Milbank City Council Proceedings, Monday, December 8, 2025

Published by admin on Fri, 12/19/2025 - 1:39pm

December 8, 2025

Call to Order – The City Council met in regular session on December 8, 2025, at 6 p.m. in the Visitor Center, 1001 East Fourth Avenue, with Mayor Raffety presiding.

Roll Call – Present were Mayor Raffety and Councilmembers Roger Briggs, Ryan Gruba, Josh Karels, Mindy Rogers, John Weyh, and Craig Weinberg. Staff present included Attorney Mark Reedstrom, Steve Pendergrass, Cynthia Schumacher, Corey Hooth, Jeremy Breon, Darin Thiele, and Boyd VanVooren. Members of the public present included Mike Mach, Sam Froehlke, Erik Holmquist, Barb McGee, Bob Frink, Judy Frink, Dusti Johnson, Ryan Kohl, and Mark Leddy.

Agenda – A motion was made and seconded to amend and approve the agenda by removing Item 6, water protection agreement, as the agreement is not being renewed. Motion carried 6-0.

Consent Agenda

1. Approve minutes from the November 3 & 10, 2025, meetings.

2. Approve claims list.

Adobe, subscription, $21.23; Advanced Technologies Inc., shipping, $61.80; Agtegra, gas, $1,036.88; Amazon, parts/supplies/equipment, $1,481.55; AT&T, cell phone/WIFI, $773.00; Avera Medical Group, testing, $352.00; Avera Occupational Medicine, testing, $37.70; Berens Market, supplies, $20.00; Bituminous Paving, Inc., paving, $28,592.20; Breon, Jeremy, clothing allowance, $87.19; Canva, supplies, $48.85; Card Pointe, card fees, $380.64; Carquest, parts, $553.96; Chappell Central, filters, $1,499.98; Climate Systems, system maintenance, $1,232.75; Cole Papers, supplies, $622.04; Corporate Technologies, IT managed services, $3,550.00; Dakota Storage Buildings, Pribyl Park concession stand, $14,582.44; Dewey’s Lawn Care, supplies, $1,734.00; Dunn-Rite Products, basketball hoop, $999.99; Doheny’s Commercial, heater, $1,929.00; Electro Watchman Inc., access control update, $8,675.75; Energy Laboratories, testing, $150.00; Fastenal Co., supplies, $202.39; Feld Fire, SCBAs, $20,573.76; Food-N-Fuel, gas, $411.32; Foremost Promotions, DARE Supplies, $513.43; Frink, Judy, supplies, $19.12; Good Sportsman Marketing, subscription, $20.00; Grant County Auditor, county services, $1,000.00; Grant County Review, publications, $281.96; Grant Roberts Rural Water, water service, $67.20; Hanson, Mike, ditch mowing, $200.00; Hasslen Construction, water project, $71,477.10; Hawkins, Inc., chemicals, $6,715.98; Helms & Associates, engineering, $8,717.64; Hendrix LLC, snow pusher, $2,000.00; Hilgrands, Ryan, clothing allowance, $212.24; Hobby Lobby, supplies, $98.89; Inland Truck Parts & Service, parts, $45.47; Intoximeters, meters/supplies, $2,245.00; ITC, phone/internet, $2,000.80; John Deere

