Northeast Radio SD News Previews Watertown City Council Meeting for Monday 10/6/25
- Steve Jurrens
- Oct 4
- 12 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council is scheduled to convene on Monday, October 6, 2025, at 5:30 p.m. at City Hall for its regular session. The meeting agenda includes several administrative and financial items, starting with the Consent Agenda.
Items on the Consent Agenda are generally considered routine. They are typically approved as a single block, unless a Council Member or the Mayor requests that an item be separated for individual discussion and vote.
The proposed Consent Agenda for the October 6th meeting includes the following items:
· Minutes Approval: Approving the minutes from the previous Council meeting held on September 15, 2025.
· Board Appointment: The appointment of Greg Klein to the Airport Board.
· Uncollectible Accounts Write-Off: Approval to write off uncollectible accounts receivable from Ambulance services covering the period from September 24, 2024, through March 17, 2025. This action authorizes the remittance of these accounts to a collection agency for $48,208.71.
· Business Licenses:
o Approval of a Business License for Ronke Heating and Cooling as a Gasfitting Contractor and Adam Ronke as a Gasfitter.
o Approval of a business license for Connor Matthews as a Gasfitter, affiliated with Active Heating Inc.
· Surplus Property: A declaration of surplus property and authorization for its sale via online auction, donation, or disposal as junk.
· Fire Rescue Promotion: Authorization for City Manager Alan Stager to approve the promotion of Lt. Adam Heinrich to the rank of Battalion Chief at Watertown Fire Rescue at Grade 175 (step 6) of the Current Wage Matrix.
· Financial Approvals: Approval of the scheduled bills and payroll, along with authorization to pay them.
The regular meeting begins with “Presentations and Reports,” consisting of a Presentation and acceptance of the 2024 Audit from Eide Bailly. (There are currently no attached agenda documents to reference.)
Next, the council moves on to “Contracts and Change Orders,” starting with the Approval of an Amendment to the Real Estate Purchase Agreement between the City of Watertown, Watertown Development Company, and AirStay Watertown, LLC.
· The amendment proposes four key changes to the existing agreements, which were originally dated September 3 and September 5, 2025:
o Key Proposed Changes
§ Closing Date Extension: The final date for closing the transaction is extended to occur on or before October 31, 2025.
§ Contractor Bond Revision: The required performance bond is revised to be issued in the name of the project's contractor, Prairie Pro General Contracting, LLC, rather than AirStay Watertown, LLC. All other conditions of the bond remain unchanged.
§ Landfill Fee Cap: As part of the demolition and excavation of the old City Hall building, the City agrees that the landfill fees charged will not exceed.
§ Early Possession for Abatement: AirStay Watertown, LLC will be granted possession of the building starting October 7, 2025, for the sole purpose of beginning the asbestos abatement process.
· No other activity, such as demolition or construction, is permitted until the closing date has officially occurred.
· If the parties fail to close the transaction, AirStay Watertown, LLC is responsible for completing the current phase of the asbestos abatement to ensure that previously occupied areas of the building do not become inaccessible due to the unfinished abatement process.
· Survival Clause: The terms regarding the bonding (section 2) and the landfill fee cap (section 3) are specified to survive the closing and the exchange of title, meaning those conditions remain binding even after AirStay Watertown, LLC officially takes ownership.
Next up on the agenda is the council's consideration of an agenda item for the approval of a Real Estate Purchase Agreement that will convey city-owned property on Highway 20 to the Watertown Development Company (WDC). The purpose of this transaction is to facilitate the economic development of a new commercial facility.
· The property, legally described as Lot 1 West Watertown Facilities Second Addition, is intended to be conveyed to the WDC specifically for the development of a dog boarding and daycare facility.
o According to the purchase agreement, the WDC will immediately transfer the property to Mark and Kayce Engen, who plan to develop an approximately 7,000 square-foot building for the new business, similar to facilities they currently operate in Brookings and Aberdeen. The agreement notes that the buyers have already obtained a conditional use permit from the Board of Adjustment for this purpose.
o The property, which measures approximately 1.44 acres (or 60,984 square feet), is being sold for per square foot.
o Total Purchase Price:
o Contingency: The conveyance of the property from the City to the WDC is authorized under South Dakota Codified Law (), which allows the sale of city property to a non-profit industrial development corporation (like the WDC) for economic development purposes.
o Reversion Clause: If the WDC's transaction with the final buyers (the Engens) fails to close, the City has the right to reacquire the property from the WDC for a nominal fee.
