City Council - Regular Meeting

for which it stands one nation indivisible with liberty and justice for all. Next is invocation by resurrection Lutheran. Okay. Roll call. Sabers here. Goldmer here. Doer here. Mardle here. Bington. Bath case here. Charts here. Smith here. Okay. We have a quorum. Approval of consent agenda items. Items appearing on the consent agenda may be removed by a city council member for discussion at the beginning of the formal agenda items. Would anyone like to remove anything?

Uh I don't want to remove anything. Marty did ask that uh I let people know he was sick today. So he will not be joining us. That's why he didn't join because apparently coughing over a phone still is not the greatest sound. I would agree with that. Thank you. Okay. Anything else? Move to approve by Mr. Goldhammer. Second, Mr. Bathy, further discussion. Would anyone in the audience like to discuss this? Okay. Roll call. Doer. Hi. Mardle. Hi. Bathy. Hi. Charts. Hi. Smith. Hi. Savers. Hi. Goldmer. Hi.

Motion carries. Public comment. If you need to address the mayor and members of city council on an item that was not in the agenda, excluding personnel items, please come forward to the podium and state your name and your concern. Presentations are limited to three minutes. items will be considered but no action will be taken at this time.

Mayor Council Jessica Picket with the Dakota Riptide Swim Team. I wanted to report about the wonderful swim meet 13 and over swim meet we had this past weekend in Mitchell. We had over 280 athletes and their families from around the entire state here Thursday through Sunday utilizing our hotels, our restaurants. It was a huge fun meet. We have a very fast pool. In fact, there were 13 state records broken, 35 state meet records broken for a total of 48 records broken. 18 of those were from Mitchell students. We'd like to thank the rec center, especially Thomas and Jamie and all their staff for all their help with that. We had the Dakota Wesley and soccer team volunteering and helping out. So, thanks to them as well as the partnerships with the Gertie Bell School and the help with the Corn Palace staff and the Mitchell VFW and auxiliary. We'd like to thank them as well for their help.

Thank you,

Mayor Council Dave Sitzma with Corn Palace. Just wanted to let everybody know that we received official word today that uh we will host the opening first and second round of the NIA women's national tournament at the Corn Palace. uh the 13th and 14th uh we which is Friday and Saturday. Game times look like they'll be at 6:00 and 7:45 on Friday and then a 7:00 or excuse me a 6:00 game on uh Saturday. Uh I want to thank Dakota Wesleyan uh specifically Ross Simple and uh Coach Christensen uh for the help that uh they they provided as we bid the tournament and got it uh this or applied for it. I guess didn't bid it, but applied for it. So, we're excited about that. Uh, region five boys basketball coming here this Friday and uh uh look forward to seeing everybody turn out for the Tigers. So, thank you.

Hey Dave, will you just clarify because I thought you said it was this weekend, but just clarified that it's not this weekend, but next. Correct. It the uh student athletes are probably going to arrive on Wednesday, Thursday of next week. The games will be on Friday the 13th and Saturday the 14th. So there'll be two the first night and then one the winners of Friday night will play each other on Saturday night at the palace. Thank you.

Hi Dukeman. Um here representing kind of two things. Myself as owner of Bucleman Associates Incorporated. We're are lead sponsors for um Indie Country Fest Your Town Tour, which is going to happen here at the Corn Palace April 11th. So, I just want to make sure to mention that to people. Um so, this year our main performance is the frontmen. Those are the lead singers from Restless Heart, Lonear, and Little Texas. All three of those. So, well-known country acts come to the Corn Palace. They do have an opening act. It's called Rogue Royal. That's a reformulation of um what we had last year, which was out of line. It's a slightly different set of of band members, but they're out of Minnesota. It's a regional band. Very good. Outstanding performance. That show will be at 6:15 on April 11th. That's a Saturday night at Corning Palace. I wanted to just kind of mention we stole the show from Aberdine. Okay. When when I came here last year, I said like we'd really like to get this here. It had been in Aberdine before and uh it's a three-hour performance. Uh so an outstanding set of things to do in the evening. Um shout out to the sports and events authority. They helped make that happen. their dollars helped bring that to town and so we really appreciate that first year and we reduced the ask the second year and they supported that again. Um the plan is to work off of that uh that need from the sports and events authority also to the Corn Palace. The promoters that we worked with to do this said that the Corn Palace last year of course we had transition so was a little tougher with the leadership but they were very happy with the the end result and uh said this year have been going very well. So, I wanted to shout out to those guys, too. And to Mayor Jordan Hansen for helping us last year with a bunch of promotion. Uh, just getting a little silly with us at the Corn Palace and getting a lot of attention to our social media.

