Special Meeting Agenda City Council 12:00 p.m. (Noon) Special Meeting Monday, March 15, 2021 Large Conference Room – City Hall 25 Center Street Vermillion, South Dakota 57069

1. Roll Call.

2. Visitors to be Heard.

3. Educational Session – Solid Waste Department Annual Report – Solid Waste Director Tim Taggart.

4. Informational Session – Summer Recreational Plans – Park and Recreation Director Jim Goblirsch.

5. Briefing on the March 15, 2021 City Council Regular Meeting – Briefings are intended to be informational only, and no deliberation or decision will occur on this item.

6. Executive Session per SDCL 1-25-2(3)

7. Adjourn.

Access the City Council Agenda on the web – www.vermillion.us

Addressing the Council: Persons addressing the Council shall be recognized. Please state your name and address. Presentations are limited to 5 minutes. For those who do not appear on the agenda, no decision is to be expected at this time.

Meeting Assistance: If you require assistance, alternative formats and/or accessible locations consistent with the Americans with Disabilities Act, please contact the City Manager’s Office at 677-7050 at least 3 working days prior to the meeting.

Council Meetings: City Council regular meetings are held the first and third Monday of each month at 7:00 p.m. If a meeting falls on a City holiday, the meeting will be scheduled for the following Tuesday.

Live Broadcasts of Council Meetings on Cable Channel: Regular City Council meetings are broadcast live on Cable Channel 3.

As a courtesy to others, we ask that cellular phones and other electronic devices be turned off during the meeting.

City of Vermillion Council Agenda 7:00 p.m. Regular Meeting Monday, March 15, 2021 City Council Chambers

25 Center Street

Vermillion, South Dakota 57069

1. Roll Call

2. Pledge of Allegiance

3. Minutes a. March 1, 2021 Special Meeting; March 1, 2021 Regular Meeting.

4. Adoption of the Agenda

5. Visitors to be Heard

6. Public Hearings

7. Old Business a. Review of Emergency Resolution encouraging the use of face coverings or face masks and determine continuation of the Emergency Resolution. b. Review of Emergency Ordinance 1429 to require signage at the entrance to buildings open to the public that states Face Masks Expected per City Resolution. c. COVID-19 issues.

8. New Business a. Request from the Law Enforcement Torch Run South Dakota and Special Olympics to close Kidder Street from the corner of Court Street west to the alley between Court Street and Market Street for the Polar Plunge event on Saturday April 10, 2021 from 9:00 am to 6:00 pm. b. First reading of Ordinance 1431 – Amending Appendix A, 2012 Joint Zoning Regulations for Clay County and the City of Vermillion, Chapter 2, Section 2.03 (A) Zoning Map, by removing certain real property from the A-1 Agricultural District and including it in the RR Rural Residential District. c. Resolution to approve a Project Plan for Tax Increment Financing (TIF) District #7. d. Resolution approving the issuance of sale of Tax Incremental revenue bonds for TIF #7. e. Agreement to Construct Public Infrastructure by Private Development with the Vermillion Chamber of Commerce and Development Company, Owner of Outlot A, Bliss Pointe Addition, City of Vermillion, Clay County, South Dakota. f. Resolution declaring official intent to reimburse expenditures for TIF 7 project costs. g. Final Plat of Blocks 7, 8, 9, and 10 in Bliss Pointe Addition to the City of Vermillion, Clay County, South Dakota. (Outlot A of Bliss Pointe Addition) h. First reading of Emergency Ordinance 1432 to require signage at the entrance to buildings open to the public that states Face Masks Expected per City Resolution. i. Easement agreement with Clay-Union Electric for Waage Tract 2. j. Amendment No. 1 to Joint Powers Maintenance and Encroachment and Financial Agreement between the City and the Department of Transportation Regarding Highway 50 (Bypass). k. Historic Preservation Commission appointment.

l. Consolidated Board of Equalization appointments.

9. Bid Openings a. Main Street Streetscape bid.

10. City Manager’s Report

11. Invoices Payable

12. Consensus Agenda

13. Adjourn

Access the City Council Agenda on the web – www.vermillion.us

Addressing the Council: Persons addressing the Council shall use the microphone at the podium. Please raise your hand to be recognized, go to the podium and state your name and address. a. Items Not on the Agenda Members of the public may speak under Visitors to Be Heard on any topic NOT on the agenda. Remarks are limited to 5 minutes and no decision will be made at this time. b. Agenda Items: Public testimony will be taken at the beginning of each agenda item, after the subject has been announced by the Mayor and explained by staff. Any citizen who wishes may speak one time for 5 minutes on each agenda item. Public testimony will then be closed and the topic will be given to the governing body for possible action. At this point, only City Council members and staff may discuss the current agenda item unless a Council member moves to allow another person to speak and there is unanimous consent from the Council. Questions from Council members, however, may be directed to staff or a member of the public through the presiding officer at any time.

Meeting Assistance: The City of Vermillion fully subscribes to the provisions of the Americans with Disabilities Act of 1990. If you desire to attend this public meeting and are in need of special accommodations, please notify the City Manager's Office at 677-7050 at least 3 working days prior to the meeting so appropriate auxiliary aids and services can be made available.

Council Meetings: City Council regular meetings are held the first and third Monday of each month at 7:00 p.m. If a meeting falls on a City holiday, the meeting will be scheduled for the following Tuesday. The City Council typically has a Special Meeting on the first and third Monday of each month at Noon.

Live Broadcasts of Council Meetings on Cable Channel: Regular City Council meetings are broadcast live on Cable Channel 3

Vermillion City Council’s Values and Vision This community values its people, its services, its vitality and growth, and its quality of life and sees itself reinforcing and promoting these ideals to a consistently increasing populace.

Unapproved Minutes Council Special Session March 1, 2021 Monday 12:00 noon

The special session of the City Council, City of Vermillion, South Dakota was held on Monday, March 1, 2021 at 12:00 noon at the City Hall large conference room.

1. Roll Call

Present: Hellwege, Holland, Humphrey, Jennewein, Letellier, Price, Ward, Willson, Mayor Collier-Wise (all joined by teleconference)

2. Visitors to be Heard - None

3. Informational Session – Bliss Pointe Phase 2 Development plans – VCDC President/CEO - Nate Welch

Nate Welch, VCDC President/CEO, provided the history of the Bliss Pointe housing development that started with the VCDC purchase of the land in 2013 and Phase I improvements completed in 2014. Nate noted that the VCDC will be selling the last of the housing sites in Phase I shortly. Nate reported that the goal was to provide workforce housing in the community by increasing the inventory of homes available. Nate reviewed the change in the ordinance to shift away from multifamily in Phase II due to the number of multifamily housing being constructed in the community. Nate reviewed the process used by the VCDC for planning Phase II that consisted of a committee that worked with Banner Associates to develop the Phase II plan. Nate reported on the options reviewed by the committee for the center block. Nate stated that the smaller lot size with front yard facing the street and garage in back off the private drive would allow for smaller and hopefully less expensive homes. Nate reviewed the option of the layout for the center lot with the smaller lot sizes and private drive. Nate answered questions of the City Council on the Phase II plan, workforce housing, private drive, HOA fees, berms or fencing for safety along Stanford Street, alley option in center block and the lot size ordinance. Jose reported that the Planning and Zoning Commission, when presented with the preliminary plat of the center block in August 2020 with the proposed alley and smaller lots size, approved the preliminary plat without a public alley. Nate noted that is why the center block currently lists a private drive and a HOA would be required to pay the costs of snow removal. Discussion followed on the berm or fence along Stanford Street noting the need to have a uniform appearance. Nate suggested that including the fencing requirement in the deed covenants instead of in the ordinance will allow property owners to construct the fence when completed so it is not in the way during construction.

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Discussion followed on the private drive with the consensus of the City Council that it would be better if it was a city alley thus no HOA fees that could discourage development. Discussion included the timeline for the TIF 7 plan, the project costs to include in the TIF #7 plan, amount to include in the TIF #7 bond issue, timing of the bond issue as it applies to starting construction date and bond closing for when funds would be available for granting the construction costs to the VCDC. John noted that for tonight’s meeting the ordinance change is to reduce the lot size in the Bliss Pointe development that would allow the option of smaller lots in the center block. The Mayor asked for a memo that outlined the remaining items.

Alderman Hellwege left the meeting at 12:30 p.m. and Alderman Ward left the meeting at 12:55 p.m.

4. Briefing on the March 1, 2021 City Council Regular Meeting

Council reviewed items on the agenda with City staff. No action was taken.

5. Adjourn

44-21 Alderman Holland moved to adjourn the Council special session at 1:30 p.m. Alderman Price seconded the motion. A roll call vote of the Governing Body was as follows: Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

Dated at Vermillion, South Dakota this 1st day of March, 2021.

THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY______Kelsey Collier-Wise, Mayor ATTEST: BY______Michael D. Carlson, Finance Officer

Unapproved Minutes City Council Regular Session March 1, 2021 Monday 7:00 p.m.

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The regular session of the City Council, City of Vermillion, South Dakota was called to order on Monday, March 1, 2021 at 7:00 p.m. by Mayor Collier-Wise.

1. Roll Call

Present: Hellwege, Holland, Humphrey, Jennewein, Letellier, Price, Ward, Willson, Mayor Collier-Wise (all jointed by teleconference)

2. Pledge of Allegiance

3. Minutes

A. Minutes of February 16, 2021 Special Meeting; February 16, 2021 Regular Meeting

45-21 Alderman Willson moved approval of the February 16, 2021 Special Meeting and February 16, 2021 Regular meeting minutes. Alderman Holland seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

4. Adoption of Agenda

46-21 Alderman Price moved approval of the agenda. Alderman Willson seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

5. Visitors to be Heard

A. Proclamation recognizing those our community and nation have lost to COVID-19

Alderman Holland read the proclamation remembering those our community, state and nation lost to COVID-19 pandemic and offer comfort to their family, friends, and neighbors.

6. Public Hearings - None

7. Old Business

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A. Review of Emergency Resolution encouraging the use of face coverings or face masks and determine continuation of the Emergency Resolution

John Prescott, City Manager reported that the City Council approved an Emergency Resolution encouraging the use of face coverings in buildings open to the public at the February 1, 2021 with an effective date of February 8, 2021. John noted that the Emergency Resolution adopted on February 1, 2021 was very similar to Emergency Resolutions adopted in August, October, and December 2020, which expired after 60-days. John stated that the four emergency resolutions have been designed to promote the use of face coverings to slow the spread of the coronavirus. John reported that the Emergency Resolutions were also designed to provide the language that Emergency Ordinance 1419, 1422, 1425, and the current Emergency Ordinance 1429, that required the posting of a sign, which states that face masks are expected per City resolution. John noted that with the adoption of the Emergency Resolution on February 1st, as the City Council has done with all other emergency measures, there was a reference that the item would be on each regular City Council meeting agenda during the 60-day life of the resolution for review and consideration of continuation. John stated this is the second opportunity to consider revisions to the Emergency Resolution since adoption on February 1st. John reported that City staff has not received any questions about the emergency resolution which is likely due to public familiarity with the purpose and language of the document. John recommended that the City Council review information related to COVID- 19 and the emergency resolution recommending face coverings or face masks in buildings open to the public. Mayor Collier-Wise reported that there are masks available at the Community Connection Center for those who do not have access. Mayor Collier-Wise stated that, if there is no action, we will move on to the next item.

B. Review of Emergency Ordinance 1429 to require signage at the entrance to buildings open to the public that states Face Masks Expected per City Resolution

John Prescott, City Manager, reported that, on February 16, 2021, the City Council approved the second reading of Emergency Ordinance No. 1429 that became effective upon adoption. John stated that the ordinance requires the posting of a sign at the entrance to buildings open to the public, which states “Masks are expected per City resolution.” John noted that Emergency Ordinance No. 1429 has a life of 60 days expiring April 16, 2021. John stated that Emergency Ordinance No. 1429 was very similar to Emergency Ordinance No. 1419, 1922 and 1425. John stated during the life of current Emergency Ordinance No. 1429, and with Emergency Ordinances 1419, 1422, and 1425 there have been no citations for non- compliance. John noted that the signs continue to be available for free at City Hall, the VCDC office, or they can be printed from the City’s

4 website. John recommended that the City Council review information related to COVID-19 and the Emergency Ordinance No. 1429 requiring signage at the entrance to buildings open to the public that states Face Masks Expected per City Resolution. Mayor Collier-Wise stated that, if there is no action, we will move on to the next item.

C. COVID-19 issues

Mayor Collier-Wise noted that this item was requested to be on the agenda for discussion on COVID-19 issues as items continue to evolve. Alderman Ward stated that with the warmer weather the question of opening up all the outdoor basketball hoops will need to be addressed. Mayor Collier- Wise stated that, hearing no further discussion, we will move on to the next agenda item.

D. Second Reading of Ordinance 1430 Amending Title XV, Chapter 155, Section 155.058 (E), Bliss Pointe Planned Development District, to Amend the Lot and Yard Regulations for Single-Family Detached Dwellings by reducing the Lot Area from 6,500 to 5,400 square feet, reducing the Frontage from 50 to 44 feet, and reducing the Building Line from 65 to 44 feet.

Jose Dominguez, City Engineer, reported that the Vermillion Chamber and Development Company (VCDC) led a drive to create the Bliss Pointe Planned Development District (Bliss Pointe) in 2013. Jose stated that the need for creating Bliss Pointe came about due to a community wide shortage of housing in the community. Jose stated that, for ease of construction, Bliss Pointe was divided into two phases. Jose stated that the first phase consisted of all of the ‘bluff’ lots, the cul-de-sac, and other internal lots. Jose noted that most of phase one has been developed with a few lots remaining, and the VCDC is starting the process to commence work on phase two. Jose reported that, at the request of the VCDC on August 3, 2020, the zoning uses permitted in Bliss Pointe were amended to allow for single-family detached dwellings as an allowable use, and to remove multiple-family dwellings, within Area C. Jose noted that the zoning amendment also allowed, as a conditional use, the construction and operation of small car dealerships within Area D. Jose reported that on December 3, 2020 the City received an application from the VCDC requesting to amend the current lot and yard regulations for single- family detached dwellings within all of Bliss Pointe. Jose stated that the request reduced the lot area from 6,500 to 5,400 square feet, the frontage from 50 to 44 feet, and the building line from 65 to 44 feet. Jose reported that the Planning and Zoning Commission (Commission) reviewed the item at their February 8, 2021 meeting. Jose reported that the Commission recommended that the City Council adopt the proposed amendment with the addition that a “natural barrier for purposes of aesthetics and safety” be installed along the backyards of the dwellings

5 backing onto Stanford Street. Jose reported that one of the original intents of Bliss Pointe was to increase the housing stock in the community. Jose noted that only single-family detached and single-family attached housing is allowed and the lot and yard regulations limit the size of the single-family detached housing to what fits within a 65-foot wide lot. Jose noted that reducing the lot and yard regulations may allow for the construction of smaller, less expensive housing. Jose reported that the proposed reduction in lot sizes will allow for a larger range of housing options in the development. Jose reported that the approved preliminary plat for the second phase of Bliss Pointe shows a mix of single-family detached and single-family attached homes surrounding a center block of housing. Jose noted that, at the time the preliminary plat was approved, the housing style for the center block was not defined. Jose noted that the VCDC is now attempting to provide for a different style of housing for the center block where the houses would be narrower and accessed through the back by a private road. Jose noted that the requested amendment would allow for the construction of these houses by changing the minimum requirements for single-family detached homes. Jose reviewed the comments received at the February 8th Commission meeting. Jose noted that the proposed amendment to the ordinance would allow for smaller lots that may create affordable housing. Jose noted that the development of the center block may be different than shown on the exhibits, and will require additional approval from the City’s Commission (i.e. the preliminary plat needs to be amended by the Commission). Jose noted that the exhibits provided by the VCDC are only intended to help visualize what the center block could look like with the smaller lots. Jose reported that the Commission recommended approval of the proposed amendment. Jose noted that staff is proposing that the additional change to the ordinance placed by the Commission be modified. Jose reported that staff proposes to replace the “natural barrier” with fencing. Jose noted that the concerns of the Commission were with safety and aesthetics and a natural barrier would satisfy both of these concerns; however, it may require that the VCDC dedicate more land for the plantings or berm. Jose noted that a natural barrier will encroach into the owner’s property by at least 5-feet with plantings or 21-feet for a 2-foot berm which will greatly reduce the property owners use of their backyard. Jose noted that replacing the natural barrier with a fence would allow the property owner additional use of the property since a fence could be built much closer to the property line (1-foot away). Jose reported that a fence could also provide for a consistent look through Stanford Street. Jose stated that the fence could be constructed by the VCDC at the beginning of the project, or by the property owner through the building permit process. Jose recommended approval of second reading of Ordinance No. 1430. Discussion followed on the need for the fence to be uniform along Stanford Street. Nate Welch, VCDC President and CEO, stated the VCDC could include the fencing requirements in the deed covenants for the lots adjoining Stanford Street so it could be installed as part of the housing

6 construction so that it did not interfere with any construction or grading. Discussion followed on removing the fence requirement from the ordinance.

47-21 Second reading of title to Ordinance No. 1430 entitled an Ordinance Amending Title XV, Chapter 155, Section 155.058 (E), Bliss Pointe Planned Development District, to Amend the Lot and Yard Regulations for Single- Family Detached Dwellings by reducing the Lot Area from 6,500 to 5,400 square feet, reducing the Frontage from 50 to 44 feet, and reducing the Building Line from 65 to 44 feet of the City of Vermillion, South Dakota.

Mayor Collier-Wise read the title to the above named Ordinance, and Alderman Holland moved adoption of the following with the removal of section 155.058 (G)Landscape standards:

BE IT RESOLVED that the minutes of this meeting shall show that the title to the proposed Ordinance No. 1430 entitled An Ordinance Amending Title XV, Chapter 155, Section 155.058 (E), Bliss Pointe Planned Development District, to Amend the Lot and Yard Regulations for Single-Family Detached Dwellings by reducing the Lot Area from 6,500 to 5,400 square feet, reducing the Frontage from 50 to 44 feet, and reducing the Building Line from 65 to 44 feet of the City of Vermillion 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 16th day of February, 2021 and that the title was again read at this meeting, being a regularly called meeting of the Governing Body on this 1st day of March, 2021 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 1430 AMENDING TITLE XV, CHAPTER 155, SECTION 155.058 (E), BLISS POINTE PLANNED DEVELOPMENT DISTRICT, TO AMEND THE LOT AND YARD REGULATIONS FOR SINGLE- FAMILY DETACHED DWELLINGS BY REDUCING THE LOT AREA FROM 6,500 TO 5,400 SQUARE FEET, REDUCING THE FRONTAGE FROM 50 TO 44 FEET, AND REDUCING THE BUILDING LINE FROM 65 TO 44 FEET BE IT ORDAINED, by the Governing Body of the City of Vermillion, South Dakota that the Code of Ordinances Chapter 155, Section 155.058 (E) Bliss Pointe Planned Development District, be amended as follows:

§ 155.058 BLISS POINTE PLANNED DEVELOPMENT DISTRICT.

