Murra moved approval of the agenda. Council Member Leber seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. 5. Visitors to be Heard 6. Public Hearings A. Retail On-off Sale Wine and Cider license until December 31, 2026 and Retail On-off Sale Malt Beverage with SD Farm Wine license until June 30, 2026 for Dough Boys, LLC for El Fredo Pizza at 831 E. Cherry Street. Nick Doty, Interim Finance Officer, stated the retail on-off sale malt beverage license is for the licensing period from issuance to expiration on June 30, 2026, and the retail on-off sale wine and cider license for the licensing period from issuance to expiration on December 31, 2026. Nick added that the City Council has the ability to issue a license on two criteria: suitable applicant and suitable location. There was a malt beverage and wine license at this location in 2025. As to the suitable applicant, a DCI and FBI background check are pending. The issuance of this license can be contingent on the background checks when they are received. The Police Chief’s report states that, after a check of the Vermillion Police Department records, there is no information that would preclude the issuance of the license to Tony and Brad Figge. Nick stated the fees for these licenses are $300 for the new malt beverage license, and $500 for the wine license. The Department of Revenue will receive $150 for the malt beverage license, and the City will retain the remaining $150 for the malt beverage license and $500 for the wine license. Nick concluded that Administration recommends the issuance of the retail on-off sale malt beverage and SD Farm Wine license, and retail on-off sale wine and cider license, for Dough Boys, LLC for El Fredo Pizza at 831 E. Cherry Street. 17-26 Council Member Cheeseman moved approval of the retail on-off sale malt beverage and SD Farm Wine license, and retail on-off sale wine and cider License, for Dough Boys, LLC for El Fredo Pizza at 831 E. Cherry Street. Council Member Leber seconded the motion. Motion carried 8-0. Mayor Cole declared the motion adopted. 7. Consent Agenda A. Invoices Payable A & B BUSINESS, INC COPIER CONTRACT $368.94 ACCOUNTS MANAGEMENT, INC GARNISHMENT RELEASE $2,966.46 AMAZON BUSINESS SUPPLIES $644.50 AMERIFLEX BASE/ADMIN FEES $203.50 AUTO VALUE SUPPLIES $413.32 BLUEPEAK TELEPHONE/INTERNET $4,044.17 BOOK SYSTEMS, INC SUBSCRIPTIONS $4,548.00 BOOKPAGE SUBSCRIPTION $438.00 BORDER STATES INDUSTRIES INC UNIFORMS $225.66 BOUND TREE MEDICAL, LLC SUPPLIES $1,228.91 BROADCASTER PRESS ADVERTISING $48.00 BUTLER MACHINERY CO. PARTS $506.40 BUTTERFLY NETWORK, INC SUBSCRIPTION $3,538.00 CASK & CORK MERCHANDISE $1,168.00 CINTAS SUPPLIES $310.57 CLAY COUNTY TREASURER REAL ESTATE TAX $794.66 DAKOTA BEVERAGE MERCHANDISE $4,928.48 DAKOTA MAINSTEM DUES $5,813.50 DAKOTA RIGGERS & TOOL SUPPLY MATERIALS $795.43 DECISION POINT ANNUAL ITI RENEWAL $1,400.00 DOLL DISTRIBUTING LLC MERCHANDISE $2,439.15 DORSEY & WHITNEY PROFESSIONAL SERVICES $10,604.50 ELEVATE HEALTHCARE LIFESPAN PEAK CONTRACT $3,788.40 EUROFINS ENV TESTING NORTH TESTING $2,871.00 CENTRAL, LLC GLOBAL DIST. MERCHANDISE $135.50 GLOBAL INDUSTRIAL SUPPLIES $172.29 HANDTEVY SUBSCRIPTION RENEWAL $2,890.99 HAWKINS INC CHEMICALS $2,319.00 HIGH POINT NETWORKS PROFESSIONAL SERVICES $306.25 INGRAM LIBRARY MATERIALS $1,097.60 INTERSTATE POWER SYSTEMS, PROFESSIONAL SERVICES $820.00 INC JACKS UNIFORM & EQPT SUPPLIES $212.50 JOHNSON BROTHERS OF SD MERCHANDISE $16,092.33 JONES FOOD CENTER SUPPLIES $227.44 K & M TIRE TIRES $856.00 KARLI'S KITCHEN CATERING SERVICES $960.00 KRONAIZL CONSULTING LLC TRIVIA SERVICES $150.00 MIDCONTINENT COMMUNICATIONS TELEPHONE/INTERNET $96.99 MID-STATES ORG. CRIME MEMBERSHIP $150.00 MIDWEST ALARM CO. QUARTERLY ALARM $257.49 MONITORING MIDWEST TURF & IRRIGATION MATERIALS $215.74 MINN MUNICIPAL UTILITY LINEMAN COLLEGE PROGRAM $315.00 ASSOCIATION NETSYS+ MANAGED SERVICES/STORAGE $553.70 O'REILLY AUTO PARTS SUPPLIES $66.16 PHELPS UNIFORM SPECIALISTS PROFESSIONAL SERVICES $66.40 QUILL SUPPLIES $246.59 REDI TOWING TOWING $300.00 REPUBLIC NATIONAL MERCHANDISE $2,690.87 DISTRIBUTING CO. RUNNING SUPPLY, LLC SUPPLIES $949.60 SD MUNICIPAL LEAGUE MEMBERSHIP DUES $5,447.00 SHI INTERNATIONAL CORP. SOFTWARE $1,021.30 SOUTHERN GLAZER'S OF SD MERCHANDISE $6,660.80 SPI INSPECTIONS INC 50% FIRE'N'ICE TOOL $47,078.26 STOCKTON TOWING INC TOWING $900.00 THE