A special meeting of the Council for the City of Crystal Falls was held in the Council Chambers at the City Hall on Tuesday, August 26, 2008 at 5:00 pm Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, and Bicigo. (Councilor Valesano entered at 5:10 p.m.)

Absent: None

Also present were City Manager Nordeman, City Attorney Lawrence, and City Clerk/Treasurer Olson.

Visitors in attendance were: Tom Stachowicz, Mary Lahna, Tara Peltoma, Larry Bicigo, Mark Simeoni, Gerard Valesano, and Kelly Stankewicz.

The purpose of this special meeting was to discuss the following:

Lincoln Park Playground Resolution

Health Care Benefits

Purchase of a 2008 Loader

Set the wages of the City Clerk/Treasurer

City Manager Evaluation

Set the wages of the City Manager

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Mayor Hendrickson announced a change in the agenda for the meeting with the removal of item #5 (the City Manager Evaluation) and item #6 (the setting of the wages of the City Manager).

Mayor Hendrickson seconded by Councilor Heikkinen moved to adopt the following resolution:

RESOLUTION

WHEREAS, a group of citizens, calling themselves the Lincoln Park Playground Committee, has gathered together to pursue the raising of funds to be used toward the purchase of new playground equipment for the City owned Lincoln Park, and

WHEREAS, the Lincoln Park Playground Committee has begun fund raising through the sale of sport bottles, an application for a Crystal Falls Area Foundation Grant, and has plans for additional fund raising events in the near future, and

WHEREAS, the Council for the City of Crystal Falls recognizes the benefit of the addition of new and safe playground equipment for the children who visit the Lincoln Park and Paint River Walkway facility,

NOW THEREFORE BE IT RESOLVED, that the Crystal Falls City Council hereby acknowledges the formation of the Lincoln Park Playground Committee and sees it’s purpose as a worthy venture and fully supports it’s application for a Crystal Falls Area Foundation Grant, and further, the Council pledges: to release the current investment held by the City that is earmarked for playground equipment at the park; to provide any in-kind assistance that the City work crews have the ability to perform to see this idea become reality; and to maintain the equipment once it is in place to assure it’s safe use well into the future, and

FURTHER BE IT RESOLVED, that the Crystal Falls City Council fully supports the efforts of the Lincoln Park Playground Committee and commends them all for giving of their time and efforts to see this project through to fruition. The Lincoln Park Playground Committee is truly another shining example of the City’s slogan, "The City of Community Pride".

Discussion regarding the health care benefits for employees and retirees ensued.

Mayor Hendrickson seconded by Councilor Heikkinen moved to change the health care plan to implement a $2000/$4000 deductible for all eligible employees and retirees effective January 1, 2009.

Ayes: Mayor Hendrickson, Councilors Valesano and Heikkinen

Nays: None

Abstain: Councilors Smokevitch and Bicigo

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to set the City’s contribution to the Health Savings Accounts at 70%, effective January 1, 2009.

Ayes: Mayor Hendrickson, Councilors Valesano and Heikkinen

Nays: None

Abstain: Councilors Bicigo and Smokevitch

Motion carried.

Councilor Valesano seconded by Mayor Hendrickson moved to remove the $1,000 cap on the Health Savings Account (HSA) currently imposed on new hires Tara Peltoma and John Lortie. (The HSA contribution to these employees will now be the same as all other employees.)

Ayes: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, Valesano, and Bicigo. Nays: None

Motion carried.

Councilor Heikkinen seconded by Councilor Valesano moved to implement the $15/$50/50% Drug Card for all employees and retirees as soon as possible.

Ayes: Mayor Hendrickson, Councilors Heikkinen and Valesano.

Nays: None

Abstain: Councilors Smokevitch and Bicigo

Motion carried.

Mayor Hendrickson called for a 5 minute recess at 6:25 p.m.

Meeting reconvened at 6:33 p.m.

Manager Nordeman explained the proposal to buy a new 2008 Caterpillar 938H Wheel Loader on a four (4) year municipal lease payment plan. The plan calls for the trade in of a 2002 Caterpillar 938G Loader and a 1986 IH 510B. Two bids were received regarding this equipment: Fabco Cat of Marquette, MI = $73,750 with trade in; and Michigan Cat of Novi, MI = $102,500 with trade in.

Councilor Bicigo seconded by Councilor Valesano moved to accept the bid from Fabco Cat of Marquette, MI for the purchase of a 2008 938H Wheel Loader on a four year municipal lease payment plan at a cost of $20,086/year to the City.

Motion carried.

Councilor Bicigo seconded by Councilor Heikkinen moved to increase the wages of City Clerk/Treasurer, Dorothea Olson, by 3.5% and to grant the same health care benefits as the rest of the City employees for the upcoming fiscal year 2008-2009.

Motion carried.

Councilor Heikkinen seconded by Councilor Smokevitch moved to adjourn the meeting.

Motion carried.

Meeting adjourned at 6:45 p.m.