Milbank City Council Proceedings
Milbank City Council Proceedings
September 14, 2026
Call to Order – The City Council met in regular session on Monday, September 14, 2026, at 6 p.m. in the Milbank Visitor Center, 1001 East Fourth Avenue, with Mayor Hanson presiding.
Roll Call – Present were Council members Roger Briggs, Ryan Gruba, Josh Karels, Mindy Rogers, Kyle Schwandt. Absent: John Weyh. Attorney Patrick Knecht via Teams Communications. Staff present included Steve Pendergrass, Cynthia Schumacher, Kim Carlson, Carl Bostrom, Corey Hooth, Jeremy Breon, Darin Thiele, and Boyd VanVooren. Members of the public included Tanya Miller, Josh Hinds, Sara Pankonin, Ryan Kohl, Traci Stein, Nathan Watson, Dillon Dwyer, Bill Tostenson, Josh Wendland, and Brent Hoffman.
Agenda – The council adopted the agenda with a change in order of business, 5-0.
Public Comment – No one addressed the Council.
Tanya Miller, Sara Pankonin, and Josh Hins from Banner Associates were present to discuss the pending water and wastewater projects.
Miller explained that the wastewater plant’s specific needs include replacing a heavily corroded pre-treatment building, installing a new pumping station, and upgrading the outdated SCADA control system. The total cost is $17.5 million, with funding secured through loans and grants.
Pankonin reviewed the water treatment plant plans, focusing on removing excess iron and manganese from the water supply with a new filtration system. While this will not address sodium and sulfate removal, options for these were deemed too costly or technologically unfeasible at present.
Hinds explained the Construction Manager at Risk (CMAR) project delivery method and its benefits over traditional methods, including improved cost control, schedule efficiency, and collaboration among the contractor, engineer, and city. CMAR involves the contractor early in design, establishes a guaranteed maximum price, and allows for fast-tracking certain project phases.
The council and public discussed the relationship between water and wastewater improvements, emphasizing the urgent need for wastewater upgrades and the two systems' interdependence.
The Council acknowledged the importance and complexity of the projects, as well as the financial and operational considerations involved, and made a motion to approve the Banner Associates, Inc. engineering agreement, WTP-Iron and Manganese Removal, not to exceed $970,000. Motion carried 5-0.
A motion was made and seconded to approve the Banner Associates Owner’s Advisor Agreement – WTP - Iron and Manganese Removal, not to exceed $450,000. Motion carried 5-0.
A motion was made and seconded to approve the Banner Associates, Inc. Engineering Agreement - WWTF Improvements 2028, Phase 1, not to exceed $1,600,000. Motion carried 5-0.
A motion was made and seconded to approve the Banner Associates, Inc. Owner’s Advisor Agreement - WWTF Improvements 2028, Phase 1, not to exceed $771,000. Motion carried 5-0.
Tracy Stein, Executive Director of the Grant County Development Corporation (GCDC), presented preliminary findings from the Milbank Housing Needs Assessment to the Mayor and City Council and requested increasing the city’s annual allocation to GCDC from $31,000 to $50,000. The assessment highlights a mismatch between current housing stock and community needs, particularly affordable options for both older residents and younger families. Stein outlined current housing gaps, a need for new and rehabilitated housing, and a phased, demand-driven development strategy. The request supports four work streams: housing implementation, industrial park management, childcare grant administration, and business retention/expansion. Council and county representatives expressed support, and the funding request will be considered in the upcoming budget discussions.
County Commissioner Bill Tostenson emphasized the need for more development in the area to attract both visitors and investors. The county recognized it had been underfunding these efforts, contributing only $31,000 annually for several years, and decided to increase its support. Tostenson stressed that development is crucial for generating tax revenue, and the county benefits financially from these ongoing projects.
Consent Agenda – A motion was made and seconded to approve the consent agenda. Approved 5-0.
