The Lancaster City Council met for its
regular meeting on Wednesday, February 9, 2011, at 7:00 p.m. in the
City Hall. The
following members were present: Rice, Swenson, Olson, Stenquist and
Olson moved to approve the minutes of the
January 12, 2011 Annual meeting, second by Barron 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 February 2011 Bills
to be paid. Stenquist moved to approve the bills for payment, second
by Swenson and carried.
An abstract of bills will be posted with the minutes and are
available upon request to the clerk.
Clerk presented a drug use policy for the
council to review.
Stenquist moved to approve the drug use policy, second by
Olson and carried.
Council reviewed a Legal Service contract
from Bruce Nielsen for services in regards to the USDA Loan
proposed hourly rate is $95.00 plus expenses. Stenquist moved to accept
the Legal Service contract as presented, second by Barron and
Rice discussed the need for an option to
purchase the property directly south of the Prime Security Bank
building from Lanvest, Properties Inc. for the community center
project. Lanvest agreed
to enter into the option for $1.00 if approved by the council. Olson moved to approve the
option to purchase with Lanvest Properties, Inc. and allow the Mayor
and clerk to execute the document, second by Barron and
The council reviewed the revolving loan
guidelines regarding Subordinations and refinancing of Loans and the
1% loan origination fees.
Stenquist moved to add the stipulation that any person or
corporation requesting a subordination or refinancing of a loan will
be required to pay any expenses incurred by the city for request;
also, to amend the original 1% loan origination fee to only include
meetings and attorney legal fees, this will not include out of
pocket expenses such as abstracting, mortgage registration fees and
UCC filing fees, second by Swenson and carried.
Luke Nordin met with the council to discuss
his request for a loan from the revolving loan fund to purchase the
Lancaster Building Supply store. Luke requests a loan of
$85,000.00 from the city to his corporation with the city having a
second position on all inventory, equipment and accounts
council discussed the loan requirements with Luke. Barron moved to loan of
$75,000.00 at 3% interest for 15 years to Luke Nordin and/or the
corporation/ he will be forming, second by Olson and carried. The following
conditions are to apply:
Equal monthly payments, Luke and his spouse, Britta would
also provided personal guarantees along with the corporation, Term
Life insurance to be no less than the amount owed.
Rice discussed the USDA loan application
process and the need to make an application as soon as possible in
order to have the best chance at insuring there will be funds
available for a loan.
Even if the application is accepted the council doesnít have
to take the loan or can reduce the amount of loan requested. The USDA representative has
informed Rice that the city interest rate would not exceed 4.4% and
the city could payback the loan over 40 years. Swenson moved to proceed
with the USDA loan application for an amount not to exceed
$415,000.00 and allow the Mayor and Clerk to execute all documents
as stated in the resolution attached, second by Barron and
Barron moved to change the Annual Fire Relief
Association meeting to March 16th , 8:00 PM at the
Lancaster Fire Hall, second by Olson and carried.
A notice from KaMaR of termination of
contract for recycling pickup was received effective March 5,
2011. Also, presented
to the council from Markit Landfill is a recycling contract to do
exactly the same service as KaMaR effective March 5, 2011. Barron moved to accept the
contract and allow the Mayor and Clerk to execute the document,
second by Stenquist and carried.
Clerk is going to attend the League of MN
Cities insurance trust meeting on March 29th in Mahnomen.
Sebenaler thanked the council for their
support during his time as a city employee.
Council reviewed the final Liquor Store
Profit and Loss Statement for 2010 and discussed the audit meeting
attended by the Mayor and clerk with Gordon Dale, the city
auditor. The auditor
suggested implementing stronger internal controls and agreed with
the Mayors suggestion of implementing Quarterly
Clerk reported that Hanson Manufacturing is 2
months behind in their loan payments. Council will continue to
monitor the loan.
Council reviewed the January City and Liquor
Store financial information, Liquor Store Daily sales and Gambling
Olson moved to set a hearing to receive
public input from citizens regarding the application for an Outdoor
Recreation Grant for improvements to the Highway 59 park and
campground, second by Stenquist and carried.
Rice reported that the Kittson county highway
Department has offered to lease a single axel snowplow truck to the
city for snow removal to lesson there snowplow time spent in the
city. The council
discussed the fact that the city doesnít have enough manpower for
the truck and that the snowplow need only open their own county
roads running through the city and the streets adjacent to the
school in a snowfall event and then could return to town after other
roads have been cleared to complete the city streets.
The defunct Lancaster Cub Scout Pack #66 has
made a donation to the Lancaster Community Center Project in the
amount of $517.37. The
Community Center Savings total is $8,295.51.
The city is in need of a licensed water and
wastewater supervisor until the current Public Works Director passes
these two tests. Tom
Sebenaler has proposed that he will fill this position and complete
all necessary tests, paperwork, training and supervision for
$420.00/month as a Water and Wastewater Supervisor. Barron moved to
hire Tom Sebenaler as the Water and Wastewater Supervisor, as
temporary non benefitted employee of the city effective February 16,
2011, second by Stenquest and carried.
Tom Sebenaler has also indicated that he
would also be available to work as the Highway 59 Park and Sports
Complex attendant/maintenance worker at the scheduled pay rate of
moved to hire Sebenaler for this position and also pay Sebenaler for
any additional maintenance help at the rate of $12.03/hr. as per the
city pay rate schedule, second by Barron and carried.
Council Adjourned as there was no further
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