Public Utilities

Nepotism run amuck at Sioux Falls City Hall

Besides the secretive roof repair happening at the Pavilion they are also installing new outdoor sculptures.

Besides COS Erica Beck’s son getting a job in HR straight out of college, there seems to be some other nepotism and conflicts going on. There was a rumor for awhile that the Public Works Director’s wife who owns an interior design company got the contract for the redesign on city hall recently (that is a rumor I am still looking into), but his son, who owns Urban Oasis, apparently got the contract to install the sculptures. His father makes $232K a year with the city, so it seems a bit odd that he would need even more from the taxpayers. Now they could argue that the sculptures purchase and installation was paid for by a private donation so there is NO conflict, BUT, as I argued in the past that since these sculptures are sitting on public property, they are public art, and the taxpayers will be responsible for their future maintenance, this is a public project NO matter who is paying for it because we own the property the sculptures are being placed on. There are plenty of experienced landscape contractors in Sioux Falls who could have done the job, and with more then a couple years experience. This was clearly an inside handshake deal. I wonder what the city council will do about it. My guess, like the Selberg incident, they will look the other way.

Sioux Falls is hostile towards bicyclists and peds

After riding E-Bike for 4 years I decided this year I would try to ride almost everyday this winter, not quite but I am averaging 6 days a week so far. Studded tires are where it’s at 🙂 I have to admit it is kind of an addiction but once you have the layers on it is actually very peaceful and comfortable. And I am not crazy, on my way to work today I counted 20 individual joggers in a 4 mile stretch. Some people get it. The other day while riding to work I saw this beautiful younger Bald Eagle gracefully flying thru the trees on the bike trail. I should have taken a picture but I was in such awe I didn’t even think about it. I also work late afternoons so the beginning sunsets on my commute are beautiful.

But there is one thing I detest; the way our city’s public works doesn’t properly maintain our streets in Sioux Falls;

While this graphic is from another city, it is pretty much like this in Sioux Falls. It amazes me when we have a mayor who is supposedly into fitness makes it very difficult for people walking or riding bike to navigate this town. I said if most people in Sioux Falls started bike commuting to work at least 3 days a week we would be less fat, and more happy. I lost 100 pounds riding bike and that was my only exercise routine on my 3 year journey. I do other routines now, because I can physically now, but biking is a great low cardio workout, especially an e-bike where it monitors your cadence and keeps you at a consistent pedal speed. Not only good for leg muscles it can also make your arms stronger and helps with balance, coordination and concentration.

Former city councilor Neitzert said to me recently that he pushed hard to get more bike safety measures on our streets and was ignored, he even told me that the city has a fund for this stuff and the Mayor won’t touch it with a 10 foot pole.

I’m not anti-car. Many peeps have asked me if I even own one, I do. I love my 2009 Honda Civic. It’s simple and functional and I have been looking for a used Hybrid. My bro owns a Chevy Volt and he has told me it is the best car he has ever owned (C’mon, the VW diesel pickup was pretty cool, you should have never sold it!)

We need to find a way in Sioux Falls to make peace between cars, bikes and peds. I didn’t even mention all the insults thrown at me from peeps in vehicles and guess who is the worst? Harley riders. You would think my 2 wheel cousins would have my back, hell no. Small pee-pee syndrome.

Speaking of cars, one of my friends is trying to sell his 1961 Porsche Notchback that he fully restored after pulling it from a barn in Virginia. Cars are cool, bikes are way cooler.

Sioux Falls City Council Tidbits

At the informational on Wednesday council got some updates on our new transit provider (FF 19:00). The Planning Director told council that last year the legislature permitted agencies like Dakotabilities and Lifescape to take a 100% reimbursement on Medicade for transit services. Jeff asked if the city would be repaid that money and the agencies said they are using the money and they are only getting 80% from the state right now. Hopefully in the future the Feds will reimburse us for Paratransit rides.

SANDFORD WELLNESS CENTER

At the regular council meeting Wednesday night the council pulled the item that will fund the fitness center we are buying from Sanford for $9 million. (FF: 8:30);

A motion was made by Council Member Merkouris and seconded by Council Member Soehl to approve Sub-Item 5, Parks/Recreation: Offer to Purchase Commercial Real Estate and Asset Agreement, 24-0070, Sanford Wellness Center; Sanford Medical Center; $9,000,000.
Roll call vote to approve7 Yes: Basye, Cole, Merkouris, Sigette, Soehl, Spellerberg, Barranco; 1 No: Thomason. Motion Passed.

During the discussion, Jeff mentions that Sanford will have to lease back the property until January 1st until the city takes it over. Sanford sent club members an email;

Valued member,  

We have some brief updates to share regarding the timeline for the proposed purchase of Sanford Wellness Center Tea-Ellis by the City of Sioux Falls. Following final approval from the City Council at this week’s meeting, Mayor TenHaken signed the purchase agreement with a tentative closing date later this fall.

We acknowledge and appreciate that this approval represents a major change for our members along with some temporary uncertainty as details are worked out. With that in mind, we continue to reiterate and reassure you that nothing will change with your Sanford Wellness Center membership at this time.

Here are a some additional details:

  • The purchase process will move forward with an expected closing date within the next three months.
  • On the closing date, the City will officially own the building; however, we will continue to operate Tea-Ellis as a Sanford Health facility until the City is prepared to take over operations.
    • Tentatively, the City will take over in late 2024 and no later than Jan. 1, 2025.
    • This purchase does not include our Oxbow location, which will remain a Sanford Health facility.
  • The City’s next steps include developing plans for operations as well as membership and programming options.

