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 12, 2002, at 4:30 P.M. Central Time.

Roll call: Mayor Nylund, Councilors Hendrickson, and Benda.

Absent: Councilor Lind

Also Present: City Manager, City Attorney and City Clerk.

Mayor Nylund called the meeting to order at 4:30 p.m. and immediately amended the agenda to include the appointment of a new councilor to fill the vacancy created by Jeffrey Cram’s resignation as Mayor. (Mayor Pro-tem Nylund automatically assumed the position of Mayor creating a vacancy on the City Council per the City Charter.)

Councilor Hendrickson supported by Councilor Benda moved to appoint Scott A. Thrasher to serve the remainder of the term of the vacancy on the City Council. (Said term will expire in November 2002.)

Motion carried.

Clerk Olson issued the "Oath of Office" to Scott Thrasher.

Councilor Hendrickson supported by Mayor Nylund moved to approve the 2002-2003 Fiscal Year Budget for the City of Crystal Falls as presented by City Manager Nordeman with the exception of the hospitalization insurance benefits for the retirees and including the proposed rate increases in the water, sewer and electric rates.

Ayes: Mayor Nylund, Councilors Thrasher, Hendrickson and Benda.

Nays: None

Absent: Councilor Lind

Motion carried.

Councilor Benda supported by Councilor Hendrickson moved to approve the Appropriation and Tax Levy Resolutions for the 2002-2003 fiscal year.

Motion carried.

(Copies of these resolutions are attached and made a part of the minutes of this meeting)

Councilor Hendrickson supported by Councilor Benda moved to approve the minutes of the regular meeting of July 8, 2002 and of the special meeting of August 1, 2002 as written.

Motion carried.

Christine Coopman requested the Council consider herself and Donna Nelson to serve on the Planning Commission in the two terms that expired April 30, 2002, and further to consider the appointment of a Zoning Board of Appeals to consider zoning variances in the future. Mayor Nylund thanked Ms. Coopman for her interest and advised that the Planning Commission terms will be advertised to the general public for applicants prior to appointments being made.

Brian Rose, representing Crystal Falls Springs advised the Council that he would like to revise his Memorandum of Understanding for lots in the Industrial Park. Councilor Benda supported by Mayor Nylund moved to exclude lots 1 and 2 from the Crystal Falls Springs M. O. U. and to adjust the price for the remaining lots to $56,000.00 or 7 jobs.

Motion carried.

Donna Nelson asked about the completion of the M-69 Bridge and commented on the drivers along the detour route. She also noted her interest in serving on the Planning Commission.

Ray Bortolini made a plea to the Council to work with the Iron County Road Commission to see to improvements on Bortolini Road, which has been extensively damaged by the heavy trucks used during the pipeline emergency. Manager Nordeman advised the Council that he has requested the participation of Great Lakes Gas Co. in the repair of this and other roadways damaged by their activities and is awaiting their response.

Lori Baukus, representing the Downtown Development Authority requested copies of the City Council meetings is forwarded to the DDA in an effort to improve the communication between the two groups. Clerk Olson requested the same of the DDA.

Councilor Hendrickson supported by Mayor Nylund moved to approve $11,000.00 for the DDA 2002-2003 fiscal year budget with the adjustment in the City’s budget to come from appropriated wages in the General Fund.

Motion carried.

Frank Groeneveld represented the Harbour House Museum with an apology for the handling of the Heritage Trail invoices. He explained how the cost rose from $500.00 to over $1,000.00 and thanked the Council for their payment of same. He advised that in the future they would seek approval prior to spending the money.

Mark Agnessi, Iron County Economic Developer, reported on the marketing of the Crystal Manor building.

Councilor Hendrickson supported by Councilor Benda moved to approve Pay Request #4 from Butch Neuens Landscaping, Inc. for work completed on the Riverwalk in the amount of $49,824.33.

Motion carried.

David Peterson, representing a contingent of citizens, requested the Council consider the placement of WLUK TV from Green Bay on the cable system in order to receive the Packer games this fall. There was much discussion regarding this matter, including the possible tiering of the cable system. Mayor Nylund supported by Councilor Hendrickson moved to add WLUK for Packer football and also WFQX from Cadillac for Lions football to the cable system at a cost to the subscribers not to exceed $2.00 per month.

