Council advances utility-resale code changes and authorizes resale for Midwest Mobile Home Park

The Vermillion City Council advanced two ordinances and approved an authorization related to resale of utility services on May 5, 2025.

The council advanced Ordinance 15-30 (to be placed in Chapter 50 with explicit language covering all utilities and requiring meter installation for any resale authorization) and Ordinance 15-31 (an amendment to Chapter 51-21 to align electricity code language with Ordinance 15-30). Staff said these changes are intended to prevent ratio-based resale systems and to ensure individual users are not overcharged; the staff presentation referenced recent amendments to South Dakota Codified Law 49-34-14 (2024) that removed water from a previously enumerated list of services prohibited from overcharging, prompting the city to adopt stronger local protections.

Separately, the council authorized Midwest Mobile Home Park LLC to resell water and sewer services to tenants, with staff noting the proposed structure: a $7 flat fee for water plus metered usage at the city's rates and a sewer charge calculated at $51.12 per lot until individual sewer rates can be established next April. Staff emphasized there is no city revenue impact and past councils have allowed similar arrangements; the authorization has no set time limit but requires the park owner to submit any future rate changes to the city for review.

Why it matters: The ordinance changes seek to prevent overcharges and require meters to protect tenants. The Midwest Mobile Home Park authorization changes the billing approach for that park from a bundled/rationed model to metered resale, which will increase bills for some residents and reduce them for others depending on actual usage.

Council comments and process notes: Council members asked whether the city could require expensive ID/casino-grade scanners for bars earlier in the meeting (a separate topic) and similarly questioned whether the city can feasibly require costly equipment from private resellers; staff said cost and state law could limit requirements and emphasized the city’s ability to review rate changes when submitted.

Ending: Staff recommended advancing the ordinances to a second reading and reported that the mobile home park authorization will be ongoing and subject to city review when rates change.