LANCASTER CITY COUNCIL PROCEEDINGS
The Lancaster City Council met for its Regular Meeting on Wednesday, April 10, 2019, at 7:00 P.M. in the City Hall Meeting Room. The following members were present: Mike Olson, Faye Potrament; Jim Hilman, Kathy Bernstrom. Luke Nordin was absent.
Gordy Dale, City Auditor, met with the council to review and discuss the 2018 Audit. Auditor reminds council that they are responsible for all oversight of employees as the city has limited number of employees and cannot implement employee segregation of duties and the council needs to fill that role. Otherwise he has no issues to report. Hilman moved to accept the 2017 budget as presented, second by Bernstrom and carried.
Bernstrom moved to approve the Council minutes of the March 13, 2019 regular meeting second by Hilman and carried. A copy of the Minutes will be posted at the Lancaster City Hall and U.S. Post Office and available upon request to the clerk.
The council reviewed the April 2019 bills presented this night; any other bills that have been paid prior to this meeting to avoid late payments, receive discounts & meet payroll and all payroll expenses as approved in the 2019 Rates Fees & Appointments Schedule. Potrament moved to approve the bills, second by Bernstrom and carried unanimously. An abstract of bills will be posted with the minutes and are available upon request to the clerk.
Brian Hanson representing, Hanson Hardware LLC, met with the council to discuss a revolving loan he is requesting in the amount of $100,000.00 for the purchase of T&B Hardware building and inventory. He requests the loan period be for 20 years with monthly payments and offers a first mortgage on the building and a second position on all other business assets. Council reviewed the staff summary and loan recommendations from the loan reviewer at Northwest Regional Development.
Hilman moved to loan Hanson Hardware, LLC $100,000.00 with the following conditions. The loan is for a period of 20 years (monthly payments) at 2% interest per year; First Mortgage on building on Central Avenue with hazard insurance required and city as a loss payee; the city to file 2nd position lien against fixtures; equipment & inventory; personal promissory note from Brian and Laura Hanson; Brian Hanson to obtain life insurance with assignment to city for the principal balance of the loan. The city will pay attorney fees for drafting of loan documents and recipient to pay 1% loan origination fee, recording fees; abstracting; mortgage registration tax & UCC fees directly to the city by check. Recipient’s attorney fees for title issues and old mortgage satisfaction etc. will be deducted from the loan proceeds, second by Potrament and carried.
Council reviewed the proposed campground rules. Bernstrom moved to approve the rules, second by Potrament and carried. Mayor also set a work night for the council to meet at the 59 Park campground for May 8th at 5:00PM.
Clerk reported that a new loan application has been received and forwarded to Northwest Regional Development Commission for review.
Council reviewed the Community Center group debt retirement fund raiser letter. Bernstrom moved to approve the letter and accept donations dedicated to debt retirement, second by Hilman and carried.
Hilman moved to request $2,000.00 from the American Legion Post #214 Gambling Fund for the Community Center debt retirement project, second by Bernstrom and carried.
Potrament moved to have Nordin plan for 3 additional ice damn installations for the Liquor Store/City Hall South facing roof and hire a contractor to make the necessary repairs, second by Bernstrom and carried.
Council also reviewed Council reviewed the March 2019 City and Liquor Store financial information.
Council discussed placing a “Welcome to Lancaster” sign on County Road 6 west of town. Olson will obtain a proposed design from Hanson Manufacturing.
Hilman suggested that gravel be placed in the alley behind the Foxy Roxy’s restaurant to the north past Post Office. Bernstrom moved to have 4 loads of gravel placed on the alley, second by Potrament. Hilman will contact Anderson Brothers to do this.
Potrament asked if a memorial bench in honor of Alan Clow could be placed in the Gazebo Park. Hilman moved to allow the bench to be placed in the park with the Clow family will be responsible for cost and construction, second by Bernstrom and carried.
Fireman, Aaron Steen, has requested a leave of absence from the Fire Department for not to exceed 1 year. Bernstrom moved to accept Steen’s Leave of Absence effective May 1, 2019, second by Potrament and carried.
Fire Department is requesting to share the cost of purchasing a pressure washer with the city, total cost would be $5,880.00 from ACME Electric with city maintenance. Bernstrom moved to allow the purchase of the pressure washer for $5,880.00, second by Potrament.
Fire Department requested to purchase 2 car stabilizers and a gas air compressor for $3,490.00 and that Fire Relief Association plans to make a donation to the fire fund for most of the cost. Potrament moved to allow the purchase of the 2 stabilizers and gas compressor, second by Bernstrom and carried.
City received a bill for mowing roadside from Reed Stenmark for $4,800.00 for the time period of 2003-2018. Council discussed the bill and lack of a contract for this service. Bernstrom moved to deny the claim and have the city attorney correspond with Stenmark regarding this matter, second by Hilman and carried.
City received copy of letter sent to owner of old Bernstrom Gas Station regarding follow up testing for gas intrusion. This is due to the underground storage tank and is part cleanup procedure.
Mayor Olson requested that the council approve council member Luke Nordin’s cost of travel to Washington DC with group of Roseau and Lancaster individuals to meet with congressional leaders and US Border officials to lobby for an electronic/telephone port of entry for the Lancaster and Roseau, MN ports that would allow trusted travelers to pass through 24 hours a day as the reduced port hours are a detriment to the community. Bernstrom moved to pay all travel expenses for Nordin and 2 per diems for the days traveled, second by Hilman and carried.
As there was no further business the council adjourned.
Carol Johnson, Clerk/Treasurer Approved: Mike Olson, Mayor
Approval Date: May 15, 2019
Other links: Lancaster Riverside Golf Course | Lancaster Public School