LUMBERYARD LLC MATERIALS $13.40 TODD'S ELECTRIC MATERIALS $350.00 TREVIPAY- WALMART SUPPLIES $274.68 USPS-POC POSTAGE FOR METER $700.00 UTILITY EQUIPMENT CO. MATERIALS $495.37 VERIZON CONNECT FLEET USA MONTHLY FEE $79.90 LLC VERMILLION ACE HARDWARE SUPPLIES $768.32 WESCO DISTRIBUTION, INC SUPPLIES $102.00 ZIEGLER INC PARTS $1,131.29 2025 INVOICES AMAZON BUSINESS SUPPLIES $1,884.34 AMS BUILDING SYSTEM LLC LABOR/MATERIALS - ICMA $2,697.32 A-OX WELDING SUPPLY CO. CARBON DIOXIDE $3,151.13 AUTO VALUE SUPPLIES $35.78 BANNER ASSOCIATES, INC WTP/WWTF IMPROV $61,653.21 BATTERIES PLUS MATERIALS $31.95 BLACKSTRAP INC ROAD SALT $1,799.98 BOUND TREE MEDICAL, LLS SUPPLIES $453.67 BROADCASTER PRESS ADVERTISING $2,441.13 BRUNICKS SERVICE INC PROPANE $32.00 BUHLS CLEANERS MAT/MOP SERVICE $571.96 BUTCH'S PROPANE INC PROPANE $3,452.07 CANFIELD BUSINESS INTERIORS SUPPLIES $258.78 CITY OF VERMILLION COPIES/POSTAGE $81.79 CLAY COUNTY SHERIFFS OFFICE GAS REIMBURSEMENT $43.40 CLAY RURAL WATER SYSTEM WATER USAGE $82.60 CLAY UNION ELECTRIC CORP. ELECTRICITY $2,303.93 CORE & MAIN LP HYDRANTS $8,677.73 CRARY HUFF LAW FIRM PROFESSIONAL SERVICES $2,966.00 CROUCH RECREATION PRENTIS PARK FURNISHINGS $1,298.00 DAKOTA BEVERAGE MERCHANDISE $136.20 DEMCO LIBRARY MATERIALS $1,714.71 ECHO ELECTRIC SUPPLY MATERIALS $1,118.29 ENERGY LABORATORIES TESTING $150.00 EQUIPMENT BLADES INC BLADES $1,190.00 EUROFINS ENV TESTING NORTH CENTRAL, LLC MONITORING WELLS $2,478.00 GLOBAL DIST. MERCHANDISE $96.50 GRAYMONT (WI) LLC CHEMICALS $6,360.77 GREGG PETERS MANAGER'S PROFIT $46,438.74 HEIMAN, INC MATERIALS $2,230.34 HOLIDAY OUTDOOR DÉCOR MATERIALS $914.00 HY VEE FOOD STORE MATERIALS $24.27 INGRAM LIBRARY MATERIALS $841.57 JAMAR TECHNOLOGIES, INC TRAFFIC COUNTER $4,994.93 JOHN TOWN BOOTS REIMBURSEMENT $222.97 JOHNSON BROTHERS OF SD MERCHANDISE $4,560.87 JONES FOOD CENTER MERCHANDISE $150.91 K & M TIRE TIRES $1,364.96 KEVIN O'KELLEY RETREE PROGRAM $200.00 KIMBALL MIDWEST SUPPLIES $206.58 LESSMAN ELECTRIC SUPPLY CO. SUPPLIES $225.00 LOREN FISCHER DISPOSAL HAUL CARDBOARD $1,120.00 LOU'S GLOVES GLOVES $297.00 M & T FIRE AND SAFETY INC SUPPLIES $1,682.85 MATHESON TRI-GLASS INC MEDICAL OXYGEN $156.81 MIDAMERICAN GAS USAGE $13,906.39 MIDWEST ALARM CO. ALARM MONITORING $136.52 MOORE WELDING CO. MATERIALS $68.00 NEW CENTURY FS FUEL $5,282.75 OVERDRIVE INC EBOOKS/AUDIOBOOKS $792.59 PCC, INC COMMISSION $1,502.00 PHELPS UNIFORM SPECIALISTS UNIFORM CLEANING $66.40 REDI TOWING TOWING $500.00 REPUBLIC NATL DISTR CO. MERCHANDISE $5,557.64 RUNNING SUPPLY, LLC SUPPLIES $814.51 SANFORD HEALTH OCC MED TESTING $670.00 SANFORD HEALTH SUPPLIES $169.62 SD DANR LANDFILL OPERATIONS FEE $3,447.09 SD PUBLIC HEALTH LAB TESTING $416.00 SOUTH DAKOTA 811 SD LOCATES $282.45 SOUTHERN GLAZIERS OF SD MERCHANDISE $1,453.19 STERN OIL CO. FUEL $12,069.17 STOCKTON TOWING TOWING $150.00 STOREY KENWORTHY TAX FORMS $238.07 TREVIPAY - WALMART SUPPLIES $37.60 TWIN CITY HARDWARE MATERIALS $609.60 TWO WAY SOLUTIONS SUPPLIES $1,439.98 TYLER TECHNOLOGIES PROFESSIONAL SERVICES $813.75 ULINE MATERIALS $330.88 VERMILLION ACE HARDWARE SUPPLIES 136.78 VERMILLION ROTARY CLUB MEALS/DUES $173.25 COMPENSATION FOR DAMAGED ZANE WOODRUFF RIFLE $1,500.00 18-26 Council Member Murra moved approval of the Consent Agenda. Council Member Hellwege seconded the motion. Motion carried 8-0. Mayor Cole declared the motion adopted. 8. Old Business 9. New Business A. Resolution accepting Roosevelt Street improvements completed by private developer. Jose Dominguez, City Engineer, reported on a Resolution for accepting Roosevelt Street improvements completed by a private developer. Jose stated in 2024 NJS Development, LLC, (Stencil) purchased approximately 16 acres between North Crawford Road and North Norbeck Street. The land purchased is split into two large parcels by the extension of Roosevelt Street. Currently, Stencil is constructing a large apartment building on the south parcel. Stencil has already completed the construction of Roosevelt Street and the associated infrastructure. Jose continued that Stencil and the City entered into two agreements in 2025 that discussed the construction of the proposed infrastructure. The agreements would have allowed the City to complete the project if Stencil had started but did not complete it, and also specified how the project would have been paid for if a TIF was not approved