I like getting silly.

That's what we're asking, right? If we can do this three years in a row, we might just prove out a business model. In the past, this was done in Aberdine at a pole shed at the 4 grounds. Okay. It was done in Sou Falls at the district and it was done at the Loud American in um Sturgis and it was done at a a large bar venue in Rston, which is just outside of Omaha, Nebraska. They said that the cost basis to have it here was very similar to having it in those facilities, but we can seat way more people. So, if we can bring the the show, we can bring the crowd, we can have those kinds of regional performances that are going to happen in a large bar scene happen right here at the Corn Palace and that helps our restaurants, it helps our hotels. So, outstanding that way. Uh we're looking forward to this and hope just get the word out to everybody that we can that uh there's tickets on sale at Cornpal box office or ndcountryfest.com/gortown tour. There are three of these shows happening in North Dakota and they end with a big concert this summer um up there in in a field in North Dakota over several days, but this is a a leadup to that and just really happy to have this come to town again.

Thank you. Thank you. Anyone else? And also the girls state varsity hockey is this weekend. So for if you like hockey I have some I go ahead. Um I just uh wanted to let Michelle know that we're all keeping Jeff in our thoughts and prayers at this time. I know that he's in harm's way protecting um our nation and Israel and all of the things that are happening there. So, just wanted to make sure that you knew that we all were keeping him lifted up in our prayers and we appreciate both your sacrifices. Yeah, for sure.

Not a lot of people know this, but Pam and my son-in-law is also over there. Just was shipped over there in the last two weeks. So, Kelsey, our daughter Kelsey's husband is shipped over there also. kicking them off. Thank you. Anyone else? Okay, moving on. Board of adjustment. Entertain a motion for the city council to recess the incentives as a board of adjustment. So moved. Motion Goldhammer. Second. Card. All those favor motions. I

post same sign. Motion carries. Hearing an action on application for Sandbox Ventures LLC conditional use permit. Sandbox Ventures LLC has applied for a conditional use permit for the child center preschool nursery located at 2100 North Kimble Street legally described as shown on the agenda. Mr. Jennings, Mr. Mayor and Council, Planning Commission recommended approval of this unanimously. Notices were sent out to the neighbors, signs posted, published in the paper. There was one letter returned in favor of this. Um applicant wishes to open a daycare at this location. um they have a existing daycare that would be moving to this location and expanding um for the kids that they'll be able to have at that spot as well. Can answer any questions that you have?

Yeah. To clarify, is this the old United Physical Therapy building? And as I recall, there's a big swimming pool in there. Is it still in there? That I don't know. I've never had to go to therapy. It can be really great. Um, normally with our daycarees that are home residential, we put the three conditions on them. This because it's a commercial, we wouldn't want to put those three conditions. It'll still have to go through building permit review. So any code review will be done at that level whether they'll have to have sprinklers, make sure they have enough ingress, ingress out of that building. So that review will still happen. We just don't want to put those other three conditions on. Okay,

I'll move approval. Mr. Mr. Church approval. Second by Mr. Baskki. Further discussion. Anyone in the audience like to discuss this? Okay. All those in favor of the motion say I. I. Oppose. Same sign. Motion carries. Hearing handing an action on application for Gold Key Properties LLC variance permit. Gold Key Properties LLC has applied for a variance permit for a front yard setback of 19 ft versus 35 ft for an addition. This is located at 1408 West 8th Avenue. Legally described as shown on the agenda. Mr. Jennis.

