CITY COMMISSION ROOM PIERRE, SOUTH DAKOTA February 19, 2013

The City of Pierre Board of Commissioners met in regular session on February 19, 2013 at 5:30pm with Commissioners Goodman, Harding, Huizenga, Mehlhaff and Mayor Gill present for roll call. Barbara Thimsen, Gordon Koch, Rev. Mercy Hobbs, Scott Schweitzer, Harvey P. Wald, and Dave Braun signed the guest register.

The Pledge of Allegiance was recited, followed by an invocation.

The agenda was approved as amended. A Raffle Request for HS Basketball Senior Parents was added under the consent calendar.

Commissioner Goodman moved and Commissioner Mehlhaff seconded to approve the consent calendar which consisted of 1) Minutes- Regular Meeting February 12, 2013; 2) New Hire Police Communications Officer – Mary Murphy $15.18; 3) Set 5:45pm Public Hearing for American Legion Retail On/Off Sale Malt Beverage License; 4) Raffle Request – Capitol City Bass Club; 5) Claims; 6) Raffle Request – HS Basketball Senior Parents. Unanimous approval. VENDOR NAME DESCRIPTION GROSS AMOUNT A-OX WELDING SUPPLY CO INC STEEL BLADE 348.58 ACCURATE CALIBRATION SERVI TECH SUPPORT FOR 2013 300.00 ADAMS CLEANING CLEANING SERVICE 725.00 AIRCRAFT RESCUE & FIREFIGH 2013 MEMBERSHIP 65.00 AIRTECH HEATING & COOLING HEATER INSTALLED 840.96 ALL-AROUND GRAPHIX INC. JACKETS EMBROIDERED 24.00 AMARIL UNIFORM CO HOODED SWEATSHIRT 200.20 AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE SUBSIDY 16,564.00 AMERICAN SOLUTIONS FOR BUS LANDFILL INVOICES 51.98 ANIMAL CLINIC ANIMAL CARE JAN 2013 346.00 APPLIED CONCEPTS INC RADAR UNITS 11,250.00 AQUA-PURE INC AQUA PURE 2,732.76 AUDIOLOGY ASSOCIATES INC. HEARING TEST 25.00 AVERA MEDICAL ASSOCIATES C PHYSICAL 1,677.00 AVERA QUEEN OF PEACE TESTING 259.60 BAKER & TAYLOR COMPANY/THE BOOKS 1,494.47 BECK MOTORS INC. BEZEL 106.83 BEEMER/DR D.C. SAFETY GLASSES 230.00 BENDER & CO., INC/MATTHEW EMPLOYMENT SCREENING 217.73 BIERSCHBACH EQUIP & SUPPLY SCISSOR LIFT PRO-FIT 9,800.00 BLACKSTRAP, INC SALT 9,901.27

