LANCASTER CITY COUNCIL PROCEEDINGS

The Lancaster City Council met for its Regular Meeting on Wednesday, October 8, 2025 at 7:00 P.M. The following persons were present: Mayor, Kathy Bernstrom; Council members: John Stenquist, Krista Matthew, Kevin Grabowska and Teri Halvorson. Also present Anna Jauhola, with Kittson County Enterprise and Angela Olson with Bollig Engineering.

Angela Olson, Aviation Planner & Funding Specialist, with Bollig Engineering visited with the council as their team recently completed the Lead Service Line Inventory with 3 ‘unknowns’ in the city (these being homes that are not being lived in at this time) and advised that MN Department of Health will notify the city with details regarding the next steps we are required to complete. Angela also addressed how their Funding Department helps cities with finding and applying for grants. A team will be visiting us for a Needs Assessment Meeting on October 20^th as they work to find funding for projects. State Funding is a common source but there is also Federal Funding for “Rural Development”.

Matthew moved to approve the September 10, 2025 Council Meeting Minutes, second by Halvorson 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 current October 2025 bills as well as Septembers and the August 2025 Electronic Fund Transfers and 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 2025 Rates Fees & Appointments Schedule. Halvorson moved to approved bills and EFT’s, second by Stenquist and carried. An abstract of bills will be posted with the minutes and are available upon request.

A new Lease Agreement was presented to the council as they would like to add Electronic Games (E-Tabs and BINGO on a tablet) along with the existing paper Pull-Tabs. Currently the Liquor Store receives monthly rent to be paid up to 20% of gross profits for the paper tabs and if approved, would receive up to 15% of gross profits for the E-Tabs. In 2025, the Liquor Store received an average of $897 per month in rent through September. After some discussion if E-Tabs would have a negative impact on paper tab sales, Stenquist made a motion to continue with 20% rent for paper tabs and not to exceed 15% rent for the E-Tabs, second by Grabowska and carried.

Minnesota Paid Leave, effective January 1, 2025 was discussed with the council. Under this new law, which is managed and administered by the Department of Employment and Economic Development (DEED), will provide leave, job protections and benefit payments from the state to individuals who need time off to care for themselves or their family members, for those who qualify. There is more information to come on this subject and clerk Johnson will be attending a class on October 23^rd specializing in this topic.

In October of last year, the council approve a 4-year contract, starting in 2025, with Public Employees Insurance Program (PEIP) to continue the city health and life insurance coverage.

This contract commits the city to continue using PEIP as the insurance provider for 4 years and annual rates are not guaranteed. The 2026 rate for city provided health insurance is $645.18 per month and $9.00 for life insurance, which is not an increase from last year and is great news. Motion by Matthew, with a second by Stenquist, and carried, to accept the 2026 rates and approved the clerk to sign a Group Application, although not required, PEIP/Innovo would like one to ensure they have the most current information for our group.

GPS Mapping was discussed as the city received a contract for review from MN Rural Water at a cost of $7,000 for the locating and recording of the cities Water valves, mains, hydrants, Sewer mains, manholes, along with storage tanks, wells and curb stops. The city has also worked with Bollig Engineering for a number of these items through the Lead Line Service Inventory process and will need to do more research to if this is doubling work already done and paid for. No decision was made at this time and the clerk will continue to look into this.

In working on the 2026 budget for our Water Tower Fund, the clerk contacted Maguire Iron in regards to a 2023 inspection report we had on file which listed things in need of action. Ray Cook with Maguire visited, reviewed, and provided us with contracts for restoring the interior renovation as well as installing a Safety Climb System for our ladder. The council agreed to have both items fixed at the same time to bring our ladder system up to code with OSHA and stop any interior corrosion. Doing both at the same time resulted in a reduced total cost of $21,500 vs $12,000 for the interior if done alone and $11,770 for the Safety Climb if done at a separate time. Motion was made by Stenquist to do both fixes at the same time, second by Matthew and carried.

Retro-Approval needed on the emergency purchase of a new double door refrigerator for the Community Center as the current one was not working and not able to be repaired as it had a freon leak, the compressor was shot, and had a broken fan motor. The new fridge cost $5,428.61 and came with a 7-year compressor, parts, and labor warranty. Halvorson made a motion to accept the purchase, second by Grabowska and carried.

Stenquist moved to approve a request for $2,000.00 from American Legion #214 Gambling fund to help the city with the purchase of the new double door refrigerator for the Community Center, second by Halvorson and carried.

Halvorson moved to approve a request for $1,000.00 from American Legion #214 Gambling fund to help the Fire Department purchase new material for their new building, second by Grabowska and carried.

Resolution 2025-13 approved with a motion by Matthew, seconded by Halforson, and carried to accept $500 from the American Legion Auxiliary #214 to help pay down the Community Center Loan Debt.

Mayor Bernstrom opened, and the council reviewed, 5 sealed “Farmland for Rent Bids” on 49.7 crop acres located in the NW ¼ of Section 7, Poppleton Township, Kittson County for the years of 2026, 2027, & 2028. The top three bidders will be contacted by the mayor the next day, with the bottom two able to raise their bid in $5.00 increments above the highest bid, if they choose to. Top bids were Ned Webster at $110/acre; Carson Hewitt at $87.50/acre; and Brian Hanson at $80/acre. Council will accept the winning bid at the November 12^th Council Meeting.

Grabowska approved for Liquor Store Manager, Shannon Bowlin, to attend the free Fargo Food Forward Cash-Wa Distributing Food Show in Fargo, ND on November 3^rd, second by Matthew and carried. Bowlin will be reimbursed milage if she attends.

Council reviewed August & September City and Liquor Store financials.

The $13,000 new flooring bid for the Liquor Store, which was previously tabled for the lack of bids, was approved at this meeting with a motion by Stenquist, second by Halvorson, and carried.

Tabled from September, a motion was made by Halvorson to accept a 2% Cost of Living increase with 1 Step to all eligible employees for 2026 salaries, seconded by Stenquist and carried.

Other items discussed: Application for 2025 MN Small Cities Development Program Grant has been approved with more info to come; Solar Panels on public buildings grant opportunities and Bernstrom is working with John Wynne for more info; Clerk to attend MCFOA Region 1 Meeting in Bemidji on October 23^rdwith topics on MN Paid Leave and Employee Health and Wellness.

Mayor closed the meeting as there was no further business for council.

Janet Johnson, Clerk/Treasurer Approved: Kathy Bernstrom, Mayor
Approval Date: 11/12/2025

Other links: Lancaster Riverside Golf Course | Lancaster Public School | NW MN Multi-County HRA

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