LANCASTER CITY COUNCIL
The Lancaster City Council met for its
regular meeting on Wednesday, February 13, 2013, at 7:00 p.m. in the
City Hall Meeting Room.
Members present were Mayor, Michael Olson; council members
John Stenquist, Mary Barron, Luke Nordin and Jim Hilman.
Barron moved to approve the council minutes
of the January 9, 2013 annual meeting, seconded by Stenquist 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 2013 bills
to be paid. Stenquist moved to approve the bills as presented for
payment, second by Barron and carried. An abstract of bills will be
posted with the minutes and are available upon request to the
George Hanson, Lancaster School Board Member,
met with the council to discuss some proposed improvements to the
Sports Complex south of the school. The city owns the property
but the school shares some of the operating expenses with the
city. The school is
looking into starting a Legion Baseball program and that would
entail enlarging one may both of the baseball fields and doing some
work to the infield.
The board asked Hanson to look into changes needed and the
costs of those changes and get back to the council with that
Council again discussed the roughness of the
kitchen floor. The
council would like to take a wait and see attitude as the grit helps
with safety issues. The
building cleaning person will be asked as to her opinion on
different cleaning methods that could be used to help with overall
The council will do another walk through of
the new Community Center to check on the progress being made with
the final check list items that need correcting on February 18, 2012
Barron reported that she will set up a Liquor
Store remodel work group meeting with the Liquor Store Manager and
interested parties as soon as possible and will report back at the
councils next meeting.
Clerk reported that there are additional
Community Center needs as requested by the Lions. Hilman moved to allow up to
$500.00 in additional expenditures for such items as highchairs and
kitchen supply, second by Nordin and carried.
Barron moved to allow the purchase of a large
wall clock for the community center with the cost not to exceed
$200.00, second by Nordin and carried. Nordin will work on
procuring this item.
Clerk reported that the USDA wishes to hold a
JOBZ informational meeting in the community center. Council directed the clerk
that there should be no charge for this type of meeting that benefit
Nordin moved to approve the Payment invoice
#5 from Bordertown for $123,386.00 and Payment invoice #3 from
Culinex in the amount of $33,908.67, pending the receipt of
construction loan monies from MN Rural Water, second by Hilman and
Barron moved to request a draw on the
construction loan from MN Rural Water in the amount of $156,494.67,
second by Stenquist and carried.
Barron moved to use funds in the amount of
$4,310.83 from the community center savings to cover the costs of
kitchen supplies, waxing the floor and wall separation, second by
Stenquist and carried.
Council discussed the USDA requirement that
the city have at least 1 years payment set aside at all times for
the community center loan debt. Nordin moved to purchase a
certificate of deposit of $20,000.00 with community center savings
funds to satisfy this requirement, second by Hilman and
Olson reported that Anderson Sanitation cost
of a 4 yard dumpster is $1100 plus tax and a 6 yard dumpster is
$1600 plus tax. The dumpster would replace the liquor store dumpster
that is in need of substantial repairs. Hilman moved to purchase a 4
yard dumpster for the Liquor Store, second by Barron and
Clerk asked that the Acting Mayor, Johns
Stenquist, be added to the checking account signature card at United
Valley Bank and Prime Security Bank. This will help in case the
Mayor is out of town. The checks will still only require 2
moved to add John Stenquist to the United Valley and Prime Security
bank signature cards, second by Nordin and carried.
Clerk reported that the health insurance
monthly for employees has exceeded the previously approved city
amount of $322.00 per month.
The new rate is $331.66 and the city portion of the health
insurance has not increased since January 1, 2012. The clerk paid the new
amount as the invoice was due prior to this meeting. Hilman moved to increase the
maximum city portion of employee health insurance to $375.00 per
month retroactive to January 1, 2013, second by Nordin and
Steven Sjostrand, with Sjostrand Agency
attended the meeting to discuss property and liability insurance
Sjostrand reported that the Community Center & City Hall
should be covered as one unit, the Liquor Store portion will have
its own separate coverage limits. Stenquist moved to have the
Community Center and City hall coverage to be $1,000,000.00 for the
building with contents
coverage to be
$35,000.00 (kitchen equipment is included with the building coverage),
second by Barron and carried.
Council also discussed with Sjostrand the
insurance coverage for the Centennial Hall, the coverage is quite
expensive as the League of MN Cities Insurance Trust requires that
all buildings they insure must have replacement coverage not
insurance based upon the buildings actual value. Sjostrand did inform
the council that the property would have liability coverage even if
the building insurance were dropped. Nordin moved to drop the
building and contents coverage for the centennial hall, second by
Hilman and carried.
Kittson County Volunteer Ambulance has
requested an appropriation from the city for its service. The council discussed that
they could offer free the use of the Community Center for one event
instead of making an appropriation. Hilman moved to allow the
Ambulance Service to use the Community Center and kitchen free of
charge for one event in 2013, second by Stenquist and
Barron reported that the Liquor Store Manager
has been working on pricing of liquor to bring the profit margins up
Council reviewed the Final 2012 City and
Liquor Store financial information. Council also reviewed the
City and Liquor Financial information for January.
Clerk discussed with the council the need to
have a kitchen supervisor on hand for training of persons using the
hot-prep side of the Community Center Kitchen for sanitary and
safety issues, this person is not to cook only supervision of the use of facility. Barron move to allow a
kitchen supervision person to be hired for a maximum of 3 hours per
event as needed at the part-time maintenance/ building cleaning
rates per hour and that the kitchen cost for Residents and
side of the kitchen be increased to $150.00 and $175.00 respectively, second
by Stenquist and carried.
Bordertown Construction, Inc. will be liable
for $1100.00 of liquidated damages for not completing the Community
Center in the prescribed time period. The council needs to accept
the change order reflecting the decrease in cost of the building by
Barron moved to accept the change order and
allow the mayor and clerk to execute the document, second by
Stenquist and carried.
Barron moved to make a request for $1000.00
from the American Legion Post #214 gambling fund for community
center supplies, second by Nordin and carried.
Council Adjourned as there
was no further council business.
Carol Johnson Clerk/Treasurer
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