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The Lancaster City Council met for its Annual Meeting on Wednesday, January 13, 2016, at 7:00 p.m. in the City Hall Meeting Room.  The following members were present: Olson, Sebenaler, Hilman and Nordin.  Barron was absent.

Mayor called the Small Cities Rehab Grant hearing to order.   Present were John Wynne, NWCA grant writer and Bob Laude, representing Lancaster Homes. Wynne reports that the City has been asked to submit a full grant application based on the pre application information.  Wynne reviewed the pre application process and reported needs for 15 residential properties, 4 commercial and Senior apartment rehabilitation; SDCP grant request would be for $612,375.00 with $155,000.00 non SCDP dollars.  Wynne informed the council that the full grant application is due late February and sometime in late April the city should know whether the grant is accepted.  Mayor closed the hearing at this time.

Wynne asked the council to pass 3 resolutions needed to proceed with the grant application as follows:

Nordin moved to approve the Local Government Resolution to apply for the Department of Employment and Economic Development funding for the Small Cities Community Development Rehab Grant, second by Sebenaler and carried.

Nordin moved to approve the resolution Identifying “Slum and Blighting” Conditions, second by Sebenaler and carried.

Sebenaler moved to adopt the Citizen Participation Plan regarding implementation of the Community Development Rehab Grant, second by Hilman and carried.

Sebenaler moved to approve the council minutes of the December 9, 2015 regular meeting, seconded by Nordin 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 January 2016 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 2016 Rates Fees & Appointments Schedule.   Nordin moved to approve the bills, second by Hilman and carried.  An abstract of bills will be posted with the minutes and are available upon request to the clerk.

Council reviewed the proposed 2016 rates and fees schedule.  Sebenaler moved to adopt the 2016 rates and fees schedule, seconded by Nordin and carried.  The following is the complete 2016 rates and fees schedule:

Acting Mayor if Mayor absent: Jim Hilman
Fire Chief:  Casey Faken   $ 500.00 annual salary
Assistant Fire Chiefs:  Tyler Swenson and Clifford Steyn-  no annual salary

Fire Relief Assoc. Annual Meeting  1st Wednesday of each April 7:30 PM at the Lancaster Fire Hall

Responsibility areas:  City buildings – Luke Nordin
                       City Services, City Employees & Equip –Jim Hilman
                       City Infrastructure-Tom Sebenaler
                       Liquor Store – Mary Barron 
                       Park/Recreation – Michael Olson
                       Fire Department – Michael Olson and Jim Hilman             

Board Appointments: Lancaster EDA-Michael Olson & Luke Nordin
                                       Kittson Co. Affordable Housing-Mary Barron    

Council PerDiems   (this includes committees and other classes/meetings attended)                Mayor – $70 per mtg.   Council – $50 per mtg.     Mileage – current IRS mileage rate

Official Newspaper:  Kittson County Enterprise
Official Depositories:  United Valley Bank, Prime Security Bank, American Federal Bank and 4M Fund (MN Municipal Money Market fund)

BUILDING RENTAL RATES:  See rental rates sheet

Health Insurance maximum paid for Employee Individual coverage $375.00 per month.

Camping fees:      Tent Site              12.00
                            Daily Electric        17.00
                            Weekly electric    90.00  
                            Monthly electric 230.00   

Permits:  Peddlers daily 50.00;  Beer  3.2 daily  50.00; Restaurant 3.2 Beer & Wine On-Sale Annual 200.00-effective licenses starting 1/1/2014; Off sale  3.2 Annual   200.00–effective licenses starting 1/1/2014

Clerk has approval effective each January 1 with the passing of the rates & fees schedule to pay any bills necessary to avoid late payments, receive discounts & meet payroll and all payroll expenses.

Clean Recycling Bin $40/month & $7.25/hr for downtown garbage can cleaning-increased 7/1/10

Equipment rates:  Payloader $150/hr.; John Deere Tractor & Rotary Mower $125/hr & Ford Mower $125/hr.-Min. 1 hr.

Insurance issues:  The city does NOT waive the monetary limits on municipal tort liability established by MN Statute 466.04.

Effective 1/1/16 Water Rates:  Minimum 6000 gallons and less $50.00/quarter and  $6.50/each 1000 gallons used above the  minimum.  Effective 1/1/16 Sewer Rates:  (Based on gallons of  water used)  Minimum 6000 gallons & less $50.00/quarter and $5.50/each 1000 gallon of water used above the minimum.  INDUSTRIAL PARK SPECIAL SEWER RATE (if water usage exceeds 30k) sewer rate is $16.50/1000 on all usage above 30k.  Bulk Water rates $9.00/1000 Gallon-minimum of 2000 Gal/$18.00—Water Hookup/New account fee $35.  Insufficient Funds Check charges are $30.00/check and will be added to the customer’s water/sewer account.  Interest rate on overdue accounts 10% per annum.

Special Assessments: eff. 1/1/10: New Water Hookups $4,000.00, 20 yr. assessment with 5% interest per year & Effective 1/1/10 new Sewer Hookups $4,000.00, 20 yr. assessment with 5% interest per year. All Extensions will be reviewed by the council , and may at the councils discretion be charged higher Water & Sewer hookup fees.

NOTE:  North Kittson Rural Water Special Assessments as applied to other city hookups also apply.

Clerk had council complete and sign Financial Disclosure forms.

Clerk reported that the Fire Relief Association has agreed to join the Statewide Volunteer Firefighters Retirement Plan with PERA as the administrator.  The council needs to approve the resolution agreeing to the option to the action also, and the clerk informed the council that the change would be effective January 1, 2016 when all relief monies would be transferred to the PERA fund.  Sebenaler moved to pass the resolution authorizing the City and the Lancaster Fire Relief Association to join the Voluntary Statewide Lump-sum Volunteer Fire Fighter Retirement Plan, second by Nordin and carried.

Hilman moved to transfer $15,000.00 from the Liquor Store fund to the City General fund, second by Sebenaler and carried.

Clerk reported that the monthly employee health insurance cost increased to $341.96.   This is still less than the approved amount for benefitted employees that the city will cover which is $375.00 per month.

Council members Sebenaler and Nordin will review the October, November and December 2015 bank statements.

Clerk reported that Anderson Sanitation has increased the cost of garbage bags and dumpster tipping fees by 11% due to the increase of tipping fees at the landfill.  The 3 year contract does allow for increase in these rates if landfill fees increase.

Council reviewed the December 2015 City and Liquor Store financial information and daily sales averages for the liquor store. 

Sebenaler moved to accept the Volunteer Fire Department application of Brian Hanson as of this meeting date pending the sheriff’s department background check, second by Hilman and carried.

Mayor Olson reported that the Fire Department recommends the termination of fireman, Dave Baker, due to failure to attend meetings and required training sessions.  Nordin moved to terminate Dave Baker from the fire department, second by Sebenaler and carried.  Termination notice will be sent by certified mail.

Jen Rice, Liquor Store Manager, request to be allowed to be open Sunday February 7, 2016 for Super Bowl and Sunday, February 21, 2016 for Daytona 500.  Nordin moved to allow the Liquor Store to be open February 7th & 21st, 2016, second by Hilman and carried.

Olson discussed the MN DOT proposed culvert project on Highway 59 and the need for the city to clean the ditch on the East side of US Highway 59 in order for this project to be completed.  Sebenaler will get an estimate of the cost for the ditch cleaning.

Being no further business the council adjourned.

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







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