City Council Agendas, Packets and Minutes

Unapproved Minutes City Council Regular Session February 17, 2026 Tuesday 6:00 p.m. The regular session of the City Council, City of Vermillion, South Dakota was called to order on February 17, 2026, at 6:00 p.m. by Mayor Cole. 1. Roll Call Present: Leber, Price, Holland, Jennewein, Hellwege, Cheeseman, Murra, Mayor Cole Absent: Thaler 2. Pledge of Allegiance 3. Minutes A. Minutes of February 2, 2026, Special Session and February 2, 2026, Regular Session. 35-26 Council Member Cheeseman moved approval of the February 2, 2026, special session and February 2, 2026, regular session minutes. Council Member Murra seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. 4. Adoption of the Agenda 36-26 Council Member Price 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 Richard Hammond, 25 Prentis Avenue, is here regarding the removal of a wooded area between Prentis and Anderson streets, which he is referring to as Prentis Forest, to accommodate new homes. Richard read a letter he wrote explaining why Prentis Forest is valuable to the community and why it should be left as is. Susanne Skyrm, 722 East Lewis Street, is also here in support of keeping Prentis Forest. Susanne gave several reasons why trees and green spaces are valuable for communities. Susanne also stated trees and greens spaces are what makes Vermillion a Tree City USA. 6. Public Hearings A. Request for a variance to decrease the required side yard setback along the west side of the property from 8 feet to 7 feet to construct an attached garage to the existing residential structure at 1619 East Main Street (legal description of Lot 2, Block 2, Dahls Addition, City of Vermillion, Clay County, South Dakota). Jose Dominguez, City Engineer, reported that the City received a petition requesting that the side yard setback be reduced from 8 feet to 7 feet for the construction of an attached garage. This property is in the R-1 Residential district. This district allows, as a permitted use, the construction of attached garages. The request was made by the owners, Robin and Michelle Mohr. The owners are represented by AMS Building Systems. Jose stated the City Council, acting as the Board of Adjustment (Board), hears and decides on any zoning ordinance variance requests. Prior to deciding if a variance is to be granted, the Board needs to consider any public comment and review the following factors listed in the memo. Jose stated Staff believe that the root cause for this variance is the fact that the house was not sited on the lot properly by the original owner of the house. Based on the information provided by the current owners, the house could have been set closer to the east property line. This would have allowed for sufficient space for an attached garage to be constructed on the lot. Jose noted that Staff would recommend approval of the variance to decrease the required side yard setback along the west side of the property from 8 feet to 7 feet to construct an attached garage to an existing residential structure. For the variance to be granted, there needs to be a 2/3 vote in favor of the entire Council. That means that 6 out of 9 members need to vote in favor of the variance. Mayor Cole asked if the neighbor had been contacted. Jose stated the neighbor has been contacted, the notice for the variance request was posted in the paper, and a sign was placed in front of the property. 