LANCASTER CITY COUNCIL PROCEEDINGS
The Lancaster City Council met for its Regular Meeting on Wednesday, August 12, 2020, 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 and Faye Potrament and Luke Nordin. Also, present Anna Jauhola with the Kittson County Enterprise.
Nordin moved to approve the July 14, 2020 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 August 2020 bills presented this night and 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 2020 Rates Fees & Appointments Schedule. Potrament moved to approve the bills and the Electronic funds transfer of $19,435.00 for the Community Center Loan Payment to USDA, second by Hilman and carried. An abstract of bills will be posted with the minutes and are available upon request to the clerk.
Zondagh met with the council to discuss the city lagoon repairs needed to the rip rap on the lagoon banks that is necessary and should not be delayed to 2021. The city has been doing a stretch of riprap each year and last year’s cost was $4,200.00. Hilman moved to accept the quote of $4,500.00 from Anderson Brothers Construction for riprap repairs, second by Nordin and carried.
Zondagh discussed the storm sewer pipe that runs North-South in Dakota Avenue. The storm sewer is not functioning as it filled with storm runoff material and due to breaks in the line jetting the material out to clean it is not practical. The City Clerk has worked with the Kittson County Emergency Manager and the State flood claim representative for June 2020 flood. The consensus is that the removal and replacement of the storm sewer pipe from the manhole on 4th Street to the manhole on 3rd Street (lying mostly within Dakota Avenue) a distance of 350 feet is covered under the flood claim. Anderson Brothers Construction quoted the cost of removing asphalt and pipe and installation of new pipe and gravel at $26,074.80. This doesn’t include the cost of new asphalt as that will be done next summer when the gravel and fill material has settled. Clerk and Nordin estimated the asphalt cost at $17,500.00 based upon previous work with an increase due to a couple of years passing since the last project. The city would be responsible for 25% of the overall cost. Nordin moved to accept the quote from Anderson Construction, second by Hilman and carried.
Council reviewed the changes made to the proposed 2021 budget as was discussed at the last meeting. The proposed overall general tax levy is $103,000.00 an increase of $5,000.00 above the 2020 tax levy. The increase is due to reductions in income from the Campgrounds and Liquor Store due to COVID shutdowns. Potrament moved to set the preliminary General Tax Levy at $103,000.00 with the total overall General Fund 2021 Budget at $239,100.00 for 2021, second by Nordin and carried.
Brian Hanson, Hanson Hardware LLC, met with the council to request a loan for $12,650.00 for the purchase of a new Point of Sale computer sale and new shelving. He requests the loan period be 10 years with monthly payments and offers a first position on the POS system. Council reviewed the staff summary and loan recommendations from the loan reviewer at Northwest Regional Development. Hilman moved to loan Hanson Hardware, LLC $12,650.00 with the following conditions. The loan is for a period of 10 years (monthly payments) at 1% interest per year; First Position on POS computer system and 2nd position on shelving 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 add this loan to the city’s previous assignment of life insurance 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, second by Potrament and carried.
Council reviewed an update to the City COVID-19 Preparedness Plan for the Community Center; City Hall and Office; City Shop; Highway 59 Park/Campground and other Public spaces regarding Governor’s Statewide mandatory mask requirement. Nordin moved to accept the updated plan, second by Potrament and carried.
Council discussed the need to setup a restricted fund for the Coronavirus Relief Fund monies. Potrament moved to setup the restricted fund, second by Bernstrom and carried.
Council discussed use of the Coronavirus Relief Fund monies. Clerk reported that to date $3,598.39 of the COVID funds has been spent on Sanitation, PPE; online meeting; additional employee hours to deal with COVID issues. Council discussed additional items needed to deal with online meetings and the community center outside patio usage due to restrictions to the number of persons allowed in the Community Center and Liquor Store. The council agreed that a laptop computer with the capability to do online meetings is needed and that picnic tables with sanitizable table tops were necessary to accommodate outside seating. Bernstrom moved to purchase a laptop computer and 3 picnic tables with sanitizable tops, second by Nordin and carried.
Council discussed that the Cares Act allows for the city to make grants to individual businesses if they have experienced a significant decrease in overall revenues with Cares Act COVID Funds. Council reviewed a proposed grant application and noted that any grants that could be available would be affected by any future needs the city might have for the Cares Act funds such as paid sick leave if employees are in the process of being tested for COVID and/or are diagnosed with COVID. Bernstrom moved to send out the grant application to all business owners within Lancaster and that the business income must have decreased at least 25%, second by Potrament and carried. Clerk was directed to send the application to business owners.
Clerk reports that PERA Fire Relief funds are adequate for paying all pension liabilities per the annual report.
Hilman and Bernstrom will review Bank Statements January 2020-July 2020 as per recommended due diligence.
Clerk reports that Mike Olson has filed for Mayor and Jim Scalese and John Stenquist have filed for the 2 open council positions.
Council also reviewed the July 2020 City and Liquor Store financial information.
Council discussed that mosquito spraying should only continue as needed.
Bernstrom moved to request $500.00 from the American Legion Post #214 Gambling Fund for U.S. Flags, second by Potrament and carried.
As there was no further business the council adjourned.
Carol Johnson, Clerk/Treasurer Approved: Mike Olson, Mayor
Approval Date: September 9, 2020
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