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(A) Area A (low-density, single-family detached residential uses). All city ordinances apply to the Planned Development District identified as Area A except for those modified below.

Permitted Uses Applicable Standards Dwelling, single-family detached §§ 155.070, 155.072, 155.076, 155.077 Day care, group A safe pickup and drop off area must be provided for the children. All applicable dwelling standards apply. Neighborhood utility facility § 155.070

Public park areas § 155.070 Accessory building or use §§ 155.071, 155.082(A) (see definition)

(B) Area B (low to medium-density, single-family residential uses). All city ordinances apply to the Planned Development District identified as Area A except for those modified below.

Permitted Uses Applicable Standards Area A permitted uses See Area A permitted uses

Conditional Uses Applicable Standards Dwelling, single-family attached §§ 155.070, 155.072, 155.076, 155.077

Dwelling, multiple-family §§ 155.070, 155.072, 155.076, (maximum of two dwelling units 155.077 per lot)

(C) Area C (medium to high-density residential uses). All city ordinances apply to the Planned Development District identified as Area C except for those modified below.

Permitted Uses Applicable Standards Dwelling, single-family attached §§ 155.070, 155.072, 155.076, 155.077

Dwelling, multiple-family §§ 155.070, 155.072, 155.076, (maximum of two dwelling units 155.077 per lot) Day care, center Adequate and safe playground area with fence 4 feet high.

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Neighborhood utility facility § 155.070

Public park areas § 155.070 Accessory building or use §§ 155.071, 155.082(A) (see definition)

Conditional Uses Applicable Standards Dwelling, multiple-family §§ 155.070, 155.072, 155.076, 155.077, three or more dwelling units per lot

(D) Area D (light commercial uses). All city ordinances apply to the Planned Development District identified as Area D except for those modified below.

Permitted Uses Applicable Standards Retail services and trade §§ 155.070, 155.072, 155.076, 155.077 Offices, non-commercial, non- §§ 155.070, 155.072, 155.076, construction and non-industrial 155.077 Personal Service §§ 155.070, 155.072, 155.076, 155.077 Hospital §§ 155.070, 155.072, 155.076, 155.077 Day care, center §§ 155.070, 155.072, 155.076, 155.077 Accessory building or use §§ 155.070, 155.072, 155.076, 155.077

(E) Lot and yard regulations. All measurements shall be taken from the lot line to the building line (see definitions). Values listed are minimums, unless otherwise stated.

Lot Frontage Building Front Side Rear Maximum Area Line Yard Yard Yard Height Dwelling, 5,400 44 feet 44 feet 25 8 feet 25 35 feet single- square feet See feet family feet See (2) See detached (3) (8) Dwelling, 2,500 25 feet 25 feet 25 0 or 8 25 35 feet single- square feet feet feet family feet See on attached, (3) non- See (4) party

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wall side Dwelling, 7,500 50 feet 75 feet 25 8 feet 25 35 feet multiple- square feet feet family feet (maximum of two dwelling units per lot) Dwelling, 7,500 50 feet 60 feet 30 10 10 35 feet multiple- square feet feet feet family feet See See units (5) (1) (maximum of 32 bedrooms per lot, number of bedrooms per dwelling unit cannot exceed 4) Dwelling, 20,000 50 feet 70 feet 30 10 10 45 feet multiple- square feet feet feet family feet See See units (5) (1) (between 33 and 48 bedrooms per lot, number of bedrooms per dwelling unit cannot exceed 4) Dwelling, 30,000 50 feet 85 feet 30 10 10 45 feet multiple- square feet feet feet family feet See See units (5) (1) (over 48 bedrooms per lot,

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number of bedrooms per dwelling unit cannot exceed 4) Area D NA 101 or 50 feet 25 5 feet 5 45 feet uses more feet See feet feet See (2), See (2) (6) (7) All other 7,500 50 feet 75 feet 30 10 25 45 feet uses square feet feet feet feet Exceptions: (1) The side yard will be required to be increased by 10 feet when the building is 3 stories in height or more. (2) There shall be a required front yard on each street side of a double frontage lot. There shall be a required front yard on each street side of a corner lot. (3) See also adjustments to yard regulations (§ 155.082) for other specific exceptions. (4) Every two units shall be staggered. (5) More than one building per lot may be constructed. (6) A side yard of 15 feet shall be required where a lot is adjacent to or abuts a residential district. (7) A rear yard of 20 feet shall be required where a lot is adjacent or abuts a residential district. (8) The rear yard may be reduced to 20 feet for lots 9,000 square feet or less.

(F) Property re-division. All future property re-division shall require a re-platting of the affected parcels. The Planned Development District may require an amendment on property re-division.

Dated at Vermillion, South Dakota this 1st day of March, 2021.

THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY______Kelsey Collier-Wise, Mayor ATTEST: BY______Michael D Carlson, Finance Officer

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Adoption of the Ordinance was seconded by Alderman Ward. Thereafter the question of the adoption of the Ordinance was put to a roll call vote of the Governing Body as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y.

Motion carried 9 to 0. Mayor Collier-Wise declared that the Ordinance has been adopted and directed publication thereof as required by law.

E. Street closure request to remove parking on Dakota Street from Alumni Street to SD Highway 50 for USD home football games on February 19, March 13, March 27, April 2, and April 17, 2021 from 6:00 a.m. to 8:00 p.m.

James Purdy, Assistant City Manager, reported that a street closing was approved at the February 1, 2021 meeting but the February 19th football game has been rescheduled to April 17th and the request to close Rose Street has been removed due to tailgating not taking place. James reported that the street closing request and parking removal will provide pedestrians safe accessibility to and from the games in the Dakota Dome. James stated that USD also wants to ensure that there are no cars parked along the north end of Dakota Street to provide for a safer crossing area for pedestrians before, during, and after the football games. James noted that the only exception to the no parking along this portion of Dakota Street would be to allow the buses for the visiting teams to park on the east side of Dakota Street across from the Wagner Alumni Center for football games. James stated that the closings are requested for the four Spring 2021 home USD football games on March 13, March 27, April 2, and April 17, 2021. James noted that the original request included the closure on February 19th. James noted that the time of the closures will be from 6:00 a.m. to 8:00 p.m. on each of the aforementioned dates. James reported that this will be the fifth year that parking would be removed on Dakota Street for the football games. James stated that the City has not received any complaints or concerns about how this closure has been handled during past years. James stated that USD will provide set up and removal of the barricades as they have done in past years for these events along with signage indicating the areas that are closed. Discussion followed.

47-21 Alderman Humphrey moved approval of the revised request from USD to remove parking on Dakota Street north of Alumni Street to Highway 50 on March 13, March 27, April 2, and April 17, 2021 from 6:00 a.m. to 8:00 p.m. for home football games and to remove the Rose Street closing previously approved. Alderman Ward seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey- Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise- Y. Mayor Collier-Wise declared the motion adopted.

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8. New Business

A. Annual Library report

Dan Burniston, Librarian, reported that State law requires the Library Board to prepare and submit an annual report to the governing body and the State Library. Dan reported that the Library Board reviewed and accepted the annual report at their February 19th meeting. Dan reviewed the 2020 Library Annual Report that was included in the packet. Dan answered questions of the City Council on the Library Annual Report. Discussion followed.

48-21 Alderman Price moved to acknowledge receipt of the 2020 Library Annual Report. Alderman Holland seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

B. Request to close Market Street from W. Main Street to the southern border of Ratingen Platz and W. Main Street from the east side of the intersection between Market Street and W. Main Street to the alley west of CorTrust Bank for the USD Opera Highlights Event on Friday, April 30, 2021 from 4:00 p.m. to 7:00 p.m.

James Purdy, Assistant City Manager, reported that the University of South Dakota Opera has requested the closure of Market Street from W. Main Street to the southern border of Ratingen Platz and W. Main Street from the east side of the intersection between Market Street and W. Main Street to the alley west of CorTrust Bank for the Opera Highlights Event on Friday, April 30, 2021 from 4:00 p.m. to 7:00 p.m. James stated that the performance will take place from 5:00 p.m. to 6:00 p.m. and is not expected to exceed permissible sound levels. James stated that the street closure request and diagram are included in the packet. James reported that the Street, Police, Fire and EMS Departments have been notified of the street closure request and did not have any concerns. James noted that the group will do cleanup and stated that they have made contact with the adjoining businesses. Tracelyn Gesteland with University of South Dakota Opera answered questions of the City Council on the event.

49-21 Alderman Holland moved approval of the street closing request for the University of South Dakota Opera to close Market Street from W. Main Street to the southern border of Ratingen Platz and W. Main Street from the east side of the intersection between Market Street and W. Main Street to the alley west of CorTrust Bank for the USD Opera Highlights Event on Friday, April 30, 2021 from 4:00 p.m. to 7:00 p.m. Alderman

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Humphrey seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier- Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

C. 2020 Unaudited Annual Report

Mike Carlson, Finance Officer, reviewed the 2020 unaudited Financial Report for the City and answered questions of the City Council on the report. Mike noted that the City Council would need to acknowledge receipt of the report and a copy will be sent to the Department of Legislative Audit and the required portions will be published. Mike stated that the report will be audited by Williams & Company later this year. Discussion followed.

50-21 Alderman Holland moved to acknowledge receipt of the 2020 Unaudited Annual Financial Report. Alderman Price seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

D. Airport Lease agreement with Jeff Mount

Jose Dominguez, City Engineer, reported that Jeff Mount owns an aerial spraying company that utilizes the Municipal Airport. Jose reported that Mr. Mount has acquired a hanger and requires additional space to construct a water tank, a fuel tank, and have more maneuvering space. Jose stated that Mr. Mount has requested to lease an additional 5,250 square feet (or 70-feet by 75-feet) of bare ground that adjoins his hanger lease property. Jose reported that a lease agreement has been developed with lease terms that correspond to the lease term on the adjoining hanger lease with the first option for renewal on July 4, 2025 for a ten-year period and the second option for renewal will be on July 4, 2035 for an additional 10-year period. Jose noted that the lease rate may be adjusted at the July 4, 2025 renewal. Jose stated that, based on the current City lease rates, the amount that Mr. Mount would pay on an annual basis would be $525.00. Jose stated that the proposed lease agreement is included in the packet. Jose noted that, as not typically the City’s practice, Mr. Mount requested that the agreement be signed by the City first to expedite the process since he will not be able to sign it until later in the week. Jose noted that Mr. Mount did review the agreement and did not propose any changes to the proposed document. Discussion followed on if chemicals are stored on site if containment was required. Jose reported that it was his understanding that chemicals were not stored and that he had made inquiry of the DENR about this.

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51-21 Alderman Holland moved approval of the hanger lease agreement as presented with Jeff Mount for a 70-feet by 75-feet or 5,250 square feet of portion of property. Alderman Willson seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

E. Agreement with Midland Contracting for Highway 50 drainage improvements

Jose Dominguez, City Engineer, reported that the City has been working with the South Dakota Department of Transportation (DOT) to construct a storm sewer along the south ditch of South Dakota Highway 50 (Bypass) from Dakota Street to Over Drive. Jose reported that, due to the fact that the project will be taking place within the DOT’s right-of-way and it will be constructed at the same time as the DOT’s highway project, it was bid simultaneously with the highway project. Jose noted that bidding the two projects at the same time allows for better bids to be received and for one contractor to handle both projects. Jose reported that the bid is awarded to lowest combined bid (storm sewer improvement and the highway improvement). Jose reported that the DOT awarded the contract on February 11, 2021 to Midland Contracting, Inc. of Huron for the combined project. Jose noted that the DOT requires the City sign the contract with Midland Contracting, Inc. for the SD Highway 50 Drainage Improvements portion of the contract.

Bids: Midland Contracting, Inc – Highway Project $6,839,500.50, Storm Sewer Project $3,077,119.99, Total $9,916,620.49; Central Specialties, Inc – Highway Project $6,575,041.54, Storm Sewer Project $3,402,464.27, Total $9,977,505.81; Duininck, Inc – Highway Project $6,964,826.31, Storm Sewer Project $3,415,575.10, Total $10,380,401.41; Bituminous Paving, Inc – Highway Project $7,054,924.65, Storm Sewer Project $3,345,153.00, Total $10,400,077.65.

Jose stated that the storm sewer portion of the project is the responsibility of the City. Jose reported that the City will use a combination of funds to pay: SD DOT $696,700, Community Development Block Grant $750,000, SRF Loan $500,000, City Storm sewer funds $1,130,419.99. Jose recommended authorizing the Mayor to sign the contract. Discussion followed.

52-21 Alderman Holland moved approval of the authorization of the Mayor to sign the contract with Midland Contracting, Inc., from Huron, SD, for HWY 50 drainage improvement project 1374 ( ) PCN X05N, for the price of $3,077,119.99. Alderman Willson seconded the motion. A roll call vote of

15 the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

F. Streetscape agreement amendment with Stockwell Engineering

Jose Dominguez, City Engineer, reported that, since 2004, the businesses in downtown Vermillion and the City have been working to improve the Main Street area. Jose stated that, in January 2020, the City created the Business Improvement District #2 (BID). Jose noted that the BID was created with the intent to provide a funding mechanism and to bring forward a streetscape plan for downtown Vermillion. Jose reported that the City entered into a contract with Stockwell Engineers (Stockwell) for the design and development of the construction documents on April 20, 2020. Jose noted that the construction documents for the Downtown Streetscape Project (Project) are currently out to bid with a bid opening date of March 4, 2021. Jose stated that the original agreement with Stockwell covered the costs associated with surveying the project area, designing the desired project, creating the construction documents, and bidding the project at a cost of $238,318. Jose reported that the amendment being considered is for contract preparation, construction staking, and construction administration of the project. Jose noted that the items of importance that are included in these three tasks are: conducting one public meeting after award of project, preparing biweekly construction bulletins to be made available to the public, attending biweekly coordination meetings with contractor, and completing the record drawings. Jose stated that the amendment will also cover costs incurred by Stockwell during the design of the Project that include the removal of the bumpouts along Kidder Street after the 65% plan completion, and for the numerous iterations of the monument pillars. Jose reported that the original agreement was for $238,318 and the amendments being considered are for additional design services $12,500, contract preparation $1,214, construction administration $268,557 and construction staking $25,015 for an amended total of $545,604. Jose recommended approving the amendment to the agreement with Stockwell Engineers. Discussion followed.

53-21 Alderman Ward moved approval of the amendment to the Consultant Agreement with Stockwell Engineers for Design, Construction Documents, and Construction Administration for the Downtown Streetscape Project to amend the original contract to a total of $545,604. Alderman Willson seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

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G. Change order #2 for Recycling Center renovation project

Jose Dominguez, City Engineer, reported that in October 2020 the City Council awarded a $561,200 contract to Sunkota Construction of Sioux Falls for renovations at the Missouri Valley Recycling Center on N. Crawford Road. Jose stated that in February 2021 the City Council approved Change Order No. 1 for $14,583 that included insulating the office area and parts of the processing area. Jose noted that the change order also added five days to the completion date, making the new completion on March 12, 2021. Jose stated that Change Order No. 2 (CO2) addresses items concerning electrical changes to the work space, insulating the area where some of the material is stored in the processing area, preparing the office space floor for epoxy finish, extending the rain gutter on the south side of building, testing of emergency lights, and installing a drainage system for the mechanical room. Jose noted that CO2 will also extend the completion date by ten days to March 22, 2021. Jose stated that the increase in time is due to the additional time it took to complete the floor preparation for the epoxy finish, and for insulating the portions of the processing area. Jose stated that CO2 will increase the cost of the project by $13,667 to a new contract amount of $589,450. Jose reported that this project will be paid through a combination of City Joint Powers funds and SD DENR grant for $343,000. Discussion followed.

54-21 Alderman Willson moved approval of Change Order #2 with Sunkota Construction, Inc in the amount of $13,667 with a 10-day extension to the completion date to March 22, 2021. Alderman Price seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege- Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

H. Resolution to purchase two Police SUVs from Vermillion Ford

Jose Dominguez, City Engineer, reported that the 2021 equipment replacement fund budget included the replacement of the 2018 Chevrolet Tahoe Pursuit Rated vehicle and the 2005 Harley Davidson motorcycle. Jose reported that orders for 2021 Chevrolet Tahoe Pursuit Rated vehicles were stopped in December 2020 and in discussion with the Police Department it was agreed to replace the Tahoe with a Ford Interceptor SUV and the motorcycle with a Ford Interceptor SUV. Jose reported that staff compared the prices awarded by the State of South Dakota through the State bid and prices provided by local dealers, noting that Vermillion Ford price matched the State award price. Jose reported that State Statute 5-18C-8 allows the City to purchase from a willing vendor whose price is the same or less than the State awarded price. Jose recommended approval of

17 the resolution to purchase two Police SUVs from Vermillion Ford at the price equal to the State bid price. Discussion followed.

55-21 After reading the same once, Alderman Hellwege moved adoption of the following:

RESOLUTION AUTHORIZING THE PURCHASE OF TWO VEHICLES

WHEREAS, SDCL 5-18C-8 authorizes a governmental entity to purchase from a state contract list, or from any willing vendor at a price at or below that shown in the state contract; and

WHEREAS, the City of Vermillion approached the local Ford dealer to see if they could match the price found in the state contract for two 2021 Ford Interceptor SUVs; and

WHEREAS, after the prices from the local Ford dealer were compared with the state contract price it was found that the local Ford dealer’s prices were identical to the state’s contract price; and

WHEREAS, Vermillion Ford, Vermillion, South Dakota, is willing to allow the City to purchase the vehicles for the same price as the state awarded price.

