A regular meeting of the Philip City Council was held on Monday, December 03, 2007 at 7:00 p.m. in the Community Room of the Haakon Co. Courthouse. Present were Mayor John F. Hart, Finance Officer Monna Van Lint, Council Members Shirley Chin, Monte Palecek, John Kangas, Dan Walker and Greg Arthur. Also present were Deputy Finance Officer Brittany Smith, Chief of Police Kit Graham, Water Supt. Brian Pearson, Utility Coordinator Carol Schofield, Rick and Peggy Palecek; and later, Del Bartels with the Pioneer Review, City Attorney Gay Tollefson, Wade Schofield, Charlie Dale and Dave Konst.

Absent: Council Member Schofield

Motion was made by Kangas, seconded by Palecek to approve the agenda with an amendment to approving hiring Sandra Heaton at Haakon County Abstract and update on West River/Lyman Jones Rural Water following the executive session. Motion carried.

Motion was made by Palecek, seconded by Arthur to approve the minutes of the last meeting as published by the Pioneer Review. Motion carried.

Motion was then made by Kangas, seconded by Walker to approve payment of the bills from the appropriated funds. Motion carried.

Gross Salaries - November 30, 2007:

Gross Salaries: Adm. - $2464.80; Police - $5194.79; Water - $1953.46; Sewer - $9070.52; R. Site - $204.88; Garbage - $589.68

AFLAC                                               Employee Supplemental Ins.- 11/07            206.28

EFTPS                                               S.S., Medicare, Withholding- 11/07            4618.23

SDRS                                                Employee Retirement- 11/07                    2479.38

Ash Street Improvements:

SPN & Assoc.                                Design - thru 11/24/07                             3120.00

This Month's Bills:

Alltel                                                Cell Phone 10-11/07                                    77.91

Bad River Rural Water                        City Shop Water 10-11/07                            27.40

City of Philip                                     Mun. Bldg Utilities 10-11/07                          31.00

CNH Capital                                      Parts 10/07                                               317.03

Dakota Care Ins.                          Employee Health Ins. - 12/07                    7350.31

Delta Dental Ins.                          Employee Dental Ins. - 12/07                      504.90

Ewalt, Elizabeth                                 Cust. Deposit Refund - 12/07                       100.00

Farm Plan                                        Supplies - 11/07                                            3.79

1^st Nat'l Bank - Philip                         Utility Billing Postage - 12/07                        96.42

1^st Nat'l Bank - S.F.                      SRF Loan #01 Pay #133 - 12/07                 3591.18

                                                      SRF Loan #02 Pay #109 - 12/07                 2163.90

                                                      SRF Loan #03 Pay #12 - 12/07                   2223.41

Fitzgerald Oil Co.                         Fuel 10-11/07                                            294.07

Fortune, Pam                                   Cust. Deposit Refund - 12/07                       100.00

G&G Excavating                                Backhoe - 11/07                                         306.30

Golden West                                    Telephone/Internet 10-11/07                      587.81

Grossenburg Imp.                       Supplies - 11/07                                            9.25

Haakon Co. Treasurer                       Office Rent - 12/07                                      60.00

Ingram Hardware                              Supplies - 11/07                                          40.80

Konst Machine & Welding                   Repairs - 11/07                                          100.00

Morrison's Pit Stop                             Fuel/Tires - 11/07                                      665.50

NAPA Auto Parts                                Supplies - 11/07                                          11.26

One Call Systems, Inc.                 (4) Locates - 10/07                                         3.80

Petersen's Variety                              Supplies - 11/07                                          46.55

Philip Standard                                  Oil Chg - 11/07                                           45.35

Pioneer Review                                  Publishing/Subscription 11/07                      316.86

Ptak, Ed & Stella                                Refund Overpayment - 12/07                        10.00

Quill                                                 Supplies - 11/07                                        455.74

SD Dept. of Revenue                          Sales Tax Payable - 11/07                          351.40

                                                       Water Coliform Testing 11/07                        12.00

SD State Plumbing Commission           2008 Sewer & Water Licenses                       240.00

Tollefson, Gay                                   Attorney Retainer - 12/07                            150.00

USA Blue Book                                   Supplies - 11/07                                        116.32

USDA                                                RD Loan Pay #35 - 11/07                          3069.00

