Infrastructure plans continue to flow

Aldermen continued to move forward with the water and sewer infrastructure project by giving approval to several key facets of the project at the April 28 Hill City Common Council (HCCC) meeting.

Council members approved the funding for phase one of the water and wastewater projects, accepting the state revolving fund program water quality grant agreement  with little discussion. 

Council members also approved the South Dakota Consolidated Water Facilities Construction Program Grant Agreement with no discussion. Also passed were two resolutions tied to the project, which “were to quantify the bond,” said city administrator Nate Anderson, who was present via phone at the meeting.

Anderson said the town will introduce surcharge  resolutions in the next two weeks. He expects to utilize a fixed surcharge as well as volumetric surcharge model  to minimize effects on small homeowners. The “goal is to phase out the  surcharge as we draw down on the loan,” said Anderson.

Aldermen also approved a $719,697 task order with city engineer AE2S to move forward with the project design. Joe Noble with AE2S said the task order outlines services AE2S will provide to the city from the preliminary design phase through to the completed project. Noble said the agreement, “covers just about everything, with the exception of geotechnical  services.”

Noble was clear the town “asked for the most money” for the project but “that does not mean we won’t look at an alternative.” 

In discussing the project as a whole including the bid process, Noble was also clear in telling aldermen “there are off ramps all through this,” adding “just because you get a bid, nothing in state law says you have to take a bid.”

Noble sees the current market as stable.

Aldermen appeared to see the need for the project, but also had many questions.

Alderman Justin Thiry expressed his overall hesitation due to the size of the town and the cost of the project.

“It’s pretty hard for us to say you’re gonna have a $300 surcharge on your rates,” Thiry said. 

Mayor Tana Nichols stressed the need for the project as well and was concerned about a future council that may not agree.  Alderwoman Lori Miner said she was “willing to spend the least amount of money we can” to get the most the city could get. 

“It might mean we’re gonna have to go with something next to big blue” due to cost as opposed to looking for another site for a new reservoir, Miner said.

Noble agreed the numbers for the project are not cheap. He also gave a presentation on a new type of bidding process called Construction Manager At Risk. (CMAR) 

He explained the pros and cons versus the  design-bid-build (DBB) process most familiar to council members. 

Noble said CMAR is more collaborative by bringing an engineer in early. Another advantage is that, “You can be executing construction packages while you’re doing various parts of design work,” said  Noble.

CMAR allows the city to maintain the same contractor relationship for all three phases of the sewer treatment expansion and rehabilitation project without having to go out and competitively bid for each of the three phases of the project.

It would be nearly impossible to keep the same contractor under DBB because state bid law requires taking the lowest bid.

CMAR may also reduce change orders and allow the city to adjust the design to accommodate a set budget. CMAR is newer in South Dakota, and it also may add more initial costs to the project. There are also fewer contractors with CMAR experience.

AE2S has done at least two dozen CMAR projects, including a sewer plant in  Sturgis.

“We want a contractor who does wastewater treatment plants,” said Noble, who recommended using CMAR for the city wastewater treatment plant. Noble will bring a CMAR proposal to the council with his next task order.

Aldermen wanted an opportunity to speak with other municipalities who have used CMAR to learn more.

Aldermen approved $97,974 for new playground equipment. Hill City Park Board president Cassandra Ott said the park board learned that a grant it had hoped to apply for was not available until 2026. 

“This is an important need for the community,” said Ott, calling the playground highly used and saying the current equipment is no longer safe. 

Finance officer Stacia Tallon said the current equipment “will be torn out whether we like it or not,”  saying it must be torn down before the fall, when the insurance on it will expire.

The park board had $288,000 of funds allocated to it prior to the approval.

Aldermen approved a new race, the Buffalo 50 mountain bike race, for mid-September. 

John Richards, who has coordinated races in Colorado, said he is “kinda partnering” with Black Hills Trails in bringing the  estimated 75 racers to town. Organizers will “escort riders west on Elm, north on Pine, up Deerfield Road to Marshall Gulch and then they’ll be on their own,” Richards said. The event is expected to take place on Sept. 13 between 7-10 a.m.

Aldermen also approved a lease extension with American Tower for 10 years. Councilmen have not signed an agreement since 2022.

Anderson recommended the $1,486.66 monthly agreement that included a 15 percent increase every five years. 

Aldermen approved the final plat and resolution for Sunset Creek. This adds 11 new homes and creates a new road called Lakewood Court.

Council members approved a three percent raise for the utility clerk, finance officer and supervisor of public works. Aldermen also approved an hourly wage of $21.50 for the new office assistant hire, set to begin June 2. Miner wanted to see a clarification of all positions and duties as well as what Anderson has picked up in light of the city letting go of the development services coordinator position. 

“I don’t see who’s doing code enforcement,” Miner said. 

Nichols noted there are, “still details to work out”   with the new remote contract planning and zoning consultant position.

Nichols also discussed a petition she received from the Hill City Cafe “begging to have a handrail on Main Street taken down.”

Shane Hague, a business owner in town, requested a review of dog ordinances based on a number of large breed dogs running around unattended by their owners.

He spoke of three instances and said, “I’ve heard the ordinance is hard to enforce.”

The next HCCC meeting takes place May 12 at 5:30 p.m.