NOW, THEREFORE, BE IT RESOLVED, by the Governing Body of the City of Vermillion, that the City Finance Officer is hereby authorized to purchase two 2021 Ford Interceptor SUVs ($35,857 per vehicle) from Vermillion Ford, Vermillion, South Dakota, at the above stated price of $71,714.

Dated at Vermillion, South Dakota this 1st day of March, 2021.

FOR THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA By______Kelsey Collier-Wise, Mayor ATTEST: By______Michael D. Carlson, Finance Officer

The motion was seconded by Alderman Holland. Discussion followed and the question of the adoption of the Resolution was presented for a roll call vote of the Governing Body as follows: Hellwege-Y, Holland-Y, Humphrey-

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Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Collier-Wise- Y. Mayor Collier-Wise declared the motion adopted.

9. Bid Openings

A. Fuel quotes

Mike Carlson, Finance Officer, read the monthly fuel quotes and recommended the low quote of Stern Oil on all three items.

Item 1 - 4,350 gal unleaded 10% ethanol: Stern Oil $2.1127, Jerry’s Service $2.67; Item 2 – 3,000 gal No. 1 & 2 Diesel fuel dyed average price: Stern Oil $2.4218, Jerry’s Service $2.43; Item 3 - 1,000 gal No. 1 & 2 diesel fuel-clear average price: Stern Oil $2.7218, Jerry’s Service $2.92

56-21 Alderman Price moved approval of the low quote of Stern Oil on all three items. Alderman Willson seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Mayor Collier- Wise-Y. Mayor Collier-Wise declared the motion adopted.

10. City Manager's Report

A. John reported that the United Church of Christ building has been nominated for inclusion on the National Register of Historic Places. John stated that the application will be available on the City’s website and any public comments on the nomination to the City are welcome through March 19, 2021.

B. John reported that, due to a resignation on the Historic Preservation Commission, there is a partial term available. John reported that the term would expire in September 2021. John asked interested individuals to complete the Expression of Interest forms that are due by Thursday, March 11th at 5:00 p.m. in anticipation that the City Council will make an appointment at the March 15th meeting. John noted that, for this vacancy, the individual does need to own property in one of the four historic districts.

C. John reported that, due to the large volume of curbside recycling on the Friday route, effective today, March 1st, Burbank Road, Natalie Court, and Brandon Drive collection has been moved from the Friday curbside collection route to the Wednesday curbside collection route.

D. John reported that the City’s Historic Preservation Commission meets on Wednesday, March 3rd at 9:00 a.m.

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E. John reported that the City’s Human Relations Commission meets on Thursday, March 4th at 7:00 p.m.

F. John reported that the City Planning and Zoning Commission will meet on Monday, March 8th at 5:30 p.m. John noted that one agenda item is a TIF Plan for TIF District #7.

PAYROLL ADDITIONS AND CHANGES

Police: Alex Taggart $22.95/hr; Recreation: Mackenzie Brady $10.00/hr; Water: Aaron Hammer $18.98/hr; Curbside Recycling: Jessie Lovett-French $17.05/hr

11. Invoices Payable

57-21 Alderman Price moved approval of the following invoices:

A-Ox Welding Supply Co chemicals 1,454.00 Amazon Business supplies 565.04 Andrew Delgado boot reimbursement 200.00 Appeara shop towels 45.00 Aramark uniforms 75.98 Aramark Uniform Services uniform cleaning 430.80 Arrow Manufacturing parts 53.00 Automatic Building Control fire alarm inspection 204.00 Avera Occupational Medicine testing 190.65 Blackstone Publishing books 644.76 Border States Elec Supply supplies 933.80 Bound Tree Medical, LLC supplies 1,651.34 Boyer Trucks parts 150.34 Burns & McDonnell professional services 54,104.85 Butch's Propane Inc propane 1,507.75 Butler Machinery Co. repairs/parts 4,330.41 Callaway Golf merchandise 900.14 Cannon Technologies, Inc electric meters 239,904.00 Carroll Construction Supply supplies 92.70 Cask & Cork merchandise 429.00 Century Business Products copier contract/copies 192.37 Chandel Bultsma refund ambulance overpayment 145.74 City Of Vermillion postage/copies 932.72 City Of Vermillion utility bill 39,467.69 Clay County Ems Association training 90.00 Cleveland Golf merchandise 79.00

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Colonial Life Acc Ins. insurance 2,984.27 Core & Main LP supplies 3,477.21 Cornhusker International Truck parts 58.34 Cummins Central Power, LLC repairs 260.96 D-P Tools supplies 125.28 Dakota Beverage merchandise 9,516.54 Dakota Pc Warehouse thinkpad/supplies 905.90 Dakota Riggers & Tool Supply supplies 112.08 Delta Dental Plan insurance 6,408.16 Dennis Martens maintenance 833.34 Dept. Of Social Services refund ambulance overpayment 182.61 Derek Ronning gym membership reimbursement 250.00 Driver’s License Guide Co id checking guide 67.50 Dubois Chemicals soda ash 7,320.50 Echo Electric Supply parts 1,603.68 Ed M. Feld Eqpt Co supplies 187.00 Energy Laboratories testing 90.00 Equipment Blades Inc blades 5,446.50 Erickson Solutions Group professional services 8,831.37 Evan Rolling gym membership reimbursement 250.00 FedEx. shipping 60.53 Frontier Precision, Inc subscription 1,650.00 G & R Controls parts 375.00 Geotek Engineering testing/inspection 176.00 Global Dist. merchandise 105.00 Graymont (Wi) LLC chemicals 8,239.33 Gregg Peters freight/software renewal 3,223.20 Gregg Peters rent 937.50 Hauff Mid-America Sports uniforms 266.00 Heiman Fire Equipment supplies 1,210.20 Herc-U-Lift parts 746.60 Hercules Industries, Inc supplies 392.11 Herren-Schempp Building supplies 395.24 Hy-Vee Food Store supplies 12.97 IMS Alliance name tags 65.00 Industrial Chem Labs supplies 454.98 Ingram books 2,970.46 International Code Council membership dues 145.00 Interstate Power Systems repairs 427.79 Istate Truck Center parts 165.23 Jacks Uniform & Eqpt uniform 283.40 Jessica Newman gym membership reimbursement 250.00 John A Conkling Dist. merchandise 2,802.40

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John DeVorss snow removal 640.00 Johnsen Heating & Cooling repairs 1,425.98 Johnson Brothers Of SD merchandise 11,873.47 Johnson Controls service agreement 1,811.78 Johnson Feed, Inc parts 38.36 Jones Food Center supplies 588.86 Joyce Orr refund parking tckt overpmt 5.00 Justin Roetman safety boots reimbursement 72.75 K & M Tire parts 646.62 Kenny Wapniarski safety glasses reimbursement 150.00 Lawson Products Inc supplies 80.46 Laynes World FD plaques 1,378.26 League Of Nebraska Municipal advertising 103.95 Leisure Lawns, LLC lawn applications 961.40 Lessman Elec. Supply Co supplies 650.50 Loffler copier contract/copies 1,223.95 Longs Propane Inc propane 30.00 Main Street Center 1st qtr contribution 4,000.00 Malloy Electric parts 685.08 Mart Auto Body towing 375.00 Masimo maintenance 891.00 Matheson Tri-Gas, Inc medical oxygen/cylinder rental 712.40 Matthew Betzen boots reimbursement 200.00 McCulloch Law Office professional services 1,173.00 Mead Lumber supplies 38.99 Medical Waste Transport, Inc haul medical waste 231.71 Micro Marketing LLC books 194.97 Midwest Alarm Co repairs 374.05 Midwest Ready Mix & Equipment flowable fill 400.00 Midwest Turf & Irrigation parts 429.88 Minitex Library supplies 1,050.00 Missouri Valley Maintenance repairs 1,128.05 Mizuno USA, Inc merchandise 828.25 Moore Welding & Mfg repairs 1,059.00 MSC Industrial Supply Co supplies 106.82 National Fire Protection Assoc membership dues 175.00 NCL Of Wisconsin, Inc supplies 1,041.62 Nebraska Journal-Leader advertising 34.95 Netsys+ professional services 498.50 North Central Rental & Lease skid steer loader rental 2,340.00 Northwestern University Center registration/training 4,000.00 O'Reilly Auto Parts parts 275.94 Overhead Door Of Sioux City repairs 576.31

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PCC, Inc commission 4,035.15 Penworthy Company books 257.44 Petrochoice supplies 210.63 Phelps uniforms 147.08 Ping/Karsten Mfg Corp merchandise 3,969.64 Pizza Ranch meals 83.92 Powerphone, Inc maintenance 239.70 Pressing Matters supplies 447.00 Presto-X-Company inspection/treatment 65.00 Prochem Dynamics supplies 180.53 Quill supplies 279.91 Racom Corporation maintenance 432.70 Recovery Systems Co, Inc repairs 2,118.75 Redi Towing towing 850.00 Republic National Distributing merchandise 15,936.27 Rockmount Research & Alloy parts 819.78 Running Supply, LLC supplies 1,715.57 Sally Lombard refund parking tckt overpmt 5.00 Sanford Health Occupational testing 606.00 Sanford USD Medical Center supplies 395.53 Sanitation Products Inc parts 2,999.94 Schaeffer Mfg. Co supplies 708.00 SD Dept Of Health testing 150.00 SD Dept Of Public Safety teletype service 3,590.00 SD Retirement System contributions 61,511.85 SD Sheriffs' Association registration 115.00 SD Solid Waste Management registration 260.00 SEH, Inc hwy 50 drainage 4,104.87 Service First Fire Sprinkler fire sprinkler inspection 245.00 Service Master Of SE SD custodial 3,751.54 Sioux Equipment supplies 158.00 Skarshaug Testing Lab. testing 1,209.84 Sooland Bobcat repairs/parts 9,704.22 Southern Glazer's Of SD merchandise 3,283.32 Stan Houston Eqpt Co tools 525.00 Steven Hopkins refund ambulance overpayment 40.42 Stryker Sales Corporation maintenance/svc agreement/aeds 28,962.08 Sturdevants Auto Parts parts 1,794.82 Syncb/Amazon books/dvds/supplies 1,160.34 Taste Of Home Books books 61.96 The New Sioux City Iron Co blades 173.22 The Ups Store #6751 shipping 40.04 Thomas L Price Inc evaluation/screening 350.00

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Titan Machine-Productivity parts 576.80 Tractor Supply Credit Plan supplies 15.99 Tritech Software Systems subscription 600.00 Turner Plumbing repairs 83.50 Twin City Hardware parts 1,734.07 Two Way Solutions repairs 1,216.93 United Laboratories supplies 660.24 United Way contributions 574.50 Unum Life Insurance Company insurance 1,557.38 Utility Equipment Co. parts 2,439.48 Vast Broadband 911 circuit/dialup service 1,415.45 Verizon Wireless cell phones/ipad access 3,437.23 Vermillion Ace Hardware supplies 1,291.86 Vermillion Auto Works parts 380.00 Vermillion Chamber Of Commerce contribution/dues/advertising 68,180.00 Vermillion Ford parts 346.54 Vermillion Housing Authority contribution 6,900.00 Vermillion Public Transit contributions 23,000.00 Visa/First Bank & Trust fuel/supplies 5,656.51 Voss Distributing merchandise 36.00 Walmart supplies 1,175.18 Westech Engineering, Inc repairs 860.58 Zee Medical Service supplies 180.80

Alderman Ward seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier- Y, Price-Y, Ward-Y, Willson-Y, Mayor Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

12. Consensus Agenda - None

13. Adjourn

58-21 Alderman Ward moved to adjourn the Council Meeting at 8:10 p.m. Alderman Price seconded the motion. A roll call vote of the Governing Body was as follows: Hellwege-Y, Holland-Y, Humphrey-Y, Jennewein-Y, Letellier-Y, Price-Y, Ward-Y, Willson-Y, Mayor Collier-Wise-Y. Mayor Collier-Wise declared the motion adopted.

Dated at Vermillion, South Dakota this 1st day of March, 2021.

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THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA BY______Kelsey Collier-Wise, Mayor ATTEST: BY______Michael D. Carlson, Finance Officer

Published once at the approximate cost of ______.

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7. Old Business; item a

Council Agenda Memo

From: John Prescott, City Manager

Meeting: March 15, 2021

Subject: Review of Emergency Resolution encouraging the use of face coverings or face masks in buildings open to the public

Presenter: John Prescott

Background: At the City Council meeting on February 1, 2021, the City Council approved an Emergency Resolution encouraging the use of face coverings in buildings open to the public. The Emergency Resolution had an effective date of February 8, 2021. The Emergency Resolution adopted on February 1, 2021 was very similar to Emergency Resolutions adopted in August, October, and December 2020, which expired after 60- days. The four emergency resolutions have been designed to promote the use of face coverings to slow the spread of the coronavirus. The Emergency Resolutions were also designed to provide the language that Emergency Ordinance 1419, 1422, 1425, and the current Emergency Ordinance 1429, would cite. The Emergency Ordinances required the posting of a sign, which states that face masks are expected per city resolution.

During adoption of the Emergency Resolution on February 1, as the City Council has done with all other emergency measures, there was a reference that the item would be on each regular City Council meeting agenda during the 60-day life of the document for review and consideration of continuation. There were no changes made to the Emergency Resolution at the February 15 or March 1, 2021 meetings.

Discussion: City staff has not received any questions about the Emergency Resolution. This is likely due to public familiarity with the purpose and language of the document. The current Emergency Resolution is very similar to the previous document that was in place for 60 days. The current Emergency Resolution expires on April 8, 2021. A replacement Emergency Resolution will be considered with the April 5 agenda.

Financial Consideration: None

Conclusion/Recommendations: Administration recommends that the City Council review information related to COVID-19 and the Emergency Resolution recommending 7. Old Business; item a face coverings or face masks in buildings open to the public and determine if any changes are needed.

7. Old Business; item b

Council Agenda Memo

From: John Prescott, City Manager

Meeting: March 15, 2021

Subject: Review of Emergency Ordinance 1429 requiring the posting of a sign stating “Masks Expected per City Resolution” at entrances to buildings open to the public

Presenter: John Prescott

Background: The City Council on February 16, 2021 approved the second reading of Emergency Ordinance 1429, which became effective upon adoption. The ordinance requires the posting of a sign at buildings open to the public, which states “Masks Expected per City Resolution.” As it was an emergency ordinance, the City Council was able to adopt the measure with the ordinance becoming effective prior to publication.

During adoption of the ordinance, as the City Council has done with all other emergency measures, there was discussion that the item would be on each regular City Council meeting agenda during the life of the document for review and consideration of continuation of the item. There were no changes to the document at the March 1, 2021 meeting. An Emergency Ordinance or Resolution can be effective for up to 60 days. Emergency Ordinance 1429 will expire on April 16, 2021 and is very similar to Emergency Ordinances 1419, 1422, and 1425, which have expired.

Discussion: As a follow-up to City Council discussions on the previous Emergency Ordinances, City Code staff have completed a check of the community on two occasions for compliance with the sign-posting requirement. Most businesses continue to have a sign posted as the current ordinance requires. During the life of current Emergency Ordinance 1429, and with Emergency Ordinances 1419, 1422, and 1425, there have been no citations for non-compliance. The signs continue to be available for free at City Hall, the VCDC office, or they can be downloaded and printed from the City’s website. A business can also make their own sign that has the same language.

As Emergency Ordinance 1429 will be expiring in mid-April, a first reading of Emergency Ordinance 1432 to continue the sign requirement is later on this agenda. If the City Council does not want to have a gap in the sign requirement, readings of a replacement Emergency Ordinance are needed on March 15 and April 5. 7. Old Business; item b

Financial Consideration: None

Conclusion/Recommendations: Administration recommends that the City Council review information related to COVID-19 and Emergency Ordinance 1429 requiring the posting of a sign stating that face masks or face coverings are expected per City resolution.

8. New Business; item a

Council Agenda Memo

From: James Purdy, Assistant City Manager

Meeting: March 15, 2021

Subject: Kidder Street Closure request for Polar Plunge on April 10, 2021

Presenter: James Purdy

Background: The Law Enforcement Torch Run and Special Olympics of South Dakota are requesting the closing of Kidder Street from Court Street west to the alley between Court Street and Market Street on Saturday, April 10, 2021 from 9:00 a.m. to 6:00 p.m. for the Polar Plunge. The Polar Plunge is an annual fund raising event for Special Olympics. This request asks for an extra hour of closure time from what was granted last year, as the event may have to stagger plunge times due to COVID-19 concerns and restrictions. Additional safety precautions are implemented and mandated by Special Olympics International. The event will be outdoors, and masks will be mandated except while taking the plunge. At this time, the requirements will only allow a maximum of 50 people in attendance at any given time. A map of the proposed street closing is attached. This event would take place in the same location as last year. Old Lumber Company staff and volunteers will assist in the setup, hosting, and cleanup for the event. No other businesses will be directly affected by the closure.

Discussion: Jon Cole, representing the Law Enforcement Torch Run, has completed the request for the street closure for the event to begin at 9:00 a.m. on Saturday, April 10, 2021. The plunge should be over by 4:00 p.m. that day. Jon Cole has indicated they will be using a sound system for announcements and entertainment, but do not expect to exceed the noise levels as the event is during the day.

Insurance for the event is obtained and paid for by Special Olympics South Dakota and copies of the insurance can be provided upon request.

Financial Consideration: None.

Conclusion/Recommendations: Administration recommends that the City Council approve the temporary closure of Kidder Street from the corner of Court Street west to the alley between Court Street and Market Street on Saturday, April 10, 2021, from 9:00 a.m. to 6:00 p.m. for the Polar Plunge.

8. New Business; item b

Council Agenda Memo

From: Jose Dominguez, City Engineer

Meeting: March 15, 2021

Subject: First Reading of Ordinance 1431 – Amending Appendix A, 2012 Joint Zoning Regulations for Clay County and the City of Vermillion, Chapter 2, Section 2.03(A) Zoning Map, by removing certain real property from the A- 1 Agricultural District and including it in the RR Rural Residential District

Presenter: Jose Dominguez

Background: On October 9, 2020 the County received a petition to rezone approximately 13.5 acres at the northwest corner of 466th Avenue and East Main Street. The applicant requested that the land be rezoned from the A-1: Agricultural District to RR: Rural Residential District. If approved, the rezoning will allow the land to be developed into residential lots.