parts, $1,136.82; Joy Blooms, memorial, $69.03; Linde Gas & Equipment, air system maint., $63.94; LL & Sons Excavating Inc., Industrial Park Project, $342,548.90; Loutsch, Jeff, clothing allowance, $193.75; Mack, Amanda, training, $300.00; Menards, supplies, $20.17; Milbank Winwater, parts, $305.82; Minn-Dak Fire & Safety, inspection/maintenance, $1,149.35; MnN Cleaning Services, cleaning, $3,800.00; NAPA Auto Parts, parts, $984.00; NW Energy, natural gas, $1,571.28; Oreck, vacuum, $706.20; Otter Tail Power, electric, $25,752.22; Peak Software Systems, Inc., annual support fee, $4,620.00; Quick Pro Lube, vehicle service, $52.14; Quill Corporation, supplies, $1,096.93; Racarie, HR software, $109.99; Raffety, Layton, clothing allowance, $219.80; Reedstrom, Mark, retainer, $1,000.00; Rockbot, subscription, $31.86; Roger’s Electric Motor, parts/supplies, $373.69; Runnings Supply, parts/supplies, $506.83; Schumacher, Cynthia, clothing allowance, $100.00; Scribe, subscription, $58.00; Schweer, Sara, refund, $202.58; SD Public Health Lab, testing, $38.00; SDWWA, membership fee, $10.00; Shade Valley Farms, FBO Agreement, $750.00; South Dakota 811, one calls, $98.00; Star Laundry & Cleaners, laundry service, $451.86; Street Graphex Inc., council shirts, $37.00; Swenson Tree Service, tree removal, $10,000.00; The Radar Shop, recertification, $448.00; Thompson Welding, repairs, $224.64; Twin Valley Tire, tire service/tires, $7,754.45; Uline, parts/vacuum, $603.24; USPS, postage, $122.70; Valley Office Products, supplies/desk, $1,755.24; Valley Rental & Recycling LLC, recycling agreement, $650.00; VanSambeek, Garrett, clothing allowance, $155.32; Walmart, monitor/supplies, $210.27; Ward, Robert, damaged lawn repair, $300.00; Weber, Donald, insurance deductible, $531.09; Wellmark, cobra, $64.03; Whetstone Home Center, supplies/parts, $9,619.33; Whetstone Sanitation, garbage service, $200.00; Whetstone Valley Electric, repairs/installations, $10,538.06; Wiese Electric, locates/leds, $237.15; WM Corporate Services, garbage service, $391.33; Xerox, copier leases, $538.28; Zem’s Inc., wax floors, $742.50; Zoom Video Communications, subscription, $18.04; Zoro, towel dispenser, $217.70.

$664,903.78

3. Approve treasurer’s report.

4. Approve Josh Pederson & Emmett Hanson, Unity building attendants & ice rink attendants, $14.85.

5. Approve Ethan Mieltz, FT wastewater tech, $22.80/hr, effective immediately.

6. Approve the transfer of the remaining Housing Opportunity Fund (HOF) balance, $34,000, to the Grant County Development Corporation (GCDC).

7. Approve Amendment #1-Additional Engineering Services, 7th Ave Reconstruction Project, $15,000.00.

Employee Recognition –

Park & Recreation Director Boyd VanVooren explained that fitness instructor Judy Frink, has stood out with a consistent, outstanding performance. Her classes are consistently excellent. He wanted to recognize Judy with a certificate for outstanding service, in appreciation of her loyal commitment and valuable contributions to the fitness program at Unity Health and Fitness.

Judy stated she is truly excited to be part of such an exceptional fitness program at Unity, and grateful to be recognized for doing something she loves so much.

Public Hearings –

Mayor Raffety opened the floor to the public hearings on the water treatment and wastewater treatment updates. Sara Pankonin, Kathryn Schmit, and Kristin Bisgard from Banner Associates and Mason Weidenbach with First District Association were available to assist with the public hearings.

Sara Pankonin explained that the city’s water comes from three springs and three wells. Although additional water to the wells and pumps has been added, these measures have not resolved issues with iron concentrations in the water. The current water treatment system only adds chlorine, phosphate, and fluoride, but does not remove any contaminants. Both springs and wells supply water to the city. The spring water is limited, and over time, the wells have shown rising levels of iron and continued high total dissolved solids, including sulfate, sodium, calcium, and magnesium.

The need for this project stems from a significant increase in iron levels over the past 30 years. In the early 2000s, Banner recommended an iron removal water treatment plant to the city. Since the 1990s, iron concentrations in the aquifer have continued to rise.

Three alternatives have been considered:

1. Build a new 2-million-gallon-per-day conventional gravity filtration water treatment plant using the city’s existing water source. Estimated cost: $36 million.

2. Acquire water rights in Antelope Valley to blend a new source with existing well water, using a pressure filter plant. This would require building a new transmission pipe and a new water treatment plant, with a combined cost of just over $40 million.

