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 14, 2006, at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Stachowicz, and Valesano.

Absent: None

Also Present: City Manager Nordeman, City Attorney Lawrence, and City Clerk/Treasurer Olson.

Visitors in attendance included: Michael Koszyk, Jeff Sjoquist, Scott McNeilis, Kelly Stankewicz, Tom Stachowicz, Cemone & David Anderson, Walter and Gerry Trezciak, Marilyn and John Moon, Mark Simeoni, Lynn Perry, Peter Nocerini, David Graff, Gerard Valesano, Mike Smokevitch, Eric Peterson, and Larry Bicigo.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Councilor Stachowicz seconded by Councilor Thrasher moved that the minutes of the regular meeting of July 10, 2006 and the special meetings of July 17, July 24, July 26, July 31, and August 9, 2006 be approved as written. Motion carried.

Mayor Hendrickson temporarily adjourned the regular meeting to conduct a public hearing of the Zoning Board of Appeals to hear a variance request of David and Cemone Anderson of 605 Adams Street.

Meeting temporarily adjourned at 5:05 p.m.

Meeting reconvened at 5:30 p.m.

Councilor Thrasher seconded by Councilor Heikkinen moved to postpone action on the zoning variance request of Cemone and David Anderson of 605 Adams Street pending the receipt of a legal opinion from Attorney Lawrence regarding the necessity of a variance as the Andersons are proposing the placement of a shed on a lot that is, although adjacent to, separate from that of their home.

Ayes: Mayor Hendrickson, Councilors Thrasher and Heikkinen.

Nays: Councilors Valesano and Stachowicz.

Motion carried.

Mayor Hendrickson read her "State of the City" address to the Council and visitors. (A copy of this document is on file in the Clerk’s office but not included in these minutes.)

Councilor Thrasher seconded by Councilor Valesano moved to approve the payment of $57.80 to MaryAnn Harrington for DDA clerical services.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen to support the DDA allowing them to look into the "Cool City" designation of the City of Crystal Falls.

Motion carried.

Mayor Hendrickson seconded by Councilor Thrasher moved to adopt the 2006 – 2007 fiscal budget as presented by the City Manager and amended to the amount of $4,861,530, with any wage adjustments for employees to be considered by the City Council pending completion and review of employee performance evaluations, and further, to adopt appropriation and tax levy resolutions in conjunction with said budget.

Ayes: Mayor Hendrickson, Councilors Valesano, Heikkinen, and Thrasher. Nays: Councilor Stachowicz.

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to adopt the following 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 amended; and

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

WHEREAS, pursuant to said budget it is necessary that THREE HUNDRED FIFTY FIVE THOUSAND DOLLARS ($355,000) for General Operation be raised by taxation; and

WHEREAS, the Taxable Valuation for the City of Crystal Falls is TWENTY MILLION THREE HUNDRED THIRTY THREE THOUSAND FIVE HUNDRED FIFTY THREE DOLLARS ($20,333,553); now, therefore,

BE IT RESOLVED that the City of Crystal Falls levy 17.50 mills to be assessed against all real and personal property located in the City of the aforesaid municipal purposes.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano and Stachowicz. Nays: None

Resolution adopted.

Councilor Thrasher seconded by Mayor Hendrickson moved to adopt the following:

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

WHEREAS, pursuant to said budget is necessary that FOUR MILLION EIGHT HUNDRED SIXTY ONE THOUSAND, FIVE HUNDRED THIRTY DOLLARS ($4,861,530) has been determined to be necessary to defray the expenditures and liabilities of the City of Crystal Falls for the fiscal year of 2006 - 2007, the following sums shall be and hereby are appropriated:

General ---------------------------------------$1,845,030.00

Major Street-----------------------------------$ 165,000.00

Local Street Fund------------------------------$ 55,000.00

Industrial Park Fund---------------------------$ 21,000.00

Television-------------------------------------$ 221,500.00

Electric---------------------------------------$1,870,000.00

Sewer------------------------------------------$ 350,000.00

Water------------------------------------------$ 327,000.00

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

Electric Reserve & Contingency-----------------$ 3,000.00

Perpetual Care Fund----------------------------$ 3,500.00

                                             _____________

                                             $4,861,530.00

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz. Nays: None.

Resolution Adopted.

Jeff Sjoquist of Coleman Engineering reviewed the Operating Budget for the water project with the Council.

