A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Wednesday, August 30, 2006 at 5:30 p.m. Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Valesano, and Thrasher

Absent: Councilor Stachowicz.

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

Visitors in attendance included: Frank Groeneveld, Steve Gagne, Julie Melchiori, Mike Smokevitch, Larry Bicigo, and Lynn Perry.

The purpose of this special meeting was to consider the following items:

WE Energies discussion of inclusion with WPPI to protest Formula Rate Proposal.

Discuss recent water project survey.

Crystal Manor matters.

Discuss request by I.C.H.C. to pass tax rebate (P.I.L.O.T.) ordinance.

Police car bids (Ford Explorer).

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

The Council reviewed a memo from Merle LeBakken regarding his recommendation concerning the WE Energies Formula Rate.

Councilor Valesano seconded by Mayor Hendrickson moved that the City join Wisconsin Public Power Inc (WPPI) in intervening in the WE Energies wholesale rate case filed with the Federal Energy Regulatory Commission.

Motion carried.

Manager Nordeman reported on the results of an income survey of the residents of Crystal Falls that was conducted to establish the proof of a median income that will qualify the City for CDBG assistance. He reported that the results indicated that 58.66% of our residents are considered low income.

Information regarding the Crystal Manor was not received as anticipated and this agenda item was not discussed as planned.

Steve Gagne presented a request regarding tax abatements for the proposed Maple Manor project at the former hospital site.

Councilor Thrasher seconded by Councilor Valesano moved to direct Attorney Lawrence to draft a letter regarding the City’s intent to initiate the process of enacting an ordinance to allow for a 4% tax abatement or annual service charge in lieu of taxes for the Maple Manor project. Said ordinance will be introduced at the October 2006 City Council meeting pending funding of the Maple Manor project.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to adjust the minimum bid on the 1999 Ford Explorer patrol vehicle to $2,500.00, with said bids to be considered at the October 2006 regular meeting of the City Council.

Motion carried.

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

Motion carried.

Meeting was adjourned at 6:34 p.m.