BOTTOM LINE WELDING ANGLE IRON 31.40 BOYER TRUCKS TRUCK 23,462.06 BRIGGS TRUCKING SNOW REMOVAL 5,700.00 BROSZ ENGINEERING INC TESTING FOR NEW SUBSTATION 2,870.00 BROWN & SAENGER CABINET, INK CARTRIDGE 93.20 BUILDERS SUPPLY COMPANY KEYS 65.99 BULLBERRY SYSTEMS INC GIS DATA MAINT 3/13-3/14 3,600.00 BUREAU OF ADMINISTRATION CALLS DEC 2012 121.62 CAPITAL MOTORS INC. MUD FLAPS 529.95 CDH GOLF CREDIT CARD SALES 10/24-1/4 676.49 CENEX FLEET CARD DIESEL 1/1-31 3,452.61 CENTRAL DISTRIBUTION FIBERPRO EXTRACTOR 3,633.95 CENTURY BUSINESS PRODUCTS COPIER LEASES 1/10-2/9 1,011.42 CENTURY LINK SERVICE 1/25-2/24 2,149.71 CENTURY LINK-AZ SERVICE 2/2-3/1 1,657.22 CERTIFIED LABORATORIES CLEANERS 439.50 CHIEF SUPPLY INC CHIEF SUPPLY INC 125.73 COMM TECH INC VIRUS REPAIR 108.32 COMMUNICATIONS CENTER INC. RADIO REPAIR 139.10 CONNECTION INC EMPL ASST PROGRAM JAN & FEB 751.10 COUNTRY CARPET & FLOORING TILE 1,736.40 CRAWFORD TRUCK & EQUIPMENT MIRROR REPLACEMENT 228.88 CRYOTECH DEICING TECHNOLOG RUNWAY DEICER 2,278.32 DAILY CAPITAL JOURNAL INC. MIN OF MTG 12/18/12 1,467.58 DAKOTA 2000 INC UPDATE HILLSVIEW WEB SITE 66.00 DAKOTA FLUID POWER INC CAP/PLUG KIT, PLUG KIT 233.00 DAKOTA SUPPLY GROUP CONNECTORS 547,766.27 DBL DISTRIBUTING INC PHONE, CABLE, BATTERIES 1,393.03 DELL MARKETING LP COMPUTER 799.00 DIESEL MACHINERY INC. TOOTH, PIN 1,159.60 DONS SINCLAIR GAS 10,393.44 EDDIE'S TRUCK SALES INC LEVEL CORE 89.34 ELECTION SYSTEM & SOFTWARE ANNUAL MAINT FEE ELECT EQUIP 1,396.00 ELECTRICAL ENGINEERING & E ANNUAL SERVICE ON GENERATOR 3,485.95 ENVIRO TECH ELECTRONIC RECYCLING JAN 2013 138.13 ERGO GENESIS BODYBILT CHAIR REPAIR PARTS 118.26 ETTERMAN ENTERPRISES CONNECTING LINK, CHAIN, 193.70 FARNAMS CORE 519.17 FASTENAL COMPANY MACHINE SCREW NUTS, SCREWS 586.97

FBINAA NORTHWEST CHAPTER MEMBERSHIP DUES 300.00 FEDERAL EXPRESS CORPORATIO SHIPPING 128.49 FERDING ELECTRIC INC. THERMOSTAT INSTALLED 3,125.53 FRIMAN OIL & GAS COMPANY PROPANE 1,842.11 GALLS, AN ARAMARK COMPANY BARRIER TAPE 94.40 GRAHAM TIRE COMPANY INC OIL CHANGE, BELT INSTALLED 391.53 GRAND RENTAL STATION INC. CONCRETE VIBRATOR, TROWEL 28.60 GRAYBAR ELECTRIC COMPANY I TRANSFORMER BASE 536.25 GRIMMS PUMP SERVICES INC EXTENSION CORD, DETERGENT 131.90 GROSSENBURG IMPLEMENT INC HITCH PIN 93.74 HAWKINS INC SCALE 1,498.00 HEYMANS/ DEAN OS TRAVEL GCSAA CONFERENCE 1,778.00 HOGENS HARDWARE HANK BOLTS, NUTS 83.19 HUGHES COUNTY REGISTER OF RECORDING FEES 30.00 INLAND TRUCK PARTS COMPANY MUFFLER 206.33 INMAN'S WATER TECHNOLOGIES WATER COOLER RENT 2/1-28 2,166.10 INT'L SECURITY PRODUCTS W-4 TRUCK ASSY W/ BEARINGS 390.00 INTERNATIONAL PUBLIC MANAG MEMBERSHIP DUES 4/13-3/14 149.00 JC PRINTING INC. RECREATION FLYERS 94.00 KELO TV AIRFARE ADVERTISING 12/31-1/27 1,150.00 KGFX, INC. AIRFARE ADVERTISING 1/15-31 2,222.91 KIMBALL MIDWEST FUSEHOLDERS, TORQ GEL 392.89 KJBI-FM AIRFARE ADVERTISING 1/16-31 291.66 KLEINS OFFICE PLUS ENVELOPES 344.87 KNECHT HOME CENTER OF PIER NOZZLE 85.02 KOLY-FM AIRFARE ADVERTISING 1/15-29 100.00 KONE INC MAINT COVERAGE 2/1-4/30/2013 647.46 KPLO AIRFARE ADVERTISING 1/15-31 431.25 LAWSON PRODUCTS INC SEAL RING, HOSE CLAMP, O-RING 110.18 LOCATORS & SUPPLIES INC SPOTLIGHTS 373.53 MICRO MARKETING LLC DVD'S 133.34 MICRO-FIX COMPUTERS INC INK CARTRIDGES 237.80 MIDAMERICA BOOKS BOOKS 381.81 MIDWEST INDUSTRIAL SUPPLY CUT OFF WHEELS 162.87 MINNESOTA MUNICIPAL UTILIT METER SCHOOL REGISTRATIONS 995.00 MN WIRELESS, LLC INTERNET SERVICE 168.00 MONICK PIPE URINAL 156.75 MONTANA-DAKOTA UTILITIES C NATUAL GAS 1/8-2/4 508.12 MORRIS EQUIPMENT LLC BUCKET, CUTTING EDGES, LOCKNUT 1,835.27

