LANCASTER CITY COUNCIL PROCEEDINGS

The Lancaster City Council met for its Regular Meeting on Wednesday, December 11, 2019, at 7:00 P.M. in the City Hall Meeting Room. The following persons were present: Mayor Mike Olson; Council members Jim Hilman, Kathy Bernstrom, Luke Nordin and Faye Potrament. Also, present Anna Jauhola with the Kittson County Enterprise.

Nordin moved to approve the Council minutes of the November 13, 2019 regular meeting minutes, second by Bernstrom 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 December 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. Hilman moved to approve the bills second by Potrament and carried unanimously. An abstract of bills will be posted with the minutes and are available upon request to the clerk.

George Zondagh, Maintenance, met with the council to discuss the emergency discharge of water from the lagoon due to excess rain this past fall. MPCA wants the city to remind all residents and business owners that the city has an ordinance banning discharge of sump water into the city sewer system. Council reviewed the notification letter. Potrament moved to send the notification letter and second by Bernstrom and carried.

Zondagh discussed the fact that he is unable to use his vacation time due to his workload and might need to make a request for pay in lieu of vacation in order not to lose his vacation.

Council reviewed a citywide cleanup letter to be sent with the next utility billing. Potrament moved to approve the letter, second by Bernstrom and carried.

Jason and Shannon Langerud met with the council to request a revolving loan in the amount of $80,000.00 to purchase grocery store inventory. The council reviewed the loan summary from Northwest Regional Development Commission and discussed the request with the Langeruds. Bernstrom moved to grant the loan request of $80,000.00 to Jason & Shannon Langerud and J and S Foods, LLC at 1% interest, monthly payments for 15 years with Langeruds to pay a 1% loan fee plus and all disbursements for the loan ; the city will have a 1st position on inventory; fixtures and equipment in the grocery store; with personal guarantees from Jason and Shannon Langerud; with city to be a named beneficiary on both parties life insurance and named on fire/hazard insurance upon the collateral property, second by Potrament and carried.

Council reviewed the Annual Rates and Fees schedule for the 2020 Annual Meeting.

Council reviewed the employee letter regarding the new safety training program starting in 2020. Potrament moved to have the clerk send the letter to all employees, second by Nordin and carried.

Nordin moved to reassess 2 North Kittson Rural Water assessments on parcel 38.0010600, second by Hilman and carried.

Bernstrom moved to accept the 2019 Council per diems and mileage also approving the Fire Chief annual salary $1,500.00, second by Nordin and carried.

Hilman moved to issue a 2020 3.2 off-sale liquor license to Bernstrom Oil Company and allow clerk and mayor to sign documents, second by Nordin and carried.

Mayor set the Liquor Store inventory for January 1, 2019 at 6:30PM.

Council discussed making an application to USDA for a grant to replace the siren. Scott Olson, Kittson County Emergency Services, indicates that the city would be eligible for a 75% grant. The siren has some mechanical issues and there also needs to be updating of the electrical service in the building. Bernstrom moved to apply for the grant, second by Nordin and carried. Hilman moved have the city general fund and fire fund share the siren cost equally and have the city general fund pay for the electrical upgrades, second by Potrament and carried.

Council discussed paying off the 2013 Fire Truck loan with USDA. The total remaining balance is $26,884.69 this includes interest to the date of December 18, 2019. Clerk reports that there is sufficient funds to make this payment without cashing the fire fund certificate of deposit for final payment and the CD can stay as is for use by fire fund in the future. Bernstrom moved approve the final payment of $26,884.69 as of December 18, 2019, second by Potrament and carried.

Clerk requests to purchase a laptop computer and bag for use by employees to facilitate online safety treatment with the cost not to exceed $400.00. Hilman moved to purchase the laptop computer and bag with cost not to exceed $400.00, second by Nordin and carried.

Council also reviewed Council reviewed the November 2019 City and Liquor Store financial information.

Clerk reported that the auditor suggests that a large increase in current year revenue due to grants should be accounted for by amending the current year budget. Nordin moved to increase the 2019 Budget for additional monies received for the Housing/Commercial Rehab Grant and Grant Recipient cost share totaling $145,273.00 and also make a corresponding decrease in the 2019 Budget of $145,273.00 for Housing/Commercial Rehab Grant expenditures, second by Hilman and carried.

Clerk reports that Debbie Groves is willing to teach the new cleaning persons at the community center how to wax but that the city needs to purchase the necessary equipment. Groves will make a recommendation.

The Lancaster Public School 6^th Grade class sent a thank you to the City for all that they do for the community.

As there was no further business the council adjourned.

Carol Johnson, Clerk/Treasurer Approved: Mike Olson, Mayor
Approval Date: January 8, 2020

Other links: Lancaster Riverside Golf Course | Lancaster Public School | NW MN Multi-County HRA

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