The Lennox City Council met Monday, December 9 at Lennox City Hall. Council members heard agenda items including banking services, road widening and wastewater treatment updates.
With Mayor Danny Fergen absent from the meeting, City Council President, Sam Bowers called the meeting to order and asked for visitors to be heard.
Lincoln County Commissioner, James Jibben was present to speak to the Council.
“I’m here tonight just to share a couple of things, this past year I have been asked many times how you feel about carbon pipelines and how you feel about a prison in Lincoln County; it’s a big concern, and I just want to remind you that if you support taking wastewater from the penitentiary site, you’re basically saying that you’re supporting the penitentiary being built in Lincoln County. I have a problem with that and so do many other people in this county, and I hope that you really think high and dry before making this decision. This decision is forever, not just a week, a day, a month or a year,” Jibben said.
Jibben suggested to the board that the best option moving forward on the prison wastewater treatment would be to let the public vote on the issue.
The City of Lennox has issued a request for proposals (RFP) for banking services; proposals have been received and the City of Lennox is prepared to determine vendors for depository services.
“A new RFP was issued in November, and all responses were received by the set deadline. Responses were received from all three local banks, American Bank & Trust, First Interstate Bank, and Security State Bank. I have included in your packets a spreadsheet summarizing the responses from each potential vendor, with cells highlighting clear advantages in applicable categories. In terms of daily banking services, it would appear as though First Interstate Bank is our best option, with the rate on Money Market and sweeps slightly higher than the other two vendors. In terms of investments, both American Bank & Trust and Security State Bank offer preferable products with higher interest rates,” said City Administrator, Nate Vander Plaats.
Vander Plaats did not have a recommendation of one bank over the other, noting logistically there may be an advantage, but all had their advantages.
According to Vander Plaats, First Interstate Bank has the City’s current checking account and CD’s but were not present at the meeting.
“I think both banks are fairly local, both have staff that are local, and I feel more comfortable splitting the business like we discussed,” Alderman Van Driel said. Motion to move the money market account to American Bank and Trust and the CD to Security State Bank made by Swier, seconded by Lauren Van Driel. Motion approved.
The City of Lennox wishes to complete a widening of the railroad crossing at the BNSF railroad at Elm Street.
“We wish to widen the crossing on Elm Street, if you look at the crossing now, you will see that the width of the new roadway is wider than the existing crossing at the railroad. The agreement tonight would widen that crossing to match the new Elm Street width,” Vander Plaats said.
The crossing will cost the City of Lennox nearly $150,000 if approved.
“BNSF will be responsible for design and construction, while the city would be responsible for patching and tying in to their new asphalt,” he said.
Motion approved unanimously.
The Lennox Area Development Corporation (LADC) requests action to be taken on the vacant lot owned by the City of Lennox at 505 S Garfield Street.
“This lot has been owned by the City of Lennox for some time. It is my understanding it was acquired to make way for a future right-of-way for West 5th Avenue. The City Engineer and I do not believe that is the best route for said street. You will recall that LADC requested this lot be gifted to their organization in lieu of a larger appropriation in 2025. LADC is willing to develop a residential property at this address, thus adding the property to the tax rolls,” Vander Plaats said.
A motion to deed the property to LADC was made by Swier, seconded by Welch. Motion approved.
The City of Lennox has received a petition by registered voters of the municipality seeking to refer the City Council’s action approving an agreement with the South Dakota Department of Corrections adding the new men’s prison as a sewer customer for action by the voters for their approval or rejection the action.
“Municipal referenda are governed by SDCL Chapter 9-20. SDCL 9-20-19 makes clear that administrative decisions of the City Council, such as this, are not subject to referendum, only legislative decisions are. Because state law does not permit it to be referred, the City Council must reject the petition. It is my position to make a motion to reject the petition for lack of meeting requirements of municipal referendum under SDCL 9-20,” Vander Plaats said.
City Council President, Sam Bowers opened the floor for public comment.
Laura Thiesse was the first to speak on the matter.
“My main concern at this time is telling the citizens of Lennox that we have no right to vote on this, that it’s an administrative decision. This should be a legislative type of decision and it’s discretionary on whether or not to enter into this agreement. City council did not have to do it, according to SDCL 9-48-32, it provides that the municipality may enter into a contract, this agreement seems to have a permanent consequences and character. The DOC is currently tied up in court until spring and may not be heard until summer. With this ongoing litigation, it will not be done any time soon. It makes the site an if and not a when. Was this was a discretionary decision to enter into this agreement or not,” she asked.
Thiesse asked if any plans had been finalized and if they had been presented to the citizens.
“We had a discussion with our engineer regarding upgrades and those documents would be public and they are available,” said Alderman Mower.
Lisa Menkel took to the podium to express her opinion. “I feel that it’s useless to come here and talk, but I do want to have my peace of mind. I worked at a company called People’s Service and we did water and wastewater for at least 20 subdivisions in Nebraska, Minnesota, and Iowa and I was in the administrative part and what happened was I would get the letters from to all the mayors form the people letting them know what’s going on in the wastewater plant every month and every month we would go to a town meeting for each of those subdivisions and tell them what it cost in addition that they were not expecting to pay. Different treatments, different chemicals, there’s a whole bunch of different processes. I think with this big of a decision the towns people should have had a say,” she said.
The council heard from more members of the community who echoed the thoughts of Thiesse and Menkel.
“I think we got clear direction from our legal representation that we don’t really have a choice here, so I make a motion to reject the petition,” said Alderman Chad Swier. Motion approved unanimously.
The board went into executive session following the regular agenda. Out of executive session a motion was made to hire Kristi Kranz as the new Parks and Recreation Direction at a salary of $81,000 annually. The motion carried.