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 13, 2001, at 4:30 P.M. Central Time.

Roll call: Mayor Cram, Councilors Hendrickson, Benda, Nylund and Lind

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

Mayor Cram opened the meeting by leading all present in the Pledge of Allegiance.

Mayor Cram supported by Councilor Hendrickson moved to accept the minutes of the regular meeting of July 9, 2001 as written.

Motion carried.

Al Rhino once again expressed dissatisfaction with the City’s collection policy on past due utility billings. He noted that he walked out of a meeting with the City Manager, Attorney, and Clerk set up to resolve the problem. Mayor Cram suggested that there had been mistakes made (on both sides) in the handling of the issue and requested another meeting at which he, Cram, will be in attendance.(No date was set for this meeting).

Dave Sherby of Sherwood Signs announced that the Industrial Park sign was now installed.

Maureen Elson updated the Council on matters concerning the Contemporary Center. She noted that Leslie Helakoski has resigned from the Contemporary Center Board and asked the Council’s approval for a replacement. Mayor Cram supported by Councilor Benda, moved to approve the appointment of Bev Camp to the Contemporary Center Board seat vacated by Leslie Helakoski.

Motion carried.

Mrs. Elson also extended a "Thank you", on behalf of the Crystal Falls Business Association, to Gerard Valesano for his efforts and assistance at Runkle Lake Park during the Fungus Festival.

Mike Ferguson, DDA Chairman, requested the release of funds to pay electric bills in the amount of $105.00, payment of Heritage Trail sign for the Harbour House Museum in the amount of $800.00, and $1,056.00 for a welcome sign. Discussion regarding the welcome sign ensued. Councilor Lind requested a meeting with the DDA sign committee to coordinate the efforts of the DDA with that of the Council in the placement of signs. Councilor Hendrickson supported by Councilor Benda moved to approve the release funds for the payment of the following DDA expenses: $105.00 electric bills, and $800.00 for the Harbour House Heritage Trail sign.

Motion carried.

Mike Ferguson also requested the release of funds to allow for the attendance of a DDA representative at a meeting to be held in Marquette. Mayor Cram supported by Councilor Lind moved to approve the release of funds in the amount of $20.00 plus mileage to allow the attendance of a DDA representative at the Michigan Downtown Finance Association meeting in Marquette, MI.

Motion carried.

Mr. Ferguson went on to request an additional $2,375.00 be added to the DDA budget for fiscal year 2001-2002. Mayor Cram noted this would be addressed at the budget hearing.

Mike Premo, representing the Michigan Department of Transportation, presented a plan for a detour over city streets, Wagner, Fairbanks, and North 6^th St., during the refurbishing of the M-69 Paint River Bridge scheduled for summer of 2002. He noted that MDOT will pulverize, crush, reshape & resurface these streets in preparation for the detour along with the widening of intersections at Wagner/M-69 and North 6^th St/U.S.2 to allow for easier traffic flow. Mayor Cram supported by Councilor Hendrickson moved to approve the "Letter of Understanding" with MDOT regarding the detour route and directed Manager Nordeman to sign said letter.

Motion carried.

At 5:30 p.m. Mayor Cram temporarily adjourned the regular session to conduct the Annual Budget Hearing.

Manager Nordeman presented his budget comments to the Council and public and highlighted some of the more costly items included in the budget.

Councilors Lind and Hendrickson, and Mayor Cram, expressed concerns regarding the unkowns of the litigation against the City, the antiquated water system, and the capital spending plan. Councilor Hendrickson suggested a "freeze on spending" and said the employees could wait a year for an additional holiday and wage adjustments. Councilor Nylund objected and noted that the City Manager was hired to handle the financial situation and believes he is doing a good job, that he (Nylund) had no intention of micro-managing the city operations. He felt the proposed budget was sound and needed no changes. Councilor Benda echoed Nylund's sentiments and agreed with the proposed budget. City employees commented that they had voluntarily helped the city balance funds through the implementation of the new insurance plan and felt the cost of living adjustment was fair in keeping with the wage range adopted by the City Council only 1 year earlier. Councilor Benda supported by Councilor Nylund moved to approve the 2001-2002 fiscal year budget as presented by the City Manager including; a 3.2% adjustment to the employees wages and granting an additional holiday (Christmas Eve), and to keep the DDA budget at the $7,400 as proposed.

Ayes: Councilor Nylund and Benda

Nayes: Mayor Cram, Councilors Hendrickson and Lind

Motion defeated.

Various citizens in attendance voiced their support of the employees including Sharon Leonoff who said "These people can not go without a raise, as a taxpayer I think this is terrible." Dave Sherby commented "the Council is pulling in its horns based on a bunch of what-ifs". Walter Winkowski noted the he "does not see the city’s situation as being a tough time and does not agree with the Council’s decision. Keep your people working for you happy in order to keep the citizens happy. Support your manager!"

Mayor Cram supported by Councilor Hendrickson moved to adopt a 2001-2002 fiscal year budget using the previous fiscal year budget figures and including; a 1.2% adjustment to the employees wages, granting an additional holiday (Christmas Eve), a DDA budget of $7,400, replacement of the Power Plant roof ($30,000), conduction of a Power Plant automation study ($23,000), and commercial circuit upgrade ($60,000).