by the Council. Jose added that although the City did enter into various agreements with Stencil regarding the construction of the public infrastructure, none of the agreements specifically covered the City’s acceptance of the work. The Resolution being considered would accept the work and allow it to be used by the public. Acceptance of the work does not remove Stencil’s responsibility to complete any items that needed to be completed as outlined in the “Substantial Completion Punch List” from Stockwell Engineers dated December 12, 2025. Jose concluded that administration recommends approval of the Resolution for accepting Roosevelt Street improvements completed by private developer. Discussion followed. 19-26 After reading the same once, Council Member Holland moved adoption of the following:  RESOLUTION ACCEPTING THE CONSTRUCTION OF ROOSEVELT STREET AND ITS ASSOCIATED IMPROVEMENTS WHEREAS, the City of Vermillion (the “City”) and NJS Development, LLC (Stencil) entered into an Agreement to Construct Public Infrastructure by Private Developer on May 5, 2025; and WHEREAS, the City and Stencil also entered into a Development Agreement on May 5, 2025; and WHEREAS, the City and Stencil also entered into a Development Agreement for Tax Increment Financing District Number 11 on June 2, 2025; and WHEREAS, Stencil has substantially completed the construction of Roosevelt Street and all of the associated improvements (e.g. sanitary sewer, water main, sidewalk, streetlights, and storm sewer); and WHEREAS, Stockwell Engineers, Stencil’s consultant, completed a Substantial Completion Punch List on December 12, 2025 that has several items that need to be completed by Stencil prior to the disbursement of any money associated with the construction of Roosevelt Street and its infrastructure. NOW, THEREFORE, BE IT RESOLVED, that the City will accept Roosevelt Street, and its infrastructure, as substantially completed and open to the public for the public’s use. Adopted at Vermillion, South Dakota, this 20th day of January 2026. APPROVED: ___________________________ Jonathan D. Cole, Mayor City of Vermillion (Seal) Attest: ______________________________ Nick Doty, Interim Finance Officer The motion was seconded by Council Member Hellwege. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 8 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. B. Resolution adjusting electric rates. John Prescott, City Manager, reported that in early 2024 the City completed a rate study of our electric rates in cooperation with Missouri River Energy Services (MRES). In that rate study, it recommended three years of rate increases which was presented to the Council during the first half of 2024. The City Council in 2024 adopted the first rate increase that became effective in early January of 2025. Reasons for the rate increase was due to WAPA increasing their rates about 14% over two years. Additionally, just this last year, MRES raised their rate 4%. With MRES and WAPA’s increase along with the cost of materials and our capital improvements, it led to these rate increases. John added that in June 2024, the City Council approved the first step in the proposed electrical rate revision. The increase was not implemented until January 2025, which pushed each additional increase back a year. This gave Staff time to see if estimated rate increases for WAPA and MRES were implemented. John reviewed the rate adjustments for 2026 and 2027. These rate increases would take effect during their respective years, after March 15, 2026, and March 15, 2027. John concluded that administration recommends approval of the rate increases as proposed. He also added that the Utilities Committee met in late December 2025, and they reviewed these rate increases and were comfortable with the proposal as it was presented. Mayor Cole asked how Vermillion compares to other municipalities with this rate increase? John stated that in comparison to other municipal electrical companies around the state, we are very comparable and even on the low end with our rates. Discussion continued. 