§ The closing date for the transaction is set for on or before October 31, 2025. Key conditions of the sale include:
§ The sale from the City to the WDC is contingent upon the WDC's ability to transfer the property to the Engens.
§ The sale is being made on an "AS IS" basis, and the City will convey the property using a Quit Claim Deed.
§ The Engens' purchase is contingent upon them securing sufficient financing for the project.
The following item on the agenda has the council considering authorizing City Manager Alan Stager to sign a Purchase Agreement with Patgar, LLC, for the acquisition of approximately 2.5 acres of real estate.
· The property being purchased is legally described as Lots 1, 2, 3, and 10 in Block 1 Prairie’s Edge Estates Addition. The agreed-upon purchase price for the property is $525,000.00.
· The closing for the sale is slated for on or before November 1, 2025. Under the proposed terms, the City will take possession once the full payment is made. Financial details stipulate that the purchase will require a future budget supplement to the City's Capital Improvement Fund (Fund 212). Additionally, the closing costs and the cost of title insurance will be split equally (50/50) between the City and the seller.
However, the seller is responsible for costs associated with clearing the title and any real estate commissions. The City is purchasing the land "AS IS."
The council will next consider approving a Professional Services Agreement between the City of Watertown (Owner) and Infrastructure Design Group, Inc. (IDG) (Engineer) for engineering and construction administration services associated with the Calvin Industrial Park Lift Station Project No. 2428.
· Project Description: Project No. 2428 involves two main components in the Calvin Industrial Park development: the installation of a 30-foot deep lift station and approximately 9,200 feet of force main running from the lift station to the Wastewater Treatment Plant.
· Total Contract Amount: The agreement with IDG is in the amount of $472,147.
· Cost Breakdown: Force Main Services (IDG): Estimated at $290,917
· Lift Station Services (AE2S, IDG's Subconsultant): Estimated at $181,230.
· Cost Sharing: The total cost of $472,147 will be split evenly among four entities as per a prior cost-sharing agreement: the City of Watertown, Codington County, Watertown Municipal Utilities, and the Watertown Development Company.
· City's Share: The City of Watertown's share of the professional services cost is $118,036.75. This is within the $285,000 previously allocated by the City Council for the project.
· Project Management and Coordination: Continuous contract management, coordination with the City, Watertown Development Company (WDC), and Watertown Municipal Utilities (WMU), and preparation of monthly progress reports and quality control checks.
· Public and Agency Involvement: Coordinating with geotechnical and wetland firms (which are under separate city contracts), sending a notification letter to adjacent property owners, and holding project meetings with City staff and private utility companies.
· Survey and Mapping: Establishing horizontal and vertical control, performing property surveys (including locating property pins and researching deeds), completing a topographic survey for the existing conditions base map, and preparing exhibits for two permanent easements.
· Design and Plans: Completing concept (30% level), preliminary, and final (100% level) design for the lift station, force main, and gravity sewer.
· Bidding and Construction Services: Providing services for the bidding phase (answering questions, issuing addenda, and bid recommendations) and providing full-time construction administration and field observation over an estimated 12-week construction period.
A final change order is up for consideration for the 2025 Crack Sealing & Chip Sealing Project (Project No. 2506) with Asphalt Preservation Company, LLC.
· Original Contract Price: The initial contract price was $536,608.65.
o Change Order Increase: The final change order requests an increase of $51,745.06.
o New Contract Price: If approved, the final contract price for the project will be $588,353.71
· The final project cost of $588,353.71 is funded from multiple sources, including various City accounts and contributions from Codington County:
· City Funding:
o CIP Account 212-43180-42509: $520,264.31 (for streets, WEC, Lofts parking lots, and half of the Koch Complex parking lot).
o Account 606-43500-42509: $20,000 (for the airport runway).
o Account 201-45142-42505: $10,040 (for bike trails).
o Codington County Share: The County’s total share is $38,049.40, which covers:
o 100% of the cost for the County Courthouse parking lot ($7,251.00).
o 50% of the cost for the Koch Complex parking lot ($30,798.40).