Discussion: The current ordinance for the Joint Jurisdiction Zoning Area (JJZA) was adopted in 2013. The ordinance was created with the intent to allow the City and County to have a say in existing and proposed land uses in an area that would directly impact the City’s growth. The JJZA tries to maintain the rural characteristics of the surrounding area, while allowing for some light development. The ordinance’s intent, based on the adopted comprehensive plan for the JJZA, is to direct development towards areas within City limits, or areas that can be annexed by the City and serviced with municipal infrastructure.

This proposed use is currently not allowable due to the A-1: Agricultural District having a cap on residential construction based on density. Based on the ordinance, no more than three residential structures are allowed within a ¼ ¼ of a section. This ¼ ¼ section already has three residential structures, so the construction of an additional residential structure would not be allowed. In addition to the density cap, any new residential use must go through a conditional-use permit if it is located in the A-1: Agricultural District. New construction on lots of record and reconstructions are exempt from the density requirement, but still must go through the conditional-use process. The RR: Rural Residential District does not have a density restriction, or require a conditional-use permit for residential construction. The reason for the request to rezone is to allow for further residential development on land that had not been platted prior to the adoption of the JJZA.

8. New Business; item b

It should be noted that the existing residential uses south of East Main Street were rezoned from A-1: Agricultural District to RR: Rural Residential District in the spring of 2019. This was done in order to allow for further construction of residences in an area which already had more residential uses than the density cap allowed, while also removing the requirement of a conditional-use permit for a use similar to adjoining uses.

The County Planning Commission and the City’s Planning and Zoning Commission considered this item at a joint meeting on October 26, 2020. At that meeting, the County’s Planning Commission recommended the County Commission not approve the rezone request. The City’s Planning and Zoning Commission tabled the item for further discussion at a later time.

The County Commissioners considered the rezone at their November 24, 2020 meeting. At that meeting, the County Commissioners tabled the item to allow the applicant time to come up with a plan to address drainage concerns. Discussion on the item was continued at the January 12, 2021 County Commission meeting. At that meeting the County Commissioners allowed the rezone to advance to the second reading. The second reading would be a joint meeting between the City Council and the County Commissioners.

The City’s Planning and Zoning Commission reconsidered this item at their February 8, 2021 meeting. At that meeting, the Planning and Zoning Commission recommended unanimously that the City Council approve the rezone.

The process set in the JJZA for zoning amendments requires that governing bodies meet individually to consider the first reading of the ordinance. Assuming that the first reading is advanced by both bodies, they would then hold a joint meeting to consider the second reading. If the City Council approves the first reading tonight, the joint meeting will be on April 5th.

Financial Consideration: Besides the cost of advertising there are no additional costs to the City associated with the zoning ordinance amendment.

Conclusion/Recommendations: The City Council is asked to consider the first reading of Ordinance 1431.

Based on the strict interpretation of the adopted comprehensive plan, it seems that the intended use should not be allowed to occur. However, Staff believes that the intent of the goals within the comprehensive plan are to avoid a large residential development from occurring in the periphery of the City limits. Due to the fact that there is no definition for what constitutes a large residential development, City staff has taken the position that as

8. New Business; item b long as no new streets are constructed or dedicated, whether private or public, then the residential development should be allowed. In this instance, all of the future lots would be fronting either 466th Avenue or East Main Street. Based on this interpretation, Staff recommends approval of the rezone.

The area will still need to be platted to continue with the possible construction of residences.

PROPOSED ORDINANCE 1431 AMENDING APPENDIX A, 2012 JOINT ZONING REGULATIONS FOR CLAY COUNTY AND THE CITY OF VERMILLION, CHAPTER 2, SECTION 2.03(A) ZONING MAP, BY REMOVING CERTAIN REAL PROPERTY FROM THE A-1 AGRICULTURAL DISTRICT AND INCLUDING IT IN THE RR RURAL RESIDENTIAL DISTRICT BE IT ORDAINED, by the Governing Body of the City of Vermillion, South Dakota that Section 2.03(A) is hereby amended as follows: That the East 26 1/3 Rods of the SE ¼ of the SE ¼, Section 17, Township 92 North, Range 51 West of the 5th P.M., Except Lot H6 thereof, Fairview Township, Clay County, South Dakota, is removed from the A-1 Agricultural District and is included in the RR Rural Residential District, and that the official zoning map referred to in Section 2.03(A) of the 2012 Joint Zoning Regulations for Clay County and the City of Vermillion, is amended to include such land in such zone. Dated at Vermillion, South Dakota this 15th day of March, 2021.

THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA

BY______Kelsey Collier-Wise, Mayor ATTEST:

BY______Michael D Carlson, Finance Officer

First Reading: March 15, 2021 Second Reading: April 5, 2021 Published: April 16, 2021 Effective: May 7, 2021

8. New Business; item c

Council Agenda Memo

From: John Prescott, City Manager

Meeting: March 15, 2021

Subject: Recommendation on TIF Plan for Tax Increment Financing District #7 (Outlot A, Bliss Pointe Addition to the City of Vermillion, Clay County, South Dakota

Presenter: John Prescott

Background: In 2014, the Vermillion Area Chamber and Development Company (VCDC) started construction on the infrastructure for the first phase of Bliss Pointe to provide additional housing opportunities for the community. The first phase of development predominantly took place on the western portion of the 30 acres of developable land. The VCDC would like to begin development on the second phase of Bliss Pointe. This is the undeveloped portion of the land, which is generally described as north of Rockwell Trail, east of Joplin Street, south of Slate Road, and west of Stanford Street. In order to assist with infrastructure development costs, the VCDC has requested that the City create a Tax Increment Financing (TIF) District. The City Council approved the boundaries for TIF District #7 at the February 16, 2021 meeting. The current legal description for TIF #7 is Outlot A, Bliss Pointe Addition. Later on this agenda, there is a Final Plat to further divide the TIF district into blocks and dedicate the public right-of-way.

Discussion: The VCDC is the current owner of the entire property and plans to market the property for different types of single-family housing. In order to prepare the area for development of housing, infrastructure such as water, sanitary sewer, storm sewer, paving, street lights, electric, natural gas, and mailboxes need to be installed. The VCDC is completing the purchase of the property and has limited funds to develop the infrastructure to prepare lots that are ready for residential construction.

The City contributes to any development by paying for the oversizing of items that benefit the entire community such as oversized paving costs, stabilization of streets, and storm sewer improvements. The bulk of the infrastructure development costs are the responsibility of the developer. The TIF District has been proposed to assist with infrastructure development costs. The VCDC has solicited bids for the infrastructure

8. New Business; item c improvements and anticipates awarding a bid by March 19, 2021. Construction would take place this year.

The TIF district is needed to help with funding the improvements. The VCDC and City have been in discussions with several local entities who will be the bond holders. These entities would essentially loan the City money to fund the improvements. The City will then grant the funding to the VCDC who will use the money to pay the contractors for the TIF Plan project costs. The property taxes generated by the development inside the TIF District will be the primary source over a maximum 20-year life used to repay the entities who loaned the funds to the City. As TIF District #7 has fewer lots than TIF District #6 to be developed and generate property tax dollars to repay the debt, the TIF Plan provides that a portion of lot sale revenue will also be utilized to service the debt. The City is not guaranteeing the bonds. The TIF #7 Plan proposes that the City Council will annually consider during the budget process making advances to the TIF Fund for interest only payments to the bond holders until the TIF revenues are sufficient to make the payments. Should the tax revenue not be generated or sufficient to fully repay the bond holders, the City is not responsible for the difference. The funding arrangement is similar to TIF #6 which funded the infrastructure for the first phase of the Bliss Pointe development.

State statutes require that a Project Plan be prepared for each TIF District. The attached Plan for TIF #7 provides information on the existing conditions of the TIF District and what is anticipated to be diverted from the City, County, School District, and Water District in the property taxes over the next 20 years. The Plan provides information on the overall project costs and uses of the TIF funds. The infrastructure numbers are pretty solid as bids have been opened on almost all of these costs. The actual assessed value of future construction, how quickly housing will be built, and the corresponding tax rates are unknown.

The TIF #7 Project Plan was reviewed by the Planning Commission at their March 8, 2021 meeting. The Commission recommended adoption of the TIF #7 Project Plan.

Financial Consideration: None.

Conclusion/Recommendations: Administration recommends approval of the resolution adopting the Project Plan for Tax Increment District #7.

RESOLUTION ADOPTING PROJECT PLAN FOR TAX INCREMENTAL DISTRICT NUMBER SEVEN BLISS POINTE DEVELOPMENT PHASE 2

WHEREAS, the City Council and Planning and Zoning Commission of the City of Vermillion, South Dakota (the “City”) in pursuing housing development efforts has here to fore created Tax Incremental District Number Seven; and

WHEREAS, this Tax Incremental District was created on February 16, 2021 to aid infrastructure funding for the Bliss Pointe Development Phase 2 in the City of Vermillion; and

WHEREAS, the City of Vermillion’s Planning and Zoning Commission has considered and approved the Project Plan for Tax Incremental District Number Seven; and

WHEREAS, the Project Plan for Tax Incremental District Number Seven is hereby found to be feasible and in conformity with the City’s Master Plan.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Vermillion that the Project Plan for Tax Incremental District Number Seven is hereby approved.

Dated at Vermillion, South Dakota this 15th day of March, 2021.

FOR THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA

By ______Kelsey Collier-Wise, Mayor

ATTEST:

By______Michael D. Carlson, Finance Officer

Approved: March 15, 2021 Publish: March 26, 2021 Effective: April 15, 2021 3.15.21

PROJECT PLAN

CITY OF VERMILLION TAX INCREMENT DISTRICT #7 BLISS POINTE PLANNED DEVELOPMENT DISTRICT

District Created – February 16, 2021

Plan Approved March ____, 2021

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INTRODUCTION

Tax Increment Financing is a method of financing improvements and development in an area which has been determined to be blighted or will stimulate and develop the general economic welfare according to the criteria set forth in SDCL Ch. 11-9. The improvements are completed without incurring a general obligation for the taxpayers of the entire City of Vermillion (City hereafter). Tax Increment Financing (TIF) is an incentive utilized by local governments to stimulate development and investment. TIF helps to overcome the extraordinary costs that often prevent private investment from occurring in difficult to develop areas of the community. As a result, the TIF area itself improves and property values increase.

The assessed value of a district is determined by the South Dakota Department of Revenue at the time the district is created by the City Council. This valuation is termed the Tax Increment Base Valuation for the district, or simply the “Base Valuation.” As the property taxes for the property are paid, that portion of the taxes paid on the Base Valuation continues to go to those entities (City, County, School, etc.), which levy property taxes.

When in succeeding years, the assessed valuation of the district increases, the total property taxes paid by the owners of property in the district will increase accordingly. That increase in taxable valuation is the “increment.” When the tax bills are paid, only that portion of the tax bill, which results from the Base Valuation, is paid to the taxing entities. The remainder of the tax bill, known as the tax increment, is deposited in a special fund. It is this plan which determines how these accumulated funds will be used. The property in the proposed Tax Incremental District will be developed for residential housing. The City will issue a Private Placement Bank Qualified Tax Increment bond to finance the site improvements and if needed other advances from the City and/or Vermillion Chamber and Development Company (VCDC) will be made for interest or contingency, to be repaid after the bond is retired.

This financing method is invaluable for encouraging growth and development of blighted properties including open area impairing growth, since the amount of funds available for use by the project plan is directly related to the increase in valuation which a given project or development will create. TIF projects must be recommended for approval by the Vermillion City Planning and Zoning Commission and the Vermillion City Council.

OVERVIEW

The City Council via a resolution on February 16, 2021 created the boundaries of Tax Increment District #7 (TIF 7 hereafter). The Tax Increment District consists of Outlot A Bliss Pointe Addition to the City of Vermillion that is approximately 15 acres in size. This property is located west of Stanford Street east of Joplin Street and north of Rockwell Trail. The TIF property being developed is the second phase of the approximately 50 acres purchased by the VCDC to help address the housing needs of the community. The development of this property will have a significant impact on housing options for families looking to relocate to Vermillion or move on to the next level of homeownership. This property is all located within the Bliss Pointe Planned Development District. The Planned Development District is divided into four areas. Area A is

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single-family detached dwellings; Area B and Area C are a mix of single-family detached dwellings and single-family attached dwellings; Area D is for light commercial, including primarily office and retail. The property in TIF 7 is all in Area B and Area C. A map of TIF 7 and the Bliss Pointe Planned Development District are included as part of this plan.

The plan proposes to fund the infrastructure development costs to be incurred by the VCDC for the proposed district. These costs consist of grading, water, sanitary sewer, street surfacing, public alley, mailboxes, street lighting and other utility services. Costs for construction or maintenance of private alleys and roads or barriers such as a fence or berm located on private property are not infrastructure development costs eligible costs to be paid for by the TIF. The VCDC will be marketing the lots with the lot sale proceeds used to retire the remaining VCDC debt on the land purchase with the excess available for TIF payments.

The TIF financing method is invaluable for encouraging growth and development in areas with special development problems or opportunities, since the amount available for use by the project plan is directly related to the increase in valuation which a given project or development creates.

The project area of TIF 7 has never been developed. The area of TIF 7 has been farm ground to the best knowledge of the City and the VCDC.

There are no existing structures within the TIF 7 project boundaries. This area consisted of undeveloped farm ground, some of which was annexed into City Limits in 2013 after being purchased by the VCDC. All of the property in Bliss Pointe and TIF 7 is within City limits. Following annexation, the entire property was rezoned into the Bliss Pointe Planned Development District.

As noted in this section of the plan, the project area was rezoned into the Bliss Pointe Planned Development District in 2013 with this phase consisting of single-family detached residential lots and single family attached lots. The Planned Development District zoning was recently amended to allow for smaller residential lots, a reduction in the frontage requirement, and building line.

The following maps are provided at the end of the project plan in compliance with state law and to better describe the project plan: Attachment 1 – Existing Conditions map Attachment 2 – List of Real Property improvements Attachment 3 – Zoning district of TIF 7 Project area Attachment 4 – Map of TIF 7 Project with proposed improvements Attachment 5 – Map of TIF 7 Project with proposed improvements with alternate option for center block

ELEMENTS OF THE PROJECT PLAN

1. In accordance with SDCL 11-9-13 the following is the kind, number, location and dollar amount of estimated Project Costs, costs of public works and improvements.

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The public works activities will consist of (1) grading, (2) storm sewer, (3) water, (4) sanitary sewer, (5) street lighting, (6) streets, (7) public alley, (8) electric utility connections, (9) natural gas service, and (10) mailboxes will be located within the District on the streets and servicing the lots shown in Attachment 4 and Attachment 5.1 The VCDC will contract for the improvements within the TIF district that will be funded by grants from the City from the TIF bond proceeds. All improvements will be in the TIF district. The estimated project costs are as follows:

Kind of Project Cost Capital Cost 239,319 Financing Costs 1,065,888 Real Property Assembly 0 Professional Fees 7,750 Administrative Costs 0 Relocation Costs 0 Organizational Costs 0 Discretionary Costs and Grants 2,031,792

Total Eligible Project Costs 3,344,749

* The City reserves the right to move project costs from one category to another without requiring an amendment to the plan.

The zoning ordinance for the Bliss Pointe Planned Development District was originally adopted in 2013. It was amended with Ordinance 1416 in August 2020 to remove multi-family uses in Area C and add single-family detached dwellings as a permitted use in Area C. It was again amended with Ordinance 1430, adopted by the City Council on March 1, 2021 to reduce the minimum lot area from 6,500 to 5,400 square feet, reduce the frontage from 50 feet to 44 feet, and reduce the building line from 65 feet to 44 feet. These changes should help the area in TIF 7 be easier to develop and provide for more lots to generate property taxes to retire the debt. No other changes will be needed to the City’s master plan, building codes or city ordinances as a result of this project plan.2

2. Economic feasibility study3

Current Valuation

Outlot A of the Bliss Pointe Addition is located on one parcel of property in the Clay County records. In accordance with SDCL 11-9-20, the certification of the base value has been requested from the South Dakota Department of Revenue following creation and approval of the district by the City Council. The anticipated certified base value of the property in TIF 7 is $37,299 (the current value of the parcel).

1 SDCL § 11-9-13(1) 2 SDCL § 11-9-16(4) 3 SDCL § 11-9-13(2) 4

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Expected Increase in Valuation Estimated Future Valuation of Proposed District

Estimated Assessed Value of District $37,299 Estimated Assessed Value of Project (year 20) $12,643,279 Other Anticipated Increases in Assessed Value 0 Estimated Increase in Assessed Value of Land* 0 Estimated Total Valuation (year 20) $ 12,736,583

*For purposes of TIF 7, the increase in land value is not included in these estimates. Any additional value will pay off the loan earlier than anticipated.

Revenue Estimates from Tax Increments The TIF 7 Plan anticipates 38 semi-annual payments over 19 years. The potential negative short-term impact on various taxing districts will be offset by the increase in the tax base in future years.

2020 Owner Occupied Tax Levies and Percentage of Total Levy Percentage of Taxing Entity Tax Levy* Total Levy Vermillion Public School District 8.647 45.52% Clay County 4.337 22.83% City of Vermillion 5.98 31.48% Vermillion Basin Water District .031 .16% *Rates per $1,000 of assessed valuation

The estimated tax increment available to pay for project costs in the TIF 7 Plan is calculated by multiplying the anticipated tax rate by the increment in valuation. This calculation results in the following tax increments, which become available as taxes are paid for the applicable periods. The housing sites will be sold by the VCDC starting in 2021 with structures to be constructed thereafter. The projection is that structures will be completed by 2026.

