CITY COMMISSION ROOM

                                                                                                PIERRE, SOUTH DAKOTA

                                                                                                July 3, 2012

The City of Pierre regular session on July 3, 2012 at 5:30pm with Commissioners Goodman, Harding, Huizenga, Mehlhaff and Mayor Gill present for roll call. Bob Voeltz, Gordon Koch, John Hines, John Knox, Denis & Ellie Richards, and Garry Webber signed the guest register.

The Pledge of Allegiance was recited followed by an invocation.

The Agenda was approved as posted.

This being the first meeting with the newly elected Commissioners, Judge John Brown administered the Oath of Office to Commissioner Jamie Huizenga and Commissioner Jim Mehlhaff.

Mayor Gill presented the Commission Assignments as follows:

Steve Harding-President to serve in the Mayors absence. – Public Safety (Police-Fire)

Committees:  Ambulance Committee, 911 Committee, Central SD Enhancement District

Jim Mehlhaff – Public Utilities (Water, Street, Sewer, Electric)

Committees:  Library Board, Expo Board

Jeanne Goodman – Parks and Recreation (Parks, Recreation, Cemetery, Golf, Aquatic Center, Swimming Pool)

Committees:  Discovery Center, Park Board, Golf Board, Deer Management

Jamie Huizenga – Engineering (Engineering Administration, Airport, Landfill, and Garbage)

Committees:  PEDCO, River Cities Transit

Mayor Gill – Finance (Business Office, Human Resources, Oahe TV, Public Buildings)

Committees:  Chamber Board, Capitol Complex Beautification Commission, Capital University Center Board, Oahe TV Board

Mayor Gill moved and Commissioner Harding seconded to approve the Commission Assignments as presented. Unanimous approval.

Commissioner Mehlhaff moved and Commissioner Huizenga seconded to approve the consent calendar which consisted of 1) Minutes- Regular Meeting June 26, 2012; 2) Claims. Unanimous approval.

John Irvine, Building Official, presented an overview of the Contractor Licensing Ordinance. The Ordinance was introduced on May 8^th and given first reading on June 19^th. He explained that he has not received any negative comments, only a few clarification questions. John explained that a few changes were made between introduction and first reading regarding the administrative appeal process where “Building Official” was replaced with “City of Pierre”. The Ordinance is actually sponsored by and being brought forward by the Contractors of Oahe Home Builders Association. It provides protection for the consumers. The contractors would be licensed through the City like other electricians, plumbers, etc. Jim Glover commented that his experience is that consumers don’t realize there is no licensing required by the City or State. Commissioner Huizenga moved and Commissioner Mehlhaff seconded to give second reading to and adoption of Ordinance 1706 AN ORDINANCE AMENDING SECTION 11-2-111 OF ORDINANCE NO 1265 OF THE CITY OF PIERRE, HUGHES COUNTY, SD, RELATING TO THE ADOPTION OF AN ORDINANCE TO PROVIDE FOR THE LICENSING OF RESIDENTIAL CONTRACTORS. Unanimous approval.

Brad Palmer, Utilities Director, provided a brief overview of the proposed Ordinances regulating Small Wind Energy Systems. The Ordinance was introduced on June 5^th and given 1^st reading on June 26^th. Brad explained that the ordinances would identify the types, sizes, and location of systems that would be allowed, provide regulations for interconnection with the City’s Electric Utility, and provide an opportunity for neighbors to provide input. The request would require a conditional use permit, which will begin the process for the request which would first go to the Planning Commission and then to the City Commission for approval. There is also a Resolution that adopts the Distributed Generation Workbook related to interconnection and power purchase by Pierre Municipal Utilities. This workbook is provided and required by Missouri River Energy Services. Commissioner Mehlhaff moved and Commissioner Goodman seconded to give second reading to and adoption of Ordinance 1694 AN ORDINANCE ADDING SECTION 12-2-124 TO ORDINANCE 1265 OF THE CITY OF PIERRE, HUGHES COUNTY, SD, TO REGULATE THE PLACEMENT AND USE OF SMALL WIND ENERGY SYSSTEMS (SWES). Unanimous approval. Commissioner Mehlhaff moved and Commissioner Goodman seconded to approve Resolution #2472.

Resolution #2472

WHEREAS, the Public Utilities Regulatory Policy Act of 1978 (PURPA), as amended, requires a utility to buy power and sell power to Qualifying Facilities (QF),

WHEREAS, PIERRE MUNICIPAL UTILITIES (PMU) and MISOURI RIVER ENERGY SYSTEMS (MRES) filed a Petition of Waiver, which specifies the obligation of PMU and MRES to a QF, with the Federal Energy Regulatory Commission (FERC) on Section 2010 of PURPA, and have been granted such waiver by the FERC;

WHEREAS, PMU and MRES agreed to comply with the “Rules of Compliance” as part of the Waiver;

WHEREAS, PMU has drafted guidelines and documents to implement the Rules of Compliance known as the “Distributed Generation Workbook” to accommodate QF’s in interconnection and power purchase arrangements, which are subject to be updated periodically;

NOW, THEREFORE, BE IT RESOLVED that in recognition of the above statements, PMU hereby adopts the Distributed Generation Workbook as the “Small Power Production and Co-Generation Policy”.

Dated this 3^rd day of July, 2012.

