Vermillion City Council Meeting: Awards, Sign Appeal, Utility Fee, and Appointments - January 6, 2026

The Vermillion City Council met on January 6, 2026, to recognize emergency responders for a life-saving cardiac arrest response, hear a proclamation for Martin Luther King Jr. Day, consider an appeal of a building official's sign permit denial, review funding applications for water treatment and landfill projects, and address a utility service fee request from a mobile home park. The council denied the sign appeal and the utility fee increase, approved several resolutions for financial assistance, appointed a new member to the Historic Preservation Commission, and named an interim city finance officer.

Awards and Proclamation

• Chief Brady and Dispatch Center’s Ryan Anderson presented unit citation and life-saving awards to multiple public safety personnel—including officers, dispatchers, and EMS—for their coordinated response to a sudden cardiac arrest on October 18, 2025. The patient, who survived, was present. The community was previously designated a Cardiac Ready Community by the South Dakota Department of Public Health.
• Aaron Burrow from the Human Relations Commission read a proclamation declaring January 19, 2026 as Martin Luther King Jr. Day in Vermillion, calling for service and reflection.

Public Hearing: Funding Proposals

• Sean Hege of Southeastern Council of Governments presented two applications submitted to the South Dakota Department of Agriculture and Natural Resources (DANR) on December 30, 2025:
  • Landfill cell 7 construction and partial closure of cells 2, 3, 4: Requesting up to $2.8 million in combined loan/grant/forgiveness. A 100% loan would require annual payments of about $338,000 over 10 years.
  • Water treatment plant improvements: Requesting up to $1.15 million in additional drinking water funding. Surcharge impacts range from $0.35 to $1.38 depending on the grant/loan mix.
• No public testimony was offered on these items.

Appeal of Building Official’s Denial of Sign Permit

• Building Official Alex Goodburn explained that a permit for a 144 sq. ft. electronic sign at 1405 East SD Highway 50 was approved on October 14, 2025. The applicant later requested a larger sign (288 sq. ft., 24 ft. x 12 ft.), which exceeded the maximum allowed by code (160 sq. ft. in heavy industrial zones). The appeal claimed the code provisions do not fully apply because the state DOT approved the larger size.
• Eric Vanderskaff (DKO Digital Signs) and Dave Hertz (property owner) argued for the larger sign, citing higher traffic speeds and a similar existing sign to the west. Jim Peterson (Chamber & Economic Development) suggested the city consider larger signs along Highway 50.
• Council discussion highlighted that the code cannot be bypassed via a variance and that the appropriate path is a legislative amendment. Councilor Hellwig noted the existing 288 sq. ft. sign may have been an administrative error. The council voted to deny the appeal, with the understanding that ordinance revisions could be considered in future meetings (possibly as early as January 20 noon meeting).

Consent Agenda

• Approved unanimously: payment of invoices, acceptance of field quotes, and a request to close West Kidder Street from Court Street to the alley between Court and Market on February 14, 2026 (8 a.m. to 4 p.m.) for the Vermilion Polar Plunge benefiting Special Olympics South Dakota.

New Business: Resolutions for Financial Assistance

• Landfill cell expansion and closure (Resolution): Authorized the application for a $2.375 million Clean Water SRF loan (10 years at 3.5%) and a $655,000 Solid Waste Management Program grant. Designated the mayor and city manager as authorized representatives. Approved unanimously.
• Water treatment facility improvements (Resolution): Authorized an additional loan not to exceed $1,015,000 from DANR (30 years at 3%) to cover cost overruns on the existing $7 million SRF loan. The original loan was awarded in March 2023; the distribution project cost $1,282,305.75. Approved unanimously.

New Business: Utility Service Fee Request (Vermillion MHP LLC)

• City Manager Shane reported that Vermillion Mobile Home Park, previously authorized in 2021 to pass a $7 service fee plus water/sewer costs, requested an additional $10 fee (total $17/month per unit). Investigation revealed overcharges to tenants (e.g., water billed at $93 instead of ~$30) and unauthorized fees. City staff recommended denial.
• Councilors Holland and Hellwig expressed concern about transparency and the city’s reputation. The park had used one-time capital costs to justify an ongoing fee. The council voted to deny the request (motion by Councilor Lieber, second by Cheesman). City staff will consider requiring future agreements to clearly separate utility charges from other fees.

New Business: Historic Preservation Commission Appointment

• Aaron Byers was appointed to fill a vacancy (term expiring September 2027). Byers resides in the Forest Avenue Historic District, has previous commission experience, and remodeled a historic home. Approved unanimously.

New Business: Professional Services Agreement with Burns & McDonnell

• Approved a contract for $116,000 for engineering services including surveying, design, and bid administration for constructing Landfill Cell 7 and partially closing Cells 3, 4, and 5. The project is needed by summer 2027. Funding is from the Joint Powers Landfill Fund. Approved unanimously.

New Business: Appointment of Interim City Finance Officer

• Following the resignation of Finance Officer Katie Redden (effective January 9, 2026), the council appointed Deputy Finance Officer Nick Doughty as interim finance officer. Councilor Toller abstained due to a familial relationship. Compensation will be discussed in executive session. The council expressed appreciation for Redden’s nine years of service.

City Manager’s Report

• Christmas tree collection site open through January 12. Upcoming meetings: Human Relations Commission (Jan 8), Historic Preservation Commission (Jan 14), Planning and Zoning Commission (Jan 12) – agenda includes a conditional use permit for a fuel dispensing station at Highway 50 and Princeton Street. City offices closed January 19 for MLK Day; next city council meeting January 20. USD nadatorium public swim opportunities available (next: Jan 6, 5-8:30 p.m., $3). One vacancy on Human Relations Commission (term expiring May 2027); applications due January 22.

Key Outcomes

• Sign appeal denied (motion 7-0, with Councilor Toller abstention noted on related matter; actual vote all in favor). Council will consider ordinance amendments to allow larger signs on Highway 50.
• Utility service fee increase denied (motion carried). City staff to work on transparency requirements for future agreements.
• Financial assistance resolutions for landfill and water treatment approved.
• Aaron Byers appointed to Historic Preservation Commission.
• Burns & McDonnell contract approved ($116,000).
• Nick Doughty appointed interim finance officer.
• Consent agenda and prior minutes approved.