The council has three first readings to review, starting with the First Reading of Ordinance No. 25-21, an ordinance proposing significant revisions to Chapter 2.02 of the City's Revised Ordinances concerning On-Sale Licenses for Full-Service Restaurants. As this is the first reading, no action will be taken at the October 6, 2025, meeting; the ordinance is tentatively scheduled for a Second Reading and final vote on October 20, 2025. The proposed changes stem from a work session held on September 2, 2025, and aim to clarify requirements and introduce new restrictions for these specific liquor licenses.
Key Proposed Revisions
The ordinance introduces or clarifies several new requirements and restrictions for full-service restaurant on-sale licensees:
· Financial Reporting and Compliance:
o Food Sales Ratio: The definition of a "Restaurant" is updated to mandate that at least sixty percent (60%) of its gross revenue must be derived from the sale of food and nonalcoholic beverages.
o CPA Certification: Licensees will be required to submit an annual certification prepared by a Certified Public Accounting (CPA) Firm to verify their compliance with the food sales ratio requirement. This certification is due annually by November 1st.
o Penalty for Non-Compliance: A new provision establishes a one-year prohibition from reapplying for the license if a current license holder fails to meet the required sixty percent food and non-alcoholic sales ratio during the preceding twelve months.
· Operating Restrictions:
o Video Lottery Ban: The ordinance explicitly prohibits Video Lottery from being conducted on the restaurant premises, including any adjacent or adjoining structures.
o Hours of Operation: Alcohol sales and consumption on the licensed premises will be restricted to end at midnight (12:00 a.m.), with service resuming no earlier than 7:00 a.m.
· License Transferability:
o Location/Ownership Lock: The license may not be transferred to a different physical location. A transfer is only permitted in conjunction with a transfer of ownership of the restaurant holding the license.
· General Updates:
o The ordinance removes outdated language that only applied during the initial ten-year period following the state enabling statutes for these licenses.
o The definition of a "Full-service restaurant" is clarified to exclude establishments that provide recreational activities, permit gambling, or provide mind-altering consumables or inhalants.
The City Council will next conduct the First Reading of Ordinance No. 25-15, which seeks to establish new zoning designations for an 11.5-acre portion of property known as the Dakota Commons 9th and 10th Additions. The property owner, Dakota Commons, LLC, through its acting agent, Jacob Mills, is petitioning for the annexation of the land into the city limits and the establishment of new zoning districts. As this is a first reading, no action will be taken at the October 6, 2025, meeting.
Proposed Zoning Designations
The annexation and zoning are necessary for the next phase of the Dakota Commons development. The ordinance proposes three distinct zoning districts for the area:
· R-2 Single Family Attached Residential District: Proposed for 13 lots in the Dakota Commons 10th Addition.
· R-3 Multi-Family Residential District: Proposed for one lot in the Dakota Commons 9th Addition.
· C-2 Local Commercial District: Proposed for one lot in the Dakota Commons 9th Addition.
The proposed concept plan complies with the future land use projections outlined in the City's Comprehensive Land Use Plan. The Planning Commission recommended approval of the annexation and zoning with a 7-0 vote on September 18, 2025.
Development and Financial Details
· Platting Requirements: The Dakota Commons 9th Addition will be platted administratively. However, the 10th Addition will require the installation of infrastructure improvements, specifically Poinsett Street, which necessitates a development agreement before the Planning Commission can approve the plat.
· Cost Recovery Fees: Two existing city cost recovery assessments apply to the property and must be paid before platting:
o Willow Creek Tributary Cost Recovery (Open Channel Drainage): Total fees are $11,238.97 for the 9th Addition and $8,514.17 for the 10th Addition (an approximate total of $19,753.14).
o Trunk Sewer Assessment: Total fees are $3,875.36 for the 9th Addition and $9,461.55 for the 10th Addition (an approximate total of $13,336.91).
· Park Dedication: The developers satisfied the park dedication requirement for the residential zoning by designating open areas that the Homeowners' Association will maintain.
The following agenda item concerns the same property area as Dakota Commons. The Council will hold the First Reading of Ordinance No. 25-16, which proposes to rezone a 3.7-acre (161,172 square feet) portion of land currently within the Dakota Commons subdivision. The agent for the owner, Dakota Commons, LLC, is seeking to change the existing zoning from Planned Unit Development (PUD) to a mix of three new districts.