                                                                                    Laurie R. Gill, Mayor

Twila Hight, Finance Officer

Brad Palmer, Utilities Director, presented an overview of the Electrical Infrastructure Study performed in 2009. Part of the recommendations as a result of that study was an additional substation to service the northeast side of Pierre. Bids were opened on June 20^th for a new electrical substation to be located on north Garfield. Tom Maher commented that he has two issues with the proposed location – 1) that as a neighbor how it affects the value of his land and the City’s land; 2) if the bids are awarded tonight the City is committed to the project and have not heard from all neighbors affected by the proposed transmission lines. Maher also commented that he’d like to see the substation placed 150 feet back from the proposed location. This would allow cleaner frontage for adjacent properties. Eldon Lindquist, co-owner of property with Maher, indicated he’d also like to see the substation moved 150 feet back from the proposed location. Tim Blow commented that he owns property adjacent to the proposed transmission lines out by Hwy 14/83 and this proposed line would devalue his property because he has frontage property. Mayor Gill commented that the City’s website had maps of the proposed transmission lines for review/comment, but tonight they are considering the proposed substation on north Garfield. Commissioner Mehlhaff explained that in 2009 the City experienced several power outages that led to a study of the Pierre Electrical System. The study identified that the current system, not withstanding growth, was not able to provide adequate service to the existing customers. As a power provider, we have a responsibility to our neighbors, but also have a responsibility to our existing customers in Southeast Pierre. Mehlhaff explained that over the past several months he has driven around town to find very nice expensive homes built right next to substations. He agrees that they are not the best looking, but also not a complete hindrance to development. He would support a one week delay, but only one week. A delay in this project increases the risk of the City to provide reliable service to all customers, especially in Southeast Pierre. All Commissioners agreed to delay the decision one week.

Leon Schochenmaier, City Administrator, presented an overview of all Flood related Projects that needed for recovery of the City’s Infrastructure and Recreation areas. Leon explained that a review of revenue sources will also be coming in the near future.

Paul Lepisto presented information about the upcoming Missouri River/Lake Sharpe Cleanup scheduled for July 11^th at 5:30am.

Julie Balding presented a request to close the street for the 400 block of North Grand for a neighborhood block party/picnic from 5:30 to 9:30 on July 12^th. Julie explained that it’s just a neighborhood pinic and there will be no alcohol at the event. Commissioner Huizenga moved and Commissioner Harding seconded to approve the street closure request as presented. Unanimous approval.

John Childs, City Engineer, presented a moving permit for a home to be moved from 1019 N Grand to 811 North Grand. Dave Timmons explained that he’d like to move the house and face it towards the street, like neighboring houses. The directional change required a variance to the setback requirements, which he obtained the night before from the Board of Adjustment. Commissioner Goodman moved and Commissioner Huizenga seconded to approve the Building Moving Permit for Dave Timmons as presented. Unanimous approval.

Leon Schochenmaier, City Administrator, presented a request to approve Change Order #2 on the Lewis and Clark Trail Project. This project is to remove debris and replace material on the City’s portion of the Lewis Clark Trail from Down’s Marina to Storm’s Crossing. There was a delay in the decision regarding the material for the project and as a result the contractor mobilized before the City was ready and again when the City was ready. This resulted in two mobilizations. The other component of the change order is for final quantities of material needed to complete the project. Commissioner Goodman moved and Commissioner Mehlhaff seconded to approve change order #2 for the Lewis & Clark Trail Project for an additional $2,368.34. Unanimous approval.

Leon Schochenmaier, City Administrator, presented a request to authorize preliminary plans and specs for the storm sewer repair project at the Softball Complex. Leon explained that this project is estimated over $1 million, so preliminary approval is being requested before plans and specs are drawn up. The storm sewer is 66 inches and drains much of the storm sewer from the East side of Pierre. This outlet was plugged with concrete to avoid backflow during the flood event. The pipe and concrete were removed to allow storm sewer to again drain into the river. However, the joins were compromised during the flood event too. Commissioner Mehlhaff moved and Commissioner Goodman seconded to authorize preliminary plans and specifications for the storm sewer repair at the Softball Complex. Unanimous approval.

Leon Schochenmaier, City Administrator, presented information regarding the sanitary sewer jetting that is needed as a result of the infiltration from the flood event. The jetting is needed in the truckline that runs adjacent to the river and services the majority of Pierre. The sediment limits flows and increases the risk of sewer backups/failures. It also puts the treatment plant at risk if the sediment enters the treatment facility. Commissioner Mehlhaff moved and Commissioner Harding seconded to authorize to request bids for the Sanitary Sewer Jetting project. Unanimous approval.

John Childs, City Engineer, presented change order #2 for the Sioux Lift Station Replacement for a reduction of $3,038.89. John explained the change order is for final quantities. Commissioner Huizenga moved and Commissioner Goodman seconded to approve change order #2 for the Sioux Lift Station Replacement as presented. Unanimous approval.

Commissioner Mehlhaff moved and Commissioner Harding seconded to adjourn for executive session for legal issues related to SDCL 1-25-2(3), (4). 8:09pm Unanimous approval.

Commissioner Mehlhaff moved and Commissioner Huizenga seconded to reconvene. Unanimous approval.

Commissioner Harding moved and Commissioner Mehlhaff seconded to adjourn. 8:57pm Unanimous approval.

                                                                                                            ____________________________

                                                                                                            Twila Hight

                                                                                                            Finance Officer

Published once at the total approximate cost of _________.