37-26 Council Member Holland moved approval of the request for a variance to decrease the required side yard setback along the west side of the property from 8 feet to 7 feet to construct an attached garage to the existing residential structure at 1619 East Main Street (legal description of Lot 2, Block 2, Dahls Addition, City of Vermillion, Clay County, South Dakota). Council Member Hellwege seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. B. Request for a variance to decrease the required off-street parking spaces from 89 off-street parking spaces to 81 off-street parking spaces for the construction of a multi-family dwelling at the property legally known as Lot 1, Block 2, Madison Park Addition, City of Vermillion, Clay County, South Dakota (property located on the north side of Roosevelt Street just east of North Norbeck Street). Jose Dominguez, City Engineer, reported that the City received a petition from the owner, G.A. Haan Development, asking to reduce the required off-street parking from 89 spaces to 81 spaces. The property owner is planning to construct 3 apartment buildings within this site. The area is zoned R-3 Residential which does allow for multi-family dwellings to be constructed at the location. The parcel is located on the north side of Roosevelt Street just east of the intersection with North Norbeck Street. Jose stated the City Council, acting as the Board of Adjustment (Board), hears and decides on any zoning ordinance variance requests. Prior to deciding if a variance is to be granted, the Board needs to consider any public comment and review the following factors listed in the memo. Jose noted that the owner has already made changes to the plans to include additional off-street parking spaces. Originally, the owner was short 17 spaces. With the modifications to the design, the project is now only 8 spaces short. Although there are places to increase the parking, the owner is also trying to maintain some green space for the enjoyment of the residents and for drainage facilities. Jose stated Staff recommend approval of the variance to reduce the required off-street parking from 89 to 81 for the construction of a multi-family development. For the variance to be granted, there needs to be a 2/3 vote in favor of the entire Board. That means that 6 out of 9 members need to vote in favor of the variance. Jim Peterson, VCDC CEO, stated this is a tax credit project. Mayor Cole asked if the South Dakota Housing Authority’s approval of the tax credit project would be altered if this variance was not approved. John stated denying the variance would create a new process for the applicant to navigate. 38-26 Council Member Leber moved approval of the request for a variance to decrease the required off-street parking spaces from 89 off-street parking spaces to 81 off-street parking spaces for the construction of a multi-family dwelling at the property legally known as Lot 1, Block 2, Madison Park Addition, City of Vermillion, Clay County, South Dakota (property located on the north side of Roosevelt Street just east of North Norbeck Street). Council Member Cheeseman seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. 7. Consent Agenda A. Invoices payable. A & B BUSINESS, INC COPIER LEASES $851.29 AMAZON BUSINESS SUPPLIES $1,485.84 AMERIFLEX BASE/ADMIN FEES $205.20 AQUA-PURE INC CHEMICALS $9,640.00 AUTO VALUE SUPPLIES $552.41 BANNER ASSOCIATES, INC PROFESSIONAL SERVICES $42,677.30 BILL WOOD WATER HEATER REBATES $540.00 BLUEPEAK TELEPHONE/INTERNET $4,049.70 BOUND TREE MEDICAL, LLC SUPPLIES $1,559.90 BROADCASTER PRESS ADVERTISING $1,594.04 BUHLS CLEANERS MAT/MOP SERVICE $620.36 CANNON TECHNOLOGIES, INC MATERIALS $2,071.68 CASK & CORK MERCHANDISE $1,854.96 CHRISTENSEN RADIATOR & REPAIR PARTS $365.68 CINTAS SUPPLIES $219.01 CLAY RURAL WATER SYSTEM WATER USAGE $123.10 CLAY UNION ELECTRIC CORP ELECTRICITY $2,584.53 COAST TO COAST SOLUTIONS POSTERS $317.71 CORE & MAIN LP MATERIALS $2,288.88 CORE-MARK MIDCONTINENT, INC MERCHANDISE $1,288.59 CRANE SALES & SERVICES REPAIRS $879.25 CRARY HUFF LAW FIRM PROFESSIONAL SERVICES $2,409.25 DAKOTA BEVERAGE MERCHANDISE $6,907.32 DAKOTA PC WAREHOUSE COMPUTER SUPPLIES $789.94 DALE HUSBY BOOTS REIMBURSEMENT $212.39 DOLL DISTRIBUTING LLC MERCHANDISE $4,096.50 DOOLEY'S PETROLEUM INC FUEL $12,416.00 D-P TOOLS TOOLS $89.95 DUBOIS CHEMICALS SODA ASH $10,340.00 ECHO ELECTRIC SUPPLY MATERIALS $934.18 ED M. FELD EQPT CO BATTERIES $585.00 FIELDS OUTDOOR ADVENTURES, LLP SUPPLIES $4,590.00 GALLS INCORPORATED SHIRTS $56.12 GLOBAL DIST MERCHANDISE $842.50 GRAINGER SPRAYER $135.12 HAWKINS INC CHEMICALS $4,284.22 HELMS & ASSOCIATES PARALLEL TAXIWAY $557.33 HOLIDAY INN EXPRESS LODGING $224.00 HY VEE FOOD STORE LIBRARY PROGRAM SUPPLIES $17.97 IACP NET 2026 DUES $220.00 INGRAM LIBRARY MATERIALS $1,614.24 INTEGRATED TECHNOLOGY & CAMERA LICENSING $584.10 SECURITY IRONCLAD CONSTRUCTION REPLACE WINDOW - ICMA EMO $1,596.24 JAY'S PLUMBING PROFESSIONAL SERVICES $102.00 JERRY'S CHEVROLET BUICK GMC MATERIALS $145.89 JOHNSEN HEATING & COOLING REPAIRS $5,388.92 JOHNSON BROTHERS OF SD MERCHANDISE $16,618.35 JONES FOOD CENTER SUPPLIES $418.81 JOSH ANGLIN REPAIRS $1,793.92 K & M TIRE TIRES $1,484.00 LAMB MOTOR COMPANY 2026 CHEVY EQUINOX $28,231.00 LIFESERVE BLOOD CENTER RBC & PLASMA $890.20 LogRx SUBSCRIPTIONS $2,400.00 LOREN FISCHER DISPOSAL HAUL CARDBOARD $1,150.00 MATHESON TRI-GAS, INC SUPPLIES $557.97 MC&R POOLS, INC REGISTRATION $400.00 MENARDS SUPPLIES $576.55 MIDAMERICAN GAS USAGE $15,682.30 MIDCONTINENT COMMUNICATIONS TELEPHONE/INTERNET $96.56 MIDWEST ALARM CO QUARTERLY ALARM MONITORING $249.61 MIDWEST TURF & IRRIGATION PARTS $380.97 MOORE WELDING & MFG MATERIALS $24.70 NCL OF WISCONSIN, INC CHEMICALS $914.01 NETSYS+ DOMAIN SSL CERTIFICATE $266.00 NEW CENTURY FS FUEL $10,166.46 O'REILLY AUTO PARTS PARTS $200.23 PCC, INC COMMISSION $3,387.69 PEPSI COLA OF SIOUXLAND MERCHANDISE $479.78 PHELPS UNIFORM SPECIALISTS UNIFORM CLEANING $132.80 POMPS TIRE SERVICE, INC PROFESSIONAL SERVICES $743.47 QT POD SUPPLIES $41.96 QUADIENT FINANCE USA, INC PD POSTAGE METER $400.00 QUILL SUPPLIES $222.34 REBECCA GETCHELL BOOTS REIMBURSEMENT $110.95 REDI TOWING TOWING $750.00 REEL SHARP MATERIALS $3,765.05 REPUBLIC NATIONAL DISTRIBUTING MERCHANDISE $10,682.56 CO RUNNING SUPPLY, LLC SUPPLIES $984.32 SANFORD HEALTH OCC. MEDICINE TESTING $1,011.00 SD DANR LANDFILL OPERATIONS FEE $3,268.93 SD PUBLIC ASSURANCE ALLIANCE LIABILITY INSURANCES $374,130.33 SECURITY SHREDDING SERVICES SHREDDING CONTAINERS $40.00 SIOUX VALLEY ENVIRONMENTAL SUPPLIES $2,225.00 SIOUXLAND HUMANE SOCIETY FEES $56.00 SOUTHERN GLAZER'S OF SD MERCHANDISE $10,163.40 STOCKTON TOWING INC TOWING $900.00 TASTE OF HOME BOOKS BOOKS $30.98 THE LUMBERYARD LLC MATERIALS $41.76 TITAN MACHINERY-SIOUX FALLS PARTS $141.81 TREVIPAY- WALMART SUPPLIES $194.55 TRUE BRANDS SUPPLIES $388.20 USPS-POC POSTAGE FOR METER $700.00 VALIANT VINEYARDS MERCHANDISE $831.85 VERMEER HIGH PLAINS PARTS $184.34 VERMILLION ACE HARDWARE SUPPLIES $357.30 VERMILLION CHAMBER & BUSINESS IMPROVEMENT DISTRICT $13,453.44 DEVELOPMENT CO YANKTON JANITORIAL SUPPLY SUPPLIES $583.20 B. Resolution adjusting the Commercial Curbside Recycling Collection fee. RESOLUTION REVISING CURBSIDE RECYCLING COLLECTION RATES WHEREAS, Ordinance 1184 establishing mandatory curbside recycling for qualifying residences was adopted by the Vermillion City Council in April 2008 and upheld via a municipal election in November 2008; and WHEREAS, Section 52 of the Vermillion City Code of Ordinances provides the policies and procedures for curbside recycling collection; and WHEREAS, the City Council desires to provide curbside recycling on a self-sustaining user fee basis; and WHEREAS, Section 52.32 of the 2008 Revised Ordinance of the City of Vermillion allows the City Council to establish the monthly mandatory fee for residential curbside collection via resolution. 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 17th day of February, 2026, does amend the mandatory curbside recycling fee for utility billing after March 1, 2026 to be $14.00 per month plus sales tax for commercial service. BE IT FURTHER RESOLVED, that the City Manager of the City of Vermillion, South Dakota is authorized to establish rates for collection of recyclable materials from locations not mandated by the ordinance at a flat fee that shall cover the collection costs. The effective date of this resolution will be for billings after March 1, 2026. Dated at Vermillion, South Dakota this 17th day of February 2026. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA By____________________________ Jonathan D. Cole, Mayor ATTEST: By__________________________________ Nick Doty, Interim Finance Officer C. Engineering agreement with Houston Engineering, Inc. for installing monitoring wells and baseline sampling. 39-26 Council Member Price 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 A. Second reading of Ordinance 1550 to amend Title XV, Land Usage; Chapter 152, Signs; Table 3: Number, Dimensions, and Location of Individual Signs by Zoning District adding (h) to provide for larger freestanding signs along South Dakota Highway 50. Alex Goodburn, Building Official, stated this is the second reading of Ordinance 1550 for Chapter 152, Signs; Table 3 to amend the number, dimensions, and location of individual signs by adding note “h” in the table to provide for larger freestanding signs along South Dakota Highway 50 bypass. Alex noted there have been no changes made to the ordinance since the first reading, and the approval of the ordinance would require a roll call vote. 40-26 Second reading of title to Ordinance No. 1550, entitled An Ordinance Amending Title XV, Land Usage; Chapter 152, Signs; Section 152.13 Tables, Table 3: Number, Dimensions, and Location of Individual Signs by Zoning 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. 1550 entitled An Ordinance Amending Title XV, Land Usage; Chapter 152, Signs; Section 152.13 Tables, Table 3: Number, Dimensions, and Location of Individual Signs by Zoning District for the City of Vermillion, South Dakota 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 2nd day of February, 2026 and that the title was again read at this meeting, being a regularly called meeting of the Governing Body on this 17th day of February, 2026 at the City Hall Council Chambers in the manner prescribed by SDCL 9- 19-7 as amended. BE IT RESOLVED and ordained that said Ordinance be adopted to read as follows: ORDINANCE 1550 AN ORDINANCE AMENDING TITLE XV, LAND USAGE; CHAPTER 152, SIGNS; SECTION 152.13 TABLES, TABLE 3: NUMBER, DIMENSIONS, AND LOCATION OF INDIVIDUAL SIGNS BY ZONING 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, Chapter 152, Section 152.13 Tables, Table 3 be amended as follows: CHAPTER 152. SIGNS § 152.13 TABLES Table 3: Number, Dimensions and Location of Individual Signs by Zoning District NRC R-1 R-2 R-3 R-4 PD GB CB NC LI GI HI INS Sign Type (b) (b) (b) (b) (b) (a) Freestanding Area 160 16 16 16 16 (f) 160 160 40 60 160 160 32 (square feet) (h) (h) (h) Height 40 5 5 5 5 (f) 40 15 15 15 40 40 10 (square feet) Right-of-way 3 3 3 3 3 (f) 3 3 3 3 3 3 3 Setback (feet)(c) Number NA NA NA NA NA (f) NA NA NA NA NA NA NA permitted per lot Number 1 NA NA NA NA (f) 1 1 1 1 1 1 1 permitted for for for for for for for for per feet of each each each each each each each each street 900 300 200 200 200 500 500 free- frontage(d) standin g Building Area NA 2 2 NA NA (f) NA NA NA NA NA NA 24 (square feet) Wall area 10 NA NA 10 10 (f) 15 20 10 10 5 5 NA (percent)(e) Notes: (a) This column does not represent a zoning district. It applies to institutional uses permitted in residential districts. The uses may include, but are not necessarily limited to, churches, schools, apartment complexes, retirement homes, funeral homes, libraries, fraternities, and sororities. (b) In no case shall the sign height exceed the signs distance from an adjacent residential district boundary line. (c) No part of any sign shall protrude into the horizontal or vertical setback line. (d) Lots with 2 or more frontages shall be regulated according to Table 2. However, signage cannot be accumulated and used on 1 frontage in excess of that allowed for lots with only 1 street frontage. (e) The percentage figure here shall mean the percentage of the area of the wall which such sign is a part of, attached to or most nearly parallel to. (f) Planned Developments (PD) will be required to follow the sign regulations applicable to the use(s) within the development. (g) In the A-1 and NRC Zoning Districts, the city will not enforce the provisions of this chapter unless located along SD Highway 