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The Lancaster City Council met for its regular meeting on Wednesday, October 13, 2010, at 7:00 p.m. in the City Hall.  The following members were present: Rice, Olson, Swenson and Stenquest.  Nordin was absent.

Olson moved to approve the minutes of the September 8, 2010 Regular meeting, seconded by Swenson 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 October 2010 Bills to be paid. Swenson moved to approve the bills for payment, second by Olson and carried.  An abstract of bills will be posted with the minutes and are available upon request to the clerk.

Council discussed and asked questions of the 4 interviewed applicants, Randall Masloski, Kevin Johnson, Mark Dietz and Scott Ruud for the Public Works Director.   Stenquist moved offer the position to Kevin Johnson with a starting salary of $15.75per hour with a start date of Nov. 15, 2010, second by Olson and carried.     

Council reviewed the most recent changes to the employee handbook.  Olson moved to accept the handbook as presented, second by Swenson and carried.

Clerk informed the council that the Fire Contract multi-year agreement with the townships ends in 2010 and that a meeting should be held with the townships and fire department representatives to discuss the following yearís contract rates.  Olson moved to set  the meeting date for December 7, 2010 at 7:00PM at the Fire Hall, second by Stenquist and carried.

Rice reported that he had sent request for proposals for 3 year contract to haul the city garbage to the following contractors; Lesís Sanitation, Anderson Sanitation, Northern Sanitation and Spruce Valley.

The council discussed the 2011 General Levy and Budget and directed the clerk to revise the levy to $62,000 an increase of $5,000 from the previous year.  This increase will only replace the loss in market value state aid from 2010 and will do nothing to  make up for the possible cuts to  Local Government Aide for 2011. 

Clerk presented the revised Elected Official and Employee Travel Policy for the councilís review.  Olson moved to accept the Elected Official and Employee Travel Policy as presented, second by Swenson and carried.

Rice reported that the survey sent to city residents did not help the city qualify for any additional grants for the community center project. 

Stenquist moved to allow the clerk to attend a regional clerkís meeting in Moorhead on October 15th, second by Olson and carried.

Clerk reported that the city has qualified for $3,593.63 in FEMA monies for the flooding in June 2010.  Swenson moved to accept the money and allow the Clerk and Mayor to sign the corresponding SubGrant  Agreements, second by Stenquist and carried.

The council discussed the purchase of an additional Welcome to Lancaster sign for County road 6 on the west side of Lancaster.  The estimated cost of the sign from Sign Design the same company that manufactured the other cedar signs is $3,000.00.  Olson  moved to make a request of the American Legion Post #214 Gambling Fund in the amount of $3,000.00 for the sign project, second by Swenson and carried. 

Clerk reported that the sewer fund is running short of cash and that the water fund has an excess.   Stenquest move to transfer $25,000.00  from the water fund to the sewer fund, second by Swenson and carried.

Council discussed whether to transfer funds from the Liquor Store fund to the General fund.  The council also discussed the fact that there are remodeling and cooler upgrades that are needed for the Liquor Store.  Stenquist moved that a Certificate of Deposit in the amount of $20,000.00 be purchased for the Liquor Store remodeling project and that the  CD be designated for remodeling and upgrades, second by Olson and carried.

Council reviewed the September City and Liquor Store financial information.  Council discussed that the liquor store cost of goods for resale is out of  balance with sales.  Stenquist will discuss this with the Liquor Store manager.

Clerk presented a Multi-year Audit Agreement with Hoffman, Dale & Swenson, PLLC for the years 2010, 2011 and 2012.  The cost of the Annual Audit will be $5,100.00 per year.  Stenquist moved to  accept the proposal and allow the clerk and mayor sign the agreement and the 2010 Audit engagement letter, second by Olson and carried.

 Council discussed the 2011 employee payroll rates.   Stenquist moved to raise all employees salaries by 3%  effective for hours worked after January 1, 2011, second by Olson and carried.

Olson moved to set the General Election Canvassing Board meeting for November 10, 2010 at 7:15PM at the Lancaster City Hall, second by Stenquist and carried.

Council Adjourned as there was no further council business.

Carol Johnson



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