20-26 After reading the same once, Council Member Hellwege moved adoption of the following: RESOLUTION REVISING ELECTRICAL RATES WHEREAS, Chapter 51 of the 2008 Revised Ordinances of the City of Vermillion allows the City Council to establish and change electrical rates; and WHEREAS, the City of Vermillion Light & Power utility receives a fixed allotment of power from the Western Area Power Administration and the remaining power allotment is from Missouri River Energy Services, our supplemental power supplier; and WHEREAS, it is necessary to increase electric rates to recover wholesale power supply costs, along with increasing operating expenses. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, South Dakota, at a regular meeting thereof in the Council Chambers of said City at 6:00 p.m. on the 20th day of January, 2026, that rates be changed or established as follows: Sec. 51.22 Residential service rates. For billing made after March 15, 2026 Sec. 51.22 (B)(2)(a) Single dwelling & (b) Multiple dwelling Rate: All KWH per month per KWH at 9.1 cents for October –June billing and at 10.0 cents for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $14.00 per month For billing made after March 15, 2027 Sec. 51.22 (B)(2)(a) Single dwelling & (b) Multiple dwelling Rate: All KWH per month per KWH at 9.1 cents for October –June billing and at 10.1 cents for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $15.50 per month For billing made after March 15, 2026 Sec. 51.22 (B)(2)(c) Service for 70 or more dormitory-style apartment units providing exclusive student housing for 200 or more students. Rate: All KWH per month per KWH at 3.9 cents. Maximum KW demand at $14.60 per KW for October – June billing and at $17.30 per KW for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $48.00 per month plus an additional charge of $7.25 per month shall be assessed for each unit over one (1) connected to a master meter. For billing made after March 15, 2027 Sec. 51.22 (B)(2)(c) Service for 70 or more dormitory-style apartment units providing exclusive student housing for 200 or more students. Rate: All KWH per month per KWH at 3.9 cents. Maximum KW demand at $15.70 per KW for October – June billing and at $18.45 per KW for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $52.00 per month, plus an additional charge of $7.50 per month shall be assessed for each unit over one (1) connected to a master meter. Sec. 51.23 Small commercial power secondary service rate. For billing made after March 15, 2026 Rate: All KWH per month per KWH at 9.6 cents for October – June billing and at 10.4 cents for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $21.00 per month for single-phase services and $31.00 per month for three-phase services. For billing made after March 15, 2027 Rate: All KWH per month per KWH at 9.6 cents for October – June billing and at 10.5 cents for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $22.50 per month for single-phase services and $32.50 per month for three-phase services. Sec. 51.24 Large commercial power secondary service rate. For billing made after March 15, 2026 Rate: All KWH per month per KWH at 3.9 cents. Maximum KW demand at $14.60 per KW for October – June billing and at $17.30 per KW for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents, defined below Customer charge: $48.00 per month. For billing made after March 15, 2027 Rate: All KWH per month per KWH at 3.9 cents. Maximum KW demand at $15.70 per KW for October – June billing and at $18.45 per KW for July – September billing. The rate includes a surcharge fee per KWH at .0129 cents defined below Customer charge: $52.00 per month Sec. 51.26 Night Watch Flood Service Rate. Lamp Size Monthly Charge 40 watt $5.90 60 watt $7.25 300 watt $19.40 Sec. 51.27 City Street Lighting. For billing made after March 15, 2026 Rate: All KWH per month per KWH at 16.5 cents. The rate includes a surcharge fee per KWH at .0129 cents defined below For billing made after March 15, 2027 Rate: All KWH per month per KWH at 19.0 cents. The rate includes a surcharge fee per KWH at .0129 cents defined below Surcharge Fee Series 2016A: There is hereby established and imposed, pursuant to the authority of SDCL 9-40, a surcharge upon the electric service served by the City of Vermillion electric utility. The surcharge shall apply to all classes of electric customers listed above. The surcharge is a special charge for the use of the electric system improvements financed with the proceeds of the City's 2016A Electric Revenue Bonds and is pledged for the payment of the costs of operating and maintaining said