Vermillion City Council Meeting – August 17, 2026

The Vermillion City Council met on Tuesday, August 17, 2026, at 6:00 PM. The meeting included public hearings on a parking lot grant application and a rezoning for a co-housing project, approval of a street closure for a university block party, a cable franchise agreement update, and several administrative items.

Consent Calendar

• Approved minutes from the previous three meetings (including orientation) by unanimous voice vote.
• Approved the consent agenda (including routine invoices) without any items removed.

Public Hearings

Cotton Park Parking Lot Grant Application

• The Council held a public hearing on a resolution to apply for a USDA Rural Development Grant for the Cotton Park parking lot. The project would replace the existing asphalt (built ~1980, damaged by June 2024 floods) with concrete, widen the entrance from 20 to 36 feet, and maintain 63 parking stalls. Total estimated cost is $450,000, with $225,000 potentially covered by the grant and the city’s share from second penny funds. The grant application will be submitted fall 2026, with construction expected in early 2027.
• Council members asked about concrete durability, soil testing, and the need for 63 stalls. Staff explained that concrete will be jointed and reinforced, geotechnical borings were completed, and the extra capacity is needed for existing and future park amenities (pickleball courts, playground, disc golf).
• Motion to adopt the resolution passed by voice vote (all ayes).

Blue Stem Trail Edition Rezoning (Co-Housing Project)

• First reading of an ordinance to rezone ~15 acres on East Crawford Road from R2/NRC to R3 for a senior co-housing development (26 units plus a common house) and townhomes. The property was annexed in March 2026. The Planning and Zoning Commission recommended approval 8–0.
• Council members discussed road extensions (Clark Street), senior housing needs, and parking adequacy. Staff confirmed parking would meet R3 requirements via driveways, garages, and common area spaces.
• Motion to advance the ordinance to a second reading on September 8, 2026, passed by voice vote.

New Business

Mid-American Energy Annual Report

• Sam Wagner, Business and Community Development Manager, reported on gas service in Vermillion over the past 12 months: 167 reported leaks (165 addressed within 60 minutes; two delayed by weather). No major leaks occurred. Staffing and resources remain adequate. The franchise agreement is set to expire at the end of February 2027.
• Council members asked about leak types (mostly pilot lights) and preparedness for future growth. Mr. Wagner confirmed ongoing coordination with city staff. No formal action was taken; the report was informational.

Street Closure for Fraternity/Sorority Block Party

• The Council approved a request from USD Sorority and Fraternity Life to close East Cedar Street (from North Pine to North Plum) on Thursday, September 17, 2026, from 5:00 PM to 9:00 PM (event from 6:00 PM to 8:00 PM with setup/take-down). The event will be dry, include three food trucks, and have cleanup crew. Police, fire, and streets departments had no objections.
• Council members asked about noise; the applicant stated they will use only standard speakers and anticipated compliance with the noise ordinance. Motion to approve passed by voice vote.

Cable Franchise Agreement with Midco (Ordinance 1564)

• First reading of a 10-year extension of the cable franchise agreement with Midco. Key changes: rate cards will be maintained online per FCC Order 621, and the definition of “free cable” is now a credit against franchise fees for three city buildings (City Hall, Service Center, Fire/EMS). The franchise fee remains 5% of eligible revenues ($56,112 in 2025).
• Council members asked about the standard rate (5% is the FCC maximum) and the history of free cable for other entities (schools, senior center) which were eliminated in 2024. Motion to advance to second reading on September 8, 2026, passed by voice vote.

Historic Preservation Commission Appointments

• The Council reappointed Susan Keith Gray and Carson Merkwan to the Historic Preservation Commission. Motion passed by voice vote.

Broadcaster Press Claim

• To address a potential conflict of interest (Council member Lias is an employee of Broadcaster Press), the $2,323.34 claim was listed as an open account claim under new business. The city attorney noted that employment does not constitute a direct interest but allowed abstention. Council member Lias abstained. Motion to approve the payment passed by voice vote.

Electrical Transformer Bid

• The Council awarded a bid for 16 transformers (seven sizes) to RESCO of Moorhead, MN, for a base price of $146,959 and a lifetime evaluated price of $210,405.20. The transformers have a 12–13 week delivery. The purchase is partially unbudgeted but will use Light & Power reserve funds.
• Council members asked about the evaluated price (includes 30-year operating losses) and the need for transformers (replacement and growth). Motion to award the bid passed by voice vote.

Key Outcomes

• Adopted resolution to apply for USDA Rural Development Grant for Cotton Park parking lot.
• Advanced rezoning for Blue Stem Trail co-housing project to second reading (September 8).
• Approved street closure for USD block party (September 17).
• Advanced cable franchise agreement with Midco to second reading (September 8).
• Reappointed two members to Historic Preservation Commission.
• Approved payment of Broadcaster Press claim ($2,323.34) with one abstention.
• Awarded transformer bid to RESCO ($146,959 base).
• Received Mid-American Energy annual report.
• Next regular meeting: Tuesday, September 8, 2026 (due to Labor Day).