City Commission - Regular Meeting

But I just stay $200 every night. Yep. Oh my god. You seem to figure out

Sure. We have to eat. They go to this conference and they put it in a hotel center. You know that my brother a couple years ago hotel remember the name of it a banana for breakfast was $18 for a banana we don't have to deal with that union do we that's getting up there good comes back to That's part of the big deck.

I'm trying to get fired. Okay, we're going to call the meeting to order. I pledge algiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Okay. Are there any additions or corrections to the consent calendar? So move. Second. Motion second. You call roll. Commissioners Garver. Hi. York. Hi Carlson. Hi Mayor Lstrom.

Hi. Are there any visitors to be heard tonight about anything that is not on the agenda?

Ryan McKenna here for the Super Sportsman's Club. Um I jumped Andrew about this here the other day. We had a meeting on Thursday night of our board and we have decided that we'd like to renegotiate our lease with the city or do something as the lease is not conducive for capital improvements out there. So just making everyone aware of that I guess and then if anybody had questions you're going to work with him and then bring it to the board or what you whatever you want to do. we can sit down. Okay. We just wanted it to be out in the open. And so

it's probably something that needs to be done a long time ago. It did. Yeah. Yeah. It it has grown a lot here in the last few years. And obviously 20 years ago when they made the lease, they had no idea what this was going to become. So So it's 20 years into a 99-year lease. It's something like that. I'd have to look back and see exactly when. It was before my time. obviously too young to be a part of that. So, so it was there when my kids were little. So, yep. Okay. All right. Thank you.

Okay. We don't have any old business, so we'll move on to new business. Um, first item is we're going to appoint an interim commissioner. Um Doug Peterson has agreed and volunteered to fill in the vac seat vacated by Commissioner Piggers um until the next annual election which will be in November. So take a motion. Do we have a second? Second motion and a second call roll. Commissioners York. Carlson I Garbers. Hi. Mayor Lford. Hi. So, the next thing on the agenda is to swear in Commissioner Peterson.

I can read this, right? You got to turn around. The paper wants your face. Yeah. All right. All right. Careful. I can read it to you, too. Ask you. All right. Doug Peterson. Doug Peterson.

You solemnly swear that you will support the Constitution of the United States and the Constitution of the State of South Dakota. duly solemnly swear that I will support the Constitution of the United States, Constitution of the State of South Dakota, and that I will faithfully impartially discharge the duties of commissioner in and for the city of Canton, Lincoln County, to which this office I have been duly appointed to the best of my ability. All right, confirm you're duly appointed. also scientists.

Congratulations.

Okay, thank you. You can flip your name plate up now.

I don't know if I got moved in. I don't know if that's a good thing or a bad thing. Be on the outside. I forgot to bring my hearing aids.

Okay. Um, next thing on the agenda is the audit engagement agreement. um the EO ELO CPAs and adviserss um they submitted their audit engagement letter for the annual audit of the year ending December 31st, 2025. And they are anticipating the fees to be approximately $24,000 plus out-ofpocket costs. And this is up from $17,000 for last year's audit uh as EO ELO has priced it without the single audit major programs adjustment. Therefore, the city essentially gets a free audit. They got we got a free audit last year, single part. Um if significant additional time is necessary, they will discuss it with the city before incurring additional costs. So, make sure we stuck with these people or we like these people or why don't we look for somebody else?

We're not stuck with them. Part of the problem is there's getting to be a smaller and smaller pool of CPAs that are doing municipal audits. Um we've had ELO, they used to be uh Coleman and Berglin. Uh we've had them here for trying to remember what year Gary stopped doing our audit. Probably 15 years we've been doing our audits. I'm only aware of one other group. Shane Fish is one. Yeah. And I called them before I did ELO and they weren't interested way back when. Yeah, they weren't taking a client. And East and Vanderoot. What's that? East and Vander Woody. They still doing it or they longer. Well, Paul East passed away several years ago. Weren't there multiple partners with that?

Just him and Vanderwy. And I think he died before East did. Okay. I think maybe somebody kept the firm going, but Paul East used to do my audits when I was in Pier. Well, I'll say that um we have to do audits for our federal um program with disability rights and the prices skyrocketed for us this year as well. It's about the same dollar amount and again we have like picked two two different

auditing firms that do this and it's because they're just so time consuming that some of these these advisors they don't want to do it anymore. So, I would say this, unfortunately, this is probably the cost that we're going to be looking at from anyone. Okay. More than likely, if not more. Is this this federal portion of this is that's a one-time deal unless we were to have that same amount of money come in again. Correct. It's for uh if we have federal grants that total 750,000 or more. Okay.