improvements, and the debt service and other charges as may become due and owing on the 2016A Electric Revenue Bonds. The City hereby finds that the said improvements benefit all customers of its electric System and therefore imposes the surcharge fees on each customer of its System. The surcharge shall at all times be sufficient to produce net revenues for each fiscal year at least equal to one hundred twenty-five (125) percent of the principal and interest on the bonds coming due in such fiscal year. The charges shall be reviewed annually by city personnel and administratively adjusted, upwards or downwards, pursuant to SDCL 9-40-15.1 and 9-40-15 to such amounts as may be necessary to pay principal, interest and other charges as may become due and owing on the bonds. The surcharge fee per monthly billing shall be as follows: For billing made after December 15, 2024 the surcharge fee shall be .0051 cents per KWH. Surcharge Fee Series 2019 Refunding: There is hereby established and imposed, pursuant to the authority of SDCL 9-40, a surcharge upon the electric service served by the City of Vermillion electric utility. The surcharge shall apply to all classes of electric customers listed above. The surcharge is a special charge for the use of the electric system improvements financed with the proceeds of the City's 2009 Electric Revenue Bonds, that are anticipated to be refunded and replaced with the 2019 Electric Revenue Refunding bonds and is pledged for the payment of the costs of operating and maintaining said improvements, and the debt service and other charges as may become due and owing on the 2019 Electric Revenue Refunding Bonds. The City hereby finds that the said improvements made with the 2009 Electric Revenue Bonds benefited all customers of its electric System and therefore imposes the surcharge fees on each customer of its System. The surcharge shall at all times be sufficient to produce net revenues for each fiscal year at least equal to one hundred twenty-five (125) percent of the principal and interest on the bonds coming due in such fiscal year. The charges shall be reviewed annually by city personnel and administratively adjusted, upwards or downwards, pursuant to SDCL 9-40-15.1 and 9-40-15 to such amounts as may be necessary to pay principal, interest and other charges as may become due and owing on the bonds. The surcharge fee per monthly billing shall be as follows: For billing made after December 15, 2024 the surcharge fee shall be .0078 cents per KWH. The 2016A Surcharge fee and the 2019 Surcharge fee total of .0129 cents may be combined with the electric KWH charge on the monthly billing for ease of reporting. Dated at Vermillion, South Dakota this 20th day of January 2026. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA _________________________________ By: Jonathan D. Cole, Mayor Attest: ________________________________ Nick Doty, Interim Finance Officer The motion was seconded by Council Member Holland. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 8 members voted in favor of and 0 members voted in opposition to the Resolution. Mayor Cole declared that the Resolution was adopted. C. Resolution extending utilities under South Dakota Highway 50 at the Princeton Street intersection. John Prescott, City Manager, stated on December 29, 2025, the Utilities Committee met and discussed the proposal. The City Council also discussed the extension of the utilities at the January 5, 2026, noon meeting. John continued that last year, a 40-acre parcel was annexed into the City which is located at the northeast corner of the intersection of South Dakota Highway 50 and Princeton Street. John said this is a policy question for the City Council in terms of growth. John asked if the Council would like to invest now to extend the utilities from the current termination point south of the south right- of-way line north through the intersection to the north right-of-way line of South Dakota Highway 50. The extension of utilities under South Dakota Highway is a unique situation. The State of South Dakota is not going to pay for the cost of City utilities to be extended under the highway nor can they be assessed for the cost. At some point and at some location, extension of the City utilities under South Dakota Highway 50 will be needed for the growth of the City. John added that later