Madison commission approves construction account, tax levy certification, multiple electric bids and change orders; approves MOU with ICAP applicant

The Madison City Commission approved a package of administrative resolutions, procurement awards and contract change orders during the meeting. The actions below reflect motions, seconds and roll-call or voice votes recorded in the meeting transcript.

What the commission approved

- Resolution 2025-23, First PREMIER construction account: The commission approved creating a construction account at First PREMIER Bank to support electrical bond disbursements and construction payments for city electric-system improvements. Mayor Lindsey abstained from the roll call “because I have 2 relatives that work for Premier.” The roll-call tally recorded the remaining commissioners as voting yes; the motion carried.

- Resolution 2025-24, property tax levy for 2026: The commission approved certification of the property tax levy for 2026, proposing a total levy of $2,413,235.93. Staff explained the levy combines a 2.9% CPI adjustment and 1.4% new growth for a net increase of $98,825.33 from the prior year. The motion carried by voice vote.

- Bid award — Green Substation site grading (Bid No. 983): The commission awarded site-grading work for the Green Substation to Sukup Construction, the low responsive bidder, at $184,184. Staff said grading will take place this fall to keep the construction schedule on track; the motion carried by voice vote.

- Bid awards — Major materials for Grama Substation (Bid No. 985): The commission approved three separate awards for materials: - GOAB switches: Awarded to Border States Electric for Passcor-manufactured switches at $58,425. Staff noted an apparently lowest bid was nonresponsive on technical specs, so the recommended award went to the lowest responsive bidder. (Motion carried by voice vote.) - Potential transformers (PTs): Awarded to Border States Electric at $29,565 after the lowest bid was found not to meet technical specifications. (Motion carried by voice vote.) - Substation steel: Awarded to Galvanizers Incorporated at $118,925.40; staff said the total recommended awards for the three material components were $206,915.40, about $915.40 over the engineer’s estimates. (Motion carried by voice vote.)

- Change order No. 2 — Green Substation power transformer (69 kV to 115/13.8 kV): The commission approved a change order for the transformer that reduced an originally listed increase of $114,000 by $20,000, resulting in a net increase of $94,000. Staff explained the amount covers storage and testing; the updated contract price is approximately $2,000,000. (Motion carried by voice vote.)

- Change order No. 1 — City library ramp (Keselwood Excavation and Dirt Work Services): The commission approved a $3,477.65 increase to the contract to correct staking errors and make quantity adjustments; the revised contract price is $62,458.21. City staff said handrails will be installed by city forces. (Motion carried by voice vote.)

- Change order No. 2 — North Egan Avenue reconstruction (Winter Contracting LLC): Approved a $1,435 increase required to replace a 36-inch round pipe with a 36-inch arch pipe to gain additional clearance over an underground utility. Staff explained the pipe-profile differences were discovered during construction and required the adjustment. (Motion carried by voice vote.)

- Memorandum of Understanding with The Summit at Van Eps LLC (Inter Lakes Community Action Partnership/ICAP): The commission approved an MOU supporting a proposed multifamily project that would contain 28 low-income units and a commercial kitchen to serve ICAP’s senior meals program and other counties. Staff and an ICAP representative explained the project would pursue Low Income Housing Tax Credits through the South Dakota Housing Development Authority and, because of that financing, the project would not be tax exempt; ICAP requested support for future tax-increment financing (a TIF) but staff noted the MOU does not obligate the city to provide a TIF. Commissioner Barish abstained from the vote due to contractual agreements with ICAP; other commissioners voted aye in a roll call (Dibdahl Aye; Wolf Aye; Weir Aye; Mayor Lindsey Aye). Motion carried.

- Authorization of signature on Disadvantaged Business Enterprise (DBE) program-goal document — Madison Municipal Airport: The commission authorized a signature on the airport’s DBE program-goal document. Staff explained the program sets an aspirational goal of 4.6% DBE participation on DOT-assisted projects and requires good-faith outreach rather than quotas. (Motion carried by voice vote.)

How it was decided and conflicts disclosed

Most procurement and contract votes were taken by motion and voice vote; where a roll-call vote was used, the transcript records names and responses. Two abstentions were recorded on the public record: Mayor Lindsey on the First PREMIER resolution (relatives employed by the bank) and Commissioner Barish on the ICAP-related MOU (a contractual relationship). Staff noted several low bids were found nonresponsive due to technical specification mismatches or bid-bond problems, and recommended awards accordingly.

Ending: Staff said they will proceed with contracting and project scheduling for the approved items and will continue coordinating design and construction timelines with contractors.