By Kacie Svoboda
Soon Hill City residents may see a jump in their water and sewer costs. During its Oct. 13 meeting, the Hill City Council discussed raising the cost of town water and sewer services due to shortfalls in the budget.
The 2016 water fund budget is approximately $12,000 below the year’s estimated operating expenses. To remedy this deficit, an increase of 64 cents per 1,000 gallons of water consumption is proposed. This would bring the total water rate to about $6.64 per 1,000 gallons, raising the rate last set in June 2009 by 10 percent.
The 2016 sewer fund is balanced. However with an estimated $88,000 sewer project on the horizon, the sewer improvement fund was lagging far behind the city’s needs — having accrued only about $40,000 since 2009. Therefore, a 75 cent per 1,000 gallons increase is proposed to bring the combined sewer rate to $1 per 1,000 gallons.
“A rate discussion is never a pleasurable one,” city administrator Brett McMacken conceded. “But we are being conservative.”
Mayor Dave Gray agreed with this opinion and wished to implement more incremental increases in the future. “I think its something that’s long overdue,” he said. “And I think we should put an escalation in there so we don’t have to mess with it every other year.”
While most attendees at the meeting agreed that a raise of the rates was necessary, some baulked at the idea of an automatic escalator. Hill City citizen Vic Alexander expressed his belief that finance officer Dotti Oldenkamp could calculate any budget shortfalls each year for the council’s approval, instead of an escalator.
After much discussion with applicant Connie Sundby and concerned neighbor Mark, the council unanimously approved the conditional use permit to use the home at 369 Deegan Drive as a vacation rental. The house is owned by Gold Nugget Properties, LLC., a group from Minot, N.D. The Planning & Zoning Commission set three following conditions for the property: that garbage cans will be put out and removed the same day the trash is picked up, that the group will comply with state licensing requirements and that there will be no on-street parking of campers or trailers. Sundby responded that the recent high traffic and number of parked vehicles was due to contractors, finishing up restorations on the house. Sundby also explained that the owning group intends to provide a family atmosphere at the property, with a minimum three- to four-night stay and high end deposit. She also said the majority of those staying in the house would be family, friends and herself.
“We love the Hills and we love Hill City, so we bought a home here,” Sundby said.
McMacken and city attorney Frank Bettman reassured Mark that his property taxes should not be affected.
The council set hearing dates for two variance request applications for Oct. 26. Raylene Olson requested to reduce the front setback on legal non-conforming structure to accommodate a kitchen addition at 241 Pine Mountain Ave. Dallas Alexander requested to reduce the front and rear setbacks to accommodate a new house and garage at 300 Deegan Drive.
The Department of Transportation (DOT) had agreed to paint the curb on Railroad Avenue to discourage parking adjacent to Elm and McGregor for better visibility. However, the DOT requested that the city maintain the paint on the curb in the future. McMacken felt the city should not be responsible for this upkeep and would discuss the issue with the DOT further.
The council agreed to accept half of the payment owed by Betsy Brose for a water bill dispute. This was another case where a discrepancy existed between the reading from the RTR remote meter installed in September and the outside master meter reading. Brose’s discrepancy was 9,850 gallons.
Jim Peterson, representing Joe Bauer, wished to bring the house at 310 Major Lake Drive into code compliance through variance request and change of plat applications. The prior homeowner/contractor built the house closer than the 2003 variance guideline of a 10-foot setback allows. The new variance would adjust the setback requirements to reflect what currently exists on the property. The plat application affected the lots for 302 and 310 Major Lake Drive, with property exchanged between the owners so that all setbacks are adhered to. Certified mailings were sent to property owners within 150 feet of the lots.
The council unanimously agreed to both the variance request and change of plat applications.
The council approved the $104,735.50 Hills Material bid for the Newton Street construction by Tracy Park. The city received only one other bid from Quinn Construction at $119,700, nearly $15,000 over the Hills Material bid. Both bids were significantly over the estimate of $89,000 from city engineer Doug Sperlich. During the construction, there will be one open lane for traffic, a lot of signage and construction flag personnel. Sperlich recommended awarding the bid to Hills Material and authorizing Mayor Dave Gray to sign any necessary documentation relating to the street repair.
The council also agreed to the American Technical Services, Inc. (ATS) proposal to provide engineer evidence and verification of work to ensure the project is completed satisfactory for a total estimated fee of $2,555. Sperlich believed the actual fees would probably be half of this amount, but it was recommended to set the estimate as the top cost. Sperlich said he or public works director Dennis Schrier oversee the project.
The council accepted Schrier’s request to purchase a new boiler for the Boys & Girls Club of the Black Hills from Witt’s Heating and Air Conditioning in Custer for the company’s $7,731.60 bid. Schrier sought three other bids, but received only Witt’s and a higher bid from Action Mechanical. McMacken explained that the boiler has had problems for 10 months, with repairs made by Action Mechanical — the current repair service. The city was looking at getting a new service provider. “The service has gone down and the cost has gone up,” McMacken explained.
Head librarian Cindy Girard reported that the Hill City Public Library increased the circulations by 11.5 percent the first three quarters of 2015 over last year. Visitation during this same period was up 9.1 percent over 2014. The Library Board of Trustees is in the process of applying for South Dakota State Library accreditation. This three-year authorization is possible due to Girard’s recently completed certification and will make the library eligible for Pennington County funds. Girard has applied for grants for the library, including one to expand the maker space program into robotics.
Gray signed a proclamation recognizing the first Monday of October as World Habitat Day in Hill City. The proclamation was recommended to the council by Black Hills Area Habitat for Humanity volunteer engagement associate Nick Wellenbrock.
The Hill City Fire Department and the American Red Cross still has smoke alarms available for installation. Those interested should contact the Hill City Fire Department, city hall or the American Red Cross.
The next council meeting is scheduled for Monday, Oct. 26, at 5:30 p.m. at city hall.