Ayes: Mayor Cram, Councilors Hendrickson and Lind

Nayes: Councilors Nylund and Benda

Motion carried.

Mayor Cram supported by Councilor Hendrickson moved to adopt the following resolution:

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

WHEREAS, the Council failed to adopt said budget as prepared by the City Manager; and

WHEREAS, instead of the proposed budget the Council moved to re-adopt the 2000-2001 fiscal year budget with some revisions; and

WHEREAS, pursuant to said adopted budget it is necessary that THREE MILLION NINE HUNDRED SEVENTY NINE THOUSAND FIVE HUNDRED THIRTEEN DOLLARS ($3,979,513.00) has been determined to be necessary to defray the expenditures and liabilities of the City of Crystal Falls for the fiscal year of 2001-2002, the following sums shall be and hereby are appropriated:

General---------------------------------$1,356,082.00

Major Street----------------------------$ 156,572.00

Local Street----------------------------$ 59,980.00

Downtown Development Authority----------$ 7,400.00

Recreation------------------------------$ 251,000.00

Television------------------------------$ 150,158.00

Electric--------------------------------$1,502,922.00

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

Water-----------------------------------$ 123,000.00

Trust & Agency--------------------------$ 500.00

Electric Reserve & Contingency----------$ 2,500.00

$3,979,513.00

THEREFORE 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 2001-2002 fiscal year budget.

Ayes: Mayor Cram, Councilors Hendrickson and Lind

Nayes: Councilors Nylund and Benda

RESOLUTION ADOPTED

Mayor Cram supported by Councilor Hendrickson moved to adopt the following tax levy resolution:

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 as amended by the Council; and

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

WHEREAS, the Taxable Valuation for the City of Crystal Falls is TWENTY MILLION, ONE HUNDRED ONE THOUSAND NINE HUNDRED DOLLARS ($20,101,900.00); 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.

Mayor Cram adjourned the Budget Hearing at 6:40 p.m.

Regular session reconvened at 6:40 p.m.

Mayor Cram supported by Councilor Nylund moved to approve the amended "Memorandum of Understanding" with D. A. MacPherson, Inc. and authorize Manager Nordeman to sign said document.

Motion carried.

(A copy of this document is attached and made a part of the minutes of this meeting.)

Councilor Nylund supported by Councilor Benda moved to approve the "Memorandum of Understanding" with Crystal Falls Spring LLC and authorize Manager Nordeman to sign said document.

Motion carried.

(A copy of this document is attached and made a part of the minutes of this meeting.)

Gloria Frederickson extended a "Thank you" to Mickey Diqui and Dan Graff for their assistance during the variety show performance at the Crystal Theatre in which an electrical problem nearly stopped the show. She also thanked the Council for past support of the theatre and went on to explain the theatre board’s purchase of the adjoining Klima building which will allow for the installation of restrooms on the main floor of the building. She noted the building would be turned over to the City upon purchase at no cost to the city. Mrs. Frederickson went on to thank Kelly Stankewicz and Art Marinello for their assistance in the placement of flags on veteran’s gravesites for Memorial Day.

Marianne Cambray, representing the Iron County Community Hospital Board reported on her board’s decision to offer the Crystal Manor back to the City for $1.00. She noted however, the need for the Council to make a decision soon in order that the hospital board may proceed with plans should the City waive its option to buy it back. Attorney Lawrence suggested the Council discuss this matter in a closed session later in the meeting.

Councilor Hendrickson supported by Mayor Cram moved to approve the payrolls and disbursements in the amount of $342,666.53 for the month of July 2001, and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Mayor Cram supported by Councilor Nylund, moved to accept the following reports for the month of July 2001:

Police Chief’s report indicating 130 complaints, 10 of which were closed by arrest and 3,457 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 5 fire call; spending approximately 77 man-hours fighting fires; and holding no practice and training session.

Chief Electrician’s report of department activities.

Motion carried.

Mayor Cram read a letter of compliment on the condition of Runkle Lake Park.

Councilor Hendrickson supported by Councilor Lind moved to prepare a resolution of recognition to be presented to the Crystal Falls Fire Department for their outstanding efforts at the U. P. Fireman’s Tournament held in Iron River. Said resolution will be prepared by the Clerk and presented at the next regular meeting of the City Council.

Motion carried.

Councilor Lind read a letter complimenting the City on its website.

Manager Nordeman requested permission to advertise for a part time laborer to fill a vacancy created by the retirement of Art Marinello who assisted at the cemetery and in the public works departments when needed. Councilor Benda supported by Mayor Cram moved to advertise for a part time laborer.

Motion carried.

Mayor Cram supported by Councilor Benda moved to purchase a parcel of land from Alec Malkin located between Michigan Avenue and the railroad right-of-way near the Paint River. This purchase is pending the approval of the Michigan Department of Environmental Quality for the placement of a roadway over this parcel of land. The purchase price of the property is set at $6,000.00.

Motion carried.

Mayor Cram supported by Councilor Hendrickson, moved to adjourn the regular meeting of the Council to meet in executive session to discuss the ongoing litigation of C. Oberstar Excavating v. City of Crystal Falls and the possible purchase of real estate, namely the Crystal Manor.

Motion carried.

Meeting temporarily adjourned at 7:34 p.m.

Meeting reconvened at 8:28 p.m.

There being no further business to come before the Council, meeting adjourned at 8:29 p.m.