Vermillion council approves wastewater rate increase, multiple leases and permits; reviews airport and sidewalk policies

The Vermillion City Council on April 7 voted to raise wastewater billing rates, adopt several leases and permits, and approve other routine city business as it moved through a full agenda at City Hall.

The council approved a wastewater billing increase that will change the base charge to 170% of the current wastewater billing rate, an average monthly increase of 19.72% (from $43.90 to $52.56 for the average monthly consumption used in the staff calculation). City staff said the increase is needed to meet the adopted budget and develop revenue for a planned renovation of the wastewater treatment plant; the project is estimated at roughly $20 million in construction with about $3 million in engineering and would be financed over 30 years. Staff told the council the city already has a signed Economic Development Administration (EDA) grant agreement that will offset a portion of the cost; bidding and final numbers are expected after an August bid process.

Why it matters: City staff said the rate steps are needed to establish debt service capacity for the plant renovation and to satisfy grant and budget requirements. Councilors asked how the step fits with worst-case scenarios and whether the EDA grant is at risk; staff replied the grant agreement is signed and they are reporting quarterly to EDA.

Other major actions and approvals at the meeting included:

- Airport hangar matters: The council approved a specific hangar lease with Tim Schramm for a 10‑year rate schedule (with renewal options) after discussion about whether previously offered rates should be honored and how future rate changes would apply. Separately staff presented a proposal to standardize airport hangar land rates at 15.15 cents per square foot (staff characterized the number as a flat rate regardless of developed or undeveloped land) and to review rates every five years; the council approved the staff recommendation. City staff said the airport provides amenities (fuel, courtesy car, terminal, on‑site manager) and that lease revenue is currently modest.

- Sidewalk furniture and downtown use permits: The council approved a sidewalk furniture lease for Cafe Brulee (6 tables at Lot A) and a separate permit for Docks (4 tables at Lot C). Docks’ owner (Garner Hansen) requested a larger adjacent space (Lot D) to host occasional community activities such as a beanbag league; council discussion noted the city ordinance limits furniture zones to properties within a measured distance of the serving business and that the council prefers to follow the ordinance rather than make ad-hoc exceptions. Council directed staff to revisit the ordinance and measurement method and to consider whether different rules are appropriate for non-food activities; meanwhile the council approved Lot C as written.

- Alcohol permits and special licenses: The council granted a one-day malt beverage and wine license for the Vermillion Athletic Booster Club’s Hall of Fame Banquet (April 26 at Vermillion High School) and approved a permit allowing consumption (but not sale) of beer and wine samples at the Vermillion Area Farmers Market sampling event scheduled for Aug. 7 at the Clay County Fairgrounds. Staff reported no prior alcohol-related violations connected with the booster event and that the school board had already approved alcohol at the school banquet.

- Telecommunications lease renewal: The council approved a revenue lease renewal with Vertical Bridge for property at the recycling center (840 N. Crawford Road) that extends lease terms the company sought in order to negotiate attachments with carriers; councilors questioned long 30‑year terms but approved the renewal as presented.

- Other routine and administrative business: The council approved the unaudited 2024 annual financial report for filing, accepted fuel bid quotes from New Century FS, approved the final plat for Madison Park Addition Block 3, authorized a transfer of a surplus hose washer to Gayville Fire Rescue under state law, and approved a Parks & Recreation software purchase (CivicRec) including one-time hardware/training costs and an ongoing annual fee to be budgeted in recreation lines.

Votes at a glance (motions, movers/seconds where recorded, outcomes): - Special daily malt beverage & wine license (Vermillion Athletic Booster Club, Hall of Fame Banquet, 04/26/2025): Motion to approve by Councilor Lieber; second by Councilor Holland — Approved (voice vote). - Hangar lease with Tim Schramm (specific hangar lease, 10‑year rate schedule with renewals): Motion to approve as presented by Councilor Geneway; second by Councilor Holland — Approved (voice vote). - Sidewalk furniture lease, Cafe Brulee (Lot A, 24 W. Main St., 6 tables): Motion to approve by Councilor Price; second by Councilor Cheeseman — Approved (voice vote). - Sidewalk furniture lease, Docks (Lot C, adjacent to 9 W. Main St., 4 tables): Motion to approve area C as written by Councilor Price; second by Councilor Holland — Approved (voice vote). Council directed staff to revisit the ordinance and measurement rules for possible future amendment. - Permit for consumption (no sale) of alcoholic beverage samples (Vermillion Area Farmers Market sampling at Clay County Fairgrounds, 08/07/2025): Motion to approve by Councilor Geneway; second by Councilor Price — Approved (voice vote). Staff cited state statute authorizing municipal governing bodies to permit consumption on public property. - Wastewater rate resolution (adjust base to 170% to meet budget and debt service for treatment plant renovation): Motion to approve by Councilor Holland; second by Councilor Lieber — Approved (voice vote). Staff said average monthly increase for the representative user is $8.66; staff also noted a worst-case scenario previously estimated by the state at $31.25 monthly per user if grant funding were not available. - Final plat approval, Madison Park Addition Block 3: Motion by Councilor Mears; second by Councilor Toller — Approved (voice vote). - Airport hangar land rate policy (staff proposal to set a flat rate of 15.15 cents per square foot and review every five years): Motion approved by Councilor Holland; second by Councilor Price — Approved (voice vote). Staff described benchmarking to other South Dakota general-aviation airports and noted current annual revenue from hangar leases is small. - Revenue lease renewal (Vertical Bridge, recycling center — long-term renewal to facilitate carrier attachments): Motion by Councilor Genewine; second by Councilor Murrah — Approved (voice vote). - Acknowledgement of 2024 unaudited annual financial report: Motion to accept by Councilor Price; second by Councilor Genewine — Approved (voice vote). - Surplus and transfer of equipment (1982 hose washer) to Gayville Fire Rescue: Motion by Councilor Price; second by Councilor Gendewijn — Approved (voice vote). - Fuel bid acceptance (April fuel quotes; low bids by New Century FS): Motion to approve low bids by Councilor Price; second by Councilor Cheeseman — Approved (voice vote). - CivicRec recreation software purchase (initial $8,185; annual maintenance ~ $3,200 to be budgeted): Motion to approve by Councilor Lieber; second by Councilor Price — Approved (voice vote).

What the council did not decide tonight: Councilors discussed, but did not change at the meeting, the downtown furniture zone distance rule; several members asked staff to return with options for clarifying measurement and distinguishing beverage/food service from other public uses. Staff also noted the wastewater project will proceed to public bidding and that any final debt service numbers will be presented after bids are received.

Meeting context and next steps: City staff said the EDA grant agreement for the wastewater project is signed and that bids and award are expected after the August timeline referenced. The council directed staff to return to the council or an appropriate commission with ordinance amendment options for the sidewalk furniture zone measurement, and to continue periodic airport lease rate review every five years per the adopted policy. The council closed the April 7 meeting after approving invoices payable and routine administrative items.

Ending: The council adjourned after routine business; the next regular meeting is scheduled for April 21, 2025, with a special joint meeting with the Clay County Commission set for April 15 to hear a zoning appeal regarding a concentrated animal feeding operation.