MORRIS INC. COLD PATCH 142,321.13 MOTOROLA SOLUTIONS INC SERVICE AGREEMENT 1/1-31 2,449.92 NEVE'S UNIFORMS INC TURTLENECKS 2,119.74 NOBLE INK & TONER INK CARTRIDGE 79.97 OAHE ELECTRIC COOP INC. ELECTRICITY 12/31-1/31 523.50 ONE CALL LOCATORS, LTD LOCATES 1/12--18 566.37 OVERHEAD DOOR COMPANY INC REPAIR CHAIN LINK 147.96 PAINT STORE, INC., THE PAINT, TAPE 389.14 PARCE/SELENA DISPATCH CLOTHING 37.44 PENWORTHY COMPANY/THE BOOKS 95.77 PHEASANTLAND INDUSTRIES SWEATSHIRTS, TAPE 272.71 PIERRE ECONOMIC DEVELOP. I FEB 2013 EXPENSES 21,585.00 PR DIAMOND PRODUCTS INC BLADES 220.00 PRAIRIE PAGES BOOKS 102.26 PRO-BUILD NORTH PAINT 105.01 PROFESSIONAL WIRELESS COMM PORTABLE VHF, CHARGER, SPKR 818.44 PRYNTCOMM NOTECARDS, ENVELOPES 193.00 RADIOSHACK LAMPS 8.12 REUBES WELDING & MANUFACTU REPAIR ALUMINUM GATE 580.00 RIVERFRONT BROADCASTING LL TOWER SPACE RENTAL 235.97 ROBINS WATER CONDITIONING WATER COOLER RENT 57.20 RUNNINGS STAPLES, BOLTS, HINGES 1,826.96 RURAL ELECTRIC SUPPLY COOP PHSNG TESTER, ADAPTER, ELBOW 27,353.35 S.D. DEPARTMENT OF REVENUE LICENSE PLATE, TITLE 27.00 S.D. DEPT OF CORRECTIONS COMMUNITY SERV WORK 12/10-1/13 881.36 S.D. MUNICIPAL ELECTRIC AS SPRNTNDNT & FOREMAN CONF 120.00 S.D. SHERIFFS' ASSOCIATION POLICE CHIEFS SPRING CONFERENC 65.00 S.D. SOCIETY OF FIRE SERVI INSTRUCTOR DUES 180.00 SAMS CLUB DUST REMOVER, PAPER TOWELS 25.34 SARGENT DRILLING COMPANY, WELL 11 LINER 59,355.19 SCHOCHENMAIER/LEON OS TRAVEL GOSCMA 195.00 SD DEPT ENVIR.& NATURAL RE SOLID WASTE FEE JAN 2013 1,952.00 SECURITY LOCK SERVICE CAMLOCK, KEY 13.79 SERVALL UNIFORM & LINEN SERVICE 165.72 SHEEHAN EQUIPMENT INC. EXCAVATOR ACCESSORIES 10,285.00 SKARSHAUG TESTING LAB INC GLOVES TESTED 446.76 SMALL ENGINE HOUSE ARGON 373.04 SOCIETY FOR HUMAN RESOURCE MEMBERSHIP 4/13-3/14 180.00 SOUTH DAKOTA DEPARTMENT OF GAS 12/20-1/23 18,240.63