And our safe rooms grant for the pool is 860ome,000. And so that kicked us over. So that grant alone and last year it was the FEMA money that kicked us over for 24. Great. So you want to make a motion. A motion to approve. Second. We have a motion to second. You call roll. Commissioner Scarlson. I. Garbers. I. Peterson. I. York. Hi. Mayor Lindstöm. Hi. It's going to take a little getting used to.

Next on the agenda is the Culbert replacement pay application. And Justin from ISG has submitted a pay application on behalf of the 605 companies um for $28,540 for the rubble site culvert replacement. Um the rubble site culvert d was damaged during the 2024 flood and the total cost of the project was submitted to FEMA and attached is a breakdown. We that's online or on our website is a motion is needed to approve and pay this application. So we've gotten paid from FEMA or we're going to this was one they prepaid on. Yeah, I think they prepaid it based on an estimate.

Was the estimate that much or don't know? Off the top of my head, I'm not sure Alicia was running a lot of the FEMA stuff. This is a one and done thing. Yep. Motion. Motion. Do I have a second? Second. Call roll. Commissioners Garver. Hi. Peterson. Hi. York. Hi. Carlson. Hi. Mayor Lundstrom.

Hi. Next is a building permit for a false wall at the Canton um fire department. The they've contacted the city in regards to having a false wall installed at the fire department. Um, since this is an improvement to the public building, it must go through planning and zoning, which it did. Um, and the building permit was presented at this February 24th for planning and zoning, and they um recommended the city approve this permit. So, it's just the not the clock. So, they're they're putting up wall putting up a false wall. There's three bays on that south end,

and they keep the antique fire truck in the southernmost bay. And so this false wall will go up to to separate the antique fire truck from the the two other bays that are used by the police department. They'll it'll help with amount of dust and exposure to the the antique truck because the fire depart or the police department doors are open quite a bit when they're going. Um, and they'll just from activity in the other two bays, keep it from getting dinged or bumped up. And Corbin had also said that fire department said that they're going to put some of their um their awards and other plaques and and things on that false wall so that you can it can be seen from the window from the outside.

And who's paying for the wall? It comes out of their budget. there by ship.

You going to have a a doorway in there or are we going through the police department? No, it says that there's a doorway. Is this like a 40ft wall with a doorway? All the way to the ceiling? No, it wouldn't go to the ceiling cuz it's got a vated ceiling, right? Uh I don't think in the picture it looked like a vated ceiling. It looked to me in the picture like it went up like 12 furnaces that heat that too right in that building in that part. I just don't think it's a great idea. I know Chris and I toured that what three years ago. It was three years ago. Yeah.

If the police department was going to stay there, we kind of wanted them to have part, you know, to make that work. Now we're going to put a full flow and we're going to tear down again. I think we're getting the car ahead of the work. So they do have a contractor lined up, but we could certainly ask them to

I have the deeds here. The estimated cost was $11,935. My my concern when we were we were talking and I know this was just between Paul and I and uh Chief Swinson at the time of reloading place for that. Soating the the historical If that's the case, like Paul's saying, I don't want to be putting up walls temporarily for 12 grand that we're going to take down. If we were to find a different place for the fire truck, is the fire truck still leaking?

I've heard that it is. I envision it is. The part of the problem with it is the original fuel pump in it is leather and if it gets dry, then it starts to drip. That's interesting. Yeah. Well, we used leather in there instead of rubber for the actuator fuel. I I guess at this time I'd like to table it. Motion to table this. Second. Second.

Why are we tableing it? If it's going to bring it up in two weeks, it ain't going to help. I honestly I mean I'll just say I honestly think if you're going to spend $12,000 for a wall and Chad just said is the heating and stuff going to be correct if you do that and everybody's got their passion but how many people are looking at this fire truck through this window anyway the north side of the building you could build a you could get quite a ways for building big enough to put that truck in. Then it's out of everybody's way. What's in the city hall garages? H

what's in the city hall garages? City one's car for city hall and then the other two bays the police department uses as well or I you know I know it'd be a lot more expensive but a glass garage door would also create visibility for it. I've seen a lot of other towns. They, you know, everything from little glass sheds to I've seen a lot of them in downtown stores that were closed up and they put the fire truck in the glass windows and that's where it's at.

Like you say, this where the vape shop used to be has got plenty of windows if this damn thing. Okay, we have a motion and second to table it. Correct. You want to call roll? Commissioners Peterson. A. York. Hi. Garlson. Hi. Garbers. Hi. Mayor L. Hi. How long we table? Yeah. We can revisit in two weeks. You want me to run down some particular things with the fire department? I think we need to find a permanent different place.