3. Connect to the Grant Roberts water system, which can only supply 0.25 million gallons per day during summer (compared to the city’s current usage of 1.2 million gallons per day). If Grant Roberts upgrades their system, it could supply up to 0.7 million gallons per day, but the city would be responsible for its share of improvement costs. If this option were chosen exclusively, the city would need to reduce water usage or use a combination of sources and pay for improvements to the Grant Roberts system.

Currently, this public hearing is focused on Alternative 1, Phase 1.

- Phase 1: Construct an iron and manganese removal plant with aeration, rapid mixing, flocculation, sedimentation, and filtration. While this would reduce iron and manganese, the water would remain hard. Households would be advised to install reverse osmosis systems to address elevated sulfate and sodium levels.

- Phase 2: Seek an additional water source with lower total dissolved solids, at an estimated cost of $14 million.

- Phase 3 (potential future): Expand the system to include softening basins or lime softening, which would become feasible once the alternative water source is secured, and the water chemistry would benefit from lime softening.

Funding application for state support is due January 1, 2026. With grants, monthly water rates could be around $80 per resident, but without grants, rates may climb to $100, and some water quality concerns may remain. The costs for phase one and phase two are closer to $50 million or $60 million, and some water quality concerns may remain. Concerns were expressed about affordability for residents, especially lower-income households, as water bills could become unaffordable. The city will continue to weigh community feedback and financial impacts as decisions are made.

The $36 million funding request is bigger than what DANR usually funds. With a partial award, the project could start the design phase and request the remaining funds the following year. The maximum grant per application is $2 million per funding cycle, depending on project cost, user rates, and other factors.

Multiple funding sources are being sought but grant amounts and principal forgiveness are uncertain. Approving the funding application is necessary to remain eligible, but it does not commit the city to proceed.

Mayor Raffety stated that most complaints about our water involve colored, rusty solids. That’s the main issue we hear about. Alternatively, we could do nothing and just continue as we have. If we get 100 complaints, that’s about 3% of the population. Is that enough to justify action for everyone? Once people see the costs, support might dwindle, but we still need to go through the public process. The whole point is to get input from the community, since we’re just a small part of the population; this is a major community decision. The phased approach will alleviate the iron issues. However, the proposed water treatment plant cannot remove sodium or sulfate at current levels. Reverse osmosis systems are recommended to address sulfate and sodium, and there would be fewer problems operating a home reverse osmosis unit once iron is removed.

Mayor Raffety opened the floor for a motion on resolution number 12-825-A, which authorizes an application for financial assistance and the execution and submission of the application. It designates an authorized representative and certifies the application. This puts our application in front of the necessary people for the amount of $39 million. It must be certified by January 1. The state will review all requests in March. Pankanin explained that the resolution does not lock the city into anything. Without the authorization to submit the application, the city is not eligible for grants or loans. A decision on a funding package doesn’t need to be made until April or May. There will be time after the funding is announced to decide if the city wants to move forward.

A motion was made and seconded to amend resolution 12-8-25A by changing the size capacity from 3.0 MGD to 2.0 MGD. The motion to amend Resolution 12-8-25A carried.

A motion was made and seconded to approve Resolution 12-8-25A, authorizing the application for state funding for a 2.0 million-gallon-per-day plan and financial assistance up to $39 million from the Department of Water and Natural Resources. Motion carried.

RESOLUTION NO. 12-8-25A

RESOLUTION AUTHORIZING AN APPLICATION FOR FINANCIAL ASSISTANCE, AUTHORIZING THE EXECUTION AND SUBMITTAL OF THE APPLICATION, AND DESIGNATING AN AUTHORIZED REPRESENTATIVE TO CERTIFY AND SIGN PAYMENT REQUESTS.

WHEREAS, the City of Milbank (the “City”) has determined it is necessary to proceed with improvements to its Drinking Water System, including but not limited to a 2.0 MGD Iron and Manganese removal plant consisting of a precast and masonry building with a precast roof, site improvements, exterior and interior piping and valves, a clearwell, backwash tank, transfer pumps, and chemical storage area etc. (the “Project”); and

WHEREAS, the City has determined that financial assistance will be necessary to undertake the Project and an application for financial assistance to the South Dakota Board of Water and Natural Resources (the “Board”) will be prepared; and

WHEREAS it is necessary to designate an authorized representative to execute and submit the Application on behalf of the City and to certify and sign payment requests in the event financial assistance is awarded for the Project,

NOW THEREFORE BE IT RESOLVED by the City as follows:

1. The City hereby approves the submission of an Application for financial assistance in an amount not to exceed $39,000,000 to the South Dakota Board of Water and Natural Resources for the Project.