SOUTH DAKOTA GOLF ASSOCIAT MEMBERSHIPS 120.00 SOUTH DAKOTA LIBRARY ASSOC 2013 MEMBERSHIP 100.00 SOUTH DAKOTA ONE CALL MESSAGE FEES JAN 2013 47.25 SOUTH DAKOTA PARK & RECREA SDPRA CONFERENCE REGISTRATION 400.00 ST. MARY'S FOUNDATION BATTERIES, PADS 1,620.00 ST. MARY'S HEALTHCARE CENT PHYSICAL 170.46 SUNMASTERS AUTO GLASS WINDSHIELD REPAIR 140.00 THE ACTIVE NETWORK INC ONLINE REGISTRATIONS 750.00 TORO COMPANY - NSN/THE IRRIGATION TECH SUPPORT MAR 214.00 TRAFFIC CONTROL CORPORATIO LIGHTS 1,032.43 TYLER TECHNOLOGIES-INCODE INCODE CONTENT MGMT 4,862.50 U.S. POSTAL SERVICE POSTAGE 100.00 ULLMAN/JOHN IS TRAVEL ACI FIELD TESTING 52.00 ULTRAMAX AMMO 2,433.00 UNDERGROUND PIERCING ELECTRIC DISTRIB CONST 180,496.67 UPSTART BULLETIN BOARD DECOR SET 34.65 VISTAR COFFEE 193.52 WAL-MART COMMUNITY TV RETURNED 881.18 WEGNER AUTO INC. WEGNER AUTO INC. 16.24 WEST CENTRAL ELECTRIC COOP ELECTRICITY 12/29-2/1 186.48 WESTERN COMMUNICATIONS INC RADIO 3,177.20 WHISTLESTOP SHIPPING 29.68 WW TIRE SERVICE INC FLAT REPAIR 3,531.68 ZANDER AUTO PARTS IMPACT ADAPTER 51.16

Brad Palmer, Utilities Director, presented an overview of the proposed Street Maintenance Fee. Brad explained that the proposed Ordinance is one of the recommendations that came from the Curb and Gutter Task Force. The Task Force looked at funding solutions as a result of the loss of the special assessment process. The recommendations included implementation of a Storm Drainage Fee for residential and commercial properties, seeking legislative remedies to discrepancies within Statutes related to Street Maintenance Fee, and implementation of a Street Maintenance Fee. The other recommendations have been implemented and this is the final recommendation. With the implementation of the final recommendation, the curb and gutter expenditures would be fully funded by replacement funds that are used to cover expenditures formerly funded by general or capital improvement funds. The proposed Street Maintenance Fee would be applied to property tax assessments by Hughes County at a rate of $0.40 per foot of property address footage. Commissioner Mehlhaff asked Keith Senger to comment as a member of the Curb & Gutter Task Force. Keith explained the thought process of the task force, explaining that no one wants to pay any additional fees or taxes, but also recognized the needs of