Councilor Thrasher seconded by Councilor Heikkinen moved to approve the Operating Budget for the Water project in the amount of $400,585.00 and authorized Mayor Hendrickson to sign it.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to accept the water agreement with Crystal Falls Township as presented and further, to approve the submittal of the document to Rural Development for review.

Motion carried.

Councilor Valesano seconded by Councilor Stachowicz moved to accept the bid of $10,750.00 from Bietala Engineering for the installation of a radiant heat system in the Public Works garage and to release the 50% down payment for said system with the balance to be paid after October 1, 2006.

Motion carried.

Manager Nordeman reported he is looking at alternatives to the premium channel, HBO, currently offered on the City’s cable system and will report to the Council on this matter at the September Council meeting.

Mayor Hendrickson requested an update from the Chief of Police regarding the Blight Ordinance violations in the City.

Councilor Thrasher expressed concern regarding a reduced rate charged to golfers during a recent Men’s Club tournament.

Councilor Thrasher seconded by Councilor Valesano moved to approve an amended agreement with the Iron County Road Commission regarding the Urban Avenue and Roberts Street right of ways.

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to advertise and sell three (3) used computer units with a minimum bid price of $100.00 on each unit.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve changes to the Council Rules, effective immediately, as follows:

Section 1: Regular and special meetings.

Regular Meetings. Regular meetings of the city council will be held on the second (2^nd) Monday of each month beginning at 5:00 p.m. at the City Hall in the Council Room. It is suggested that regular meetings of the city council conclude no later than 7:00 p.m., however, meetings may continue until all items on the agenda are considered regardless of the time.

Special Meetings. A special meeting Special Meetings.

A special meeting shall be called by the clerk upon the request of the Mayor or any two members of the Council. A written notice to each member of the Council shall be served personally or left at the council member’s usual place of residence as soon as possible in advance of the meeting. When special meetings are called less than 24 hours in advance of said meeting, the Clerk will attempt to contact all Councilors by phone to inform them of the meeting in lieu of a written notice. Special meeting notices shall state the purpose of the meeting. Official action shall not be transacted at any special meeting of the council unless the item has been stated in the notice of the meeting or added to the meeting agenda by an affirmative vote of all the members of the council. (If any member is absent – nothing can be added to the agenda of a special meeting.)

Motion carried.

Councilor Valesano seconded by Mayor Hendrickson moved to pick up brush and leaves again this fall as has been done in the past, however, brush/tree branches must be separated from yard rakings. Motion carried.

(This issue will be revisited prior to the spring clean up as it is now difficult for the City to dispose of this debris.)

Mayor Hendrickson seconded by Councilor Thrasher moved to authorize Manager Nordeman to advertise for a golf course clubhouse attendant with a starting wage of $6.25/hour.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to appoint Manager Nordeman as the City’s official representative at the annual Michigan Municipal League meeting set to be held in Marquette on September 28, 2006.

Motion carried.

Manager Nordeman was directed to advertise for an assessor for the City of Crystal Falls.

Councilor Stachowicz seconded by Councilor Heikkinen moved to proceed with a new MML wage study for an amount not to exceed $2,600.00.

Motion carried.

Councilor Stachowicz seconded by Councilor Valesano moved to begin advertising for a full time public works employee.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Valesano, and Stachowicz. Nays: Councilor Thrasher.

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to authorize Attorney Lawrence to proceed with imminent domain proceedings to acquire the land occupied by the City’s cable TV equipment building, dishes, and tower.

Motion carried.

Councilor Valesano seconded by Councilor Thrasher moved to approve expenses for Attorney Lawrence to attend the annual MML meeting in Marquette in September.

Motion carried.

Mayor Hendrickson seconded by Councilor Valesano moved that the payrolls and disbursements in the amount of $612,173.51 for the month of July 2006 be approved, and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to accept the following reports for the month of July 2006:

Police Chief’s report indicating 265 complaints, 25 of which were closed by arrest and 2,542 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 1 fire call; spending approximately 34 man-hours fighting fires; and holding 1 practice and training session.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department activities.

City Treasurer’s report on the monthly revenues.

Motion carried.

Councilor Heikkinen seconded by Councilor Thrasher moved to adjourn this meeting of the City Council.

Motion carried.

Meeting adjourned at 7:45 p.m.