2. The Mayor is hereby authorized to execute the Application and submit it to the South Dakota Board of Water and Natural Resources, and to execute and deliver such other documents and perform all acts necessary to effectuate the Application for financial assistance.

3. The Mayor is hereby designated as the authorized representative of the City to do all things on its behalf to certify and sign payment requests in the event financial assistance is awarded for the Project.

Adopted at Milbank, South Dakota, this 8th day of December 2025.

APPROVED: Pat Raffety,

Mayor, City of Milbank

Attest:

Cynthia Schumacher,

Finance Officer

Kathryn Schmit began the wastewater portion of the public hearing by saying that it has been just over 20 years since Milbank last conducted a facility plan to evaluate the wastewater system. The current plan allows for a thorough assessment of what needs to be replaced, upgraded, or expanded.

Most of the infrastructure is still in good condition and can remain in use, except for the pre-treatment building, which is vital for initial screening and grit removal. Another major concern is the plant’s control system, now over 20 years old. While some replacement parts are still available, they are limited, and maintaining the system will soon become unfeasible. The need for the project highlighted extensive corrosion, the need to widen channels, operator safety and access, outdated equipment, and equipment obsolescence.

Two options were considered for the pre-treatment building: complete replacement or rehabilitation of the existing building. Both involve updating outdated computer and control systems and replacing aging equipment. Option A, which is preferred, entails constructing a new pre-treatment building with new influent pumps and better maintenance access, allowing for wider channels and a larger grit removal system. Option B would rehabilitate the existing building and replace influent pumps, but recent projects and bids show this would be nearly $1 million more expensive due to bypass pumping. Both Option A and Option B include replacing screening equipment, grit removal equipment, flow measurement equipment, and the SCADA system.

Future phases (2028, 2031, and 2033) will address additional needs, scheduled according to funding availability and ongoing assessments. The aim is to remain flexible, balancing priorities, costs, and reliability to ensure continuous facility operation.

All phases would involve significant costs. Phase one, included in the state water plan for 2026, prioritizes upgrades to the pre-treatment facility and plant control system, which are the most urgent needs. Tonight’s public hearing covers phase one, including a new pre-treatment building and a new SCADA system with an estimated cost of $17.5 million to be funded by an SRF loan, and grants or principal forgiveness if available. A 20% contingency needs to be included in the cost estimates to account for market fluctuations and unforeseen expenses.

It is important to establish a user rate that accurately reflects true costs. A number of funding sources could be considered. Flexibility is built into phases two, three, and four, allowing adjustments as needed and circumstances evolve. The long-term plan is to ensure the wastewater plant operates efficiently for the next 20 years.

If grant funding is unavailable, user rates could increase to $96 per user. With potential grants, the rise could be limited to $85–$86 per user. Grant eligibility often depends on meeting specific thresholds (such as $75/month). Proactive planning will help maximize funding opportunities and minimize future rate shocks.

A formal rate study could be considered that would analyze commercial and residential usage, compare rates with those of other communities, and prioritize projects by urgency and cost. This study would factor in inflation and provide a timeline for upgrades, supporting steady, predictable rates and avoiding last-minute increases.

Investments in data systems, such as SCADA, are essential for remote monitoring, automation, and operational efficiency. The proposed upgrades to the SCADA system allow the level of on-site staffing to be maintained, faster response to issues, and easier integration of new equipment as upgrades are implemented. If the SCADA improvements aren’t made, full-time staffing would be required to operate the existing wastewater treatment plant. Discussion was had regarding the cost of hiring additional staff for 24/7 operation without control equipment. Though costs can be high due to system complexity, these investments replace aging infrastructure and help prevent more significant problems in the future.