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Projected Tax Increment Income Year Projected Total Tax Six Assessment Taxes Increment Adjusted Increment Month Date Paid In Valuation Value Payments Total Nov-21 2023 $0 $0 $0 $0 Nov-22 2024 $1,797,800 $1,797,800 $34,149 $17,075 Nov-23 2025 $3,692,762 $3,692,762 $70,144 $35,072 Nov-24 2026 $6,037,564 $6,037,564 $114,684 $57,342 Nov-25 2027 $8,428,892 $8,428,892 $160,107 $80,053 Nov-26 2028 $11,109,176 $11,109,176 $211,019 $105,509 Nov-27 2029 $11,220,268 $11,220,268 $213,129 $106,564 Nov-28 2030 $11,332,471 $11,332,471 $215,260 $107,630 Nov-29 2031 $11,445,795 $11,445,795 $217,413 $108,706 Nov-30 2032 $11,560,253 $11,560,253 $219,587 $109,794 Nov-31 2033 $11,675,856 $11,675,856 $221,783 $110,891 Nov-32 2034 $11,792,614 $11,792,614 $224,001 $112,000 Nov-33 2035 $11,910,541 $11,910,541 $226,241 $113,120 Nov-34 2036 $12,029,646 $12,029,646 $228,503 $114,252 Nov-35 2037 $12,149,942 $12,149,942 $230,788 $115,394 Nov-36 2038 $12,271,442 $12,271,442 $233,096 $116,548 Nov-37 2039 $12,394,156 $12,394,156 $235,427 $117,713 Nov-38 2040 $12,518,098 $12,518,098 $237,781 $118,891 Nov-39 2041 $12,643,279 $12,643,279 $240,159 $120,080

Total Tax Increment Expected to Accrue by 12-1-2041 $3,533,271

* The above table reflects an estimate of the valuations and tax increment of the District. Actual valuations and increments may vary.

NOTE: Tax increment payments are calculated using the estimated taxable value as follows:

Single-family detached dwellings 230,000 Single-family attached dwellings 200,000

Property taxable values are projected to increase by 1% per year over the life of the TIF district with the tax calculated using the 2020 mill levy payable in 2021.

3. Detailed list of project costs4

4 SDCL §11-9-13(3) 6

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The VCDC as the land owner/developer will be making the improvements to the property for the residential lots. The VCDC will use the lot sale proceeds to retire the VCDC debt on the land and assist with the debt service of the TIF bonds. Lot sale proceeds to be paid to the City for debt service on the TIF bond will be made in the following manner: Prior to May 1, 2021 – 100% of lot sale proceeds will go to the VCDC for debt retirement on the purchase of the property, maintenance of the property, and preparation costs After May 1, 2021 and before May 1, 2022 – 50% of the lot sale proceeds after closing costs up to a total sale amount of $250,000 will go to the VCDC for debt retirement on the purchase of the property and maintenance. The balance of the lot sale proceeds will be paid to the City for debt service on the TIF bond. After May 1, 2022 - 25% of the lot sale proceeds will go to the VCDC maintenance costs. The balance of the sale proceeds will be paid to the City for debt service on the TIF bond.

Rebate payments may be made to the VCDC for installation of natural gas service. Should such rebate payments be received during the life of the TIF, the VCDC may retain 25% of the amount and shall rebate the remaining 75% to the City for debt service on the TIF bond.

The City will make grants of the bond proceeds to VCDC to assist with the financing of the improvements.

The estimated cost of engineering, grading, street paving, public alley, water, sanitary sewer, electric, natural gas, and street lighting along with a contingency are estimated at $2,031,792. The site improvements will begin in the spring of 2021 and are anticipated to be completed by Fall 2021.

The TIF bond proceeds will be granted to the VCDC for the improvement costs while the VCDC will fund $63,900 of the site engineering costs. The City will annually consider budgeting for the funding of the contingency in excess of $89,800 included in this plan, along with the capitalized interest costs estimated at $239,319 to reduce the amount of the bond. The costs advanced by the VCDC and City will be reimbursed with interest after the TIF bonds are retired.

The debt on the Tax Increment District Project Costs covered in the Plan will be retired by deposits made in the TIF 7 as taxes are paid on the property in succeeding years and from lot sales proceeds from the VCDC. The City’s Finance Office will make the disbursements from the fund in accordance with this Plan. According to SDCL 11-9-25, positive tax increments will be allocated to that fund until the debt from the project costs are retired, and in no event may the positive tax increments be allocated longer than twenty years after the calendar year of creation. The final payment based upon the estimates in this plan is scheduled to be made in June 2038 depending upon the interest rate on the bonds and projections of taxable value generated within the district.

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Total Estimated Project Costs to be Paid by the Tax Increment District: Capital Costs: Capitalized Interest 239,319 Financing Costs: Bond Interest Payments 889,849 Interest on Funds Advanced 176,039 1,065,888 Professional Fees: Bond Issuance Costs 7,750 Discretionary Costs and Grants: Engineering Design 63,900 Construction Admin/Inspection 29,500 Construction Grading 470,238 Traffic Control 5,786 Erosion Control 32,838 Storm Sewer 88,943 Water 247,636 Sanitary Sewer 266,120 Street lighting 17,727 Surfacing 723,171 Concrete Stabilization 99,961 Alley Paving 113,420 City to reimburse Storm Sewer (88,943) City cost share surfacing (80,575) City to reimburse concrete stabilization (99,961) Utility Services Electric Service Fee 13,230 Mail Boxes 12,000 Natural Gas extension to property 27,000 Contingency at 5% of Construction Costs 89,800 2,031,792

Total Project Costs 3,344,749

* The City reserves the right to move project costs from one category to another without requiring an amendment to the plan. These estimated engineering, construction, utility services and contingency project costs are intended to be expended as grants as allowed by SDCL Ch 11- 9.

Capital Costs – The capital costs of $239,319 are for capitalized interest for 2021 through 2025 or until the tax increment revenues are sufficient to meet the interest payments.

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Financing Costs – The financing costs for this Project Plan are dependent on the interest rate obtained. The interest rate on the bonds is the twenty-year Treasury Bill rate plus 50 basis points which will be adjusted every five years but no rate adjustment will increase/decrease the rate more than one percent from the previous rate. The interest rate estimated for this project is 3.75% for the TIF bonds and 1% less for the VCDC/City advances. It is estimated that the TIF Bond financing costs will total $889,849. The interest funds advanced of $239,319 is based upon the estimated interest until the TIF revenues are sufficient to make the interest payment. If a lower interest rate is obtained, the project costs will be repaid more quickly and the property will be returned to the tax rolls sooner.

Real Property Assembly Costs – No real property assembly costs are anticipated as the VCDC/City will not be acquiring any real or personal property. The VCDC is and has been the owner of Outlot A Bliss Pointe Addition since 2013, which is prior to TIF being created.

Professional Service Costs – Professional service costs are estimated at $7,750 for Bond Counsel and is anticipated in the Project Plan.

Imputed Administrative Costs – All Tax Increment District actions require municipal staff time to prepare and enact. The City, to assist in the project, will forgo any administrative costs.

Relocation Costs – No relocation costs are anticipated in the Project Plan. No residents or families will be displaced by the project. There are no families or persons residing on the premises. A relocation plan is not needed.5

Organizational Costs – No organizational costs are anticipated in the Project Plan.

Payments and Grants – The VCDC as owner/developer of the land will be contracting for the engineering, construction, utility improvements including contingency that will be covered by grants from the City from the TIF proceeds.

List of Estimated Non-Project Costs – It is anticipated that there will be limited non-project costs for the TIF district. 6 The VCDC is considering a private road or private alley within the District. The cost of construction or maintenance of a private road or private alley is not an eligible project cost. The VCDC is considering a berm, fence or other barrier along the east side of the District. The berm, fence, or barrier and any related landscaping is not an eligible project cost. A permanent development sign identifying Bliss Pointe is not an eligible project cost.

4. Fiscal impact statement7

There will be no adverse impact on the City, County, or School District during the duration of the TIF 7 since the development would not have occurred without the creation of TIF 7. In fact, by setting a new and updated base value, there will be additional revenue being created. Further,

5 SDCL § 11-9-16(6) 6 SDCL § 11-9-16(5) 7 SDCL § 11-9-13(4) 9

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a positive impact on these taxing jurisdictions will occur when TIF 7 is dissolved and the development in TIF 7 will become part of the tax base of all affected taxing jurisdictions. When this occurs, the tax rates of the taxing jurisdictions will be lower than they would have been had the TIF 7 not been established.

It is anticipated that the taxable value of the single-family dwelling constructed on the parcels included in TIF 7 will increase an average of 1% per year over the life of the TIF. The residential dwellings will be constructed during the first few years of the TIF, and will retain their value over the life of the TIF. The impact of tax incremental financing on the assessed value of each taxing jurisdiction in which TIF 7 is located in whole or in part would also remain stable from year to year. Based on this assumption, it is anticipated that tax increment will be captured annually as shown. The estimate is based on the qualifications identified in this report and does not include tax rate changes after 2020.

Total assessed value of TIF 7 upon certification is estimated to be approximately $37,300.

Below is information which shows the impact of TIF 7, both until and after the Developer’s debt is retired, upon all entities levying taxes upon property in TIF 7.

Vermillion Vermillion Year Valuation School Clay City of Basin Water Paid Increase* District County Vermillion District Total 2023 0 0 0 0 0 0 2024 1,797,800 15,546 7,797 10,751 56 34,149 2025 3,692,762 31,931 16,016 22,083 114 70,144 2026 6,037,564 52,207 26,185 36,105 187 114,684 2027 8,428,892 72,885 36,556 50,405 261 160,107 2028 11,109,176 96,061 48,180 66,433 344 211,019 2029 11,220,268 97,022 48,662 67,097 348 213,129 2030 11,332,471 97,992 49,149 67,768 351 215,260 2031 11,445,795 98,972 49,640 68,446 355 217,413 2032 11,560,253 99,962 50,137 69,130 358 219,587 2033 11,675,856 100,961 50,638 69,822 362 221,783 2034 11,792,614 101,971 51,145 70,520 366 224,001 2035 11,910,541 102,990 51,656 71,225 369 226,241 2036 12,029,646 104,020 52,173 71,937 373 228,503 2037 12,149,942 105,061 52,694 72,657 377 230,788 2038 12,271,442 106,111 53,221 73,383 380 233,096 2039 12,394,156 107,172 53,753 74,117 384 235,427 2040 12,518,098 108,244 54,291 74,858 388 237,781 2041 12,643,279 109,326 54,834 75,607 392 240,159

* The above table reflects an estimate of the valuations and tax increment of the District. Actual valuations and increments may vary.

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5. Methods of Financing8

Below is a description of the methods of financing all estimated project costs and the time when related costs or monetary obligations are to be incurred.

The City will issue a Private Placement Tax Incremental Revenue bond for $1,980,000 in April 2021. The interest rate on the bonds will be the current twenty-year Treasury Bill rate plus 50 basis points. The rate will be adjusted every five years to the current twenty-year treasury bill rate plus half a 50 basis points but may not increase or decrease by more than one percent from the previous rate nor above the 5.5% ceiling.

The VCDC will advance $63,900 for the preliminary engineering to be reimbursed, plus interest at 1% less than the rate on the TIF bond, after the TIF bond is repaid.

The City will annually consider budgeting for the funding of the contingency in excess of $89,800 included in this plan, and the capitalized interest until the TIF revenues are sufficient to cover the bond interest. The advances are to be reimbursed, plus interest at 1% less than the rate on the TIF bond, after the TIF bond is repaid.

8 SDCL § 11-9-13(5) 11

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The projected amortization for the TIF Bond is as follows:

Payment Beginning Interest Capital Int Tax Inc Principal Loan Cummulative No. Date Balance Payment Payment Payment Balance Interest 1 6/15/2021 1,980,000 9,488 9,488 1,980,000 9,488 2 12/15/2021 1,980,000 37,125 37,125 1,980,000 46,613 3 6/15/2022 1,980,000 37,125 37,125 1,980,000 83,738 4 12/15/2022 1,980,000 37,125 37,125 1,980,000 120,863 5 6/15/2023 1,980,000 37,125 37,125 - 1,980,000 157,988 6 12/15/2023 1,980,000 37,125 37,125 - 1,980,000 195,113 7 6/15/2024 1,980,000 37,125 20,050 17,075 1,980,000 232,238 8 12/15/2024 1,980,000 37,125 20,050 17,075 1,980,000 269,363 9 6/15/2025 1,980,000 37,125 2,053 35,072 1,980,000 306,488 10 12/15/2025 1,980,000 37,125 2,053 35,072 1,980,000 343,613 11 6/15/2026 1,980,000 37,125 57,342 20,217 1,959,783 380,738 12 12/15/2026 1,959,783 36,746 57,342 20,596 1,939,187 417,483 13 6/15/2027 1,939,187 36,360 80,053 43,694 1,895,494 453,843 14 12/15/2027 1,895,494 35,541 80,053 44,513 1,850,981 489,384 15 6/15/2028 1,850,981 34,706 105,509 70,804 1,780,177 524,090 16 12/15/2028 1,780,177 33,378 105,509 72,131 1,708,046 557,468 17 6/15/2029 1,708,046 32,026 106,564 74,539 1,633,508 589,494 18 12/15/2029 1,633,508 30,628 106,564 75,936 1,557,571 620,122 19 6/15/2030 1,557,571 29,204 107,630 78,426 1,479,146 649,327 20 12/15/2030 1,479,146 27,734 107,630 79,896 1,399,250 677,061 21 6/15/2031 1,399,250 26,236 108,706 82,471 1,316,779 703,296 22 12/15/2031 1,316,779 24,690 108,706 84,017 1,232,762 727,986 23 6/15/2032 1,232,762 23,114 109,794 86,679 1,146,083 751,100 24 12/15/2032 1,146,083 21,489 109,794 88,304 1,057,779 772,589 25 6/15/2033 1,057,779 19,833 110,891 91,058 966,720 792,423 26 12/15/2033 966,720 18,126 110,891 92,765 873,955 810,549 27 6/15/2034 873,955 16,387 112,000 95,614 778,341 826,935 28 12/15/2034 778,341 14,594 112,000 97,406 680,935 841,529 29 6/15/2035 680,935 12,768 113,120 100,353 580,582 854,297 30 12/15/2035 580,582 10,886 113,120 102,234 478,348 865,183 31 6/15/2036 478,348 8,969 114,252 105,283 373,065 874,152 32 12/15/2036 373,065 6,995 114,252 107,257 265,808 881,147 33 6/15/2037 265,808 4,984 115,394 110,410 155,398 886,131 34 12/15/2037 155,398 2,914 115,394 112,480 42,918 889,044 35 6/15/2038 42,918 805 43,723 42,918 - 889,849

* The above table reflects an estimate of the valuations and tax increment of the District. Actual valuations and increments may vary. The projected amortization of the City/VCDC advances to the project is as follows:

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Beginning Tax Inc Advance Cummulative Date Balance Advance Interest Payment Balance Interest No 4/30/2021 - 63,900 63,900 1 6/15/2021 63,900 9,488 225 73,612 225 2 12/15/2021 73,612 37,125 1,029 111,766 1,254 3 6/15/2022 111,766 37,125 1,554 150,445 2,807 4 12/15/2022 150,445 37,125 2,103 189,673 4,911 5 6/15/2023 189,673 37,125 2,637 229,435 7,548 6 12/15/2023 229,435 37,125 3,207 269,767 10,755 7 6/15/2024 269,767 20,050 3,771 293,589 14,526 8 12/15/2024 293,589 20,050 4,104 317,743 18,630 9 6/15/2025 317,743 2,053 4,418 324,214 23,048 10 12/15/2025 324,214 2,053 4,532 330,799 27,580 11 6/15/2026 330,799 4,599 335,398 32,179 12 12/15/2026 335,398 4,689 340,087 36,867 13 6/15/2027 340,087 4,728 344,815 41,596 14 12/15/2027 344,815 4,820 349,635 46,416 15 6/15/2028 349,635 4,888 354,523 51,303 16 12/15/2028 354,523 4,956 359,479 56,259 17 6/15/2029 359,479 4,998 364,476 61,257 18 12/15/2029 364,476 5,095 369,571 66,352 19 6/15/2030 369,571 5,138 374,710 71,490 20 12/15/2030 374,710 5,238 379,948 76,728 21 6/15/2031 379,948 5,282 385,230 82,011 22 12/15/2031 385,230 5,385 390,615 87,396 23 6/15/2032 390,615 5,460 396,076 92,856 24 12/15/2032 396,076 5,537 401,612 98,393 25 6/15/2033 401,612 5,584 407,196 103,977 26 12/15/2033 407,196 5,692 412,888 109,669 27 6/15/2034 412,888 5,677 418,565 115,346 28 12/15/2034 418,565 5,755 424,321 121,101 29 6/15/2035 424,321 5,834 430,155 126,936 30 12/15/2035 430,155 5,915 - 436,070 132,850 31 6/15/2036 436,070 5,996 - 442,066 138,846 32 12/15/2036 442,066 6,078 - 448,144 144,925 33 6/15/2037 448,144 6,162 - 454,306 151,087 34 12/15/2037 454,306 6,247 - 460,553 157,334 35 6/15/2038 460,553 6,333 72,825 394,060 163,666 36 12/15/2038 394,060 5,418 116,548 282,930 169,084 37 6/15/2039 282,930 3,890 117,713 169,107 172,975 38 12/15/2039 169,107 2,325 117,713 53,719 175,300 39 6/15/2040 53,719 739 54,458 - 176,039

* The above table reflects an estimate of the valuations and tax increment of the District. Actual valuations and increments may vary. 13

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Attachment 1

Existing Conditions Map (SDCL § 11-9-16(1)

Legal Description

Outlot A Bliss Pointe Addition to the City of Vermillion, Clay County, South Dakota according to the recorded plat thereof.

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Attachment 2

List of Real Property Improvements

Improvements to be located in the tax increment district are shown below:

Engineering and Construction Inspection Grading Traffic Control Erosion Control Storm Sewer Water Sanitary Sewer Electric Natural Gas Street Lighting Surfacing Public Alley Mailboxes Contingency Financing Costs Bond Issuance Costs

All improvements will be made within boundaries of the Tax Increment District Number 7 as shown in Attachment 4.

15

3.15.21

Attachment 3 (SDCL § 11-9-16(3) Zoning Changes

All zoning changes have taken place prior to this plan

The property is zoned Bliss Pointe Planned Development District

16

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Attachment 4 (SDCL § 11-9-16(2)

Map of TIF 7 Project with proposed improvements

17

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Attachment 5 (SDCL § 11-9-16(2)

Map of TIF 7 Project with proposed improvements with an option for smaller lots in the center block.

18

8. New Business; item d

Council Agenda Memo

From: Mike Carlson, Finance Officer

Meeting: March 15, 2021

Subject: Resolution approving the issuance of sale of Tax Incremental revenue bonds for TIF #7

Presenter: John Prescott

Background: The Vermillion Area Chamber and Development Company (VCDC) acquired the Bliss Property located west of Stanford Street between W. Main Street and W. Cherry Street in 2013. The VCDC divided the development into two phases with Phase I started in 2014 with over 70 housing sites. As the housing sites are almost all sold, the VCDC is moving forward with Phase II of the development.