Mr. Mayor and Council. Planning Commission recommended approval of this unanimously with one person abstaining. Uh letters were sent out to the neighbors published in the paper signs posted. There were two letters in favor um that were in your packet. Applicant would like to build onto the south end of this building. Um that's where the current offices are located. They'd like to expand the offices and put a showroom at that location as well. Um because this is board of adjustment, it requires a super majority. So it's six out of eight votes of all that are on the board. Um with one absent tonight and one going to recuse himself, he will take six out of six. applicant can request to have it postponed as well to have the full more full board present to hear it. So can answer any questions that you have here if you have questions for them.

I will be the one stating motion approve motion by Mr. Severs second by Mr. Smith. Yeah. Okay. Gen further discussion. You want to say anything about the building?

It's up to you. I can uh we have the opportunity to bring a new business to town here. Um while it would be a new business to Mitchell and mean added employees. It is not a new business to other communities in our state and in the Midwest. Uh so we feel like they have a strong business plan and it would be a good move for Mitchell. So, we appreciate your vote in support of this. If you have any questions, I can certainly answer them.

Thank you. Anyone else in the audience? Okay. All those in favor of the motion say I. I. Both. Same sign. Motion carries. Action to set the date for board of adjustment hearing 31626. Move to set the date. Mr. Goldhammer set the date for both. Second. Second by Mr. McCle. Further discussion. Anyone in the audience like to discuss this? All those in favor of the motion say I. I. Same sign. Motion carries. Reconvene the city council entertain a motion for the board of adjustment to adjurnn the city council to reconvene in regular session. So moved. Hammer. Second by Mr. Bathki. All those in favor. Motion say I. I.

Post same sign. Motion carries. is hearing action on the following alcohol license application. Transferring RB20236 retail onoff sale malt beverage and South Dakota farm wine license from Genie Bala doing business as leader sporting goods 712 West spruce street to new LLC doing business aries at first and Foster 1218 East first video lottery included Chief Canling. Mayor, city council uh police department has reviewed this. We have no concerns. Recommend approval. Thank you. Motion to approve. Second by Mr. Saber, second by Mr. Goldhammer. Further discussion. Anyone in the ais like to discuss this? All those in favor of the motion say I. I.

Post same sign. Motion carries. Transfer RW20237 retail onoff sale wine in cider license from Genie Pla doing businesses leader sporting goods 712 West Bruce Street to new LLC. Doing businesses aries at first and foster 1218 East Street. Video lottery is included. Chief Canipley, mayor, city council, police department recommends approval of this one as well. Thank you. Move to approve. Mr. Mardle. Second. Second by Mr. Goldhammer. Further discussion. Anyone in the audience like to discuss this? All those in favor of the motion say I. I. I. Same sign. Motion carry. Section award bid for 6th Avenue utility project 2026-01. Mr. Sher.

Yep. Mr. Mayor Council, uh, bids were opened on February 11th in city hall council chambers at 1:30. 11 bids were received. Um, these are included in the packet along with the bid tab. Um, the low bid uh for bid schedule A was by Metro Construction for $648,640.90. And the low bid for bid schedule B uh was Rex Winkle concrete at $21,67355. Um city of Mitchell staff completed the design and the bidding process for the project. City forces will be completing removals and street reconstruction. The asphalt surfacing will be included in our yearly asphalt bid. Um, the project is under budget and staff recommends awarding bid schedule A to Metro Construction um, and bid schedule B to Rexle concrete at their respective bids. And I can answer any questions you have.