VISA - UMB Bank                                Travel Exp. & Postage 10-11/07                  1032.42

Waste Connections dba Walker Refuse     Residential Collection - 11/07                     4263.39

                                                        Dumpsters - 11/07                                     119.60

                                                        R. Site Roll Off - 11/07                               380.00

Wells Fargo                                        Paying Agent Fees thru 12/31/07                 375.00

                                                        GO Water Interest - 12/07                         1975.00

West Central Electric                            Electric Charges 10-11/07                          2248.55

West Central Machine & Auto                '90 Ranger Brakes - 11/07                           361.69

WR/LJ Rural Water                              3,590,000 Gals. - 11/07                             4487.50

                                                        Contract Min. - 11/07                                 3000.00

Western Communications, Inc.        Radio Battery - 11/07                                    21.00

Wohlenberg Ritzman & Co.             Final Audit Billing FY2006                            2125.00

Old Business:

PWD Lesselyoung informed the Council that the Municipal Building furnace has been installed. The City has purchased a 1,000 gal., used propane tank from Fitzgerald Oil Co. and it is scheduled for delivery and set-up tomorrow. McQuirk Ditching will be trenching the new propane line from the tank to the building later in the week. Once that is installed, Brian Hanson will hook the propane line to the furnace. It is expected to be in operation once the remaining fuel oil is gone from the old furnace.

FO Van Lint reviewed the following quotes received for a 1,000 gal. propane tank. The cost includes the tank, tubing, risers, trenching, regulators and delivery.

            Cenex Harvest States (new tank) $2,371

            Cenex Harvest States (used tank) $1,871

            Haakon School District 27-1 (used tank) $1,821 with propane $2,621

            Fitzgerald Oil Co. (used tank) $1,771

Council Member Arthur questioned the insulation installation in the attic of building? PWD Lesselyoung stated that is was done the first week of November.

Mayor Hart noted that in the near future, the City will need to surplus the old fuel oil tank and steel street light poles that were removed in 2006. These items can be sold in the spring if Philip Livestock Auction holds their annual machinery auction.

Mayor Hart requested an update from the Airport Committee on their recommendation for the Airport's 2008 project validation and capital improvement program (CIP) following a meeting with Rod Senn from Kadrmas, Lee & Jackson (KLJ).

PWD Lesselyoung stated that the plans reviewed with Mr. Senn include upgrades to the wind cone and segmented circles as well as a Snow Removal Equipment (SRE) building for storing the tractor and equipment. The SRE building will be a pole barn structure and the dimensions and location will be determined following notification of the funding available through the Federal Aviation Administration (FAA) which will cover 95% of the total projects costs, 3% City funding and 2% state funding.

FO Van Lint stated that a rejuvenation crack seal may also be needed depending on the spring 2008 inspection of the Airport. This will also be funded by the FAA. The City's CIP identifies the funding needed for the above projects and is as follows: SRE building $100,000; wind cone and segmented circle upgrades $75,000; and, rejuvenation crack sealing $70,000.

Following review, motion was made by Kangas, seconded by Arthur to approve the 2008 project validation and CIP as presented. Motion carried.

New Business:

Council reviewed the following building permits as presented: First Lutheran Church - replace/enlarge handicap ramp; Aaron & LaDona Johnson - fence; Philip Ambulance Service - excavate sewer, repair & reconnect to existing sewer; Dan Walker - addition to Gem Theatre.

PWD Lesselyoung noted concerns with the Philip Ambulance's permit stating that he has reviewed the Pine St. Phase II project plans with their contractor, Coddy Gartner. According to the plans, there is no sewer service line on the north side of their property. Should they wish to reconnect to the City's sewer, it would require tapping the sewer main in the center of Pine St. This would entail digging up Pine St. and Lesselyoung asked for the Council's input on this?

By general consensus of the Council, they are not in favor of digging up Pine St.

Motion was then made by Arthur, seconded by Palecek to approve the building permits as presented with the exception of the Philip Ambulance's permit being tabled for further review. Motion carried with Council Member Walker abstaining from the Gem Theatre permit.

The SD Dept. of Legislative Audit has reviewed and accepted the City's audit report for fiscal year 2006. A copy is on file in the Finance Office.

