HomeMy WebLinkAboutUtilMinutes_2024_05_13Municipal Utilities Board May 13, 2024
City of Brookings
The regular meeting of the Municipal Utilities Board was held at 1:00 p.m. on Monday,
May 13, 2024, at the Utility building with the following members present: Bartels, Carruthers,
Hawley, President Harvey and City Council Liaison Avery. Absent Hansen.
ADOPTION OF AGENDA
The agenda was adopted.
MINUTES
Minutes of the regular meeting held April 8, 2024, April 22, 2024 and April 30, 2024,
were read and approved. All members present voted in favor of the motion.
APPROVAL OF BILLS AND CLAIMS
Motion was made by Hawley, seconded by Carruthers that the following bills and claims
be approved. All members present voted in favor of the motion.
ABRA Autobody & Glass of Brookings, Vehicle Maintenance, $70.00; Advanced Elements
Operational Technology LLC, Software Maintenance, $8000.00; Agwrx Cooperative,
Supplies/LP, $6232.70; Allegra, Printed Supplies, $3756.03; Appeara, Supplies, $200.98; AT & T
Mobility, PCS Phone Service, $3913.53; Atlas Copco Compressors LLC, Equip Maintenance,
$62.28; Aureon Network Services, LNP Fees, $120.00; Auto Pro SD LLC, Supplies, $49.00;
Avera Occupational Medicine-Mitchell, Drug Screening, $51.00; Badger Communications,
Systems/Cabling Inv, $84.92; Bally Sports North, Contract Fee, $8777.50; Bendix Inc.,
Printer/Copier Maintenance, $574.96; Blooston, Mordkofsky, Dickens & Prendergast, LLP,
Legal Service, $698.25; Bluefin Payment Systems, Credit Card Processing Fee, $12464.71;
Bobcat Of Brookings, Supplies/Equipment Rental, $547.98; Border States Elec Supply, Supplies,
$16909.68; Border States Elec Supply, Systems/Cabling Inv, $104.89; Brech, Andrew, Travel,
$47.20; Brookings Auto Mall, Vehicle Maintenance, $754.06; Brookings County Finance Office,
License, $26.70; Brookings Credit Bureau & Collection Agency, Delinq. Account Collection,
$142.35; Brookings Dumpster Service, Sanitation Service, $539.72; Brookings Engraving,
Supplies, $13.50; Brookings Municipal Utilities, Office Utility Bill, $52982.49; Brookings
Municipal Utilities, Petty Cash, $192.00; Brookings Radio, Advertising, $480.00; Buhls Dry
Cleaners & Linen Supply, Rug/Supplies, $185.10; Builders FirstSource, Supplies, $27.20;
Business Track, Credit Card Processing Fee, $8818.51; Calix Inc., Framework Annual License,
$9072.77; Card Connect, Credit Card Processing Fee, $9301.54; Carquest Auto Supply, Work
Equip Maintenance/Supplies, $1052.23; Carus LLC, Chemicals, $10164.00; CDW Government
Inc, Computer Supplies, $335.56; Century Link, Telephone Expense, $118.29; City of
Brookings, Contract Fee, $7240.82; City of Brookings Landfill, Landfill Fee, $53.98; Click
Rain, Website Development, $525.00; CNA Surety, Notary Bond, $50.00; Connections Inc, EAP
Service, $1025.82; Cooperative Network Services, LLC, Consulting Fees, $437.50; Core &
Main, Supplies, $4197.63; Courtesy Plumbing Inc., Repair/Supplies, $474.05; Creative Printing
Inc., Printed Materials, $285.00; Crescent Electric Supply, Supplies, $1419.34; Culligan of
Brookings, Bottled Water, $66.00; Cummins Inc, Generator Maintenance, $561.08; Dakota
Service & Repair, Supplies, $37.30; Dakota Supply Group, Supplies, $26712.28; Dakota Supply
Group, Systems/Cabling Inv, $2207.82; Dept Of The Treasury, Federal Tax, $6144.09; DHE,
LLC, Maintenance Fee, $996.63; Ditch Witch UnderCon, Supplies/Work Equip Maint,
$3649.42; Double K Sales & Detailing LLC, Work Equipment Maintenance, $317.05; Drexler,
Brian, Travel, $120.30; Eide Bailly LLP, Audit Fee, $6000.00; Einspahr Auto Plaza, Vehicle
Maintenance, $89.75; Electroswitch, Supplies, $768.39; Fastenal Company, Supplies, $5239.48;