Ayes: Mayor Nylund and Councilor Hendrickson

Nays: Councilors Benda and Thrasher

Absent: Councilor Lind

Motion failed for lack of a majority.

Paul Gurgle, representing Iron County Community Hospitals, Inc., approached the Council with a request to purchase lots 1, 2, and 3 at the Industrial Park for the construction of a medical office building. Following discussion of the proposed Memorandum of Understanding with I.C.C.H., Mayor Nylund tabled the matter pending further clarification of the intended use of the facility and appointed a committee including Manager Nordeman, Councilor Hendrickson and himself to meet with Mr. Gurgle and Attorney Lawrence regarding the M.O.U.

An amendment to the zoning ordinance to change areas currently designated as "Light Industry" to "Residential" was discussed. Mayor Nylund suggested the Planning Commission review the request and develop a proposal for submission to the Council. Councilor Hendrickson supported by Councilor Benda moved to set a public hearing date of October 14, 2002 for the consideration of an amendment to the zoning ordinance changing certain "light industry" areas to "residential". Said hearing will be conducted in conjunction with the regular meeting of the City Council scheduled for that date.

Motion carried.

Mayor Nylund supported by Councilor Benda moved to enter into a contract with STS Consultants, Ltd for engineering services for Wastewater Treatment Facility Design Improvements and other scheduled activities in accordance with MDEQ Permit GW183600102 for an amount not to exceed $13,100.00.

Motion carried.

Councilor Hendrickson supported by Councilor Benda moved that the payrolls and disbursements in the amount of $355,289.59 for the month of July 2002 be approved, and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Hendrickson supported by Councilor Benda, moved to accept the following reports for the month of July 2002:

Police Chief’s report indicating 191 complaints, 17 of which were closed by arrest and 3,813 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering no fire calls; spending approximately no man-hours fighting fires; and holding 2 practice and training session.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department activities.

Motion carried.

The scheduled closed session for this meeting was postponed pending the attendance of all the Councilors.

There being no further business to come before the Council, meeting adjourned at 6:45 p.m.

ATTACHEMENTS TO AUGUST 12, 2002 MEETING:

WHEREAS, said budget, after due notice and public hearing has been adopted; and

WHEREAS, pursuant to said budget is necessary that THREE MILLION EIGHT HUNDRED EIGHTY EIGHT THOUSAND, ONE HUNDRED SIXTY THREE DOLLARS ($3,888,163) has been determined to be necessary to defray the expenditures and liabilities of the City of Crystal Falls for the fiscal year of 2002 - 2003, the following sums shall be and hereby are appropriated:

General ---------------------------------------$1,355,550.00

Major Street-----------------------------------$ 166,000.00

Local Street Fund------------------------------$ 51,613.00

Downtown Development Authority-----------------$ 11,000.00

Theatre/Museum/Contemporary Center-------------$ 3,000.00

Television-------------------------------------$ 170,000.00

Electric---------------------------------------$1,427,000.00

Sewer------------------------------------------$ 365,000.00

Water------------------------------------------$ 331,500.00

Trust & Agency---------------------------------$ 1,000.00

Electric Reserve & Contingency-----------------$ 3,500.00

Perpetual Care Fund----------------------------$ 3,000.00

_____________

$3,888,163.00

BE IT RESOLVED, that said sums appropriated will be raised by taxation, sales

of services, and other various revenues collected by the City of Crystal Falls

as provided for in the 2002 - 2003 fiscal year budget.

WHEREAS, in accordance with Chapter V of the Charter of the City of Crystal Falls, the City Manager has caused to be prepared a budget which was presented to the Council; and

WHEREAS, said budget, after due notice and public hearing has been adopted; and

WHEREAS, pursuant to said budget it is necessary that TWO HUNDRED EIGHTY THOUSAND DOLLARS for General Operation be raised by taxation; and

WHEREAS, the Taxable Valuation for the City of Crystal Falls is TWENTY MILLION, TWO HUNDRED THIRTY TWO THOUSAND TWO HUNDRED FIFTY FIVE DOLLARS ($20,232,255.00); now, therefore,

BE IT RESOLVED that the City of Crystal Falls levy 16.50 mills to be assessed against all real and personal property located in the City of the aforesaid municipal purposes.

END OF RESOLUTION