Council OKs supplemental appropriation to study motor grader replacement, data center bidding

The Sioux Falls City Council approved a deferred supplemental appropriation on second reading to fund bids for a citywide data center and motor grader procurement, and added a contingency limiting any transfer from the general fund to the fleet fund to the bid‑accepted purchase price up to $8,000,000.

Sean Pritchard, Director of Finance, said the package includes $1,800,000 for a data center at the public safety training facility and up to $8,000,000 to procure motor graders. He told the council staff will issue bid packages that include options for used graders, new graders and leases so the city can compare total cost of ownership and move toward a cyclic replacement schedule.

Pritchard said staff expect the procurement approach to generate roughly $400,000–$500,000 in annualized savings compared with existing arrangements, and emphasized that the appropriation is conditional: "if we do not award the bid, the appropriation will not occur," allowing unspent funds to remain in the general fund.

Councilor Thomason moved an amendment to explicitly limit the transfer from the general fund to the fleet fund to the accepted bid amount up to $8,000,000; the amendment and the main motion as amended each passed 8–0. Council chairing staff said the bid will return to council for award and approval before any funds are spent.

The council also amended the capital program to add the data center and the grader acquisition into the five‑year plan. Staff identified April 2026 as the anticipated timeframe related to grader replacements and said they will return with a recommendation after evaluating bids.