the Street Maintenance Program to avoid continued deterioration of the City Streets. The key piece of information that the Task Force noted was that the continued maintenance extends the life of the streets at a much lesser cost, but after the conditions deteriorate to a certain extent the cost grows exponentially. These lesser costs are a much better investment. The other point Keith wanted to make is that this is not a new fee, this is a replacement of an old fee where everyone pays a little every year rather than paying thousands all at one time. Barbara Thimsen commented that she bought her home in 1978 and been maintaining her home since then and doesn’t care if you call it a fee or at ax, some are paying all they can afford to pay. If fees continue to go up, she might not be able to afford to keep her home. Barbara asked how the fee would apply to corner lots that have street on two sides. Leon Schochenmaier, City Administrator, explained that the plan was to only charge on the address side, not both sides. Barbara asked who would be paying for the other side and Leon explained no one would. Assistant City Attorney Tom Hart explained that State Statute does allow for the fee to be charged on the front and abutting footage, but the Task Force recommended only address footage and the Ordinance as it’s proposed only includes the address front. Dave Braun commented that he met personally with the Mayor regarding the proposed fee and it’s a hard position and that he was hit by an assessment. Dave explained that a lot of people are having a hard time making ends meet. He doesn’t like the fee, but doesn’t disagree with the Task Force. David Bershard commented that he’s been a resident since 1958 and asked about Property Tax coming back to the City for street maintenance, because we pay property tax to the center of the road. Commissioner Huizenga asked how much property tax comes back to the City. Leon explained that less than 20% comes back to the City. Harvey Wald commented that he’s a 50 year resident that lives on 1804 and asked if he will have to pay the fee because the City doesn’t maintain his street. Mayor Gill commented that would be a policy decision for the Commission about streets not maintained by the City. Leon explained that 1804 is a State Hwy not maintained by the City and we also have Private Streets not maintained by the City. Commissioner Harding commented that if the fee wasn’t passed that the City would probably do the same amount of street maintenance, this is above the normal amount. Brad Palmer explained that this is a piece of the funding for the normal annual street program, not for an amount above that. Harding questioned the fairness of the fee and need to take a harder look at the fairness. If we need a new fee, should look at base and spread over a larger base to reduce the fee to all paying. If collect through utility customers, would be spread wider, based on housing study information of number of rentals. Harding suggested we no pass the fee, but take the money out of the General Fund. We have a $50 million budget, should be able to find $250,000 for street maintenance. Sales tax has been strong. Commissioner Mehlhaff commented that in reference to the comment about taking a harder look, that was the purpose of the Task Force. Majority of comments received regarding curb & gutter was to spread it out over time was easier to pay. Spreading the base over all is not allowed by Statute. Regarding taking it out of General Fund, have looked over past 2 years to do project with no curb & gutter and struggled to balance the budget to not use reserves, and we’ve needed reserves, and every year we’ve had to cut the street program to balance the budget. If we do use General Funds, then I would propose we take it out of Golf, Park, and other quality of life areas. Commissioner Goodman commented that we try to keep with a certain number of blocks annually to maintain the maximum life of the streets. Brad Palmer indicated that the City should

do 70 blocks per year to maintain. Commissioner Huizenga commented that this is a difficult decision, but that the Task Force looked at many options. We need a permanent funding source for street maintenance. Every year the budget process is more difficult and we take funding from the street project. Commissioner Harding moved to take $250,000 out of the General Fund. No second, motion dies. Commissioner Mehlhaff moved and Commissioner Huizenga seconded to give second reading to and adoption of ORDINANCE 1714 AN ORDINANCE FOR ESTBALISHMENT OF A SPECIAL MAINTENANCE FEE FOR ANNUAL STREET MAINTENANCE AND REPAIR. Commissioners Goodman, Huizenga, Mehlhaff and Mayor Gill voted aye, Commissioner Harding voted nay. Motion passed. Commissioner Mehlhaff moved and Commissioner Goodman seconded to approve Resolution #2491 A RESOLUTION ADOPTION A FEE SCHEDULE FOR ANNUAL STREET MAINTENANCE AND REPAIR, which sets the fee at $0.40 per front address footage. Commissioners Goodman, Huizenga, Mehlhaff and Mayor Gill voted aye, Commissioner Harding voted nay. Motion passed.

Brad Palmer Utilities Director, presented a request to seek bids for terminators and splices for the electrical distribution project. Commissioner Mehlhaff moved and Commissioner Huizenga seconded to authorize the request for bids for terminators and splices. Unanimous approval.

Leon Schochenmaier, City Administrator, presented a request to approve the final change order for the 4th Street Multipurpose Trail project for an additional $96,456.46. Leon explained that there were changes to the project as discovered some unknowns with the soils, the asphalt shoulders, etc. The original project amount was $1,644,294.92 and this is a reasonable increase for a project this size. Commissioner Huizenga moved and Commissioner Mehlhaff seconded to approve the final change order for the 4th Street Multipurpose Trail as proposed. Unanimous approval.

Commissioner Huizenga moved and Commissioner Goodman seconded to adjourn. 7:03pm Unanimous approval.

______Twila Hight Finance Officer Published once at the total approximate cost of ______.