Looks like we got a lot of bids in a lot of biders. Yep. So far under budget where we Joe, uh, roughly close to 800,000 or 40% of the total estimated budget. Move to approve then. Move to approve. Wait, did someone say Yeah. So you want a second? I'll second it. Okay. Motion Mardle second. Chs. Further discussion. Anyone in the audience like to discuss this? All those in favor of the motion say I. I. Oppos. Same sign. Motion carries. Action to award bid for tornado shelter rebid project 2023-33r. Mr. Trader.

Yep. Mr. Mayor, council, uh, bids were open on February 12th and city hall council chambers at 1:30. Uh, five bids were received. The low bid being from uh, Schmidz Construction LLC, the base bid of $968,80. And alternate one was a deduct of 22,600. Um, that deduct is was replacing the interior walls from pre-cast panels to um, block walls. Um, nothing structural, just um, separations for the restrooms. Um, city did receive a hazard mitigation grant for this project on February 5th of 24 um for 594,768.90. Um, the project is uh currently over budget. This is a rebid project. Um, so we brought that cost down um I believe by roughly $200,000. Um the current project budget is listed in the staff report. Um we are estimating that an additional 283,000 um would be required to cover the shortfall and add um some contingency for the project. Um and with that um park director uh Nelson will have additional information for you. If I can ask Stephanie to pull up some photos that I had sent to her last week. I'd appreciate it.

Andrew's gone today, so I'm doing both the cameras and this. So, you're doing a great job. She is actually a wiz at this.

So, the current comfort station or campground restrooms and showers facility out there was estimated at circa either 70s or early 80s. We're not absolutely certain on that. There's four semi-private toilet stalls on each the women's and men's side of the building. Uh there's three private curtained shower stalls on each side. There's a laundry room and one water heater services all those showers. That's the entrances. There's a block partitions that go into the

the showers. Here's the floor plan for the proposed. This is a 30x 66 building, a 1980 square ft storm shelter inclusive of restrooms, showers, and laundry area. Um, the common area would hold, which would be 64 by 12 right down the middle of it, would hold up to 158 people per code as a storm shelter, not counting the floor space with the in within the individual restrooms. Outside walls and roof, as Joe had mentioned, would be pre-cast concrete. There would be 11 private toilet/shour stalls. Five would be designated as women's. Two of which would be ADA. Five would be men's. Two of those would be ADA and one would be genderneutral. There would be a laundry room, a utility mechanical room with two water heaters, a storage room with a mop sink. How the concept for a storm shelter at the campground came about was in 2015 the city and the county met to formulate a pre- disaster mitigation plan. At that time, the storm shelter was cited as something that should be considered a priority. There was a renewal of that predesaster mitigation plan in 2021, and at that time, the storm shelter at the campground was again listed as something that should be considered a priority. Joe didn't mention this, but Mark Gigus wrote the grant application to FEMA several years ago, and at that time it was awarded, the city would be responsible for paying 20% of the total cost. However, during CO, those guidelines changed to a need to pay back only 10% of the cost. Unfortunately, bid costs for the shelter did not come at a level where we'd be able to take advantage of that bonus, so to speak. So, we're left with the original grant amount of 594,000 and some change to use toward the project. Should we turn down those dollars, there's no guarantee that we'll receive another similar grant award, and these dollars will be made available to other communities. Conversely, if the council chooses to proceed with the project, we can apply

for any FEMA dollars that might be available from other projects that that are left over, but this would be only after construction. Some other notes on the pricing. We got an estimate for replacing the restrooms near Drake Field 2 years ago, and that came in at $200,000. That wouldn't be nearly as elaborate as this setup because it will be only approximately eight restroom stalls. Um, this facility again would include restroom, shower, and laundry facility, also known in campground terms as a comfort station to replace the existing facility, which you saw in the photos, would likely be in the range of 300 to 350,000 at minimum. So, basically, we' be getting the storm shelter as a bonus in and what this cost would be. I'll entertain any questions or Mark, what is the history on it as well?