1. Approve the minutes of August 10, 2026, and September 10, 2026, meetings.
2. Approve the claims list.
Adobe, subscription, $176.76; Advanced Technologies Inc., shipping/ supplies, $342.83; Adventure X Motorplex, golf cart, $7,999.00; Agtegra, gas, $6,735.26; Al’s Body Shop, vehicle repairs/parts, $538.14; Amazon, supplies/parts, $2,018.99; Associated Pool Builders, controllers, $17,942.75; Associated Supply Co., parts, $138.32; AT&T, cell phone/WIFI, $810.44; Auto Value Parts Store, parts/supplies, $102.22; Avera, testing, $99.70; Bakeberg, Ryan, clothing allowance, $250.00; Banner Associates, Inc., engineering, $75,798.93; Berens Market, supplies, $91.12; Berkner Excavating, system repairs, $10,332.73; Beyond Concrete, ground maintenance agreement, $24,770.83; Bituminous Paving, Inc., chipseal, $134,027.25; Boyce Law Firm, legal service, $10,763.46; Butler Machine, parts, $98.00; C. Emery Nelson, Inc., parts, $4,021.00; Canva, subscription, $119.99; Card Pointe, card fees, $442.72; Chappell Central Inc., system maintenance/repairs, $16,484.79; Civic Plus Inc., web hosting, $192.95; Cole Papers Inc., supplies, $1,083.94; Corporate Technologies LLC, managed services, $4,428.00; Dakota Shed Haulers, move building, $550.00; DBT Transportation Services Inc., freight, $20.59; Dewey’s Lawn Care, lot cleanup, $7,287.96; Dinges Fire Company, equipment, $714.10; DO Supply, fitness equipment, $19,500.00; DSC Communications, program radios/pagers, $2,401.00; Eastside Car Wash, truck wash usage, $404.57; Electro Watchman Inc., update access controls, $3,490.50; First District Assn of Local Government, GIS updates/grant assistance, $10,160.19; Flexible Pipe Tools and Equipment, parts, $1,152.20; Food-N-Fuel, gas, $235.43; Four Season Small Engine, parts, $40.00; Grant County Auditor, county services, $1,000.00; Grant County Development Corp, allocation, $15,500.00; Grant County Review, publications, $2,176.69; Grant Roberts Rural Water, water service, $62.00; Hanson, Anne, web host, $369.57; Hasslen Construction, bollards, $2,780.62; Hawkins, Inc., chemicals, $33,565.66; Heiman Fire Equipment, equipment, $323.50; Helms and Associates, engineering, $26,025.23; Hilbrands, Ryan, clothing allowance, $76.45; Hy-Vee, supplies, $52.23; ITC, phone/internet, $1,947.95; J&J Earthworks, 7th Ave Project, $252,077.85; Jefferson Lines, shipping, $165.00; John Deere Financial, service equipment/parts, $2,040.04; Kully Supply, parts, $395.96; Landmark, Julie, recreation equipment, $60.00; Lee Spring, parts, $185.64; Lewis Drug Stores, supplies, $12.98; Linde Gas and Equipment Inc., air system, $67.12; LL and Sons, Industrial Drive Project, $284,638.33; Loutsch, Jeff, deductible, $2,500.00; Maguire Iron, Inc., tank painting, $98,975.00; Menards, cabinets/counters, $1,772.90; Michael Todd and Co, safety equipment, $1,234.80; Midwest Power Sports, parts, $25.98; Milbank Area Chamber of Commerce, allocation, $15,500.00; Milbank Fire Department, rent/education allocation, $15,500.00; Milbank Glass and More, caulk windows, $2,608.40; Milbank Winwater, parts, $1,188.89; MnN Cleaning Services, cleaning, $3,800.00; NAPA Auto Parts, parts/supplies, $1,618.19; Nelson Electric, electrical, $290.82; Newman Traffic Signs, signs, $330.38; NW Energy, natural gas, $1,061.07; O’Reilly Automotive Inc., parts, $342.85; Otter Tail Power, electric, $25,036.30; P&H Construction, reset monuments, $5,119.25; Pendergrass, Steve, clothing allowance, $100.00; Petty Cash, postage, $74.20; Public Square Analytics, software, $500.00; Raffety, Leyton, clothing allowance, $203.59; Rausch Bros. Monument, repair monument, $1,116.00; RDO Equipment, supplies, $264.00; Real Tuff, compressed gas, $188.00; Riverside Pump, seal