Throughout the purchase and transition period, we continue to welcome questions and conversations. To help address some of your most frequently asked questions so far, we have the following resources available:

  • An FAQs page has been added to the Wellness Center website.
  • Members can also email SHWC_SiouxFalls@sanfordhealth.org with questions.
  • Posters with our question submission QR code have been placed at Oxbow and Tea-Ellis and are available for anyone to ask a question.
    • Answers to these questions are primarily available on the FAQs page referenced above.

We look forward to sharing more details with our members in the coming months.

Thank you for your patience, and importantly, for choosing Sanford Wellness Center to be part of your health journey.

Be Well, 

Mike Davidson, General Manger, Sanford Wellness Center
Scott Hettenbach, Director, Sports Performance and Wellness Centers


I also found it interesting that Thomason voted against the measure after asking about membership fees. I have a question into Richard asking him why he voted NO and wait to hear back from him.

You can also listen to my public input about the Dakota Scout becoming the legal paper for the city and during public input I said this;

Scott Ehrisman spoke on TIFs, development & project costs, and a previous Councilor not living in the district he represented.

This was in the notes, notice they didn’t put the name of the councilor in the minutes, I said the name, Marshall Selberg. Sneaky. I should ask the clerk’s office to amend the minutes.

City of Sioux Falls using Water/Sewer fees to supplement ‘other’ projects

As I took a deep dive into this sorted document I noticed a trend, water and sewer fees are being used for all kinds of projects, not just roads (I understand that when there is a total road replacement you have to do some pipe replacements). But many of these projects have NOTHING to do with the water and sewer.

No wonder they didn’t have to raise electric rates, they just use sewer money to upgrade that utility! Not sure what new office furniture at the electric plant has to do with flushing my toilet but I’m sure councilor Jensen has an explanation.

As I said during this public input (FF: 26:30) the city sets up all of these separate ‘weirdo’ funds to pay for projects thru the redistribution of these fees, and the proof is in the pudding. I counted over 20 projects that use water and sewer fees to fund them and have little to nothing to do with water and sewer.

Speaking of the water and sewer plant, over the next 5 years the city plans to spend over $329 MILLION on the combined water and sewer plant (I would assume these numbers don’t include interest and bond repayments).

Hey Paul, maybe Theresa was lying, it isn’t going to cost us $300 million, it’s $329 million! How dare she mislead the public like that 🙁 Maybe at the next council meeting Paul will publicly chastise Stehly for UNDERESTIMATING the costs!

Sioux Falls deserves answers ahead of utility rate hikes, Guest column by Theresa Stehly

There is good news and bad news concerning utility rates for Sioux Falls residents, multi-housing facilities and businesses.  

The GOOD NEWS:

As The Dakota Scout reported on June 6 —

 “Xcel Energy last year sought to impose increases of nearly 18 percent on its South Dakota customer’s revenue for the company. However, the PUC settlement, agreed to by Xcel, reduces that increase to about 6 percent. This settlement also freezes base electricity rates through 2025.”  

Thanks to the Public Utilities Commission for taking time to listen to the customers and caring enough to keep rates reasonable to support an affordable quality of life. This is government doing its due diligence on behalf of its citizens. 

The BAD NEWS:  

On June 6, the Mayor’s Office presented to the Sioux Falls City Council a four-year plan to increase our sewer bills by 22 percent and our Water bills by 19 percent. This is in addition to the already massive increases we have been experiencing since 2018.

The justification for the 2018 rate increase was the need to fund the largest expenditure in our city history, the $260,000,000 (that’s $260 million) rebuild of our Waste Water Treatment Plant. This proposed cost projection never included the additional interest payments.

As one of your At-Large Council members in 2018, I listened as the City Council was told this new facility would be funded with the sewer fees to be paid by homeowners, businesses and apartment owners. Grave concerns were voiced at the time about the escalating sewer rates needed to pay off this massive project. This is a basic and necessary life sustaining government service everyone uses.

Our community has a healthy stream of revenue from the collected 2nd penny sales tax money, a funding source set up almost 40 years ago to be used for infrastructure like this.  

In 2018, I attempted to get a resolution passed, freeing up some of the 2nd penny sales tax money to help pay for this costly project.

Every time you borrow money, a payoff or amortization schedule is created to help you budget. I requested this schedule for all of us, so we could all keep track of the cost and repayment of the Waste Treatment Project. The Public Works Department denied the City Council an accounting of this basic information.  

Why is this important today? The city says it needs more massive rate increases, while still not answering the original questions: How much have we spent on the project since its conception? How much do we owe on this huge project? How many more rate increases will be needed to pay for the project? How much has the city spent in cost overruns?

Now as a private citizen, I expressed my concerns on June 6 to Mayor Paul TenHaken and the City Council that this is not the time to be raising fees or taxes. Water and sewer are basic survival needs for all. Many users are struggling with providing the basic necessities for their families, and many of us are upset about the outrageous tax burden we have to shoulder.  

The City Council acts as our “Public Utilities Commission” of water and sewer rates in our community, and just like the South Dakota PUC, our City Council can vote to approve the rate increases, negotiate lower rates or vote down a rate increase altogether. This is the time to use your voice.  

We need to demand more openness and transparency in these big ticket items that the good people of Sioux Falls are paying for. I am deeply grateful for the recent respectful conversations I have had with several council members over this issue. Their promises to dig into the details of these rate increases, the money that has been spent for design and implementation, and what will need to be spent on the Waste Water Treatment Plant is encouraging. I eagerly await their findings.

If you, like me, have concerns about these rate increases, I urge you to reach out to the mayor and City Council before they vote to increase your rates on June 20, 2023.  

Theresa Stehly is a longtime Sioux Falls resident and former city councilor.