I don't know that. Um, I have a question. So, currently the campground doesn't have the money to chip into this. Correct.

Um, if we did this as a as a loan, um, would they be able to pay that off over time or is that something that's just really outside of the realm of the possibility? The campground has traditionally made a little bit of money each year and that might be$10 to $20,000. Last year was not a good year being in the construction phase of of Highway 37 out there. It was difficult for people to find and often times when people are traveling they hear road construction they avoid. So last year we had a shortfall. Um

yes, in the past the campground has made a profit. They've been able to buy equipment for the park fund out of that fund. They bought two pieces of equipment out of the campground for that. I mean, personally, I'm I am a sucker for a grant. I love I hate to see us pass up grant money. Um, but I want to make sure that, you know, one of the things that we always ask is that the entity that we're giving the money to kind of have some skin in the game. Um, so I'm just wondering if what you would what your proposal might be if we asked for skin in the ask for skin.

It needs to be clarified as well. The dollars from the campground aren't from the campground. That's general fund money that had been transferred over previously. I'm sorry, Joe. gonna say

did the grant specify the size or did I don't know how that works or or can we work with the 500,000 or we have to stick with the with this size of a of a building and then we just have to come up with the rest if we want to move forward. I'm just curious how that works. Joe, at at this point, um the grant amount was for that that size of building. Um with where we're at, I don't believe we would be able to amend our our grant. Right now, our grant expires, it'd be January 1 of uh 2027. So, if this is awarded, we'll ask for a grant extension uh immediately. Um but at this point in how the bid is um trimming the bid would be uh extremely difficult

and partly the size of the shelter was determined by the amount of people that it had to be able to house as well for FEMA standards. So this is where I'm at when I look at those pictures that you just showed us. I think man um I probably wouldn't choose that campground again. If I came once and that was the state of the bathrooms and the care care is that what they called care rooms or whatever care facilities um it would be hard for me to say hey let's go back when the restrooms are in that kind of um condition. They keep it clean, but

no that no doubt. But but you can clean, you know, what do they say? Lipstick on a pig or whatever. So, um, so there's this this part of me that's like, man, if you put in a a new facility, a new building. Um, it seems to me like that would be something that could come come new. It's more marketable and raising the prices is also a lot easier. I would imagine that. I mean, I I feel like there's an urgency to this personally when I look at the pictures for that reason and also because of the urgency of the grant. So, I think I'm going to be supporting this and the question to Are you going to ask me how I'm going to pay for it? Okay.

Nope. Okay, good. I guess there's two options. council would either um approve a transfer out of general fund into the campground fund or you could also there is unspent money in the park and wreck fund as well and you could allocate those funds towards a project as well.

I mean it didn't go past me that we just saved almost $800,000 um on another project. So, I don't not that we can use that directly, but I'm just um I just feel like this is um something that seems to be an urgent situation in my opinion. I feel like this is something that needs to be done. I don't think that we can put it off any longer um and still continue to, you know, promote our campground as a place that we want people to come. Now, we've had some rough years, no doubt. Um, but I am going to be voting in favor of this because I think that it's just one of those things. You know, every once in a while you have things that come up in the city and we say this is an urgent situation and I see this as that. So,

I have a question that just dawned on me. Do we need all those bathrooms? Don't I'm not much of a camper, but don't people their own bathroom? Don't they just shower in their own bathrooms? Like there's like 20 bathrooms. What if we just eliminated half? Cuz you I thought for some reason the entire thing was the shelter, but you're saying only the campground, only the common area, correct? Those restrooms, 11 five off to the sides.

