Vermillion City Council Regular Meeting - October 5, 2026

The Vermillion City Council met in regular session at 6 p.m. on October 5, 2026. The meeting included proclamations, a public hearing on nuisance abatement special assessments, second reading of a zoning ordinance, planning for data center ordinances, approval of utility and equipment resolutions, board appointments, and an introduction of the 2027 budget. Most votes were voice votes; the zoning ordinance was approved by a 7-0 roll call.

Opening and Consent Calendar

• The council approved the previous meeting's minutes as written and accepted the agenda as written.
• No consent agenda items were removed; the consent agenda was approved as written.

Proclamations

• The Vermillion Human Relations Commission proclaimed October 2026 as National Arts and Humanities Month, recognizing local cultural organizations and events. A council member noted that Latino Hispanic Heritage Month is also observed from September 15 to October 15, with a theme translated as "Together We Are More."
• The council proclaimed October 4-10, 2026 as Fire Prevention Week under the theme "Charge into Fire Safety: Safe Charging is a Superpower." Fire Marshal Matt spoke about lithium-ion battery fire risks, safe charging, and proper battery disposal at the annual hazardous waste drop-off.
• The council proclaimed October 4-10, 2026 as Public Power Week, honoring the City of Vermillion Light and Power Department, a community-owned utility created in 1915.

Public Comments & Testimony

• During the nuisance abatement public hearing, Larry Brady, trustee for the Susan French Trust, objected to a $169 assessment on a property he said was a flower garden. He stated he spent about $3,500 on seed and that the first bloom was mowed down on July 14, 2025, preventing later blooms. He argued the city's ordinance exempts flower gardens and asked the council to abate the bill and not mow the property in the future. City code enforcement staff responded that the property had become overgrown and weed-dominated at the time of cutting and that the city incurred contractor costs.
• Caitlin Collier, 917 Eastgate Drive, spoke about the data center ordinances, warning that some concerns repeatedly raised by the public at Planning and Zoning Commission meetings were not reflected in the ordinances. She urged the council to study the materials thoroughly so they would be prepared to answer questions at the public hearing.

Discussion Items

• Nuisance abatement special assessment roll: Staff explained that assessments were for weed/grass mowing and nuisance cleanup costs, that notices were published and mailed, and that unpaid assessments become liens on the property. The council discussed whether to postpone the French Trust assessment until photographic evidence could be reviewed. The council then approved the resolution as written while postponing only the French Investments LLC assessment.
• Ordinance 1576 - Rezone from R1 to R3: This was the second reading of an ordinance requested by Kyle Den LC for property west of North University, bounded by USD property. No public comment was received. A council member asked about R1 versus R3; staff explained R3 is the densest residential district. The ordinance passed 7-0 by roll call.
• Data center ordinances - timing and next steps: The mayor explained that the Planning and Zoning Commission had submitted six data center ordinances and that a public hearing must be scheduled before the first reading. Staff offered options including scheduling first reading on October 19, sending the ordinances to a committee, or holding an educational session. Several council members supported a full council educational session rather than a committee review, saying the Planning and Zoning Commission had already done substantial work and that the council should not overstep it. The council directed the city manager to schedule an informational session at the next available Monday noon meeting that does not conflict with budget work or the landfill tour.
• MRES S1 agreement amendment: Staff reviewed the supplemental power agreement with Missouri River Energy Services. WAPA provides about 54% of the community's electricity, with MRES supplying the remainder. The amendment extends the agreement from 2057 to 2067, adds environmental attribute provisions, and adjusts the option to cap purchases. The council approved the resolution authorizing the mayor to execute the amended agreement.
• Application fee revisions: Staff proposed raising annexation, variance, and vacation request application fees from $75, $150, and $100 respectively to $175 each, citing cost recovery and comparison with other South Dakota cities. The council approved the resolution.
• Digger derrick truck purchase: Staff recommended purchasing a new 2029 Altec DT85E digger derrick truck for $685,966 to replace a 2013 Terex Commander 6051. The purchase would use $290,000 from the equipment replacement fund, with the remaining approximately $396,000 funded by increasing Light and Power equipment rent payments by $113,000 in 2027, 2028, and 2029. Staff said ordering now locks the price and avoids an estimated 5-7% annual escalation. The council approved the purchase resolution.
• Hangar lease agreement with Vermillion Flying Service: The city had a lease dating to 1977 and a current 1986 agreement with two 15-year extension options. The council approved the second 15-year extension, extending the term through October 11, 2041 at the existing $10 per year rate. Staff noted newer city leases are generally 15 cents per square foot, which would equate to about $4,521 per year for this space.
• Board appointments: The council reappointed Aaron Badke to a two-year term on the Tree Board and appointed Connor Jensen to a one-year Tree Board term. The council also appointed Patrick Morrison to Business Improvement District Number Two.
• 2027 budget: The city manager presented the proposed 2027 budget, noting flat sales tax compared with the same months in 2025, major water and wastewater treatment plant projects, completion of the Light and Power building, and equipment replacement funding. A budget review session was scheduled for Thursday, October 22, 2026. No formal budget action was taken.
• City manager's report: Upcoming items included city office closure on October 12 for Native American Day, a public power lunch on October 9, a Historic Preservation Commission meeting on October 14, a Fire/EMS/Police open house on October 14, a joint city-county meeting on October 19, and a temporary Walker Street closure on October 13 for chiller replacement. Board vacancies remain open for the Business Improvement District and Vermillion Housing Authority.

Key Outcomes

• Approved the nuisance abatement resolution with the French Investments LLC assessment postponed for later review.
• Passed Ordinance 1576 on second reading by a 7-0 roll call vote.
• Authorized the mayor to execute the MRES S1 agreement amendment extending the supplemental power agreement to 2067.
• Raised application fees for annexation, variances, and vacation requests to $175 each.
• Approved the purchase of a new digger derrick truck for $685,966.
• Approved the 15-year hangar lease extension with Vermillion Flying Service through October 11, 2041.
• Appointed Aaron Badke, Connor Jensen, and Patrick Morrison to city boards.
• Directed staff to schedule a data center ordinance educational session at the next available Monday noon meeting.
• Received the 2027 budget proposal and scheduled a budget review session for October 22, 2026.