kit, $635.32; Rockbot-music system, subscription, $31.86; Roger’s Electric Motor, parts/repairs, $630.44; Runnings Supply, parts/supplies, $731.09; Schumacher, Cynthia, travel expense, $175.00; SD Local Transportation, registration fee, $250.00; SD Public Health Lab, testing, $232.00; SDML, registration fee, $170.00; SDWWA, registration fee, $155.00; Shade Valley Farms, FBO Agreement, $750.00; Share Corp, supplies, $822.97; Sight and Sound, AV equipment, $35,622.51; South Dakota 811, one calls, $105.00; Star Laundry and Cleaners, laundry service, $492.19; Swipeclock, subscription, $109.99; Thiele, Darin, supplies, $18.59; Trapp Plumbing Co., plumb concs/restrooms, $14,125.93; Ultimate Blasting Inc., lettering pavers, $3,900.00; US Bank-SRF, bond payments, $427,465.00; US Postal Service, billing expense, $600.00; USA Bluebook, supplies/parts, $3,622.70; Valley Office Products, parts, $95.60; Valley Rental and Recycling LLC, recycling agreement, $900.00; VC3, Inc., onboarding, $4,910.00; Webster Scale Inc., turnaround project, $65,077.98; Whetstone Home Center, supplies/parts, $671.41; Whetstone Sanitation, garbage service/rental-cleaning, $1,889.00; Whetstone Valley Electric, electric, $12,248.40; Wiese Electric, installation, $286.23; WM Corporate Services Inc., garbage service, $722.04; Xerox, copier lease, $508.06; Zoom Subscription, Zoom video subscription, $18.04.
$1,746,612.45
3. Approve the Treasurer’s Report.
4. Advertise for snow removal bids.
5. Approve Lake Farley Storm Shelter Change Order #2-stainless steel concession countertops, +$2,718.44.
6. Declare Unity Health and Fitness equipment surplus: Free Motion leg extension, prone leg curl, chest press, pec fly/rear delt, and squat assist, to be sold.
7. Approve special permit - Homecoming Parade, Friday, September 25, 2026, 2 p.m. – 4 p.m.
8. Approve special permit – Treat Street, Main Street, Saturday, October 31, 2026, 4 p.m. – 8 p.m.
9. City Goes Country, sponsored by KMSD, Saturday, September 26, 2026, Lake Farley Park, 11 a.m. – 3 p.m. Waive park fees.
10. Schedule public hearing for special assessment, 10-12-26.
11. Approve hire of Jack Hoeke, part-time maintenance - $25.25/hr. Dennis Lesnar, part-time custodian - $15.93/hr.
12. Resolution 9-14-26, Lot Merger, Darin Mertens, D&L Mertens LLC.
RESOLUTION 9-14-26
LOT MERGER AGREEMENT
THIS LOT MERGER AGREEMENT is made this 9th day of August 2026 by and between D&L Mertens, LLC (hereinafter called “Property Owner”), and the CITY OF MILBANK, SOUTH DAKOTA (hereinafter called “City”).
WHEREAS, Property Owner owns two or more contiguous lots located in a residential zoning district of the City; and
WHEREAS, Property Owner desires to use the below described lots in service of a single principal use; and
WHEREAS, merger of the lots is required by Section 17.47.
The City and Property Owner agree as follows:
Property Owner and City do hereby agree that the lots described as 406 and 412 W. 4th Ave.; Parcels: 26.22.11.06 and 26.22.11.07; legal descriptions: WEST END ADDITION LOTS 3-5 and E 2’ OF LOT 6 BLOCK 11 and WEST END ADDITION W 48’ OF LOT 6 and ALL OF LOT 7 EX LOT H1, BLOCK 11; the plat for which is recorded in the Register of Deeds of Grant County in plat case 3 plat #231, and as more fully described in deeds from Henry and Dorothy Harms and Great Western Bank to D&L Mertens, LLC dated 8/17/11 in book 114, page 841 and 5/2/2019 in book 120, page 656 and recorded at the Register of Deeds of Grant County (“the Lots”) are subject to the terms and conditions of this agreement.
1. Upon execution of this Agreement by all parties, the Lots shall be merged for the purpose of serving a single principal use as described by and under the conditions imposed by the City of Milbank.