The Planning and Zoning Commission recommended and the City Council approved the creation of Tax Incremental (TIF) District #7 on March 1, 2021 that consists of Outlot A in the Bliss Pointe Addition. The Tax Incremental Plan for TIF District Number 7 was recommended for approval by the Planning and Zoning Commission and was considered earlier on this agenda. The TIF Plan proposes to develop the area for housing with installation of infrastructure such as water, sanitary sewer, storm sewer, paving, public alley, street lights, natural gas, mailboxes, and electrical. To finance the improvements, the plan provides for the issuance of a Tax Incremental Revenue bond. The VCDC and City have been in discussion with several local entities which will be bond holders. The bonds will be issued by the City and the proceeds provided as grants to the VCDC to fund the improvements. Property taxes generated by the development within the TIF district will be collected by the County and transferred to the City as TIF revenues. The VCDC will also be providing a portion of the lot sales proceeds as TIF revenues. The City will disburse the TIF revenue funds to the bond holders as interest and principal payments until the bonds are retired, and any other advances are repaid, or 20 years whichever comes first.

Discussion: This bond is a little different in comparison to most other city issued bonds. The TIF plan proposes that the City Council annually consider, during the budget process, making advances to the TIF fund for an interest only payment to the bond holders until the TIF revenues are sufficient to make the payments. The City is not guaranteeing the bonds. Should the tax revenue not be generated or be insufficient to fully repay the bond holders, the City is not responsible for the difference.

8. New Business; item d

For the City to issue a bond, the attached resolution is required to be adopted which becomes effective 20 days after publication. The attached resolution was prepared by Bond Council, Meierhenry Sargent, LLC, to provide for the issuance of up to $1,980,000 of tax incremental bonds to be repaid from the tax increment revenues collected from TIF #7.

Following the effective date of the bond resolution Meierhenry Sargent, LLC will prepare the bonds for the negotiated sale to the local entities.

The resolution has been reviewed by City Attorney Jim McCulloch.

Financial Consideration: The resolution provides for the issuance of up to $1,980,000 of tax incremental revenue bonds that will be repaid from the tax increment received from tax incremental district #7 as outlined in the TIF Plan.

Conclusion/Recommendations: Administration recommends the approval of the resolution for the issuance of up to $1,980,000 of tax incremental revenue bonds for TIF #7.

RESOLUTION GIVING APPROVAL TO THE ISSUANCE AND SALE OF TAX INCREMENTAL REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $1,980,000, PLUS COSTS OF ISSUANCE, TO FINANCE PROJECT COSTS, AUTHORIZING THE EXECUTION OF RELATED DOCUMENTS AND DECLARING OFFICIAL INTENT TO REIMBURSE

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Vermillion as follows:

1. Declaration of Necessity. The City of Vermillion (the "City") find and declares a necessity to issue tax increment revenue bonds in connection with Tax Increment District Number 7 and use the proceeds therewith to pay for project costs with regard to Phase II of the Bliss Pointe Planned Development District as defined in the project plan (the "Project") which Project has been approved and copies of project plan are on file with the Finance Officer open to public inspection. 2. Authority. The City is authorized to issue its tax increment revenue bonds to finance project costs pursuant to Section 11-9-33 of the South Dakota Codified Laws. Pursuant to Chapter 11-9 of the South Dakota Codified Laws (the "Act") the City proposes to issue municipal tax incremental revenue bonds (as herein authorized, the Tax Incremental Revenue Bonds, or the "Bonds") to finance all or a portion of the Project costs. The City is authorized by the Tax Incremental Act to pledge a special fund into which the City will deposit the tax increment (as defined by the Act). 3. Authorization to issue the Bonds. The City does hereby authorize the issuance of the tax increment revenue bonds in an amount not to exceed $1,980,000, plus costs of issuance, (the “Bonds”) in one or more series upon such terms and in such amounts as are negotiated with the purchasers of the Bonds. 4. Negotiation and Sale of the Bonds. It is hereby determined to be necessary and in the best interests of the City and its inhabitants that the City Council authorize, issue and sell the Bonds (the “Bonds”) to in order to finance a portion of the cost of the Project. The Mayor, City Manager, and Finance Officer are authorized to negotiate the sale and terms of the Bonds subject to the limitations of the law and this resolution. The Bonds may take the form of a developer’s agreement. 5. No Election Required. The Bonds may be issued by the City without an election pursuant to SDCL 11-9-34. 6. Terms of Bonds. The City Council hereby authorizes the issuance of the Bonds. The principal amount of the Bonds shall not exceed any statutory or constitutional debt limitation and be in such amounts as will be retired with the tax increment revenues. The Bonds shall have maturities and interest rates as negotiated by the Mayor, City Manager, and Finance Officer. The Bonds shall be prepared under the direction of the Finance Officer and shall be executed on behalf of the City by the facsimile or manual signatures of the Mayor, City Manager, and the Finance Officer and countersigned by the facsimile or manual signature of an attorney actually residing in the State of South Dakota and duly licensed to practice therein.

1 7. Form of Bonds. The Bonds shall be prepared in substantially the form filed with the Finance Officer and open to public inspection. 8. Registration. The City hereby appoints in accordance with Chapter 6-8B its Finance Officer as paying agent, registrar and transfer agent (the "Registrar") for the Bonds. The City reserves the right to appoint a financial institution as Registrar upon thirty (30) days’ notice. 9. Security Provisions; Funds and Accounts and Other Covenants and Determinations. a. Pledge Tax Increments. Pursuant to the Act, the City shall receive Tax increments as defined by the Act. All Tax Increments shall be placed in the Tax Incremental Revenue Bond Fund Number 7 (the “Bond Fund”). The Bond Fund is irrevocably pledged and appropriated to, and shall be deposited to the Bond Fund. For purposes of this Resolution, "Outstanding Bonds" shall mean these Bonds and any parity lien bonds herebefore or hereafter issued pursuant to this Resolution. The Bond Fund shall be used and applied only in the manner and order hereinafter set forth. The holders of the Outstanding Bonds shall have a lien against the Bond Fund for payment of the principal and interest and may either at law or in equity protect and enforce the lien. b. Bond Fund. The Finance Officer is hereby authorized and directed to establish and shall maintain a special account, the Bond Fund, as a separate and special fund in the financial records of the City until all Bonds issued and made payable therefrom, and interest due thereon, have been duly paid or discharged. All collections of the Tax Increments, as hereinafter defined, shall be credited, as received, to the Bond Fund. Within the Bond Fund are various separate accounts to be maintained by the City. i. Project Account. There is hereby created and established as an account of the Bond Fund, a "Project Account". There shall be credited to the Project Account the proceeds from the sale of the Bonds remaining after payment of the expenses of issuing the Bonds. All moneys credited to the Project Account shall be applied solely to the payment of the costs of the Project. For the purposes of this Resolution, "costs of the Project" shall include costs of acquiring, construction, and installing the Project including cost of labor, services, materials and supplies, financial, architectural, engineering, legal, accounting and other professional expenses relating to the Project, the costs of acquisition or properties, rights, easements, or other interest in properties, insurance premiums, and the costs of publishing, posting or mailing notices in connection with the Project. All sums derived from the investment of moneys in the Project Account shall remain in and become part of such account. Upon completion of the Project and when all costs of the Project have been paid, any balance remaining in the Project Account shall be credited to the Principal and Interest Account hereinafter established. ii. Principal and Interest Account. There is hereby created and established as an account of the Bond Fund, a "Principal and Interest Account." Immediately upon delivery of the Bonds, there shall be credited to the Principal and Interest Account the amount of any accrued interest received

2 from the Purchaser. Periodically, as needed there shall be withdrawn from the Bond Fund Number 7 and credited to the Principal and Interest Account an amount which will equal at least the next principal and interest payment. In all events there shall be credited to the Principal and Interest Account amounts sufficient to pay the principal of and interest on the Outstanding Bonds as the same become due. c. Subordinate Lien Bonds. After making the above required payments, any remaining Tax Increment shall be used for the payment of the principal of and interest on any additional Tax Incremental revenue bonds having a lien which is subordinate to the lien of the Outstanding Bonds, and for a reserve fund as additional security for the payment of such subordinate lien bonds. d. Deposit and Investment of Funds. The Finance Officer shall cause all moneys pertaining to the Fund to be deposited and invested in accordance with South Dakota law. 11. Tax Matters. The Interest on the Bonds shall be excludable from gross income for federal income tax purposes under the Internal Revenue Code of 1986, as amended (“the Code”) and applicable Treasury Regulations (the “Regulations”). The City designates the bonds as “Qualified Tax-Exempt Obligations” under the Code. Notwithstanding this section, the Bonds may be issued as Taxable. 10. Defeasance. When all the Bonds issued have been discharged as provided in this section, all pledges, covenants, and other rights granted by this resolution to the registered owners of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by providing to the Paying Agent on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid when due, it may nevertheless be discharged by providing to the Paying Agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its liability with reference to all Bonds which are called for redemption on any date in accordance with their terms by depositing funds with the Paying Agent on or before that date in accordance with their terms by depositing funds with the Paying Agent on or before that date, in an amount equal to the principal, interest, and premium, if any, which are then due thereon, provided that notice of such redemption has been duly given. The City may also at any time discharge this issue of Bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or United States government obligations which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required to provide funds (without an reinvestment) sufficient to pay all principal, interest and premiums, if any, to become due on all Bonds on and before maturity, or, if a Bond has been duly called for redemption, on or before the designated redemption date. 11. Pledge of State of South Dakota. Pursuant to SDCL 11-9-39.1, the state of South Dakota does pledge to and agree with the holders of any obligations issued under 11-9 that the state will not alter the rights vested in the bond holders until such bonds, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and

3 expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.

12. Certification of Proceedings. The officers of the City are authorized and directed to prepare and furnish to the purchasers of the Bonds certified copies of all proceedings and records of the City relating to the authorization and issuance of the Bonds and such other affidavits and certificates as may reasonably be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the officer's books and records or are otherwise known to them. All such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the correctness of the facts recited therein and the action stated therein to have been taken. The City does hereby declare its official intent to reimburse the capital expenditures made with respect to the Project with proceeds of the Bonds.

13. Retention of Bond Council. Meierhenry Sargent LLP is hereby retained as bond counsel for the Tax Increment Bonds and the Mayor, City Manager, and Finance Officer are authorized to enter into an engagement letter with the firm.

14. Authorization of City Officials. The Mayor, Finance Officer, and City officials shall be and they are hereby authorized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the actions authorized herein.

15. Declaration of Official Intent. This Resolution is also intended to be the declaration of official intent under 26 CFR § 1.150-2. The reimbursement shall relate to the Project above mentioned. The maximum principal amount Bonds expected to be issued for reimbursement is not to exceed $1,980,000.

Dated at Vermillion, South Dakota this 15th day of March, 2021.

FOR THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA

By ______Kelsey Collier-Wise, Mayor

ATTEST:

By______Michael D. Carlson, Finance Officer

Adopted: March 15, 2021 Published: March 26, 2021

4 8. New Business; item e

Council Agenda Memo

From: Jose Dominguez, City Engineer

Meeting: March 15, 2021

Subject: Agreement to Construct Public Infrastructure by Private Development with the Vermillion Chamber and Development Company, Owner of Outlot A, Bliss Pointe Addition, City of Vermillion, South Dakota

Presenter: Jose Dominguez

Background: The Vermillion Chamber and Development Company (VCDC) is in the process of constructing phase two of the Bliss Pointe residential development. As part of this project, the VCDC, as the developer, is constructing public infrastructure and requesting reimbursement from the City for oversized items as part of the project.

The public infrastructure being built consists of streets, water mains, sanitary sewers, and storm sewers.

Discussion: When a public infrastructure project is requested by the public or a developer, the City offers three options to them. These are: (1) project is completed by the City and assessed to the developer (construction cost and an 8% fiscal fee); or (2) the project is completed by the City with the plans being done by a consultant (construction cost and cost of consultant); or (3) the project is completed entirely by the developer. The first time that the City encountered option no. 3 was in 2011 with the construction of East Clark Street (from roughly Anderson Street east to North Norbeck Street). Prior to 2011. Walmart constructed portions of Princeton Street. The process that Walmart proposed, and followed, included most if not all aspects of the current policy pertaining to option no. 3.

This policy was originally adopted by the Engineering Department in 2011 to enumerate the steps necessary for a private developer to complete public improvements. This policy was put together to ensure that the projects were completed to City standards and that requirements made of one developer were as similar as possible to other developers. The policy was amended in 2015 and again in 2019. The revision in 2015 clarified financial responsibilities between the contractor, developer, and the City. While the 2019 revision further clarified what the developer’s agreement would require.

8. New Business; item e The agreement between the City and the VCDC set out all of the expectations from the City, as well as the expectations from the VCDC. The agreement sets the following: · VCDC will be the main point of contact between the City and any contractors or other property owners. · The City will pay the VCDC for all oversized items (e.g. extra width of concrete road, extra pavement thickness, soil cement stabilization, additional gravel, additional excavation, etc…). · Payments for oversized items, or City portions, will be based on the City’s measurements. · Payments will be made to the VCDC, upon submission of all required documentation. · The VCDC is responsible to pay contractors responsible for construction of project. · The City will require a copy of the contract between the VCDC and any contractors (the contract shall include cost based on bid items and a project completion date). · The VCDC will guarantee the project for one year commencing on the day final payment is made. · The City will need a copy of all of the payments between the VCDC and any contractor. · The City will need lien waivers from all suppliers prior to final payment being issued by the City. · The City will require insurance meeting City minimums. · The City will require a payment/performance bond in the amount of the engineer’s estimate, or the contractor’s cost, whichever is greater.

Financial Consideration: The City will incur the filing fee. This project has already been bid publicly by the VCDC. The low bid received for the construction of all of the infrastructure, including bid alternate, was $2,048,113. This was lower than the engineer’s estimate of $2,553,007.10. Assuming that no change orders or additional quantities are needed, the City would be responsible for $269,477.52. This amount includes all of the oversized items (cement stabilization, additional excavation, the cost for 1-inch of concrete pavement, and all of the storm sewer infrastructure). A couple City funds will need to be revised during the 2021 budget review session to account for the $269,477.52.

Conclusion/Recommendations: Administration recommends that the City Council authorize the Mayor to sign the Agreement to Construct Public Infrastructure by Private Development with the VCDC.

8. New Business; item f

Council Agenda Memo

From: Mike Carlson, Finance Officer

Meeting: March 15, 2021

Subject: Resolution declaring official intent to reimburse expenditures for TIF #7 project costs

Presenter: Mike Carlson

Background: To finance the project costs for Phase II of the Bliss Pointe Development, the City will be issuing Tax Increment Financing bonds. The resolution authoring the bonds will be considered earlier on the meeting agenda and will become effective 20 days after publication (April 15, 2021). It is anticipated that closing on the bond sale will be 30-45 days after the effective date. The VCDC opened bids for the TIF #7 project improvements on February 18, 2021. It is anticipated the VCDC will be awarding the contract prior to March 19, 2021, and the contractor may start incurring project costs before the bond closing.

Discussion: To comply with IRS regulations, Meierhenry Sargent LLP (bond counsel) encourages cities to adopt a reimbursement resolution before spending any money from City accounts that will be reimbursed by Bond Proceeds. As the VCDC will be awarding a contract in March and the City will not be closing on the TIF Bond until after April 15, it was suggested the City adopt a resolution declaring official intent to reimburse expenditures for TIF #7 project costs as costs may be incurred prior to the bond closing. The reimbursement resolution has been reviewed by Meierhenry Sargent LLP.

Financial Consideration: The cost will be the publication of the resolution in the minutes.

Conclusion/Recommendations: Administration recommends approval of the Resolution declaring official intent to reimburse expenditures for TIF #7 project costs. A RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE EXPENDITURES FOR TIF 7 PROJECT COSTS

WHEREAS, the City of Vermillion, South Dakota (the "City") intends to incur and pay, or has incurred and paid, capital expenditures grants aggregating approximately $1,980,000 (the "Capital Expenditures") for the Tax Increment District #7 for Bliss Pointe Phase II project (said property, project or program is hereinafter referred to as the "Project"); and

WHEREAS, payment of the Capital Expenditures Grants will be, or has been, financed, in whole or in part, on an interim basis from moneys other than proceeds of a borrowing (collectively, the "Temporary Advances"); and

WHEREAS, it is reasonably expected that the Temporary Advances will be reimbursed with the proceeds of one or more borrowings not later than 18 months after the later of (i) the date on which the first Capital Expenditure financed by a Temporary Advance was paid, or (ii) the date on which the Project is placed in service or abandoned (but in no event more than 3 years after the date on which the first Capital Expenditure financed by a Temporary Advance was paid); and

WHEREAS, except for architectural, engineering and similar preliminary expenditures incurred prior to the acquisition or commencement of construction of the Project (but not including land acquisition, site preparation and other similar costs incident to the acquisition or commencement of construction of the Project), this Resolution is being adopted prior to or within 60 days after the payment of the first Capital Expenditure financed by a Temporary Advance;

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Vermillion hereby declares its official intent for purposes of Treasury Regulation Section 1.150-2 to reimburse the Capital Expenditures Grants for the Project financed by Temporary Advances with the proceeds of one or more borrowings, the maximum aggregate principal amount of which is not expected to exceed $1,980,000.

Dated at Vermillion, South Dakota this 15th day of March, 2021.

FOR THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA

By ______Kelsey Collier-Wise, Mayor

ATTEST:

By______Michael D. Carlson, Finance Officer 8. New Business; item g

Council Agenda Memo

From: Jose Dominguez, City Engineer

Meeting: March 15, 2021

Subject: Final Plat of Blocks 7, 8, 9, and 10, Bliss Pointe Addition to the City of Vermillion, Clay County, South Dakota

Presenter: Jose Dominguez

Background: Banner Associates have submitted a final plat on behalf of the owner, the Vermillion Area Chamber and Development Company (VCDC). The area to be platted is roughly 15-acres in area and is bordered on the west by lots fronting Joplin Street, on the north by Slate Road, on the east by Stanford Street, and on the south by the lots fronting Rockwell Trail.