First Bank & Trust - Visa , Supplies, $1264.72; Fix It Shop Locksmith, Supplies, $200.00;
Flagshooter, Flags, $1183.14; Foerster Supply Inc, Supplies, $751.50; Franz Reprographics,
Plotter Maintenance, $150.00; Frontier Precision Inc, Supplies, $805.50; G & R Controls,
Equipment Repair/Supplies, $449.00; Golden West Technologies Inc., Tech Support, $2587.24;
Grainger, Supplies, $1859.68; Graybar Electric Company, Supplies, $7157.09; Graybar Electric
Company, Systems/Cabling Inv, $120.93; Great Northern Environmental, Supplies, $1368.40;
Gridor Const., Inc., Water Treatment Plant, $2076794.00; Hach Chemical Company, Supplies,
$4647.44; Halgerson, Russ, Travel, $60.30; Henkin Schultz Comm Arts, Communications
Consultant, $7752.50; Hillyard/Sioux Falls, Janitorial Supplies, $807.22; Hiltunen, Trent, Travel,
$53.10; Hireclick-Keloland Employment, Employment Advertising, $309.00; Homestead Do It
Center, Supplies, $3757.35; ICIMS Inc, Subscription Fees, $759.00; Infinite Welding &
Machine, Labor/Supplies, $151.60; Innovative Systems, Software/Hardware Maintenance,
$21900.00; Interstate All Battery Center, Supplies, $780.00; Interstate Telecommunications
Cooperative, Telephone Expense, $346.70; Jackrabbit Tire Company, Work Equipment
Maintenance, $74.08; Jenne, Inc, Systems/Cabling Inv, $6835.38; Jimmy Johns #926, Meeting
Supplies, $248.38; John Deere Financial, Supplies, $25.10; Kleinemas, Jason, Travel, $120.30;
Kuechenmeister, Mark, Travel, $47.20; Lake County International Inc., Work Equipment
Maintenance, $324.18; Lewis Drug Inc, Supplies, $136.91; Loban, Darin, Travel, $64.90; Lower,
Bill, License, $50.00; Lowe's, Supplies, $1696.12; Lowe's, Systems/Cabling Inv, $93.10; Lumen,
Telco Settlement, $272.22; Mack, Brayton, Travel, $17.70; Mack, Scott, Travel, $1177.97;
Martin's Inc, Diesel/Oil, $1571.30; Matheson Tri-Gas Inc, Supplies, $261.15; McClain, Tyson,
Travel, $82.60; Mediacom LLC, Broadband Service, $89.95; Midcontinent Comm., Broadband
Service, $75.04; Midcontinent Comm., Contract Fee, $793.25; Midwest Glass LLC, Supplies,
$104.26; Millennium, Fiber Distribution Hub In Pedestal, $5675.75; Millennium, Fiber Optic
Splitter, $2315.75; Moss Adams LLP, Consulting Service, $1350.00; MVTL Laboratories Inc.,
Wastewater Analysis, $533.40; Napa Auto Parts, Supplies, $297.69; NCTC, TV Programs Fee,
$22794.00; Nexstar Broadcasting, Inc., Contract Fee, $12937.09; North Central International,
Inc., Equipment/Maintenance, $396.40; Northern Truck Equipment, Service Body Chevy 2500,
$30980.00; Northwestern Energy, Natural Gas, $3234.82; NRECA, Publication, $72.00; Office
Peeps Inc, Supplies, $1903.25; One Source - The Background Check Company, Employee
Verification, $36.00; OneNeck IT Solutions LLC, Hardware Maintenance/Supplies, $2843.32;
O'Reilly, Supplies, $10.99; Outlaw Graphics, Supplies/Decals, $90.00; Party Depot, Employee
Recognition Banquet, $977.55; Pete Lien & Sons Inc, Chemicals, $5112.24; PFC Equipment,
Inc., Supplies, $3235.39; Prunty Construction Co, Inc, Raw/Treated Water Pipelines,
$405086.13; Prussman Contracting Inc, Main Repair/Equipment Rental, $2732.07; Quadient,
Inc., Postage Meter Rental, $832.00; Ramsdell F&M Ltd., LP Fill, $84.06; Resco, Supplies,
$5601.50; Runnings, Supplies, $5351.76; Runnings, Systems/Cabling Inv, $119.94; Scales Plus,
Supplies, $855.33; Schaffer Law Office, Prof. LLC, Legal Service, $875.00; Schomp's
Mechanical Services, Labor/Supplies, $3655.45; Schoon's Pump N' Pak, Vehicle Gasoline,
$7351.81; SD Dept of Environ & Nat, Certification, $60.00; SD Dept of Health Lab Remit
Center, Testing W-WW Samples, $921.00; SD Dept of Public Safety, Inspection, $320.00; SD