19, SD Highway 50, or Burbank Road. (h) Freestanding or individual signs along SD Highway 50 (Bypass) may be increased up to no more than 300 square feet. This exemption only applies to the GB, GI, and HI zoning districts. Sign must be within the HWY 50 setback. No sign may be located within 75 feet of residential zoning or residential use. Dated at Vermillion, South Dakota this 17th day of February 2026. THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY____________________________ Jonathan D. Cole, Mayor ATTEST: BY______________________________ Nick Doty, Interim 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: Leber - Y, Price - Y, Holland - Y, Jennewein - Y, Hellwege - Y, Cheeseman - Y, Murra - Y, Mayor Cole – Y Motion carried 8 to 0. Mayor Cole declared that the Ordinance has been adopted and directed publication thereof as required by law. 9. New Business A. First reading of Ordinance 1551 placing changes on the June 2, 2026 Ballot amending City of Vermillion Home Rule Charter Article V, Financial Procedures. John Prescott, City Manager, stated a Home Rule Charter was adopted by the voters in November 2020. Then in 2021, the State modified State Statute which allowed the City to adopt a budget later in the fiscal year. In 2025, the City Council looked at an ordinance to adjust the current budget process to reflect this new State Statute. It was later discovered that this proposed change would conflict with the Home Rule Charter, so the City Council is unable to move the budget process back unless the Home Rule Charter is amended. John noted that since the Home Rule Charter was adopted by the voters, it can only be changed by the voters. The proposed ordinance, if adopted, would be placed on the June 2, 2026 ballot. John also noted two corrections in the memo and proposed ordinance. The first correction is that the City Attorney, not the City Council, would develop the ballot explanation that will accompany the question on the ballot. The second correction is removing the November 30th date from Section 5.04 and replace it with “date determined by State Statute.” Both changes would be made for the second reading of the ordinance. John concluded that Administration recommends that proposed Ordinance 1551 be advanced to a second reading on March 2. 41-26 Mayor Cole read the title to the above-mentioned Ordinance and Council Member Cheeseman moved adoption of the following Resolution: BE IT RESOLVED that the minutes of this meeting shall show that the title to proposed Ordinance No. 1551 entitled An Ordinance placing changes on the June 2, 2026 Ballot amending City of Vermillion Home Rule Charter Article V, Financial Procedures has been read and the Ordinance has been considered to advance to the second reading at this meeting being a regularly called meeting of the Governing Body of the City on this 17th day of February, 2026 at the Council Chambers in City Hall in the manner prescribed by SDCL 9-19-7 as amended. The motion was seconded by Council Member Holland. After discussion the question of adoption of the Resolution was put to a vote of the Governing Body and 8 members voted in favor of and 0 members voted in opposition to the motion. Mayor Cole declared the motion adopted. B. Resolution annexing Munger Tract 1, S 1/2; and Munger Tract 2, in the SW 1/4 of the NE 1/4 and the NW 1/4 of the SE 1/4; and, Munger Tract 3, in the W 1/2 of the SE 1/4; all in Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota (property located west of SD Highway 19 and south of the Vermillion River). Jose Dominguez, City Engineer, reported that the City has been working with the owner of the property towards annexing the property. The City Council approved a Pre-Annexation Agreement with the owner in January 2025. The property is located west of South Dakota Highway 19 just south of the Vermillion River and north of City limits. The parcel is split into three tracts with Munger Tract 1 having one residence located on the property. Jose added that the land will