Council was informed that the City's Dental Insurance premiums will increase $1.00/single and $2.30/family per month, effective Jan. 2008.

At 7:15 p.m., as previously advertised, a Public Hearing was held on a six foot (6') variance request to the street and sidewalk ordinance #7-105(a), set back of trees, shrubs and bushes as presented by Rick and Peggy Palecek.

City Ordinance #7-105(a) requires all new trees, shrubs and bushes be planted at least sixteen feet (16') from the back of any curb, where there are curbs, or in areas without curbs, from the edge of the street or alley. This ordinance was adopted by the Council on June 3, 2002, with an effective date of June 23, 2002.

Rick Palecek addressed the Council stating that the trees recently planted on his property are approx. 10 ½ feet from the street. They are Rocky Mountain Junipers, a columnar tree. He stated that he chose those as there are more located on his property that have been there for years and are only approximately fifteen feet (15') in diameter and not extremely tall and therefore shouldn't interfere with the electric lines. In his opinion, it is predicted that the new trees will still be three feet (3') from the curb.

Mr. Palecek also stated that they have driven around town looking at various trees and bushes. He noted that there are many trees and bushes planted after the adoption in 2002 of the City's Ordinance that requires them to be at least sixteen feet (16') behind the curb.

PWD Lesselyoung stated that the City adopted the ordinance to allow the trees roots to expand without harming the sidewalks within the community and to prevent the overhanging trees that interfere with street equipment. The sixteen feet (16') allows for a four foot (4') boulevard, four foot (4') sidewalk and then eight feet (8') behind the sidewalk.

It was noted that when the City adopted the ordinance, various communities of our size were contacted about their ordinances regarding the planting of trees, bushes and shrubs.

Mr. Palecek further stated that he understands why the City adopted the ordinance, but feels that it is a poorly written ordinance that will prevent future beautification of our town with the planting of trees, bushes and shrubs on properties. He questioned if there is any way the City could identify certain types of trees, bushes and shrubs that can be planted closer to the public right-of-way?

Council Member Kangas stated that the City may want to consider identifying all types of trees that can be planted and at what distance from the public right-of-way.

Mayor Hart stated that following the adoption of this ordinance, Tanya McIlravy advised the Finance Office that she could provide a list of trees that could be planted closer to the public right-of-way. He also reminded the Council that they have previously required property owners to remove trees that were in violation of this ordinance.

FO Van Lint stated that if the Council desires to amend the ordinance to identify the various trees that can be planted and at what distance from the curb, a permit would need to be developed to regulate said planting.

Council Member Arthur concurred with FO Van Lint and further stated that adopting the ordinance was a tough decision, but felt that the sixteen feet (16') behind the curb requirements for all trees, bushes and shrubs would alleviate some problems.

Council Member Chin voiced concerns with approving the variance, stating that it would be opening up a mess for the City.

Peggy Palecek spoke and stated that if they have to remove their trees, what is the City going to do with the other trees, bushes and shrubs in violation of the sixteen feet (16') requirements within the community that were planted after the adoption of the ordinance?

Mayor Hart stated that if the Council denies their variance request, the building committee will be inspecting the entire town to identify those properties in violation.

FO Van Lint noted that the City is not made aware of these types of violations unless a complaint is received in the Finance Office. Once a complaint is received, the City then inspects the property in question and reviews all properties within the area surrounding the specific complaint site. All property owners found to be in violation are then notified of their violations. She stressed that the City Office works very hard to insure that all property owners are treated fairly and equitably, but in the same sense, the City does not have enough staff to monitor these types of potential violations, and therefore, must operate on a complaint basis.

Mr. Palecek stressed that the planting of trees, bushes and shrubs improve the looks of the community; it is part of the beautification of the community.

Council was informed that they have many options including the option to deny the variance and review the ordinance. The Council adopts ordinances with the best intentions at the time, but later on, as time changes, so do some of the needs of the City and the ordinances can be amended as needed.

Mr. Palecek was questioned what he would do with the trees if he were to remove them? He stated that he would remove them and possibly install a six foot (6') high privacy fence in that area.

Following discussion, motion was made by Arthur, seconded by Chin to deny the six feet (6') variance request as requested by Rick and Peggy Palecek and review the ordinance. Motion carried with Council Member Palecek abstaining.