Dept of Rev, Enhanced 911, $8446.37; SD Public Utilities Comm, Gross Receipts Tax,
$5800.31; SD State Treasurer, Communication Impaired Fee, $1853.90; SD Telecom
Association, Registration, $11943.00; SD Treasurer, Sales/Excise Tax, $162443.55; SDN
Communications, Circuit Lease, $21962.18; Sioux Falls Utilities, Utility Bill, $39.72; Sioux
Valley Energy, Dispatching Service, $1100.00; South Dakota Newspaper Services. Inc,
Employment Advertising, $3782.00; South Dakota One Call, Locate Fee, $313.95; South Dakota
Public Assurance Alliance, General Liability/Property Ins, $163.89; Springbrook, Credit Card
Processing Fee, $2461.68; Springbrook Holding Company LLC, Software Support, $6566.00;
Sprint PCS, PCS Phone Service, $53.92; Stan Houston Equipment Co Inc, Supplies, $447.50;
Steege, Diana, Travel, $406.66; Stoltenberg, Sandra, Tree Damage, $2991.32; Stuart C. Irby,
Supplies, $2461.00; Sturdevant's Auto Value, Supplies, $785.60; Swanson, Todd, Travel, $78.00;
Swiftel Communications, Office Phone Bill, $128477.80; Teledynamics, Systems/Cabling Inv,
$73.32; The UPS Store, Freight, $945.09; Thermo Fisher Scientific (Asheville) LLC, Supplies,
$295.94; Thompson, Ryan, Travel, $119.30; Traffic Control Corp, Supplies, $612.00; United
Parcel Service, Freight, $50.70; United States Postal Service, Postage, $9000.00; Universal
Service Adm. Co, USAC Contribution, $30743.35; USA Bluebook, Supplies, $3194.63;
Vanderwal, Todd, Travel, $17.70; Vantage Point Solutions Inc., Engineering Consulting,
$3055.00; Vermeer High Plains, Supplies, $537.75; Volkers, Matt, Travel, $82.60; Walker &
Associates Inc, Supplies, $408.00; Wesco, Supplies, $1162.40; Wesco, Transformers,
$267028.00; WW Tire Service Inc, Work Equipment Maintenance, $53.07; Xcel Energy/NSP,
Utility Bill, $9.74; Artz, Brian, Telephone Refund, $8.29; Bachar Lawn Care & Landscaping,
Telephone Refund, $797.19; BLEVINS, AUTUMN, Refund Check, $5.54; Bucher, Justin,
Telephone Refund, $13.18; Claires Boutique's Inc, Telephone Refund, $39.59; Crawford, Paul,
Telephone Refund, $52.11; Dingmann, Reygan, Telephone Refund, $3.51; Edgewood Vista
Assisted, Living & Memory, Telephone Refund, $191.16; Elkton Electric, Telephone Refund,
$135.60; Fjeldos, Larry, Telephone Refund, $52.60; FRYER, CAROL & JAMES, Refund Check,
$60.30; Fuhrman, Chaz, Telephone Refund, $59.62; Giese, Wyatt, Telephone Refund, $47.89;
Hegerfeld, Jackson, Telephone Refund, $6.80; HELLKAMP, REGINALD, Refund Check,
$21.78; Herrera, Johnny, Telephone Refund, $191.67; Higgins, Bertha, Telephone Refund,
$23.92; INNOVATION ENTERPRISE, Refund Check, $51.26; Jorenby, Arlys, Telephone
Refund, $3.08; Koltiska, John, Telephone Refund, $45.31; Kramar, Susan, Telephone Refund,
$20.75; Larson, Brad, Conserve/Demand Incentive, $25.00; Lounsbury, Brad, Telephone Refund,
$113.31; Meier Visual Clinic, Telephone Refund, $135.60; MORGAN, JENNIFER, Refund
Check, $101.38; Morrill, Ruth, Telephone Refund, $28.79; Mullen, Kristian, Telephone Refund,
$76.07; Myhre, Owen, Telephone Refund, $39.98; Northern Directional LLC, Telephone
Refund, $101.64; Pepe, Rozina, Telephone Refund, $106.52; Prussman Contracting Inc,
Conserve/Demand Incentive, $302.94; R & B PROPERTIES LLC, Refund Check, $40.17;
Rickard, Nathan, Telephone Refund, $21.03; Roth, Cassie, Telephone Refund, $45.08;
SHAFFSTALL, BETHANY, Refund Check, $527.70; Shank, Boyd, Telephone Refund, $107.01;
Too' Shay Tack, Telephone Refund, $135.60; Weber, Sarah, Conserve/Demand Incentive, $25.00;
Wieczorek, Terry, Telephone Refund, $70.14; Wilkinson & Schumacher Law Pro. LLC,
Telephone Refund, $580.80; Williams, Zakera, Telephone Refund, $235.81; Wilson, Alexis,
Telephone Refund, $77.15; YOST, AMY, Refund Check, $107.32.