2. This agreement shall be recorded with the Register of Deeds of Grant County at the expense of the Property Owner.
3. For the purposes of complying with City of Milbank zoning and subdivision codes, lot lines separating the Lots, as shown on the referenced subdivision plat, shall no longer be considered as lot lines for any zoning or subdivision purpose, and the Lots shall, for building and development purposes, be considered as a single lot.
4. The parties hereby agree that the Lots shall not be unmerged or resubdivided except in compliance with the ordinances of the City of Milbank.
5. The parties further agree that this Agreement is intended to bind future use and development of the Lots and shall survive any conveyance of the individual lots merged by this Agreement.
6. Property Owner and City agree and understand that this Agreement shall not affect the legal description or title to the Lots.
7. The obligations and benefits of this Agreement shall be binding upon and inure to the parties to the Agreement, their legal representatives, successors, and assigns.
The parties do hereby set their hands and seals on the date and year first above written.
Darin Mertens,
Property Owner
IN TESTIMONY WHEREOF, the said grantor has caused these presents to be executed in its corporate name, by the Mayor and the City Finance Officer of the said City of Milbank, Grant County, South Dakota, this 14th day of the month of September in the year 2026.
THE CITY OF MILBANK,
Grant County, South Dakota,
a municipal corporation
By Mike Hanson,
Mayor
ATTEST:
Cynthia Schumacher,
Finance Officer
13. Resolution 9-14-26A, Lot Merger, Robert Schultz, Schultz and Swift Services Inc.
RESOLUTION 9-14-26A
LOT MERGER AGREEMENT
THIS LOT MERGER AGREEMENT is made this 10th day of September 2026 by and between Robert Schultz aka Schultz and Swift Services, Inc. (hereinafter called “Property Owner”), and the CITY OF MILBANK, SOUTH DAKOTA (hereinafter called “City”).
WHEREAS, Property Owner owns two or more contiguous lots located in a residential zoning district of the City; and
WHEREAS, Property Owner desires to use the below described lots in service of a single principal use; and
WHEREAS, merger of the lots is required by Section 17.47.
The City and Property Owner agree as follows:
Property Owner and City do hereby agree that the lots described as 222 E Railway Ave; Parcels and Parking Lot: 26.00.05.03 and 26.00.01.12A; legal descriptions: ORIGINAL TOWNSITE LOTS 1-3, LOT H2 ADJACENT TO BLOCK 5, LOT 4 EX S 10’, LOTS and ORIGINAL TOWNSITE LOTS 9, 10, 11, 12 and 13 BLOCK 1 (PARKING LOT); the plat for which is recorded in the Register of Deeds of Grant County in book 130, page 6 (“the Lots”) are subject to the terms and conditions of this agreement.
1. Upon execution of this Agreement by all parties, the Lots shall be merged for the purpose of serving a single principal use as described by and under the conditions imposed by the City of Milbank.
2. This agreement shall be recorded with the Register of Deeds of Grant County at the expense of the Property Owner.
3. For the purposes of complying with City of Milbank zoning and subdivision codes, lot lines separating the Lots, as shown on the referenced subdivision plat, shall no longer be considered as lot lines for any zoning or subdivision purpose, and the Lots shall, for building and development purposes, be considered as a single lot.
4. The parties hereby agree that the Lots shall not be unmerged or resubdivided except in compliance with the ordinances of the City of Milbank.
5. The parties further agree that this Agreement is intended to bind future use and development of the Lots and shall survive any conveyance of the individual lots merged by this Agreement.
6. Property Owner and City agree and understand that this Agreement shall not affect the legal description or title to the Lots.
7. The obligations and benefits of this Agreement shall be binding upon and inure to the parties to the Agreement, their legal representatives, successors, and assigns.
The parties do hereby set their hands and seals on the date and year first above written.
Robert Schultz,
Property Owner
IN TESTIMONY WHEREOF, the said grantor has caused these presents to be executed in its corporate name, by the Mayor and the City Finance Officer of the said City of Milbank, Grant County, South Dakota, this 14th day of the month of September, in the year 2026.
THE CITY OF MILBANK,
Grant County, South Dakota,
a municipal corporation
By: Mike Hanson,
Mayor
ATTEST:
Cynthia Schumacher,
City Finance Officer
14. Approve Runway 13 Turnaround Reconstruction Change Order 1 (3-46-0034-022/023-2025). Correction to runway threshold light lens, $881 increase.