Mayor and Council thanked Mr. and Mrs. Palecek as they left the meeting at this time.

The City will be in contact with them following the review of the ordinance, which will be done prior to spring 2008.

At 7:30 p.m., as previously advertised, a Public Hearing was held on the renewal of the Liquor Licenses for the year 2008.

The following establishments have made application for renewal of their licenses for 2008:

Don & Debbie Carley, The Steakhouse - On Sale Liquor, Off Sale Liquor & Sunday On-Sale privilege; BMT, Inc., 73 Bar & Lounge -  On Sale Liquor & Sunday On-Sale privilege; Irvin Jones, Jones' Saddlery, Bottle & Vet -  Off Sale Liquor; Milo Zeeb, Zeeb Pharmacy, Inc. -  Off Sale Liquor

Chief of Police, Kit Graham, noted that he has had no problems with the above establishments and recommends renewal of their licenses for 2008.

With no further comments from the floor, motion was made by Palecek, seconded by Arthur to approve the renewal of the above listed liquor licenses for 2008 contingent upon all property taxes being paid to date. Motion carried with all members voting aye.

Departmental Reports:

The monthly Police Dept. report was presented and reviewed with Chief Graham. Chief Graham advised the Council of an incident last week involving a bulldozer weighing 12 ½ ton being driven through town, which resulted in damage to a curb. The ownership of the curb is in question and being researched. If the curb belongs to the City, it will be repaired and billed back to the responsible person.

Chief Graham also stated that stop sign violators are becoming a problem. The Police Dept. has been giving verbal and written warnings, but there has been no improvement. He asked for the Council's support in issuing tickets to future violators.

By general consensus of the Council, the Police Dept. will be issuing fines to stop sign violators within the City.

The quarterly water report was presented and reviewed with Water Supt. Brian Pearson.

The monthly Street Dept. report was presented and reviewed.

Council Member Chin voiced her appreciation to Asst. Street/Sewer Supt. Matt Reckling and Water Supt. Brian Pearson for their help in putting up the downtown Christmas decorations.

Council Member Arthur questioned PWD Lesselyoung's plans for the tumbleweeds in the airport fence. Lesselyoung stated that they will be taken care of in the near future.

Council Member Palecek questioned the pile of concrete rubble located across from Keith Slovek's property on High St. Lesselyoung stated that he was not aware of any concrete there and will look into the matter.

At 7:45 p.m., as previously advertised, a Public Hearing was held on Resolution #2007-09, Resolution of Necessity, Curb, Gutter & Driveway Approach Improvements of the 2008 Ash Street Improvement Project.

Mayor Hart asked for any comments, for or against, the City's proposed resolution at this time.

Dave Konst, Wade Schofield and Charlie Dale were present and reviewed the curb/gutter and driveway plans for their respective properties involved in the project. Alterations to their properties will be made prior to bid letting, which Council instructed be let as soon as possible.

Van Lint noted that the property owners will be assessed and will be responsible for the costs incurred relative to the curb, gutter and driveway approaches. She further stressed that the project costs provided at this time are only estimated costs. The actual costs will be determined once the bid is awarded.

With no one appearing either for or against said project, motion was made by Palecek, seconded by Arthur to approve Resolution #2007-09, Resolution of Necessity, Curb, Gutter & Driveway Approach Improvements for the 2008 Ash Street Improvement Project. Motion carried with all members voting aye.

A RESOLUTION DECLARING IT NECESSARY TO IMPROVE ADJOINING CERTAIN PROPERTIES WITHIN THE CITY OF PHILIP, SOUTH DAKOTA.

BE IT RESOLVED, by the governing body in and for the City of Philip, South Dakota, on petition from 51% or more of the property owners in and along Ash Street in the City of Philip, South Dakota; that:

Section #01:

It is necessary to place and install curb, gutter, driveway and approach pavement in the

proper manner by plans and specifications as prepared by the City's engineering firm, Schmucker, Paul, Nohr and Associates, in and for the City of Philip, South Dakota on city streets adjoining the property described herein:

Ash Street Improvement Project - Curb, Gutter and Driveway

Projection location:  Ash Street from S. West Ave. to S. Dakota Avenue. and S. Dakota Ave. from W. Oak Street to Ash Street

Lots to be assessed on a lineal foot Basis for Curb and Gutter installation at an ESTIMATED construction cost of $20.00 per lineal foot.