There are concerns about how rising rates may affect residents, landlords, and businesses. The team is addressing these by implementing gradual rate increases and pursuing grant funding. Emphasizing the importance of comparing our rates and tax levies with other communities, the team also seeks to balance the needs of other city infrastructure.

The City is looking into spreadsheets and data tools that could be updated regularly to track progress and adjust plans as needed. Flexibility in project sequencing enables prioritization of critical upgrades as funding and needs dictate. Ongoing communication with stakeholders and exploration of external funding will remain priorities.

A motion was made and seconded to approve Resolution 12-8-25A, authorizing the application for state funding for the replacement of Supervisory Control & Data Acquisition (SCADA) systems and the facility and construction of influent pumping and pretreatment facilities improvements, and financial assistance up to $17.5 million from the Department of Water and Natural Resources. Motion carried.

Kathryn Schmit noted that it has been just over 20 years since Milbank last conducted a facility plan to evaluate the system. The current plan allows for a thorough assessment of what needs to be replaced, upgraded, or expanded. Key issues at the wastewater facility include equipment age and condition, capacity needs and regulatory requirements, and infrastructure safety and modernization. Most of the building infrastructure is still in good condition and can remain in use, except for the pre-treatment building, which is vital for all incoming flow and includes pumping, initial screening, and grit removal. Another major concern is the plant’s control system, now over 20 years old. While some replacement parts are still available, they are limited, and maintaining the system will soon become unfeasible.

Phase 1, included in the state water plan for 2026, prioritizes upgrades to the pre-treatment facility and plant control system, which are the most urgent needs. Future phases (2028, 2031, and 2033) will address additional needs, scheduled according to project priority and need. The aim is to remain flexible, balancing priorities, costs, and reliability to ensure continuous facility operation. All phases will involve significant costs.

For Phase 1, two options were considered for the pre-treatment building: complete replacement or rehabilitation of the existing pretreatment building. Both options involve updating outdated computer and control systems and replacing aging pumping, screening, and grit removal equipment:

• Option A, which is preferred, entails constructing a new pre-treatment building with new influent pumping and better maintenance access, allowing for wider channels and a larger grit removal system.

• Option B would rehabilitate the existing building and replace influent pumps, but recent projects and bids show this would be nearly $1M more expensive due to extensive corrosion in the building, required channel and grit chamber modifications, and bypass pumping.

Tonight’s public hearing covers Phase 1, with an estimated cost of the selected option A of $17.5 million. A 20% contingency is included in the cost estimate. Summarizing, the project drivers for Phase 1 include the need to replace the Pretreatment Building due to excessive corrosion, needed influent pumping maintenance and access improvements, improved safety and access for routine parts replacement, channel and grit chamber size increases, and the ability to avoid bypass pumping of the influent facilities. In addition, if the SCADA system is not replaced, failure will result in the need for manual operation of the facility and 24 hour staffing. Looking at the big picture, Phases 2 through 4 are also important and need to be considered for future capital improvements planning. Flexibility is built into Phases 2 through 4, allowing adjustments as needs and circumstances evolve. The long-term plan is to ensure the wastewater plant operates efficiently for the next 20 years.

The schedule for Phase 1 was presented and noted that if a funding application is approved by the City Council, and the project is approved for funding by the Board of Water and Natural Resources, project completion would not be for another 3 ½ - 4 years, considering design, bidding, and construction. Equipment age would be increased even more by the completion of the project.

Mason Weidenbach of First District presented the user rate impacts for the Phase 1 project. If grant funding is unavailable, user rates could increase to $96 per user. With potential grants, the rise could be limited to $85–$86 per user. This is based on a 30-year 4.0% SRF loan rate.

Discussion items following the presentation by Kathryn and Mason:

It is important to establish a user rate that accurately reflects true costs. A number of funding sources could be considered. It was re-stated that flexibility is built into Phases 2 through 4, allowing adjustments as needs and circumstances evolve. As presented previously, it was noted that the long-term plan is to ensure the wastewater plant operates efficiently for the next 20 years.

Grant eligibility often depends on meeting specific thresholds (such as $75/month). Proactive planning will help maximize funding opportunities and minimize future rate shocks.