Okay. Okay, next thing on the agenda is the 2025 annual report and it's completed. Do you have want to talk about that, Kyle? Not unless somebody has questions. There's a lot of pages. Yeah, a lot of pages. There's a lot of semi-technical information, some not. you know, there at the end of the day with where we're all said and done, we're sitting with about 11 11.1 million in debt, which is not unusual. Um, with the pool and everything added.

Um, cash we're okay with. We're not boiling over with money, but we ain't borrowing to make ends meet either. I want to add too that, you know, we we blushed a little bit at the price for the audit, but a lot of towns have to blush when it comes to the cost of an annual report because not a lot of towns have a finance officer capable of doing their own annual report. So, we're lucky in that sense. Not to mention getting them to show up to the annual report to do that work is tough. You might you'll pay them and they still won't show up in time legislatively audit agreement on your matter. So, we're lucky So in this is it I'm not sure what the word I want but how much more can we projects can we borrow money for?

That all depends on your funding mechanism. Um and what I mean by that is just a community center in there. Where are we going to be able to be?

It it depends on how you fund it. And where I'm going with that, Paul, is is is the South D code has a constitutional debt limit of 5% of the total assessed value of the city. You cannot exceed that. However, there are methods around lease purchases. Um when we come to doing some of our water and sewer projects, we're adding sir charges because that creates its own funding mechanism and it's outside. You can do um general obligation bond is direct debt. So, it would count against your debt limit. Now, I haven't calculated it for a while. Um, but it depends on the amount of money you're looking at. So, the geo bond counts against your your debt, but your sales tax does not.

I was thinking it did, but go back and look. So, yeah, if we're if if we bond like the thing we do for the pool, that's going to count against our debt limit. But there are there are other mechanisms.

There are there are ways of going around it. I know they've been trying to close some loopholes in those I think are still out there as far as I know. Lease purchases aren't real popular um or have been getting less popular. The last one I did was when we were in Pier. I don't think I've done one since I've been down here. I just I mean I I think a community center would be good and I'm on a different advisory board too and gym space is more than a premium in this town to try to find a place to do stuff in. I'd hate to get these next two meetings that we got with ISG and then we get to it. Everybody wants it but now we can't do it. I don't want to get there.

Right. Your your biggest thing is how you're going to pay for it. you know whether whether you're going to run a general obligation bond which requires I think a super majority so I think it's 60% in order for it to pass 60% of this 60% of the voters voters registered voters and that would be a direct um increase in property taxes is this something I mean I know we're getting totally off of what we're talking about annual report here but do we need to start thinking thinking about how we're going to do that now be instead of later and I think we actually intend for that to be part of the the third meeting. Yeah.

Yeah. Open forum that will they'll discuss the cost of the project and the funding mechanisms and the actual impact. If it was an opt out, for example, we would say this would be the impact on a $250,000 home. This would be the impact on a $500,000 home. That'll be part of the communication in the last round of the meeting. Yeah. For instance, when they started the pool, um that was originally a dollar mill levy is what we were shooting for and after the county did all the reappraisals, it winds up now being 57.57 57 cents per mill

because the value went up. Yep. Okay. We have have to have a motion to approve the annual report. Motion in a second for that. Motion to approve. Okay. Second. Motion in a second. Call a roll. Commissioners York. Hi. Carlson. Hi. Garbers. Hi. Peterson. Hi. Lstrom. Hi.

So that's all we have on the agenda. Um we'll move on to commissioner dialogue. But I just want to take this opportunity to um congratulate the wrestlers, the coaches, parents, fans. It was fabulous, and you made Canton proud. So, you know, congratulate them all for that. We'll have them all in for a proclamation soon, hopefully next meeting. So, Chris, do you have anything other than the wrestling program? No, I don't. Congratulations. Yep. Sir,

um March is dis is developmental de disabilities and traumatic brain injury month and there has been an executive proclamation of the state of South Dakota from the governor um to declare that March is developmental disabilities and traumatic brain injury month. So just wanted to um put that out there that uh this is the month to um encourage and appreciate those folks. Thank you. Paul, no. Doug, do you have anything you would like to say? Not yet. Okay. Kyle, not this. Andrew. Oh, ma'am.

No, ma'am. Okay. I already said my piece. Um, so now we'll call for an executive session um under codified law 9-34-9 for what's it for? Economic development. Oh, yes. Economic development. Yes. Okay. So I'll take a motion to go into exec. Second. Okay. Commissioners York. Hi. Carlson. Hi. Garver. Hi. Peterson. Hi. May. Hi. Give him a chance to face. He didn't get to make them or second. We didn't He didn't get to make it or second one. We'll give him a chance. Yeah. We haven't yet. Maybe he didn't punch on one.

Chris isn't quick either. This is We'll get you broken.