The preliminary plat for this part of Bliss Ponte was presented to the Planning and Zoning Commission (Commission) at the August 24, 2020 meeting. The preliminary plat presented proposed to subdivide the area into 47-residential lots.

On September 21, 2020, the City Council considered the final plat that separated the land to be developed from the land below the bluff.

Discussion: This plat creates all of the blocks, which will later be divided into lots. Additionally, the plat dedicates all of the proposed right-of-ways, with the exception of anything occurring within Block 7. All of the required utility easements are also being dedicated along the periphery of each individual block.

Regarding Block 7, at this point the VCDC has not made a decision if they will be constructing a public alley, a private street, or no street. Depending on their decision, additional meetings will need to occur to have their plan reviewed. If they decide on constructing a public alley, both a preliminary plat and final plat will need to be approved by the Planning and Zoning Commission and the City Council.

Additionally, the right-of-ways need to be dedicated so that the public improvements are constructed within the public’s domain.

8. New Business; item g The City Council is also being asked to name the blank streets within the plat. The VCDC’s suggestion was “Whitman” in recognition of Walt Whitman. With the exception of “Cornell”, all of the streets in Bliss Pointe were to be named after artists. Mr. Whitman fits the criteria as he was a poet, essayist, and journalist. The VCDC proposed in 2014 that the streets be named after artists to promote Vermillion as the arts and cultural capital of South Dakota.

Financial Consideration: The platting fee has been paid by the applicant.

Conclusion/Recommendations: Administration recommends approval of the plat.

23262-00 PLAT OF BLOCKS 7, 8, 9 AND 10 OF BLISS POINTE ADDITION AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA 50 100 FT

VACATION NOTICE (PURSUANT TO SDCL 11-3-20.1) THIS PLAT SHALL VACATE THE PLAT OF "OUTLOT A OF BLISS POINTE ADDITION

AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA", FILED IN BOOK 8 OF 0 PLATS ON PAGE 403 THEREIN.

5 LOT D LOT C 1 4 ODEN ADDITION

801.76' - N87°52'14"E

5 BLOCK 8 147,186 S.F. 139.80' - N2°00'31"W C2 C3 118.57' - S87°54'26"W 434.26' - S87°54'42"W R66' 66' CORNELL STREET 66' CORNELL STREET 65.99' R.O.W. R.O.W. N02°03'35"W

120.00' - N87°54'43"E 279.31' - N87°54'43"E C9 ' - S2°03'28"E - '

C1 1 436.79 19A ' - S2°02'53"E 66'

' - N2°02'53"W R.O.W. 104.16 104.09' - N2°02'51"W 123.20

2

OUTLOT A ' - N2°03'28"W C4 66' R.O.W. C12 BLISS POINTE ADDITION 182.30 3 BLOCK 7

' - N24°59'29"E 136,074 S.F. ' - S2°03'23"E - ' TRAIL 135.00' BLOCK 4 164.08 S87°56'32"W 376.29

4 '

66' ROAD ' - S24°59'29"W 66.00 R.O.W. S02°03'28"E

123.78 ' - N24°59'29"E N87°56'32"E ' 135.00' 5A WILDER ROAD123.78 93.15 66' N13°46'21"E BLOCK 10 R.O.W. STANFORD STREET 65.97' 80,898 S.F.

C5 N02°03'28"W

C11 C8 100' 6A N02°02'29"W R.O.W. 13.89'

379.37' - S87°57'31"W C10

66' TRAIL

7 R.O.W. R66' 348.39' - N87°57'31"E C6

' - S2°02'29"E - ' C7

8

178.24 ' - S2°03'28"E - ' 295.36' - N2°02'29"W 450.63 BLOCK 9 66' 134,526 S.F. 9 R.O.W. - N2°02'29"W 140.04' 41.66' 65.98' S01°59'51"E S87°59'09"W 357.02' - S87°56'53"W S02°03'42"E 119.98' 38.34' S87°55'27"W 10 S02°03'42"E 6.00' 1 2 3 4 5 6

11A N2°59'09"W - '

BLOCK 5 134.46

238.31' - S87°02'01"W

66' ROCKWELL TRAIL R.O.W.

1A LEGEND 9 10 2A 6A 6B 8 MONUMENT SET THIS SURVEY (5/8" REBAR WITH STAMPED CURVE TABLE PLASTIC CAP #9924)

CURVE # ARC LENGTH RADIUS CHORD LENGTH CHORD BEARING MONUMENT FOUND C1 38.67' 50.00' 37.71' N20°05'58"E 8' UE UTILITY EASEMENT C2 205.80' 66.00' 131.99' N47°04'29"W (8' FROM PROPERTY UNLESS C3 38.67' 50.00' 37.72' S65°45'11"W SPECIFIED OTHERWISE)

94.27' 200.00' 93.40' C4 S11°29'17"W PLAT AREA C5 94.36' 200.00' 93.49' S11°28'30"W CITY LIMITS SURVEYORS NOTE: TOTAL AREA OF RIGHT C6 38.67' 50.00' 37.72' N69°53'00"W OF WAY ON THIS PLAT IS 155,778 SqFt. C7 205.78' 66.00' 131.99' N42°57'05"E

C8 38.67' 50.00' 37.71' S24°12'54"E

C9 26.71' 17.00' 24.05' S47°04'20"E

C10 26.71' 17.00' 24.04' S42°57'04"W PREPARED BY: C11 63.22' 134.00' 62.64' N11°28'30"E BANNER ASSOCIATES, INC. C12 125.53' 266.00' 124.37' N11°28'18"E VERMILLION, SD 57069 VICINITY MAP TEL. (TOLL FREE): 1-855-323-6342 SHEET 1 OF 2 MARCH 2021 23262-00

SURVEYOR'S CERTIFICATE I, Nathan W. Nielson, a Professional Land Surveyor in the State of South Dakota, do hereby certify that I did, on or before March 5, 2021, at the request of the owner(s) listed hereon, survey a portion of that parcel of land described as OUTLOT A OF BLISS POINTE ADDITION, AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA, and platted the same as shown on the above plat.

The same shall hereafter be known and described as BLOCKS 7, 8, 9 AND 10 OF BLISS POINTE ADDITION AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA.

I have surveyed the tract of land shown, and to the best of my knowledge and belief, said plat is an accurate representation of said survey.

IN WITNESS WHEREOF, I have set my hand and seal the ______DAY OF ______, 20 ______.

Nathan W. Nielson Banner Associates, Inc. Registered Land Surveyor 14 W. Main St., Suite A Registration No. 9924 Vermillion, South Dakota 57069 Tel. (Toll Free): 1-855-323-6342 CERTIFICATE OF OWNER We, VERMILLION CHAMBER OF COMMERCE AND DEVELOPMENT COMPANY, do hereby certify that we are the owners of a portion of the land included in the above plat and that the plat has been made at my request and in accordance with my instructions for the purposes indicated herein.

We, VERMILLION CHAMBER OF COMMERCE AND DEVELOPMENT COMPANY, certify that said plat was made at our request and direction for the purpose of locating, marking, and platting the same, and that said property is free of all encumbrances. We also certify that development of this land shall conform to all existing applicable zoning, subdivision, and erosion and sediment control regulations. It is further provided that any streets, roads, alleys, and/or other easements shown on this plat are hereby, or have been previously, dedicated for the purpose indicated thereon.

We, VERMILLION CHAMBER OF COMMERCE AND DEVELOPMENT COMPANY, certify that this plat will not place any existing lot or building in violation of any applicable ordinance, code, regulation, law including but not limited to zoning, building, subdivision, and flood prevention.

Pursuant to SDCL 11-3-20.1, I further certify that this platting of said described BLOCKS 7, 8, 9 AND 10 OF BLISS POINTE ADDITION AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA, does hereby vacate the following platting:

The Plat of OUTLOT A OF BLISS POINTE ADDITION AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA on file at the Register of Deeds office in Plat Book 8 Page 403, said plat or part thereof, hereby vacated, being situated within described BLOCKS 7, 8, 9 AND 10 OF BLISS POINTE ADDITION AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA, as surveyed.

IN WITNESS WHEREOF, I have set my hand the ______DAY OF ______, 20 ______. NATHAN WELCH, PRESIDENT AND C.E.O. VERMILLION CHAMBER OF COMMERCE & DEVELOPMENT COMPANY STATE OF ______{ SS COUNTY OF ______

On the _____ day of ______, 20____, before the undersigned officer, personally appeared NATHAN WELCH, PRESIDENT AND C.E.O., VERMILLION CHAMBER OF COMMERCE AND DEVELOPMENT COMPANY, known to me or satisfactorily proven to be the person(s) whose name are subscribed to the within instrument and acknowledged that he/she executed the same for the purposes therein contained.

IN WITNESS WHEREOF I have hereunto set my hand and official seal this ______day of ______, 20 ______.

Notary Public My Commission Expires

VERMILLION CITY COUNCIL RESOLUTION

WHEREAS, it appears that the owner(s) thereof has/have caused a plat to be made of the following described real property: Plat of BLOCKS 7, 8, 9 AND 10 OF BLISS POINTE ADDITION AN ADDITION TO THE CITY OF VERMILLION, CLAY COUNTY, SOUTH DAKOTA.

BE IT RESOLVED, that the attached and foregoing plat has been submitted to and a report and recommendation hereon, made by the Vermillion Planning Commission to the Vermillion City Council and has recommended approval.

BE IT FURTHER RESOLVED, that the attached and foregoing plat has been submitted to the Governing Body of the City of Vermillion, which has examined the same; that it appears the system of streets and alleys set forth therein conforms to the system of streets and alleys of Vermillion; that all taxes and special assessments, if any, upon the tract or subdivision have been fully paid; that such plat and survey thereof have been executed according to law; the same is hereby accordingly approved. Dated this ______day of ______, 20 ____ .

Mayor, City of Vermillion, South Dakota

CERTIFICATE OF COUNTY TREASURER

The undersigned, County Treasurer of Clay County, South Dakota, hereby certifies that all taxes that are liens upon the land included in the above plat, as shown by the records of this office, have been fully paid. Dated this _____ day of ______20 ____.

Treasurer, Clay County, South Dakota

CERTIFICATE OF DIRECTOR OF EQUALIZATION

The undersigned, Director or Equalization of Clay County, South Dakota, hereby certifies that I have received a copy of the foregoing plat. Dated this _____ day of ______20 ____.

Director of Equalization, Clay County, South Dakota

CERTIFICATE OF REGISTER OF DEEDS

Filed for record this ______day of ______, 20 ______, ______o'clock ____ M, and recorded in Book ______of Plats, on page ______.

Register of Deeds, Clay County, SD

SHEET 2 OF 2

8. New Business; item h

Council Agenda Memo

From: John Prescott, City Manager

Meeting: March 15, 2021

Subject: First reading of Emergency Ordinance 1432 to require signage that the wearing of face masks or face coverings is expected inside of buildings open to the public

Presenter: John Prescott

Background: In August 2020, October 2020, December 2020, and February 2021, the City Council adopted Emergency Resolutions to promote the use of face coverings or face masks inside of buildings which are open to the public. The City Council previously approved Emergency Ordinance 1419, 1422, 1425 and 1429 to require the posting of a sign at buildings open to the public stating that Face Masks are expected per City Resolution. Emergency Ordinances or resolutions are only valid for a maximum of 60 days. Emergency Ordinance 1429 will expire on April 16, 2021.

Discussion: Emergency Ordinance 1432 is very similar to previously adopted Emergency Ordinance 1419, 1422, 1425, and 1429. Emergency Ordinance 1432 requires a business to have signage which reads Face Mask or Face Coverings are expected. With the original Emergency Ordinance 1419 in August 2020, the City worked with the University of South Dakota to develop and promote continuity of signage across the community. The design has not changed with the different emergency ordinances. The signs are available for free at City Hall and the VCDC office. A business does not have to use the templates which are available on the City’s website. A business would need to provide the same message that face masks or face coverings are expected. The sign must be at least 8.5” x 11” and placed at the entrance(s) to the business.

The proposed ordinance is an emergency ordinance to provide the City Council with the ability to more quickly implement and continue the requirement to address the ongoing, immediate health issue. As noted, an emergency ordinance would have a life of 60 days. Emergency Ordinance 1432 is drafted to become effective April 17, 2021 as Emergency Ordinance 1429, which addressed the same goal, expires on April 16, 2021. Other than dates, Emergency Ordinance 1432 is very similar to Emergency Ordinance 1429.

8. New Business; item h As with all ordinances, a fine needs to be established. A resolution to establish a fine, if Emergency Ordinance 1432 is adopted, will be part of the April 5, 2021 agenda. The fine for a violation of Emergency Ordinance 1419, 1422, 1425, and 1429 was $56.50 plus current court costs of $72.50 for a total of $129.00. As of the date of this memo, no citations were issued for a violation of Emergency Ordinance 1419, 1422, 1425, or 1429.

Enforcement of the sign ordinance will continue to be the responsibility of the Code Compliance staff. These employees handle other signage related matters for the City.

Financial Consideration: None.

Conclusion/Recommendations: Administration recommends approval of the first reading of Emergency Ordinance 1432 to help continue to promote a community culture of face covering / face mask wearing inside of buildings open to the public.

PROPOSED EMERGENCY ORDINANCE NO. 1432

AN EMERGENCY ORDINANCE TO REQUIRE SIGNAGE AT THE ENTRANCE TO BUILDINGS OPEN TO THE PUBLIC STATING THAT FACE COVERINGS ARE EXPECTED TO HELP SLOW THE SPREAD OF COVID 19 (CORONAVIRUS).

WHEREAS, the City of Vermillion (City) has the authority pursuant to SDCL 9-29-1 and 9-32-1 to enact ordinances for the purpose of promoting the health, safety, morals, and general welfare, of the community; and

WHEREAS, an outbreak of the COVID-19 disease, which is caused by the novel coronavirus, has been confirmed in more than 190 countries, including the United States; and

WHEREAS, COVID-19 is a severe respiratory disease transmitted by person-to-person contact, which, especially among older adults and persons with serious underlying health conditions, can result in serious illness requiring hospitalization, admission to an intensive care unit, and death; and

WHEREAS, the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC), and the Secretary of the United States Department of Health and Human Services have declared the outbreak of COVID-19 as a public health emergency; and

WHEREAS, Governor Kristi Noem issued Executive Order 2020-34 in December 2020, which extended the previously declared state of emergency to exist in the State of South Dakota in response to the spread of COVID-19 until June 30, 2021; and

WHEREAS, over 100,000 cases of COVID-19 have been confirmed throughout South Dakota including Clay County; and

WHEREAS, the CDC and health experts have advised that the use of face masks or face coverings, which cover the nose and mouth will slow the spread of COVID-19; and

WHEREAS, working together now will reduce the widespread proliferation of COVID-19 rather than suffering the unfortunate and devastating medical and economic consequences later; and

WHEREAS, the failure to continue to successfully reduce the spread of COVID-19 will likely result in higher numbers of infected individuals and has the potential to overwhelm the capacity of the City’s health care providers; and

WHEREAS, it is important that control measures continue to be taken to reduce or slow down the spread of COVID-19 in order to protect the health and safety of the City’s residents, especially for seniors and those with underlying health conditions that make them particularly vulnerable to COVID-19; and

WHEREAS, President Biden has issued an executive order requiring masks or face coverings on federal property, and has launched a ‘100 Day Mask Wearing Challenge’; and WHEREAS, the South Dakota Board of Regents is currently requiring face coverings or face masks for all students, faculty, staff, and visitors in all public indoor spaces on the University of South Dakota campus based on their tiered approach to face coverings to address COVID-19; and

WHEREAS, the Vermillion Public School District is requiring face coverings or face masks for students, faculty, staff and visitors in school district facilities; and

WHEREAS, the Vermillion City Council has adopted a face covering policy requiring face coverings or face masks for staff and visitors in city owned buildings; and

WHEREAS, the City of Vermillion joins the University of South Dakota and the Vermillion Public School District, in supporting a community expectation that masks will be worn while in indoor public spaces to reduce the spread of COVID-19; and

WHEREAS, the City recognizes that while it may not always be practical or necessary for patrons to wear masks or face coverings in all situations, the City wishes to promote a community-wide culture that emphasizes respect for the health and safety of workers, residents, and visitors by wearing masks or face coverings when in buildings open to the public.

NOW, THEREFORE, BE IT ORDAINED, by the Governing Body of the City of Vermillion that:

1. All restaurants, retail stores, salons, grocery stores, establishments selling alcohol, pharmacies, lodging establishments, exercise facilities, establishments offering goods and services, or soliciting patronage from the general public that are open to the general public will be required to post a sign in a visible location near their entrance(s) no smaller than 8.5” x 11” that indicates that “masks or face coverings are expected pursuant to City Resolution.”

2. This ordinance shall remain in effect for a period of sixty (60) days, at which time it shall be automatically repealed unless specifically readopted for an additional period of time by the City Council. Any restriction contained in this ordinance may be modified at any time by a resolution of the City Council.

3. Any violation of this ordinance is subject to a fine set by resolution in compliance with the general penalty provision in Section 10.99 of the City of Vermillion Municipal Code. Each day a violation of this ordinance is allowed to occur is considered a separate offense.

BE IT FURTHER ORDAINED, that, pursuant to SDCL 9-19-13, this ordinance is necessary for the immediate preservation of the public peace, health, safety, and welfare of the City and shall become effective April 17, 2021.

Dated at Vermillion, South Dakota this 5th day of April, 2021.

THE GOVERNING BODY OF THE CITY OF VERMILLION, SOUTH DAKOTA

BY______Kelsey Collier-Wise, Mayor ATTEST:

BY______Michael D. Carlson, Finance Officer

First Reading: March 15, 2021 Second Reading: April 5, 2021 Effective Date: April 17, 2021

8. New Business; item i

Council Agenda Memo

From: Shane Griese, Utility Manager

Meeting: March 15, 2021

Subject: Clay-Union Electric Easement

Presenter: Jose Dominguez

Background: The City owns a parcel of land described as Waage Tract 2, which is located south of Burbank road. This is the site of Main Lift 1 for the Wastewater Department. There is currently an overhead electric distribution line owned by Clay- Union Electric (CUE), which is laid on and across this property.

Discussion: CUE approached City staff regarding an easement to convert the overhead line to an underground system. Staff from each organization met and came to an agreement for a location of the easement that would work for both parties. The location of the easement has been drawn up by a licensed surveyor and has been included as an exhibit to the attached document.