Lots to be assessed on a square footage basis for driveways and approach pavement installation at an ESTIMATED construction cost of $55.00 per square yard.

Section #02:

The cost and expense of the installation shall be levied by special assessment upon the above described property in proportion to the number of lineal and/or square feet as provided by statute. Materials used for this project shall be concrete curb, gutter, driveway approach pavement, asphalt pavement, PVC plastic piping for storm sewer installation and other materials related to the project.

Such special assessment shall be payable in ten (10) annual installments in accordance with the accepted bid and costs incurred. Said installments shall be payable under Plan 01, "Collection by County Treasurer" as provided by SDCL 9-43.

Dated this 3^rd day of December 2007.

                                                                        /s/John F. Hart, Mayor

ATTEST:

/s/Monna Van Lint, Finance Officer

(Publish: December 13, 2007)

Mayor Hart advised the Council that he has spoken with Jaf Carim with the Dakota, Minnesota & Eastern (D.M. & E) Railroad regarding their proposed expansion plans. According to Mr. Carim, the expansion plans are still in the works and they are working with the federal government to approve the Canadian Pacific purchase of D.M. & E.

Council Members Kangas and Walker updated the Council on the Wind and Energy Transmission Conference held last month in Sioux Falls. Transmission lines are needed to transmit the energy.

Council reviewed a request from Anderson Western to pump water from Lake Waggoner for the 2008 S. Hwy 73 project. PWD Lesselyoung stated that the price per gallon or the amount of the water needed has not been determined. Anderson Western will also be applying for water rights through the state.

Motion was made by Arthur, seconded by Walker to table Anderson Western's request until the price per gallon and amount of water is provided by them. Motion carried.

The final closeout documents for the Downtown Street Improvement CDBG funding have been received from the Governor's Office of Economic Development.

At 8:07 p.m., motion was made by Palecek, seconded by Kangas to go into executive session for personnel and legal reasons.

Council came out of executive session at 8:37 p.m. with no action taken.

Motion was made by Kangas, seconded by Palecek to authorize engaging the services of Sandra Heaton, Haakon Abstract Co., for purposes or researching City property. Motion carried with all members voting aye.

Mayor Hart advised the Council that West River/Lyman Jones Rural Water Systems, Inc. (WR/LJ) is currently flushing a main water line from the Missouri River, which has recently been installed and will bring river water to the City of Philip. WR/LJ is currently waiting for a meter to turn the Missouri River water on in Philip.

FO Van Lint stated that she has invited Jake Fitzgerald, manager of WR/LJ Rural Water, and the Water Treatment Plant Director for the Mni Wiconi Missouri River water project, to the year-end meeting to acknowledge the efforts of many of the citizens of this City, the West River/Lyman-Jones staff and all those who have been involved in finally reaching this momentous achievement. It has been a long, arduous journey and everyone can be very proud that within a few short weeks, the dream of Missouri River water being piped into the City of Philip's water distribution system will become a reality.

Public Comments:

None.

Other Business:

Residents were reminded that the City's dump truck will be parked south of the Fire Hall for the collection of discarded Christmas trees from Dec. 26^th, 2007 through Jan. 7^th, 2008. Residents are reminded that only trees should be placed in this truck as no plastic, decorations or other waste will be accepted.

The City has subscribed to the SDML Legislative update vial email.

The Finance Office will be closed the morning of Dec.7^th for training. The office will be open from 1:00 to 5:00 p.m.

The Final Year-End Meeting will be held on Thursday, Dec. 27^th at 4:00 p.m. on 4^th floor of the Courthouse.

The City Offices will be closed Dec. 24^th and 25^th in observance of the Christmas holiday and Jan. 1^st in observance of the New Year's holiday.

The next Regular Council Meeting is Monday, Jan. 7^th at 7:00 p.m. in the Community Room.

With no further business to come before the Council, the meeting was adjourned at 8:42 p.m.

                                                                        /s/John F. Hart, Mayor

ATTEST:

/s/Brittany Smith, Deputy Finance Officer

(Publish:  December 13^th, 2007)