This rezone, which was recommended for approval by the Planning Commission (7-0), is being pursued in conjunction with a separate petition to annex an adjacent 11.5 acres to the south. The combined area, totaling 15.2 acres, will be platted together as the Dakota Commons 9th and 10th Additions.
Proposed Zoning Changes
The 3.7-acre area being rezoned will be split among the following new zoning districts:
· R-2 Single Family Attached Residential District: Approximately 2.02 acres (88,038 sq. ft.).
· R-3 Multi-Family Residential District: Approximately 0.98 acres (42,146 sq. ft.).
· C-2 Local Commercial District: Approximately 0.70 acres (30,514 sq. ft.).
The rezone is consistent with the City’s Comprehensive Land Use Plan and the Concept Plan approved by the Planning Commission on September 18, 2025. The ordinance ensures that the new zoning designations will extend to the centerline of the adjacent right-of-ways and confirms the property is not within a regulated floodplain.
As this is a first reading, no action will be taken at the October 6, 2025, meeting. The ordinance is tentatively scheduled for a Second Reading and final vote on October 20, 2025.
The last regular agenda item is the second reading of Ordinance No. 25-14, scheduled for October 6, 2025, a comprehensive revision aimed at clarifying and reorganizing city ordinances related to the Public Right-of-Way. The central goal is to consolidate all right-of-way regulations, currently scattered across different chapters, into a newly structured Title 18.
The revision includes renaming.
Title 18 from "Streets and Public Ways" to "Right-of-Way Management" and creating a new
chapter, Chapter 18.20 "Occupying Right-of-Way," to house all relocated and updated regulations.
Key Changes and Amendments
The ordinance introduces several substantive updates to modernize language, streamline processes, and enhance public safety and compliance:
Sidewalks, Excavation, and Construction (Chapter 18.03 & 18.20)
· Snow Removal: Amends language in Chapter 18.03 to prohibit residents from placing snow from private property into the City right-of-way (boulevard) for safety reasons.
· New Sidewalk Installation: Proposes a new chapter (18.0316) requiring sidewalks to be installed for all new construction and any alteration permit that increases the building's footprint, if sidewalks do not already exist.
· Sidewalk/Bike Trail Disturbance: Updates the penalty for delaying replacement of sidewalks and bike trails to an addition of a $100 per day fine after 30 days of disturbance. It also requires proper traffic control and pedestrian routes anytime a sidewalk is closed.
· Permits for Work: Proposes a new chapter (18.0318) requiring a permit for all construction or repair work within the city right-of-way, specifically for sidewalks, driveways, or curb and gutter work, ensuring it meets ADA compliance.
· Excavation Permits: Utility companies will now be required to repair potholes to the City Engineer's satisfaction, and applicants must have a City pipe layer license due to amended State requirements. The responsibility for patching the surface of a refilled excavation is removed from the City Street Department and placed on the applicant.
Reorganization and Relocation
· Moving Chapters to New 18.20: Six chapters from Chapter 5.03 (General Regulations) related to right-of-way use and excavation—such as "Permit to Place building Material on Street," "Permit to Excavate," and "Barricades, Lights, Etc."—are being relocated into the new Chapter 18.20.
· Building Numbering: Chapter 18.04, "Building Numbering," is being relocated to Chapter 5 under Building Codes. This change also transfers the responsibility for assigning addresses from the City Engineer to the
Fire Marshall.
· Removing Redundant Chapters:
o "Duties of Superintendent of Streets" (18.0108) is being removed as it is deemed part of an employee's job description.
o "Merchandise on Sidewalk" (18.0308) is being removed as the topic is covered under the Mobile Vendor Chapter 12.30 and would be covered by an Occupy Right-of-Way permit.
Right-of-Way Use Permits
· Sidewalk Cafés (18.2002): Permit approval authority is moving from the City Council to the City Engineer, and permits will now be required to be renewed every three years (currently, there is no expiration).
· Community Events (18.2004): The former "public dance/festival agreement" resolution is being put into ordinance and renamed "Community Event". The City Engineer will now approve these events instead of the Building Official.
Deposit requirements are changing only if liquor is being served or acts will be performed. Event vendors listed by the event coordinator will be covered under the required insurance, allowing them to forgo getting a separate vendor permit.
The meeting wraps up asking if any council members have any topics to introduce for future discussion, a city manager report if one is available, and an executive session if one is necessary and called.