The easement has been reviewed and approved by attorneys representing each organization. Work will not commence until the easement is filed with the Clay County Register of Deeds.

Financial Consideration: The City will have no financial responsibilities in regard to the creation or filing of the easement. CUE shall bear all costs associated with the easement.

Conclusion/Recommendations: Staff recommends approval of the easement for the installation of the underground distribution system.

8. New Business; item j

Council Agenda Memo

From: Jose Dominguez, City Engineer

Meeting: March 15, 2021

Subject: Amendment No. 1 to Joint Powers Maintenance and Encroachment and Financial Agreement between the City and the Department of Transportation Regarding Highway 50 (the Bypass)

Presenter: Jose Dominguez

Background: The City has been working with the South Dakota Department of Transportation (DOT) to construct a storm sewer along the south ditch of the Bypass from Dakota Street to Over Drive. In conjunction with the City’s project, the DOT will also be completing major improvements to the Bypass from the Vermillion River to Crawford Road.

On January 18, 2021, the City entered into an agreement with the DOT that dictated the maintenance and financial responsibilities of both parties. Of importance was the fact that the City would be responsible for the storm sewer and light poles installed along the entire DOT project.

Discussion: The University of South Dakota (USD) has been working with the DOT to design the street lights so banners can be installed in the future. Due to the fact that the DOT does not design street lights for this type of use, any increase in cost is passed down to the entity making the request. USD requested that 12 street lights be modified to allow for banners. The street lights which USD requested the modification on are in the area between Plum Street and Dakota Street. The DOT is requiring the City to be involved due to the fact that the street lights will be owned by the City.

In addition to these lights, the City asked the DOT to also include 12 additional street lights to accommodate banners. These additional lights, that would support banners, would be between Dakota Street and Princeton Street. This would allow for banners along most of the entrances to the City from the Bypass.

Financial Consideration: The amendment will require that the City pay an additional $4,802.88 for the modification to the proposed street lights. This will only cover 24 street 8. New Business; item j lights along the Bypass. The City’s Light and Power fund will have to be amended to cover this cost.

Additionally, the City is working with USD to cover the modifications to 12 of the street lights. Their share for the modifications will be $2,401.44.

Conclusion/Recommendations: Administration recommends that the City Council allow the Mayor to sign Amendment No. 1 to the Joint Powers Maintenance and Encroachment and Financial Agreement between Department of Transportation and City of Vermillion.

8. New Business; item k

Council Agenda Memo

From: James Purdy, Assistant City Manager

Meeting: March 15, 2021

Subject: Appointment to Historic Preservation Commission

Presenter: Kelsey Collier-Wise, Mayor

Background: The City Council created the Historic Preservation Commission in June 2018 with the adoption of Ordinance 1376. The ordinance became effective on July 19, 2018. The first seven commissioners were appointed to staggered terms in August 2018. A member with a term expiring in August 2021 recently resigned, as he will be working more outside of Vermillion. Over the last month, the opening has been advertised at City Council meetings, social media, and the City’s website.

The ordinance establishing the Commission provides for a seven-member board that resides within the City. Four members of the board are to be property owners in one of the officially designated historic districts. The Board member who resigned was a property owner in a historic district. Currently Susan Keith Gray, Ed Gerrish, and Dietrik Vanderhill meet this criteria.

Terms of appointment are for three years. The current members of the Commission and the year of their term expiration are Cyndy Chaney (2022), Ed Gerrish (2022), Dietrik Vanderhill (2022), William Dendinger (2023), Susan Keith Gray (2023), and Jim Wilson (2021). As noted, the currently vacant term will expire in August 2021.

Discussion: To date, one individual has submitted an Expression of Interest form to serve on the Historic Preservation Commission. The individual is a property owner in a historic district.

Financial Consideration: None. Commission members are not paid.

Conclusion/Recommendations: Administration recommends appointing one individual to complete a term expiring in August 2021 on the Historic Preservation Commission.

From: [email protected] To: Vermillion; John Prescott; James Purdy Subject: Online Form Submittal: Citizen Board/Commission Expression of Interest Form Date: Saturday, February 27, 2021 8:01:14 PM

Citizen Board/Commission Expression of Interest Form

Select the Historic Preservation Commission Board/Commission on which your are interested in serving.

Name Monica L Iverson

Number of years you 34 years have lived in/around Vermillion

Address

Phone Number

Email Address

Occupation Business Owner

Employer self

Business Address Cafe Brule

Prior elected or Member, Clay County Historical Society Commission appointed offices held (if any)

Present and past Taught classes thru the university extension office per request in community volunteer the subjects of: French language, and cake decorating. Took activities students on excursions and trips during the 6 years that I was a professor/teacher at USD & Vermillion High School.

Why are you interested I've always been interested in history, and Vermillion. I would in serving on this love to help support the preservation of local buildings, structures Board/Commission? and homes.

Do you have any I can juggle! :) unique skills or experience which would be beneficial to the City to know in selecting someone to serve?

The ordinance M.I. establishing the Historic Preservation Commission contains the section listed below. So the City Council can evaluate the qualifications of each candidate, please advise about your background in any of the categories listed in section C below. Please contact the City Manager’s Office (605- 677-7050) if you have any questions.

Are there any particular It would be nice to send updates to the state historical website projects, programs or regarding many of the downtown buildings. Many of the build goals you would like to dates are off. I don't think it's been updated since the 90's :) Also, see achieved while the cool old-fashioned mechanical lightbox "stoplight" thing serving on the downtown should be recorded and preserved. Board/Commission?

Electronic Signature I agree. Agreement

Electronic Signature Monica Lynn Iverson

Date: 2/27/2021

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8. New Business; item l

Council Agenda Memo

From: Mike Carlson, Finance Officer

Meeting: March 15, 2021

Subject: Appointment to the Consolidated Board of Equalization

Presenter: Mike Carlson

Background: The County, City, and School District have each adopted resolutions to consolidate the Board of Equalization within city limits. The Consolidated Board hears property owner appeals of real estate valuation within the city and consists of the five County Commissioners, three City Council members, and one School Board member. The County Auditor and Director of Equalization schedule the appointments for the consolidated board.

Prior to having a Consolidated Board of Equalization, the City Council, along with one School Board member, comprised the local Board of Equalization that heard appeals. If the property owner did not agree with the finding of the local board, they would then appeal to the county board. If the Director of Equalization did not agree with the local board’s decision, they could change the valuation and the property owner would need to go to the county board to make their appeal again. The Consolidated Board makes it easier for the property owner, as they only need to go before one board with their appeal.

Discussion: The City Council will need to appoint three members to serve as City representatives on the consolidated board; the remaining members will be designated as alternates to fill a vacancy if a member is unable to attend. Ina Peterson, Director of Equalization, reported that the first day of hearings will be April 13, 2021 beginning around 1:00 p.m., which in the last few years has not taken the entire afternoon.

Financial Consideration: None

Conclusion/Recommendations: Administration recommends the City Council appoint three members to serve on the Consolidated Board of Equalization with the remaining members being designated as alternates.

9. Bid Openings; item a

Council Agenda Memo

From: Jose Dominguez, City Engineer

Meeting: March 15, 2021

Subject: Bid Opening for Main Street Streetscape

Presenter: Jose Dominguez

Background: Since 2004, the businesses in downtown Vermillion and the City have been working to improve the Main Street area. Besides improving building facades and the additions of the Pocket Park and Ratingen Platz, the community has been working to complete a streetscape project that would tie Main Street together and serve as a framework to showcase the downtown area.

In January 2020, the City created the Business Improvement District #2 (BID). This BID was created with the intent to provide a funding mechanism and to bring forward a streetscape plan for downtown Vermillion. The BID #2 Board is comprised of four downtown business owners and one downtown resident.

The City entered into a contract with Stockwell Engineers (Stockwell) for the design and development of the construction documents on April 20, 2020. The agreement with Stockwell was amended on March 1, 2021 to include construction administration and staking.

Discussion: Request for bids were sent to 12 plan houses and 39 contractors. Bids were opened on March 4th at 2pm. The City received three bids (see following table).

Bidders Base Bid Price Alternate #1 Base Bid and Alternate Engineer’s Estimate $3,257,592.50 $50,000.00 $3,307,592.50 Schwartzle Construction (Tea, SD) $2,946,602.00 $30,000.00 $2,976,602.00 Dakota Contracting Corp. (Sioux Falls, $4,028,074.55 $26,110.00 $4,054.184.55 SD) Big Al’s Contracting, Inc. (Sioux Falls, $4,172,009.93 $55,675.00 $4,227,684.93 SD)

The City’s consultant, Stockwell Engineers, Inc., has reviewed the bids and recommends award to the low bid with Alternate #1. The alternate is for the construction of one column monument on the west end of the project. The monument is the large column 9. Bid Openings: item a with “Vermillion” and “Wase Wakpa”. Additionally, the low bidder has supplied Stockwell with a list of large projects that have been completed by them. These include the following:

Project and City Cost (approximate) Joe Quintal Field, Mitchell, SD $1.8-million Tea Sports Complex, Tea, SD $2.4-million Tea Baseball & Softball Complex, Tea, SD $2-million West Sioux Football Field Improvements, Hawarden, IA $1-million SF City Street Curb and Gutter Repairs, Sioux Falls, SD $1-million Howling Ridge Development, Tea, SD $15-million Nine Mile Heights Subdivision, Tea, SD $3-million Howling Ridge Townhomes, Tea, SD $5-million

Financial Consideration: Currently the City has planned for a project that will cost $3,950,000. This includes consultant fees, construction, construction administration, and testing. With the low bid received, the cost will now be $3,717,206. Again, this includes consultant fees, construction, construction administration, and testing. The difference of $232,794 will remain in the budget to account for any possible change orders.

The City will have to adjust several funds to cover for the construction costs. These include the Light and Power fund, the Stormsewer fund, the STP fund, and the City’s 2nd Penny fund.

Conclusion/Recommendations: Administration recommends awarding the base bid with alternate #1 to Schwartzle Construction of Tea, South Dakota, for $2,976,602.

Notice of Award

Project: Main Street Streetscape – Dakota Street to Market Street Owner: City of Vermillion Owner's Contract No.: Contract: Prime Engineer's Project No.: 20054 Bidder: Schwartzle Construction, LLC Bidder's Address: 100 E Lipton Street P.O. Box 787 Tea, SD 57065

You are notified that your Bid dated March 4, 2021 for the above Contract has been considered. You are the Successful Bidder and are awarded a Contract for Base Bid and Alternate 1.

The Contract Price of your Contract is Two Million Nine Hundred Seventy-Six Thousand Six Hundred Two and no/100 Dollars ($2,976,602.00) subject to Unit Prices.

Sets of the Drawings will be delivered separately or otherwise made available to you immediately. You must comply with the following conditions precedent within [15] days of the date you receive this Notice of Award. 1. Deliver to the Owner three (3) fully executed counterparts of the Contract Documents. 2. Deliver with the executed Contract Documents the Contract security [Bonds] as specified in the Instructions to Bidders (Article 20), General Conditions (Paragraph 5.01), and Supplementary Conditions (Paragraph SC-5.01).

Failure to comply with these conditions within the time specified will entitle Owner to consider you in default, annul this Notice of Award, and declare your Bid security forfeited. Within ten days after you comply with the above conditions, Owner will return to you one fully executed counterpart of the Contract Documents.

City of Vermillion Owner

By: Authorized Signature

Title

______Date

Copy to Engineer

EJCDC C-510 Notice of Award Prepared by the Engineers Joint Contract Documents Committee and endorsed by the Construction Specifications Institute. Page 1 of 1

March 5, 2021 20054 | SEI No.

Jose Dominguez City of Vermillion [email protected]

Re: Main Street Streetscape Vermillion, SD

Dear Jose:

We have completed our review of bids received for the referenced project. The total bid amounts are as follows:

Total Project Bid Bidders Base Bid Price Alternate #1 with All Alternates Schwartzle Construction $2,946,602.00 $30,000.00 $2,976,602.00 Tea, SD 57064 Dakota Contracting Corp. $4,028,074.55 $26,110.00 $4,054,184.55 Sioux Falls, SD 57105 Big Al’s Contracting, Inc. $4,172,009.93 $55,675.00 $4,227,684.93 Sioux Falls, SD 57107

Our estimate for the project was $3,307,592.50. Minor discrepancies in our estimate were found uniformly across all items. We attribute the difference in price to fluctuating material costs and a competitive bid environment.

In regard to the low bidder, our office has researched their past history on similar type projects. No record of suspension or debarment was reported. We consider the bidder to be a responsible contractor.

Upon review, we find the bids to be in order. The City is not bound or obligated to award the contract and may reject all bids at their discretion. If awarded, then we recommend award to the low bidder, Schwartzle Construction, in the amount specified above. Our recommendation of award is contingent upon the availability of funds. Please notify our office how the Council chooses to proceed, and our office will prepare and deliver contracts appropriately. If there are questions, please contact our office at your earliest convenience.

Respectfully submitted,

STOCKWELL ENGINEERS, INC.

David Locke, PLA Project Landscape Architect

ENGINEERING ⁄ LANDSCAPE ARCHITECTURE ⁄ SURVEYING

801 N. Phillips Ave, Suite 100, Sioux Falls, SD 57104 stockwellengineers.com ⁄ 605.338.6668 CITY OF VERMILLION INVOICES PAYABLE-MARCH 15, 2021

1 A & A REFRIGERATION REPAIRS 211.50 2 ARGUS LEADER MEDIA #1085 SUBSCRIPTION 30.00 3 AT&T MOBILITY MOBILE HOT SPOTS 285.11 4 AUTOMATIC BUILDING CONTROL REPAIRS 147.96 5 BLACKSTONE PUBLISHING BOOKS 138.99 6 BLACKWING BUILDERS REFUND HYD DEPOSIT LESS USAGE 69.08 7 BROADCASTER PRESS ADVERTISING 1,436.42 8 BUHLS CLEANERS MAT/MOP SERVICE 331.64 9 BUREAU OF ADMINISTRATION TELEPHONE 237.43 10 CASK & CORK MERCHANDISE 362.00 11 CENTURYLINK TELEPHONE 1,535.51 12 CHESTERMAN CO MERCHANDISE 638.09 13 CLAY CO REGISTER OF DEED FILING FEE-EASEMENT 60.00 14 CLAY RURAL WATER SYSTEM WATER USAGE 48.60 15 CLAY-UNION ELECTRIC CORP ELECTRICITY 2,127.23 16 CORE & MAIN LP SUPPLIES 2,345.94 17 CRESCENT ELECTRIC SUPPLY PARTS 194.58 18 CULLIGAN WATER REPAIRS 200.00 19 DAKOTA BEVERAGE MERCHANDISE 9,614.28 20 DEPT OF ENVIRONMENT & NAT RESOURCES STORMWATER PERMIT 100.00 21 ELECTRIC PUMP, INC REPAIRS 22,245.45 22 EVAN WEINER PROFESSIONAL SERVICES 100.00 23 FARMER BROTHERS CO. SUPPLIES 215.14 24 FARNER BOCKEN COMPANY MERCHANDISE 707.05 25 FAST AUTO GLASS REPAIRS 180.00 26 FRONTIER PRECISION, INC REPAIRS 905.50 27 GLOBAL DIST. MERCHANDISE 644.00 28 GRAINGER PARTS 273.73 29 GRAYMONT (WI) LLC CHEMICALS 4,309.78 30 GREGG PETERS MANAGERS FEE/FREIGHT 7,660.80 31 HEINE ELECTRIC & IRRIGATION REPAIRS 4,378.00 32 ISTATE TRUCK CENTER PARTS 317.67 33 JOHN A CONKLING DIST. MERCHANDISE 5,688.40 34 JOHNSON BROTHERS OF SD MERCHANDISE 25,114.25 35 JONES FOOD CENTER SUPPLIES 220.80 36 LOCATORS AND SUPPLIES, INC SUPPLIES 269.65 37 LOREN FISCHER DISPOSAL HAUL CARDBOARD 1,010.00 38 MATHESON TRI-GAS, INC CYLINDER RENTAL 82.65 39 MIDAMERICAN GAS USAGE 10,486.16 40 MIDCONTINENT COMMUNICATION CABLE/INTERNET SERVICE 1,392.43 41 MIDWEST ALARM CO ALARM MONITORING 87.75 42 NCL OF WISCONSIN, INC CHEMICALS 1,231.88 43 NEBRASKA JOURNAL-LEADER ADVERTISING 34.95 44 O'REILLY AUTO PARTS RELAY 3.99 45 PING/KARSTEN MFG CORP MERCHANDISE 1,412.05 46 REPUBLIC NATIONAL DISTRIBUTING MERCHANDISE 24,875.83 47 RUNNING SUPPLY, LLC SUPPLIES 198.92 48 SD DENR LANDFILL OPERATIONS FEE 2,597.99 49 SD LIBRARY ASSOCIATION MEMBERSHIP DUES 835.00 50 SD PUBLIC ASSURANCE ALLIANCE EQUIPMENT COVERAGE 3,452.26 51 SOUTHERN GLAZER'S OF SD MERCHANDISE 11,589.03 52 STAPLES BUSINESS CREDIT SUPPLIES 1,281.93 53 STERN OIL CO. FUEL 11,126.52 54 STURDEVANTS AUTO PARTS BATTERY 58.95 55 SUNKOTA CONSTRUCTION RECYCLING CENTER IMPROVEMENTS 158,850.00 56 SYNCB/AMAZON BOOKS/DVDS 406.17 57 THE HOME DEPOT PRO SUPPLIES 36.00 58 TITLEIST-ACUSHNET COMPANY MERCHANDISE 100.82 59 US POSTMASTER POSTAGE FOR UTILITY BILLS 850.00 60 USPS-POC POSTAGE FOR METER 700.00 61 VERMILLION ACE HARDWARE SUPPLIES 46.74 62 WASTE MANAGEMENT OF WI-MN WASTE HAULING 995.79 63 ZEE MEDICAL SERVICE SUPPLIES 200.20 64 ZIEGLER INC PARTS 1,034.50 65 JIM BRINKMANN BRIGHT ENERGY REBATE 25.00 66 VALIANT VINEYARDS BRIGHT ENERGY REBATE 360.66 67 KATHLEEN CHANDLER BRIGHT ENERGY REBATE 200.00

GRAND TOTALS $328,908.75