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Council approves several contract amendments, airport design grant and police pay adjustments
Summary
Council approved amendments to engineering agreements, a state-aided airport hangar design agreement, grant conditions for a conservation property and amended the police compensation plan to raise several wage grades; staff said the immediate budgetary impacts will be covered by unspent departmental funds.
The Mitchell City Council approved a package of contract amendments, grant notices and a compensation update at its Aug. 6 meeting.
Contracts and amendments: Council approved Amendment No. 1 to agreement A2021-10 with Helms & Associates for construction-phase services on the new recycling transfer station, with construction-phase services billed at an hourly not-to-exceed basis for $79,500 as described by staff. The council also approved an amendment to McCleary Engineering for construction administration and related services for the Third and Railroad/Main Street project not to exceed $145,500; staff noted unforeseen ADA, asbestos and underground conditions contributed to the need for additional services.
Airport project and grant items: The council accepted an agreement with the South Dakota Department of Transportation Aeronautics Division for design of a revenue-producing hangar; the state will reimburse 90% of project design costs not to exceed $84,600, with a total agreement cost estimated at about $94,000 and a city share of approximately $9,400. Staff estimated the hangar could generate roughly $10,000 per year in rent and that payback for the city’s share could be about 10 years, depending on construction costs and operating terms. Council also approved a notice of grant requirements with the North American Wetlands Conservation Act related to the Kelly property, accepting long-term conservation obligations tied to that grant.
Police compensation: Council approved Resolution R2024-51 amending the 2024 compensation plan to move police officer positions from wage grade 16 to 17 and detective positions from 17 to 18, with an annualized cost of $15,418 covered by unspent departmental budget funds. The resolution also converts one detective to a detective sergeant (internal promotion) with an additional annual cost of $7,549, also to be covered from existing departmental funds; staff said recent wage increases have helped recruitment and the department had several offers outstanding.
Votes and next steps: All items were approved without recorded roll-call tallies in the public transcript; staff will proceed with contract administration and incorporate compensation changes into payroll.