Could we get by with seven or is that not enough? I I don't know. I'm just I'm just asking. Might have to bring Mark up here to correct me. Um but I'm fairly for certain that our share is roughly 82,000 um out of this. That was the original estimate and that included uh fixtures um for toilets, sink, showers, um some of that mechanical work, but not necessarily the space itself. So, if you're getting savings for the bathroom, so you're not necessarily paying for 100% of the bathroom. The the structure itself, I believe, is covered within the project. I just didn't know if you could just shave off that entire bottom section, just have nothing but you know what I mean. I don't know why I didn't think about that until now. But yeah, don't most people shower in their in their campers?

You would also ask that question regarding if people there's only a number of them that are full hookups that you use them. Okay. Only a number of them are full hookups. In other words, they have a sewer hookup. Others, they have to use their own holding tank. Can come dump at our place where they where there's a dump station. Okay. What what is the maximum capacity of campsites at the campground? I guess I don't know the number off the top. We have approximately 50 plus camp sites.

Is there any drawing of the building we're proposing? No, not like that. Nope. Okay. Okay. Any other questions before we I'll move to approve. Okay. Motion by Mr. Gold Dammer to second Minister Sharks. Further discussion when when would this start?

It could start at at any point materials would show up. I know they're uh right now pre-craft is roughly 8 months out, but they could start on site work. Um, I believe we extended the completion date to next spring summer time frame. So, so we won't lose the camping season is what you're saying. More than likely not with where materials are at.

What's our total cost after considering the grant, etc.? It'd be the the 182 plus the the 283 232.

So just those two numbers together. So what's the number? 23212. They're calculating 414,00 414 and that's about what I came up with. So the campground has the 182 available dollars from campground that's in the campground fund. Correct. Cash applied to towards the project.

Okay. And then Okay. And then you've got the grant. Yeah. So, this shows a project shortfall of 232,000. That's additional funds that'll have to be transferred into the campground fund. Sorry, I'm struggling to breathe. And then the 182,000 would come out of reserves and then the grant would cover the difference.

Joe, if we downsize it, does the grant do we is there is it go away and do we have to reapply and what's the chance of getting it? So there is no reapplication for this grant because this grant is only triggered on um an event. So I believe this event was from the this 2019 I believe so this was from the 2019 um so we use it or lose it right. Oh, this these types of grants are available only after we have a um significant, right? Yeah. A FEMA uh disaster declaration.

And Joe, to restate, the previous bids would have cost an additional 430,000 versus 232. So that you did bring the price down 200,000. Yeah, I read that.

Yeah. um how these grant dollars are available. Uh disaster declaration, they automatically take 10% off the top and put it for any projects for HMPG grant funds. Those are out there for anybody to bid throughout the whole state. You don't have to be a declarated uh county for the disaster. Anybody can bid on or can put in um an application gets to South Dakota OEM. they vet it and then they send it off to FEMA to have them take a look at it and approve it as well after that. Um, if we were to downsize, that would be too big of a change on the uh project. So, it would have to be sent back to um the state to see if they would say that it still fits within the BCA benefit cost analysis has to be over one. Whether we'd get that level or not, I can't say that without them running those numbers. Um, but it would have to be scrapped. Then they put it back out that there's this $600,000 we could put back in for that $600,000 at a smaller scale and maybe get it, but everybody else could put in for projects as well. And also, if we don't do this project, then Alexandria is putting in for a storm shelter as well at their ball fields. If theirs runs over, they can try and get some of that $600,000 to pay for their part of it. So, we hope some other projects maybe don't happen so that way we can ask for funding, but yet I don't want to tell somebody I don't want them to do their project because everybody's a different type project. But we didn't realize that the funding was going to be or the bid was going to be this much more than we estimated at. So, but that's also the letter of intent that you signed when we did the original was we'll pony up the money if we comes up or down. We still have to pay for it. Yeah, I I know we got a motion, a second

on the on the floor. Um, this is a pretty large decision. I'm kind of leaning toward no right now, but um uh the other thing is with Mr. Bington not being here on on behalf of the lake, he's always been the big supporter of the lake. I'd be interested in kind of some of his thoughts, too. So, I don't know if it would make some sense to try to think about this in a couple weeks and table it, but are we under the gun, Joe, to do something tonight,

Joe? Yeah, we're coming. We are if we don't award tonight, let's see the 12, 21, 28, we would be over our 30 days. It would be up to the um the awardee if they would hold their bid prices or not. Oh, I just received a text from Mr. Bington and he said, "I would support this if I was there." Oh, that's easy. We know.