enter City limits zoned NRC, Natural Resource Conservation, which is the most restrictive classification and allows farming operations within the City. The land may be rezoned later when it is requested by the owner. Jose stated the annexation will lead to an increase in the City’s property tax base. If developed, the area could lead to new residences and new utility customers. However, to properly develop this area, the City will need to extend utilities north of SD Highway 50 (bypass). This would be an additional crossing besides the one currently being discussed at Princeton Street and SD Highway 50 (bypass). There are no estimates for any of the extensions. Jose concluded that Administration recommends approve the resolution to annex Munger Tract 1, S 1/2; and Munger Tract 2, in the SW 1/4 of the NE 1/4 and the NW 1/4 of the SE 1/4; and, Munger Tract 3, in the W 1/2 of the SE 1/4; all in Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota. Mayor Cole asked if the residence in Munger Tract 1 knew of the rezone. Jose stated AMS is the owner and is aware. 42-26 After reading the same once, Council Member Jennewein moved adoption of the following: RESOLUTION ANNEXING CERTAIN CONTIGUOUS TERRITORY TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA WHEREAS, there has been presented to the Governing Body of the City of Vermillion, and filed with the City Finance Officer, a petition to annex contiguous territory into the corporate limits of the City of Vermillion; and WHEREAS, said petition was signed by the owners of not less than three- fourths of the value of the territory to be annexed and that there are no registered voters residing within the boundaries of the territory to be annexed; and WHEREAS, such an annexation is provided for in SDCL 9-4-1 upon resolution of the Governing Body. NOW, THEREFORE, BE IT RESOLVED, by the governing body of the City of Vermillion, South Dakota that the following territory described as: Munger Tract 1, S 1/2; and Munger Tract 2, in the SW1/4 of the NE 1/4 and the NW 1/4 of the SE 1/4; and, Munger Tract 3, in the W 1/2 of the SE 1/4; all in Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota. is hereby included within the corporate limits of the City of Vermillion and the boundary of the City of Vermillion is hereby extended to include such territory. Dated at Vermillion, South Dakota this 17th day of February 2026. 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 Leber. 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. Authorization to notify Electric Cooperative of intent to serve annexed area (Munger Tract 1, S 1/2; and Munger Tract 2, in the SW 1/4 of the NE 1/4 and the NW 1/4 of the SE 1/4; and, Munger Tract 3, in the W 1/2 of the SE 1/4; all in Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota). Jose Dominguez, City Engineer, reported the purpose of this authorization is to notify Clay-Union Electric Corporation (CUE) of the City’s intent to provide the annexed property with City electric service, and to offer to purchase electric distribution properties within the area being annexed. This agenda item coincides with the previous agenda item to annex this portion of land into the City. Jose added by State law, if the City does not notify a rural electric cooperative within one year of annexation of its intent to serve the annexed area, the annexed area shall continue to be served by the rural electric cooperative. CUE is required by State law to acknowledge in writing, receipt of the Notice of Intent within 90 days after receiving it. Jose stated the City has elected to serve all annexed areas since a 1992 State law changed the notification time to one year from annexation. The City believes there may be one CUE customer in the area to be annexed as there is an existing dwelling on one parcel that is being annexed. This residence will need to be worked out with CUE as far as payments. Jose stated CUE was notified via email on February 11, 2026, that this item would be on the February 17th City