LANCASTER CITY COUNCIL PROCEEDINGS
The Lancaster City Council met for its Regular Meeting on Wednesday, April 9, 2014, at 7:00 p.m. in the City Hall Meeting Room. Members present were Acting Mayor, John Stenquist, council members Jim Hilman and Mary Barron. Mike Olson and Luke Nordin were absent.
Barron moved to approve the council minutes of the March 12, 2014 regular meeting, seconded 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.
Mayor, Mike Olson appeared and took over his duties as chair during the discussion with the auditor.
Gordon Dale, the city auditor of Hoffman, Dale & Associates, met with the council to review the 2013 Annual City Audit. Dale reviewed the Management findings and explained that the segregation of fiscal duties is an issue because of the lack of employees. He expressed approval of the council review of bills and bank statements processes that are followed as a necessary due diligence. Dale also reviewed the city reserves, enterprise funds, financial comparisons; and various other information in the audit. Dale pointed out that the Sewer Fund expenses for repairs and maintenance have historically been exceeding the receipts for sewer fees. He suggests that the council raise the sewer rates to meet the sewer and lagoon operating expenses. The council has been increasing sewer rates annually a small amount and will consider this in there next budgeting process. Barron moved to accept the audit as presented, second by Stenquist and carried.
The council reviewed the April 2014 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 2014 Rates, Fees & Appointments Schedule. Stenquist moved to approve the bills and transfer $877.90 from the community center savings to cover expenditures for community center equipment, second by Hilman and carried. An abstract of bills will be posted with the minutes and are available upon request to the clerk.
Council discussed the special meeting held on April 7, 2014 at the fire hall regarding fire department issues. Council discussed the need to update the 1974 Fire Department Ordinance Section 102.3 to reflect current statutes and state auditor positions. The council talked about then developing some additional policies that would help to establish good operating procedures and also have the fire chief and assistants meet with the council on a set schedule to discuss fire department operations and needs. Council also discussed the DNR fire services contract and the need to review and approve the contract. Hilman moved to have the city attorney draft a proposed fire department ordinance and also contact the MN DNR regarding the fire service contract, second by Stenquist and carried. Barron and Olson will work with the attorney on the proposed ordinance.
Clerk reported that the fire department has recommended that the fire chief salary be changed from the current $250.00 per year to instead be paid at $70.00 per meeting or training event. Issue tabled at this time by mayor.
Clerk discussed need to designate persons that are able to access city mail and or packages from the city post office box. Clerk suggested that the Mayor, Clerk & Public Works Director be the only persons with authority to access mail and packages from that box. Hilman moved to designate the Mayor, Clerk & Public Works Director as the persons with authority to access mail and packages from the Post Office Box, second by Stenquist and carried.
Clerk reported that she had completed the 2014 Fire Protection Contracts have all been accepted by the townships. The total of township fire contracts is $17,383.94 and the city appropriation to the fire department will be $5,890.77 for a total of $23,274.71. Barron moved to transfer the city appropriation of $5,890.77 from the general fund to the fire fund, second by Stenquist and carried.
Barron requested that the city council approve an expenditure of $1000.00 for payment of part of the band for the all school reunion. The All School Reunion committee and liquor store will be responsible for the balance. Barron also requested that the city be allowed to pay for the band in full now with the other responsible parties making payment back to the city at a later date. Stenquist moved to appropriate $1000.00 for the city share of the all school reunion band and also allow the city to pay the band in full with other parties reimbursing the city at a later date, second by Barron and carried.
Mayor asked council if benefit for Roxy’s Diner should be treated as a nonprofit event for the community center; council agreed.
Mayor presented an estimate of cost of improvements to the shower facility at the 59 Park and Campground. Stenquist moved to allow improvement to be completed with the cost of materials not to exceed $3000.00, second by Hilman and carried.
Clerk reminded council that a sign retroreflectivity policy is supposed to be in place by June 15, 2014. The council tabled this until the next meeting.
Council reviewed the March 2014 City and Liquor Store financial information; daily sales averages for the liquor store and gambling monthly summary.
Nordin asked clerk to present revolving loan applications from Mike Whitlock and Agri Sports of Lancaster. Council asked the clerk to forward both applications to the Northwest Regional Development Commission for the loan review portion and then will review the loan summary received from the reviewer. The council also discussed the USDA requirement that only small businesses be loaned money from the city lending pool. The certification of small business is completed by each applicant and Nordin said he would verify the definition of gross sales.
Terry Vagle has requested that the council review his water billing for October through December. His water meter reading was very high. The council discussed information received from maintenance on how water meters don’t read high but can get stuck open and then the water usage actually show lower than the actual amount used. Council decided that they could not reduce the bill as many others have had water leaks and high bills because of the problem. It is the responsibility of homeowners to fix leaks in order to keep their water and sewer bills in check.
Council discussed various sewer and water freeze up issues and tabled the matter.
Clerk reported that FCCLA Lancaster requested a donation from the city; council discussed that they cannot make donations to organizations per state statute.
Barron reviewed remodeling costs of the Liquor Store with the council the estimates are as follows: Perry Construction $14,800.00 for labor and Lancaster Lumber $27,504.28 for material. This work would entail redoing some bathrooms; removing some walls to open up the old bathrooms and storage area behind the bar; redoing the bar and installing new suspended ceiling. The council discussed the previous repairs that have been made to the liquor store and the fact that most of the expenditures are maintenance and replacement of equipment that was quite old and not functioning properly. Council decided that the cost of the shingles of $3479.00 and insulation $1499 which were included on the material quote would be removed as the labor quote doesn’t include this and it is a repair item not part of the remodel.
The mayor at 11:45PM continued the meeting to April 15th, 2014 5:00PM in order to have more time to discuss the liquor store remodel issue.
Meeting continued to April 15th, 2014 5:00PM in the City Hall Meeting Room.
Carol Johnson, Clerk/Treasurer Approved: Mike Olson, Mayor
LANCASTER CITY COUNCIL PROCEEDINGS
The Lancaster City Council met to continue its Regular Meeting from Wednesday, April 9, 2014, to April 15, 2014 at 4:30 p.m. in the City Hall Meeting Room. Members present were Mayor, Mike Olson, council members Jim Hilman, Mary Barron, John Stenquist and Luke Nordin.
Also, present was the Liquor Store manager, Jen Rice.
The meeting was continued in order to complete the discussion regarding the Municipal Liquor Store remodeling project.
The work would entail redoing some bathrooms; removing some walls to open up the old bathrooms and storage area behind the bar; redoing the bar and installing new suspended ceiling. The council discussed the previous repairs that have been made to the liquor store and the fact that most of the expenditures are maintenance and replacement of equipment that was quite old and not functioning properly.
Barron reported the Perry Construction quote can be reduced by $1000.00 as Rice will take care of removal of wall board/shelving etc. The amended quote amount would be $13,800.00 from Perry Construction. Lancaster Lumber quote with shingles and insulation removed is $22,526.28 for material. The quote for electrical installation from Gatheridge Electric for installation of new lights and outlets for the Liquor Store is $1925.00 additional quoted amount of $420.00 for recessed lights by walk in cooler and $375.00 for additional outlets on the meeting room wall ($375.00 to be paid by the city). Total cost for the remodel per these quotes is $38,671.28 excluding the $375.00 for the city hall meeting room.
Stenquist moved to accept the quotes from Perry Construction; Lancaster Lumber and Gatheridge Electric, and requiring that Perry Construction provides proof of liability insurance, second by Barrron and carried with Nordin abstaining.
Mary Barron/Minute Taker Approved: Mike Olson, Mayor
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