Action items –
A motion was made and seconded to certify the tax call at $1,135,086. This amount is based on a 2.5% CPI rate, $1.3% stored CPI, and a 2% growth rate. With the increased valuation, the city’s levy will be slightly down. Motion carried 5-0.
A motion was made and seconded to approve the $295,628.08 quote submitted by J&J Earthworks for the emergency replacement of water and sewer lines in the alley running west of Flynn Park. Numerous other utilities in the alley complicate the repairs. Motion carried 5-0.
At the previous meeting, Director VanVooren presented two plans for the remaining bond funds. Option A added on to Unity Health and Fitness. Option B was a new park shop, additional park restrooms, asphalt parking at Lake Farley, and pool upgrades. VanVooren said the park board felt Option B would best use the remaining funds. VanVooren stated a small group had met in recent weeks to discuss the building specs. A motion was made and seconded to call for bids for a new park shop once specifications were complete. Motion carried 5-0.
A motion was made and seconded to approve the $322,930 bid from Maguire Iron, Inc., to clean and paint the water storage tank, which is below the original $400,000 budget. The current plan includes painting the tank in a solid or blended color. While decorative options like logos or themed designs (such as baseball, train, or school mascot) were discussed, these are not included in the approved bid and would cost an additional amount. The project is to be completed by the end of 2027, with the timeline depending on weather and planning. Motion carried 5-0.
The city council reviewed the proposed Request for Proposal (RFP) for a publicly owned daycare center that would be leased to an outside operator. Although final approval is pending voter input, the council agreed to accept the current RFP draft as a foundation, with the understanding that it may be revised and must return for council approval. The RFP ensures rent covers operating expenses, with excess going to a building maintenance fund, prioritizing transparency and fiscal responsibility. The council stressed the importance of clear operating guidelines and long-term sustainability. No final decision was made at this meeting.
Department Reports –
Chief Hooth emphasized community safety, especially regarding crosswalks, bicycles, and pedestrian rules. Hooth expressed concerns about the future of ambulance services due to the current owner’s potential retirement. Recent community events included a well-attended first responders appreciation night and the annual fly-in event, which drew 750-1,000 attendees. Park and public works crews are preparing for fall, continuing maintenance, and working on projects like new fences at softball fields and upgrades at Legion field. The Seventh Avenue project is wrapping up for the season. IT updates include a transition to .gov email addresses and new AV equipment for meetings.
Crosswalk safety and placement, especially near schools and busy intersections, remains a concern, with ongoing efforts to secure better signage and state support.
Planning and Zoning vacancies were discussed, and members were encouraged to consider serving.
Salaries –
August: Council: $3,000. Finance -$23,435, Police - $43,743, Fire - $1,862. Streets - $23,000, Rubble Site - $1,022, Recreation - $5,375, Pool - $1,942, Fitness - $8,899, Unity - $12,926, Park - $22,159, Water - $11,577, Sewer - $21,258.
2026 Permits, August–
Building: Valley Queen Cheese- commercial addition - 215 W. 3rd Ave., Randy Folk - 207 Jen Lane - addition, Doug and Vicky Gulley - 901 S. Main St. - accessory structure, John Trevett - 703 Milbank Ave., - house/garage.
Sign: Thomas Properties - 103 W. 4th Ave.
Roof: Richard Fish - 602 E. 4th Ave., Jessica Suarez Estrada - 402 S. 5th St.
Demo: D&L Mertens - 412 W. 4th Ave. - commercial addition.
Fence: Ben and Elizabeth Koopman - 401 S. 2nd St.
Moving: Milbank House Movers - 222 E. Railway Ave. - commercial accessory structure/train car.
Executive Session –
The Council moved and seconded a motion to enter Executive Session under SDCL 1-25-2 (1), (3). After Mayor Hanson brought the Council back to open session, a motion was made and seconded to end Jeff Loutsch’s employment effective 9/30/26. The motion passed, 5-0.
Adjourn –
A motion was made and seconded to adjourn at 8 p.m. Motion carried 5-0.
The next regular meeting will be held on Monday, October 12, 2026, at 6 p.m.
Mike Hanson,
Mayor
ATTEST
Cynthia Schumacher,
Finance Officer