A formal rate study could be considered that would analyze commercial and residential usage, compare rates with those of other communities, and prioritize projects by urgency and cost. This study will factor in inflation and provide a timeline for upgrades, supporting steady, predictable rates and avoiding last-minute increases.

There are concerns about how rising rates may affect residents, landlords, and businesses. The team may address this by implementing gradual rate increases and pursuing grant funding. A rate study would also look at rates in other communities around the state. The team also seeks to balance the needs of other city infrastructure.

Mayor Raffety opened the floor for a motion on resolution number 12-825-B, which authorizes an application for financial assistance and the execution and submission of the application. It designates an authorized representative and certifies the application.

A motion was made and seconded to approve Resolution 12-8-25B, authorizing the application for state funding for Phase 1 improvements at the Wastewater Treatment Facility and financial assistance up to $17.5 million from the SD DANR. Motion carried.

RESOLUTION NO. 12-8-25B

WHEREAS, the City of Milbank (the “City”) has determined it is necessary to proceed with Phase 1 improvements to its Wastewater Treatment Facility, including but not limited to replacement of Supervisory Control and Data Acquisition (SCADA) systems at the facility and construction of Influent Pumping and Pretreatment Facilities improvements. etc. (the “Project”); and

NOW THEREFORE BE IT RESOLVED by the City as follows:

1. The City hereby approves the submission of an Application for financial assistance in an amount not to exceed $17,500,000 to the South Dakota Board of Water and Natural Resources for the Project.

Adopted at Milbank, South Dakota, this 8th day of December 2025.

APPROVED: Pat Raffety,

Mayor, City of Milbank

Attest:

Cynthia Schumacher,

Finance Officer

Action Items –

Resolution 12-8-25, Contingency Resolution. A motion was made and seconded to approve Resolution 12-8-25. Motion carried 6-0.

RESOLUTION 12-8-25

CONTINGENCY RESOLUTION

BE IT RESOLVED by the City Council of the City of Milbank, South Dakota that the following sum is transferred from the contingency fund to the following departments to meet the obligations of the city.

Mayor/Council – Employee Training

101-41100-42702 $1,000.00

Mayor/Council – Miscellaneous

101-41100-42900 $100.00

Police – Vehicle Maint.

101-42100-42530 $15,000.00

Pool – Maintenance

101-45101-42500 $10,000.00

Conservation & Development –

TIF #4

101-46000-46002 $29,800.00

Source of Funding:

Contingency Fund

101-41150-41150 $55,900.00

Dated this 8th day of December 2025.

Aye: 6. Nay: 0 Absent: -

This Resolution is effective upon passage.

Pat Raffety, Mayor

ATTEST:

Cynthia Schumacher,

Finance Officer

Ordinance 862 – 2025 Supplemental Budget Ordinance. A motion was made and seconded to approve the first reading of Ordinance 862. Motion carried by roll call 6-0.

Ordinance 863 – 2026 Appropriations Ordinance. A motion was made and seconded to approve the second reading of Ordinance 863. Motion carried by roll call vote 6-0.

Airport – A motion was made and seconded to approve the new Airport Layout Plan (ALP), master plan for future airport development, and 2026 federal grant preapplication. Motion carried 6-0.

Sign Ordinance – Administrator Pendergrass reviewed the P&Z Commission’s proposed changes to the sign ordinance. A final version will be presented at the January meeting.

November Permits – none.

November Salaries –

Mayor/Council - $2,000. Finance-$25,631. Police-$46,807. Fire-$1,829. Streets-$19,503. Rubble Site-$1,117. Recreation-$5,496. Pool-$989. Fitness-$5,867. Unity-$11,405. Park-$13,149. Water-$17,548 Sewer-$16,830.

A motion was made and seconded to enter into Executive Session under SDCL 1-25-2(1) personnel and 1-25-2(3) legal. Motion carried 6-0.

The Mayor called the council out of executive session.

Adjournment – The next regular meeting is January 12, 2026, at 6 p.m. A motion was made and seconded to adjourn at 10:30 p.m. The motion carried 6-0.

Pat Raffety, Mayor

ATTEST

Cynthia Schumacher,

Finance Officer

Published once at an approximate cost of $298.57 and can be viewed free of charge at www.sdpublicnotices.com.