A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, August 11, 2003, at 4:30 P.M. Central Time.

Roll call: Mayor Sabo, Councilors Hendrickson, Koszyk, Thrasher, and Benda.

Also Present: City Manager, City Attorney, City Clerk and various citizens of the community.

Mayor Sabo led all present in reciting the Pledge of Allegiance.

The minutes of the regular meeting of July 14, 2003 were approved as written.

Mayor Sabo called for amendments to the agenda and moved item 7(B) to follow item 5, visitors.

Patrick Sommers approached the Council with a request to purchase a lot in the Industrial Park for the construction of a meat processing facility. He noted he was most interested in lot #11 and would initially employ 1 person with possible expansion to as many as 10 jobs in the future.

Councilor Koszyk seconded by Councilor Hendrickson moved to direct City Manager Nordeman and Attorney Lawrence to draft documents and negotiate the sale of a lot at the Industrial Park to Patrick Sommers for a meat processing plant.

Motion carried.

Scott Kenney, representing the North Country Cruisers Car Club, asked the Council for permission to use sections of the Runkle Lake Park facility as a starting point for an upcoming road rally event. Councilor Koszyk seconded by Councilor Benda moved to approve the use of Runkle Lake Park as a starting area for a road rally to be conducted by the North Country Cruisers Car Club in September 2003.

Motion carried.

Mayor Sabo asked Police Chief Bicigo to report on the issue of ORV use on city streets. Chief Bicigo reported a stepped up enforcement of the State ORV laws has resulted in a significant reduction of loud and speeding ORVs on the city streets. He suggested the adoption of an ordinance to govern ORV use within the City would result in excessive costs to the City for signage and attorney fees. He felt there was no need for an ordinance and suggested that the Council "leave it as is" with officer discretion being the key for enforcement and handling of ORV complaints. A lengthy session of discussion and comments from the audience ensued. Mayor Sabo advised the Council to consider the comments for possible action on the ORV issue in the future.

Mayor Sabo reported to the Council on behalf the Downtown Development Authority. Upon discussion of the DDA proposed Bylaws it was noted by Attorney Lawrence that Section 5 referring to a phone poll (vote) is a violation of the Open Meetings Act and should be struck from the bylaws. Councilor Hendrickson also commented on Section 7 and requested changing the 48-hour notification to 24 hours for an excused absence. Regarding the Policy and Procedures it was suggested that the DDA meet at the City Hall and further that when sealed bids are to be received they should be directed to the City Hall. Mayor Sabo advised he would report the recommendations to the Downtown Development Authority.

Mark Agnessi reported on the upcoming meeting with Karl Freed of Gove Associates for information gathering concerning the Downtown Marketing Study. Said meeting will be held on Monday, August 18, 2003 beginning at 3:00 p.m. in the Council Chambers at City Hall.

Councilor Thrasher seconded by Councilor Benda moved to direct Attorney Lawrence to draft a letter to Pastor Earnest Ness regarding the Living Waters Christian Book Store and the fact that public funds could not be used in the manner requested.

Motion carried.

Manager Nordeman reported on the interviews of engineering firms for the water project. Speaking for the Water Project Engineering Firm Selection Committee, Nordeman recommended the Council consider contracting with Coleman Engineering Company. Attorney Lawrence reiterated the "chain of events" regarding the Water Project Engineering Firm Selection Committee and the interview process. Councilor Hendrickson expressed dissatisfaction in that she did not attend the interviews and felt uninformed as to the qualifications of each firm.

Mayor Sabo declared a ten (10) minute recess of the meeting at 6:05 p.m.

Meeting reconvened at 6:15 p.m.

Councilor Thrasher seconded by Councilor Benda moved to authorize Manager Nordeman and Attorney Lawrence to proceed with the review and execution of a contract with Coleman Engineering Company for a "Preliminary Engineering Agreement" for water exploration, environmental studies, and the filing of an application with USDA Rural Development for a loan/grant for water infrastructure improvements in the City of Crystal Falls.

Ayes: Councilors Benda, Thrasher, Koszyk and Mayor Sabo.

Nays: Councilor Hendrickson.

Motion carried.

Councilor Koszyk seconded by Councilor Thrasher moved to extend the meeting beyond the set adjournment time of 6:30 p.m.

Motion carried.

Councilor Thrasher seconded by Councilor Koszyk moved to extend the deadline for use of employee vacation time in excess of 192 hours to be September 30, 2004 and that all future vacation accumulation at fiscal year ends will not exceed the allotted 192 hours.

Motion carried.

Councilor Benda seconded by Mayor Sabo moved to approve proceeding with the replacement of sidewalk on the North side of Crystal Avenue from North 5^th Street to Iron Street for an amount of approximately $18,600.00 with the work to be performed by Crystal Ridge Contracting.

Ayes: Mayor Sabo, Councilors Benda, Thrasher, and Koszyk.

Nays: Councilor Hendrickson.

Motion carried.

Mayor Sabo announced the upcoming Planning Commission Public Hearing regarding the Master Plan for the City and encouraged all to attend.

Councilor Benda seconded by Councilor Hendrickson moved to approve the 2003-2004 Fire Authority Budget in the amount of $257,620.00 as presented.

Motion carried.

Councilor Benda seconded by Councilor Koszyk moved that the payrolls and disbursements in the amount of $307,183.00 for the month of July 2003 be approved, and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Hendrickson seconded by Councilor Benda, moved to accept the following reports for the month of July 2003:

Police Chief’s report indicating 209 complaints, 12 of which were closed by arrest and 3,461 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 4 fire calls; spending approximately 36 man-hours fighting fires; and holding no practice and training sessions.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department activities.

Motion carried.

A request from Brian Rose of Crystal Falls Springs, Inc. for an extension on an option for a lot at the Industrial Park was discussed. It was the consensus of the Council that no extension will be granted.

Councilor Koszyk commended the police department for a superb job in clearing Runkle Lake Park following the Fungus Fest activities.

Jeff Bal of STS reported to the Council on the North 6^th Street project indicating it to be 90% completed. He noted a pay request would be presented at the next meeting of the Council and said the project was completed very close to the estimated budget.

There being no further business to come before the Council, meeting adjourned at 7:20 p.m.