in 2025, the same property owner that requested the annexation of the 40-acre parcel, submitted a plat which created a three-acre parcel in the southwest corner of the 40-acre parcel. The three-acres came back before the City Council with a request to rezone that to General Business which was approved. Additionally, no building permits have been submitted for the area, but there was a Conditional- Use Permit approved for a fuel dispensing station for the three-acre site.. John noted that at the time of the adoption of the 2026 Budget, there were several infrastructure projects being discussed, so there was Second Penny funds to be allocated to support infrastructure projects which were not defined at the time of the budget adoption due to other projects in the community. John added that the Staff’s estimate of the cost to extend the water line is $100,000 and the cost to extend the sanitary sewer line is $250,000. An estimate for engineering services is being developed. The cost of the pip to encase the lines will add to these costs. John concluded that Administration recommends approval of the resolution directing the extension of water and sanitary sewer lines under the intersection of South Dakota Highway 50 with Princeton Street utilizing Second Penny funds. Jim Peterson with the VCDC stated the Grow Campaign would contribute some funds, to be determined by their board, for the engineering side of expenses. Council Member Hellwege stated that the Utilities Committee discussed the question extensively about spending this money now. One thought was to wait for grant funding. However, when Staff looked for grant and funding opportunities, there weren’t many that would work for this project. The Utilities Committee, in discussions previously, concluded that since the City is committed to developing this area, it should happen at some point. Knowing that costs will not go down in the future is sort of why we are pushing for this now. Council Member Jennewein asked if we had budgeted for infrastructure projects not defined, how will other projects be impacted by this budget decision. John stated that other projects have not reached this strong of interest as this project. 21-26 After reading the same once, Council Member Murra moved adoption of the following: RESOLUTION REQUESTING THE DESIGN AND BIDDING OF THE EXTENSION OF PRINCETON STREET UTILITES UNDER SOUTH DAKOTA HIGHWAY 50 WHEREAS, the City Council, City staff, and development representatives have, over the last year, discussed potential projects which might be located on the north side of South Dakota Highway 50 (bypass) and in the vicinity of its intersection with Princeton Street; and WHEREAS, the City’s 2026 budget included an allocation of Second Penny funds for future infrastructure projects but did not designate specific projects; and WHEREAS, the Utilities Committee and City Council have reviewed the need to extend City utilities in the Princeton Street right-of-way north under South Dakota Highway 50 (bypass) to provide opportunities for the growth and development of the community. NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, South Dakota, that City staff is directed to proceed with the design and bidding of a project to extend city utilities from their current termination in the Princeton Street right-of-way south of South Dakota Highway 50 (bypass) to the right-of-way line on the north side of South Dakota Highway 50 (bypass). Dated at Vermillion, South Dakota, on this 20th day of January 2026. FOR THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA By _______________________________ Jonathan D. Cole, Mayor ATTEST: By _____________________________ Nick Doty, Interim Finance Officer The motion was seconded by Council Member Hellwege. Discussion followed and the question of the adoption of the Resolution was presented for a vote of the Governing Body. 8 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 A. Janitorial services for City of Vermillion facilities. Jose Dominguez, City Engineer, presented on the bid opening for janitorial services for City of Vermillion facilities. Jose stated that since February 2017, the City has contracted with a company to perform janitorial services for multiple City-owned buildings. All the contracts have been for one year with the option for two additional one-year renewals. The