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The Lancaster City Council met for its Regular Meeting on Wednesday, June 13, 2018, at 7:00 p.m. in the City Hall Meeting Room.  The following members were present: Olson, Nordin, Hilman and Bowlin.   Peterson was absent.

Bowlin moved to approve the Council minutes of the May 9, 2018 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 June 2018 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 2018 Rates Fees & Appointments Schedule.  Bowlin moved to approve the bills, second by Nordin and carried unanimously.  An abstract of bills will be posted with the minutes and are available upon request to the clerk.

Fire Department requests to purchase new Jaws of Life, spreader and glass cutter for $22,810.00.  Hilman moved to allow the purchase of the equipment, second by Bowlin and carried.

PERA report has been receive and given to Fire Relief Association regarding Fire Relief Cost Benefit Analysis.  If the benefit level per year were increased to $800 per year the fund level would be 150% funded versus 227% funded at the $500 per year  level that is currently set.  The Fire Relief Association has to make a recommendation to the city council regarding a change in the benefit level for years of service.   At that time the council would make the final decision on the per year amount for service.

Zondagh, maintenance, met with the council to request that the city hire Randy Weberg, part time by the hour to help with park mowing and other skilled maintenance items.  Hilman moved to hire Weberg for no more than 40 hours per week at $13.44/hour in the summer months and at limited times for the rest of the year and that Zondagh be Weberg’s supervisor and Zondagh be moved to maintenance pay scale with same years of service, second by Bowlin and carried.

Council discussed option regarding sewer repairs on 1st Street and getting quotes for various paving from contractor that will do the County project in Lancaster.  Olson will get paving quotes.

Council discussed mowing with maintenance and reaffirmed that mowing is done at maintenance person’s discretion as there are many other projects and requirements that the city maintenance person deals with on a daily basis.

Roxanne Kulyk met with the council to request a $7,000.00 revolving loan for bread storage unit and operating capitol.  The loan review summary by Northwest Regional Development Co. was given to the council and Kulyk.  The council reviewed and discussed the request with Kulyk.   Bowlin moved to loan Roxanne Kulyk $7,000.00 at 3% interest, monthly payments for 8 years with Kulyk paying 1% loan fee plus and disbursements; the city will have a 1st position on the bread storage unit and second position on all other business assets and Kulyk must add this loan to the life insurance and fire insurance that the city is already a named insured upon, second by Nordin and carried.

Bowlin moved to move $1,640.00 from Community Center Savings to City checking to cover the cost of the water softener for the Community Center, second by Nordin and carried.

Mayor set Liquor Store Inventory for July 8th at 1:00PM.

Clerk reports that the Northwest Clerks meeting will be held in Lancaster on August 15th.   Council directed clerk to provide coffee, cookies and water compliments of the city.

Border State Bank is requesting that the city execute a loan subordination to them in regards to the Lancaster Lumber revolving loan as they would be Lancaster Lumber’s new lender and would then be in same position as United Valley Bank and the cities position would be the same as when the loan was first given to Lancaster Lumber.  Bowlin moved to accept the Subordination and allow the Mayor and Clerk to sign documents, second by Hilman.   Bowlin, Hilman and Olson voted in favor.  Nordin abstained.

Council discusses the damage done to the Community Center by a motor vehicle.  Mayor, Olson, reported that he authorized all emergency repairs to make building water tight and so that the two fundraising functions that were scheduled in the week following the accident did not have to be cancelled.    Clerk reports that the League of MN Cities Insurance Trust directs the city to pay all repair bills; turn them in the League Insurance for payment and then the League will collect from the driver’s insurance company.

Council reviewed the May financials for the City and Liquor Store.

Council discussed Community Center loan and making an extra payment on the loan above the annual payment of $19,435.00. due on August 5, 2018.   Hilman moved to transfer $30,000.00 from the Liquor Store account to the Community Center Debt Service Fund, second by Bowlin and carried.  Nordin moved to make an extra payment of $10, 565.00 on the Community Center Loan as soon as possible, second by Bowlin and carried.

Council received decisions from MN Department of Employment and Economic Development (DEED) regarding waiver of conflict of interest regarding Jim Hilman and Luke Nordin both requests have been denied.  City Attorney, Hanson, has offered to continue to work on this matter pro bono.  Council directs that Hanson continue to pursue the matter.

Clerk reported that the State Demographer’s population and household estimates as of April 1, 2017 are population 329 and households 163.  This is slight decrease from 2016.

Lancaster School is planning to replace sidewalks along Central Avenue on their property and wonders if the city would help defray some of the cost.  Council requests that school obtain a quote and let them know the total cost.

Nordin reports that Karl Beneke asked about purchasing a portion of the lot just to the south of him along Alaska Street.  No council member expressed interest in selling a portion of this lot.

As there was no further business the council adjourned.

Carol Johnson, Clerk/Treasurer                       Approved:  Mike Olson, Mayor

Approval Date: July 11, 2018



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