Another thing that I'll point out which Mr. Nelson had said already was um this grant it's usually a 75% FEMA 15% city 20 10% state during COVID they changed that and they made it a 80 or 90% FEMA 10% state zero funding for the grant eligible expenses for the city of Mitchell. So, right there is when we estimated it, $89,000 worth of savings that would be for us for the grant eligible expenses. We knew that we were going to put in the extra uh toilet features, showers, toilets, and that that we had to pay for, which was going to be 87,000 in our original estimate. So, it was almost a wash at that level. But since bids have come back more, we have to have more skin in the game for it. But it's very rare. It's never been done for the 9010 and the applicant having 0% of grant eligible.

Thank you. Okay. Anyone else before we open it up to the audience? Would anyone in the audience like to discuss this?

All right, let's do a roll call. Turks. Hi. Smith. Nay. Savers. No. Goldhammer. Hi. Doer. No. Mardle. No. Bathski. Yes. Okay. Three to four. Okay. Motion pass bills. Yep. Okay. Action to approve agreement A2026-20 non-federal reimbursement agreement with the Department of Transportation Federal Aviation Administration for runway 18-1336 project. Mr. Shrader.

Yep. Mr. Mayor, Councel, uh the purpose of this agreement is for the Federal Aviation Administration to perform site visits, preliminary design, engineering design reviews, construction oversight support, and flight check activities for the 1836 runway project. Um the agreement is attached for your information. Estimated cost for this agreement is 107,282.30. The city will be reimbursed uh for roughly um 97.5% of the cost. City is only responsible for two and a half, which would be $2,6826. Staff does recommend council approval and authorize the mayor to sign. I can answer any questions you may have.

Thank you. Move to approve. Secur by Mr. Goldhammer. Further discussion. Anyone in the audience like to discuss this? All those in favor of the motion say I. I.

I. Same sign. Motion carries. Public hearing on 13th and Wisconsin project. Mr. Trader. Yep. Mr. Mayor, Council, uh we'll start the uh notice of public hearing for the 13th Avenue improvement project. Um this is an SRF loan uh requirement. Um, the city of Mitchell is seeking funding from the South Dakota Board of Water and Natural Resources for a project that will include, but is not limited to, upgrading storm water and wastewater infrastructure along 13th Avenue between Minnesota and Wisconsin. And the storm sewer will extend uh west to the bypass. Um, the funds could be either a grant from the state consolidated water facilities construction program or a loan from the clean water state revolving fund program. The city is seeking up to $1,560,000 from the CWSRF program. The expected loan terms are 4% for 30 years. Board of Water and Natural Resources may forgive all or portion of the loan principal for the loan. Uh the amount, source of funds, and terms will be determined by the board of water and natural resources when the application is presented at a scheduled board meeting. With that, I will open it up to any questions from the public. Joe, what are the chances that the board might forgive a portion of the million and a half?

We haven't seen any loan forgiveness since our uh wastewater treatment loans. Um we have had uh one or two go through that have been 100% loan um as of recent. Um so I would say it'd be relatively low, but always hope Any other questions? How how dire is this project?

This will alleviate flooding that's seen at uh 13th in Wisconsin. Um I believe those streets get inundated for roughly uh two to three blocks for um multiple hours at a time. This is part of our uh storm water master planning for that uh area to alleviate some of those those floodprone uh areas. Yeah, it's bad. It is a bad intersection. It's bad and a big heavy rain. It's it's bad. Even like a mild rain that backs up up to people's like houses.