latest contract was entered in 2023, and the last renewal will conclude February 20, 2026. Jose added that the City sent bid packets to five cleaning services and published, as is required, the notice in the local newspaper. The City received two bids. Bids were opened on January 14th at 2:00 p.m. The low bid was from Service Master of Southeast South Dakota, current janitorial contractor, for a total of $48,857.76 per year. Jose continued, the second bid was adjusted due to an irregularity found in the bid. The bidder submitted prices on a monthly basis rather than on a yearly basis. When adjusted, the bid went from $8,367.73 per month to $100,364.76 per year. This made the second bid much higher than the low bid. Jose stated the 2026 Budget includes sufficient funding for the proposed janitorial services contract. Jose concluded that Staff recommends awarding the bid to Service Masters of Southeast South Dakota for a total of $48,857.76. 22-26 Council Member Leber moved approval of the low bid from Service Master of Southeast South Dakota for $48,857.76 per year for janitorial services for City buildings. Council Member Cheeseman seconded the motion. Motion carried 8-0. Mayor Cole declared the motion adopted. 11. City Manager’s Report  The Library Board will meet at 6:00 p.m. on Wednesday, January 21, 2026, in the Kozak room at the Library.  BID Board #1 will meet at 4:00 p.m. on Tuesday, January 27, 2026, in the Powell Conference room.   There will be a public meeting on Monday, January 26, 2026 at 6:00 p.m. in the City Council Chambers to receive public comments on South Dakota Highway 50. The City does not have control over this State highway but will receive comments that will be shared with the SD Department of Transportation.  There are two openings on the City’s Human Relations Commission. One term is for a term expiring in May 2026 and the second opening is for a term expiring in May 2027. Please submit an Expression of Interest form by 5:00 p.m. on Thursday, January 22, 2026. Anticipate an appointment at the February 2, 2026, meeting.  The St. Agnes Knights of Columbus will be selling NCAA men’s basketball game books for $20 from February 22 to March 22, 2026. Winners are based on the last digit of the score for the Elite 8, Final 4, and Championship game. Prizes range from $50 to $150 depending on the game. The proceeds go to fund church, school, or community activities supported by the Knights.  The St. Agnes Knights of Columbus will be selling Monday Night Football books for $20 from April 12 to September 8, 2026. The final digit of the score for each team is used to determine the winner. The weekly winner receives a $50 prize. They plan to sell 200 books with half of the money going back in weekly prizes and the other half going to support the philanthropic work of the Knights.  The Fraternal Order of Eagles will be selling up to 2600 raffle tickets at $20 each from January 19 to April 4, 2026. There are 75 prizes available. The prizes range in value from $300 to $750. Some of the items are rangefinders, an electric griddle, binoculars, grills, and guns. Prizes will be paid out via Scheels gift cards. Must be 21 years of age to purchase a ticket. Proceeds from the raffle will be used for the fraternal and charitable causes of the Vermillion Eagles Club. All ticket purchasers are eligible for a thank you dinner on April 4, 2026.  Vermillion After Prom will be selling squares on a Super Bowl board from January 20 to February 8, 2026. The last digit of each team’s score at the end of each quarter determines the winner. Tickets are $20 each and the prizes are $100, $200, and $250. They will sell 2 to 3 boards of tickets. Funds from the raffle go to support the Vermillion After Prom activities. PAYROLL ADDITIONS AND CHANGES Police Administration: Alex Taggart $34.42/hr; Pool: Skylar Griese $13.50/hr; Clubhouse: Grant Campbell $16.00/hr; Golf Maintenance: Austin Hickman $25.95/hr 12. Adjourn 23-26 Council Member Murra moved to adjourn the Council meeting at 6:29 p.m. Council Member Leber seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. Dated at Vermillion, South Dakota this day of January 20, 2026. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY___________________________________ Nick Doty, Interim Finance Officer Published once at the approximate cost of ___________.