PERSONNEL INFORMATION
Department Salaries (April): Electric, $243,532.52; Water, $123,702.64; Wastewater,
$120,297.62; Telephone, $318,005.38; Retirement, $46,977.02; Social Security, $57,571.17;
Insurance, $105,526.85; Deferred Comp, $15,207.18.
Salary Changes: J. Reller, $29.30; T. McClain, $32.55; T. Rymerson, $29.30
New Employee: V. Munson, $27.13; C. Tvinnereim, $20.26 A. Landsman, $25.57; W. Lower,
$25.57; S. Schulte, $19.18.
PUBLIC HEARING ON THE PROPOSED REAL ESTATE EXCHANGE AGREEMENTS
A public hearing was held on the proposed Real Estate Exchange Agreements.
Steve Meyer, Executive Vice President/General Manager, presented the history of the 6th
Street Water Tower property.
1. Decision to retire 6th Street and 4th Street water towers and construct a new water tower
at the 4th Street site. This decision provided more combined capacity and less
maintenance.
2. Decision to retain Swiftel’s utility/communication tower capability to cover the entire
city of Brookings by constructing a new utility/communications tower.
3. Decision to relocate the new utility communication tower to enable potential better use
of the 6th street water tower site.
4. BMU, through its attorney, was unable to purchase property for the new
utility/communication tower site that would meet BMU’s and its existing tower tenants
radio propagation requirements.
5. BMU hired Century 21 realtor, Ryan Krogman, to help BMU purchase property for the
new tower.
6. The realtor found GCS Holdings LLC who was/is interested in a property exchange.
7. Documents have been drafted for the exchange of property per SDCL 9-27-34.1.
8. Property exchange documents include contingencies such as inspections, environmental
studies, federal regulatory approvals, local planning and zoning approvals, public
hearing, appraisals, and IRS compliance were prepared.
Curt Kabris, Swiftel Operations Manager, discussed the following benefits of relocating
the Swiftel Utility/Communication Tower
1. Swiftel is the municipally owned communication company. Wireless technology has
served as a beneficial communication enhancement for the citizens of Brookings. The
antenna coverage placed on the BMU water towers has provided Swiftel and other
communications companies with an option for wireless communication throughout the
entire city of Brookings. Swiftel wants to replace the antenna coverage lost with the
removal of the 6th street water tower. Wireless technology is expected to continue to fill
necessary communication needs in Brookings.
2. Construction of the 6th Street water tower started in 1948 and has served Brookings well
until replaced and scheduled for demolition after the utility and communication antennas
are relocated. It is believed that constructing a utility/communications tower at the 6th
Street water tower site would not be the best use of this property. Swiftel searched for
property with suitable radio signal propagation and efficient fiber optic network
relocation characteristics. The proposed site fits those characteristics.
3. The proposed site is necessary for the two cellular carriers and the City of Brookings,
who is currently using the 6th water tower site to adequately cover the University and the
other neighborhoods nearby.
4. Limiting the number of towers in a city is always desired. If the proposed site is not used,
it is likely that it will take several additional towers in Brookings to meet the coverage
needed.
5. The new tower site owned by Swiftel will be providing wireless communication at no
charge as we have in the past (Street Dept, Landfill and BMU).
Ryan Krogman presented the market analysis he conducted to support the sales and
purchase values agreed upon between BMU and GCS. Ryan stated that his analysis used the
historical sales transactions that had recently occurred on 6th Street and near the BMU water
tower site property. The costs per square foot of the historical sales supported the value to be
received by BMU for the water tower site. The value per square foot of the GCS property was
reduced relative to the value of the water tower site because it is not located directly on 6th Street,
its lower elevation than the adjacent property on 6th Street and for the small size of the parcel.
Steve Britzman stated that he has been a long time property owner and resident of
Brookings that he was familiar with the property being exchanged and aware of the development
happening on 6th Street and understood and agreed with Ryan Krogman’s analysis. Steve stated
the properties were correctly valued.
Carol Pitts confirmed with Swiftel staff that the Board of Adjustment and Planning
Commission had approved the conditional use permit for a communications tower, variances for
lot area and width and setback. Carol shared that she was aware of the applicable state statutes
and concurred that the properties were properly valued.
Don McCarty, BMU legal counsel, prepared the necessary Real Estate Exchange
Agreements in accordance with SDCL 9-27-34.1.