The goal would be to bid this project yet this year and construct yet this year. Um, we're a little behind, but I think with an aggressive schedule, we could reach that. And with bids being um in our favor, I think it would be good to get it out. Okay. Any other questions? This is just a hearing. So, with that, we can close the hearing and we can move on. Okay. Closing the hearing. Action to approve resolution R2026-09 resolution amending city of Mitchell sewer rates for 2026 by implementing a search charge for CW16. Miss Elway

mayor and council. The resolution that's shown up on the screen will amend our existing water rates to implement a search charge. The search charge man hold on. Okay. The uh search charge, let's see here, is 355 per month per user. And basically what happens is it comes out of our existing revenue we're already charging. Then we segregate that part of the revenue and it's obligated to pay off the debt service for this loan. Um this step is required to allow the city to pass the bond resolution that's required um as part of the SRF loan for this project. Council had already approved this project previously. You can see the only thing that's new or different is this last line here which is implementing the search charge and that is for Oman Street from 23rd to Keer. If council doesn't approve um this resolution as well as the follow-up bond resolution you'll see on the agenda next, we would be required to fund that project out of cash reserves or other financing. Again, it doesn't increase sewer rates at all. is just taking a portion of our existing revenue, setting it aside, and dedicating it towards a debt service payment for this project.

Answer any questions that you I think it's key to let the public know that the rates aren't going up because people misinterpreted things and they think that we're raising the rates when we're really not. This resolution does not increase sewer rates. It just implements the search charge, segregates $355 per month per user into a separate line so that we obligate that to pay for our debt service.

Okay. Move to approve. Motion Goldhammer. Second. Second by Mrs. HS. Further discussion? Would anyone in the audience like to discuss this? All those in favor of the motion say I. I. Same sign. Motion carries. Action to approve resolute. Do I have to read this whole thing? Okay, we're that's a long one. I wouldn't. All right, here we go. Action to approve resolution R26-10, a resolution giving approval to certain sewer facility improvements as shown on the agenda. Miss Owen,

that is exactly how I would read it as well. This is the required um resolution for the city council to pass in order to complete the loan for this project, Omen Street project. The loan is $3,930,000. And the search charge that you just approved is what is implemented to fund the repayment of the loan out of our existing rates. Again, it's not a new secharge. It's coming out of our existing rates. I can answer any questions that you may have. We've done quite a few of these recently. So, they are a standard form resolution for uh that bond council reply uh requires for all of these SRF loans. I apologize about the long name, but they won't let me shorten it down. I've asked so we have move to approve second Ricardo. Further discussion, would anyone in the audience like to discuss this? All those in favor of the motion say I. I. Oppose. Same sign. Motion carries. Action to approve resolution R 226-11 plats of lot 1 through three in track one of Porscheman's edition. Mr. Jennus.

Mr. Mayor. Council planning commission approved this unanimously. Um this is zone TWWC. Um you should recognize this. We've just vacated a portion of the alley that this is a budding out in that area. Um this meets requirements for TWWC zoning and lots one and two. It goes one, two, three. Um, they have access with a mutual access easement to get to it through lot number three. I can answer any questions that you have. I'm going to abstain. I'll move to approve. Goldhammer. Second. Second by Mr. Smith. Further discussion. Would anyone in the audience like to discuss this? Okay. All those in favor of the motion say I. I.

I. Oppose. Same sign. Motion carries with one abstension. Motion to enter executive session according to SDCL 122523 consulting with legal counsel 1919 502 lawyer client communications by Mr. Goldhammer. Second by Mr. Mardle. All those in favor of the motion say I I same sign. Motion carries. There will be no

I wonder if anyone watches till the end. We're looking at the analytics, I guess, other than Eric. I'm watching. He's watching. Yeah, this the best part. Yeah. I wasn't sure you guys were still streaming, but I did take a look at the stream and I did notice it's like, oh, I wasn't dancing or anything while you guys were in the room. I'm siz.