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*The council was informed that bids have been opened for next summer's street improvement project, and the low bid for the project was $954,170 from Dunnick Brothers.

Based on this bid, city administrator Steve Helget estimated the assessment rate for street and storm sewer improvements should be $43.59 per foot for streets that are scheduled to be rebuilt and $5.75 per foot for streets that require overlayment only. Helget estimated the assessment rate for the Service Road project will be $55.66 per foot.

The council set the interest rate for assessments at 5.25 percent but did not take action on the bids, though the council is expected to do so in March.

*The council approved making an offer of 63.25¢ per square foot for a right-of-way along Railroad Street on property owned by Ed Webb. The right-of-way is necessary for improvements on Railroad Street during the street improvement project this summer.

Because Railroad Street has been on the property for 50 to 100 years, city attorney Bill Spooner believed the city could have rights to it under common law dedication, but he thought it would be cheaper to settle than to take the matter to court. *The council also approved 63.25¢ per foot for a right-of-way in the Michaelis-Olmscheid Addition.

*The council approved setting a public hearing on a proposed TIF District for Midwest Cylinder, owned by Dennis Wilson, for Wednesday, March 24, at 6:30 p.m. Wilson is proposing to add an 18,000 sq. ft. addition to his existing building in the Industrial Park to provide storage and office space. The additition could facilitate hiring up to eight new employees.

*The council approved setting a public hearing for vacating a utility and drainage easement in the Michaelis-Olmscheid Addition for Wednesday, March 24, at 6:45 p.m. The easement was created because the city thought it would be necessary for city services to be brought from south of the property, but as plans have changed, the easement is no longer necessary.

*The council approved a grant agreement with the Minnesota Department of Transportation for the fuel system at the Paynesville Municipal Airport. The grant would pay 50 percent of the estimated $78,000 cost for the fuel system.

*The council approved $3,000 for lift station pump repairs.

*The council approved $5,550 to purchase 60 new water meters.

*The council approved a lease agreement with Chad Rien to farm 34 acres of property north of the city ponds and south of 195th Street for $2,295 per year.