Council Agenda. The property owner is also aware that the City of Vermillion has historically elected to serve all newly annexed areas with electrical services, they were informed of our intent to serve this property as well, and they did not raise any objections. Jose added the City will work with CUE to identify electrical distribution properties within the annexed areas. The price for these properties will be established following the State law formula. Once the City begins serving existing properties, the seven years of revenue payments will begin. Jose stated that when a new City electrical service is established in the highlighted territory during the next eleven years, lost revenue payments may be needed for a maximum of seven years within the 11-year window. Jose concluded that administration recommends the City elect to serve the annexed area and approve the attached Notice of Intent to Purchase Electric Utility Properties in Annex Areas. Chris Larson, with Clay-Union Electric, stated Clay-Union is not in favor of the City taking over the recently annexed area and offered a couple reasons as to why they took the position. 43-26 Council Member Hellwege moved approval to notify the Electric Cooperative of Intent to Serve Annexed Area (Munger Tract 1, S 1/2; and Munger Tract 2, in the SW 1/4 of the NE 1/4 and the NW 1/4 of the SE 1/4; and, Munger Tract 3, in the W 1/2 of the SE 1/4; all in Section 11, Township 92 North, Range 52 West of the 5th P.M., Clay County, South Dakota). Council Member Cheeseman seconded the motion. Motion carried 8 to 0. Mayor Cole declared the motion adopted. 10. Bid Openings 11. City Manager’s Report  Upcoming meetings before the next City Council meeting on Monday, March 2: o Library Board is meeting on Wednesday, February 18 at 6:00 p.m. in the Kozak Room at the Library.  o Special meeting of the City’s Historic Preservation Commission on Thursday, February 19 at 9:00 a.m. in the Powell Conference room to review a plan for a house in the Jolley Addition.  The current term of the Mayor and one Council member from each ward is expiring in July. Petitions to run for these positions are available through the City Finance Office. Petitions are due by 5:00 p.m. on March 24, 2026.  The City is participating in SECOG’s Safe Streets For All (SS4A) grant to evaluate traffic concerns in SE SD communities. There are two ways to participate: One is a website where individuals can enter their comments or concerns about streets in Vermillion and participating communities in the 6-county region. A link to the website is available through the City’s website. The second way is that SECOG will be hosting an Open House tomorrow (Wednesday, February 18) from 5:00 p.m. to 7:00 p.m. in the City Council chambers on the second floor of City Hall. You can learn more about the process, review safety information, and share transportation safety concerns with SECOG’s safety project team. The website can be found at https://tinyurl.com/SECOG-SS4A.  Raffle notification: Vermillion After Prom Committee is selling tickets at $30 each or 2 for $50 from February 18, 2026 to March 6, 2026. The prize is a travel voucher worth $4,000. Two travel vouchers will be awarded. The proceeds will go to support post prom events, prizes, rentals and food. You must be 18 years old to win. Council Member Price asked if this was a good opportunity to provide feedback on other streets. John stated that any comments are appropriate for SECOG’s event. PAYROLL ADDITIONS AND CHANGES Ambulance: Garrett Petersen $16.00/hr, $16.00/training, $24.00/holiday hr, Austin Pigman $16.00/hr, $16.00/training, $24.00/holiday hr, Joseph Tegethoff $15.00/hr, $15.00/training, $24.00/holiday hr; Recreation: Tyler Trageser $30.78/hr; Pool: Riley Ruhaak $18.00/hr; Parks: Dan Hanson $30.78/hr 12. Adjourn 44-26 Council Member Murra moved to adjourn the Council meeting at 6:49 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 February 17, 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 ___________.