No written comments were received. The public hearing closed.
REAL ESTATE EXCHANGE
Motion was made by Bartels, seconded by Hawley that the Board approve the appraised
value of the real estate exchange per SDCL 9 -27-34.1 as presented in the public hearing. All
members present voted in favor of the motion.
REAL ESTATE EXCHANGE AGREEMENTS
Motion was made by Hawley that the following Resolution No. 15-24 be approved.
RESOLUTION NO. 15 – 24
RESOLUTION APPROVING LAND EXCHANGE AGREEMENTS
WHEREAS Brookings Municipal Utilities (BMU) desires to acquire property for
a Utility/Communications Tower; and
WHEREAS GCS Holdings, LLC is willing to be a party to an Agreement for an
exchange of land currently owned by BMU for land upon which the new
Utility/Communications Tower will be located; and
WHEREAS a Public Hearing, upon due notice, having been conducted on the 13th
day of May, 2024, as required by the provisions of SDCL 9-27-34.1; and
WHEREAS the Board having been presented with a draft Real Estate Exchange Agreement; and
WHEREAS the Board finding that the appraisal of the properties to be exchanged
are realistic and reasonable, and the proposed exchange is in the best interest of BMU.
NOW, THEREFORE, BE IT RESOLVED that the Brookings Municipal Utilities
Board approves entering into the Real Estate Exchange Agreement with GCS Holdings,
LLC, and related Real Estate Purchase Agreements detailing the terms of the respective
Agreements for the purchase and sale of the exchanged tracts of land.
BE IT FURTHER RESOLVED by the Brookings Municipal Utilities Board that the President
of the Board and/or Executive Vice President/General Manager be hereby authorized to
execute the approved contracts and any related documents necessary to facilitate the proposed
transaction.
Adopted this 13th day of May, 2024.
ATTEST:
_______________________________ ________________________________
Seth Hansen, Secretary Tim Harvey, President
The motion was seconded by Carruthers. All members present voted in favor of the
motion.
QUARTERLY FINANCIAL REVIEW
Laura Julius, Financial & IT Manager, presented a quarterly financial review of first
quarter 2024.
FIRST READING OF WATER IRRIGATION RATE REVIEW
The proposed rate increase for water irrigation rate service was reviewed. Motion was
made by Hawley, seconded by Carruthers to approve the first reading of the proposed rate
increase for irrigation water rates. All members present voted in favor of the motion.
SURPLUS EQUIPMENT TO BE SOLD – EAST WATER PLANT CONVEYOR
Motion was made by Carruthers that the following Resolution No. 16-24 be approved.
RESOLUTION NO. 16 - 24
RESOLUTION ORDERING DISPOSITION OF SURPLUS
EQUIPMENT TO BE SOLD
WHEREAS the city of Brookings Municipal Utilities owns property
which is no longer necessary, useful or suitable for municipal purposes; and
WHEREAS said property is as follows:
East Water Plant Conveyor -18” Wide by 30’ Long, N-Series Belt
Conveyor with support, 2HP, 460 VAC, 3 Phase, 60 Hrz Drive and &
Power Feeder as manufactured by Chantland
NOW, THEREFORE, BE IT RESOLVED by the Brookings Municipal Utilities
Board that the Board hereby orders that the above referenced property be declared surplus
equipment to be sold in accordance with the provision of SDCL 6-13.
Adopted this 13th day of May, 2024.
ATTEST:
________________________________ ______________________________
Seth Hansen, Secretary Tim Harvey, President
The motion was seconded by Hawley. All members present voted in favor of the motion.
BIDS
AWARDING OF BIDS
LEAD SERVICE LINE REPLACEMENT
Prussman Contracting Inc. $ 915,492.70
Austreim Excavating LLC $1,096,678.93
Meyer Services Inc. $1,343,477.40
Motion was made by Carruthers, seconded by Hawley that the low bid of Prussman
Contracting Inc. in the amount of $915,492.70 for the Lead Service Line Replacement be
approved contingent upon the approval of the South Dakota Department of Agriculture and
Natural Resources; and that, after reviewing the contract for the above bid, that the President of
the Board and/or Executive Vice President/General Manager be authorized to execute the
approved contract documents. All members present voted in favor of the motion.
EXECUTIVE SESSION
Motion was made by Carruthers, seconded by Hawley that the Board adjourn to an
executive session for the purpose of discussing personnel. All members present voted in favor of
the motion.
The Board reconvened in open session.
ADJOURNMENT
The meeting adjourned.
ATTEST:
______________________________ _____________________________
Seth Hansen, Secretary Tim Harvey, President