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 11, 2008 at 5:30 P.M. Central Time. (Delayed start due to overrun of Annual Budget Hearing)

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Valesano, Bicigo, and Smokevitch.

Absent: None

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

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Mayor Hendrickson requested that the Payrolls and Disbursements and the Electric Department Report be removed from the Consent Agenda for further discussion.

Councilor Heikkinen requested that the Police Report be removed from the Consent Agenda for further discussion.

Councilor Valesano seconded by Councilor Bicigo moved that the remaining items on the Consent Agenda be approved as noted below:

The minutes of the meetings of July 14, 2008 as written.

The following reports for the month of July 2008:

A. Joint Fire Authority report, as submitted by Fire Chief Ahola, indicating answering two (2) fire calls; spending approximately 24 man-hours fighting fires; and holding one (1) practice and training sessions.

B. Public Works Department activity report as submitted by Foreman Kelly Stankewicz.

C. Treasurer’s Revenue Report as submitted by Clerk/Treasurer Dorothea Olson.

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

Mayor Hendrickson led discussions regarding the Electric Department Report and the Payrolls and Disbursements. Councilor Heikkinen asked about the hiring of a part time police officer.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the following reports:

Electric Dept report, as submitted by Chief Electrician David Graff.

Payrolls and Disbursements in the amount of $341,289.33 and instruct the City Clerk/Treasurer to draw checks on the City Treasury in payment of same.

Police report, as submitted by Police Chief Sherwin, indicating 218 complaints, of which 4 were closed by arrest, and logging of 2,420 miles on patrol duty.

Motion carried.

Mayor Hendrickson amended the agenda to include the Fire Authority Budget for F/Y 2009 to be the 1^st item discussed under "New Business"

Attorney Ron Basso gave the Council an update on the status of the Crystal Manor Redevelopment Project indicating that the developer is now expecting a loan closing with MSHDA in September.

Angelo Diqui of 416 Johanson Road approached the Council with a request to repair Johanson Road and replace the water line that services the 10 homes along that road. Manager Nordeman advised the Council that once the audit is completed he will have a better idea when a project such as this one could be done.

Gail Schneider addressed the Council regarding a cemetery issue. Mayor Hendrickson updated the Council regarding the Downtown Development Authority meeting held earlier in the day.

There were no pay requests for the water project.

Mayor Hendrickson seconded by Councilor Heikkinen moved to adopt the 2008-2009 Fiscal Year Budget as presented by the City Manager, in the amount of $5,298,360.00 including a cost of living wage increase for the full time City Employees, exclusive of the City Manager, City Clerk/Treasurer, and the IBEW employees, in the amount of 3.5%, (with all other merit and wage adjustments to be considered by the City Council pending completion and review of employee performance evaluations), and further, to adopt the Appropriation and Tax Levy Resolutions in conjunction with said budget.

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

Motion carried.

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

WHEREAS, pursuant to said budget is necessary that FIVE MILLION TWO HUNDRED NINETY EIGHT THOUSAND, THREE HUNDRED SIXTY DOLLARS ($5,298,360) has been determined to be necessary to defray the expenditures and liabilities of the City of Crystal Falls for the fiscal year of 2008 - 2009, the following sums shall be and hereby are appropriated:

General ---------------------------------------$1,619,960.00

Major Street-----------------------------------$ 192,000.00

Local Street Fund------------------------------$ 66,000.00

Tax Increment Financing Fund-------------------$ 5,000.00

Industrial Park Fund---------------------------$ 10,000.00

Television-------------------------------------$ 228,000.00

Golf-------------------------------------------$ 119,100.00

Electric---------------------------------------$2,176,000.00

Sewer------------------------------------------$ 352,000.00

Water------------------------------------------$ 472,000.00

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

Electric Reserve & Contingency-----------------$  54,000.00

Perpetual Care Fund----------------------------$   3,800.00

                                               $5,298,360.00

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 2008- 2009 fiscal year budget.

 END OF 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; and

WHEREAS, pursuant to said budget it is necessary that FOUR HUNDRED THIRTY FIVE THOUSAND TWO HUNDRED DOLLARS ($435,200) for General Operation be raised by taxation; and

WHEREAS, the Taxable Valuation for the City of Crystal Falls is TWENTY ONE MILLION SEVEN HUNDRED SIXTY ONE THOUSAND NINE HUNDRED SIXTY SEVEN DOLLARS ($21,761,967); now, therefore,

BE IT RESOLVED that the City of Crystal Falls levy 19.0863 mills to be assessed against all real and personal property located in the City of the aforesaid municipal purposes. END OF RESOLUTION

Councilor Valesano seconded by Mayor Hendrickson moved to approve a change in the drug card for the retirees enrolled in group 18236/900 to the $15/$50/50% plan effective as soon as possible.

Ayes: Mayor Hendrickson, Councilors Valesano and Smokevitch

Nays: Councilor Heikkinen

Abstain: Councilor Bicigo

Absent: None

Motion carried.

Mayor Hendrickson seconded by Councilor Bicigo moved to approve the wage step increases for Tim Bean (to Step 7/$20.30 hour) and for Tara Peltoma (to Step 3/$16.25 hour) effective October 1, 2008.

Motion carried.

Councilor Heikkinen seconded by Councilor Valesano moved to authorize the payment of $50.00 to Crystal Falls Rental Inc.(Gary Lato) for repairs to the snowmobile trail on City lands leading into the Industrial Park.

Motion carried.

Mayor Hendrickson presented the 2009 Fire Authority Budget. Manager Nordeman cautioned the Council on the growing expenditure of funding the fire protection.

Councilor Valesano seconded by Councilor Bicigo moved to approve the 2009 Fire Authority Budget in the amount of $292,615.00.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to adopt the following resolution:

RESOLUTION

WHEREAS, the Council for the City of Crystal Falls is desirous of seeing the proposed MDOT enhancement of the West U.S. 2 corridor with a non-motorized trail, and

WHEREAS, this Council has previously committed to match money in the amount of $5,000.00 to be used toward decorative lighting, and

WHEREAS, this Council understands that the plans have been altered to eliminate the proposed decorative lighting and yet continues to pledge the amount of $5,000.00 toward the non-motorized trail, and

WHEREAS, this Council also agrees to assume full maintenance responsibilities for that portion of the non-motorized path that will exist within the City of Crystal Falls, including snow plowing and sanding during the winter months and sweeping, raking, lawn care and other need maintenance activities during the spring, summer, and fall months, and

WHEREAS, this Council further commits to the long term maintenance including sealing, patching, minor repairs and other such maintenance as needed during the life of the pathway,

NOW THEREFORE BE IT RESOLVED, that the City of Crystal Falls is looks forward to this much needed improvement to the community, this paved pathway that will serve to link the City to the Township of Crystal Falls and other municipalities throughout Iron County.

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

Mayor Hendrickson seconded by Councilor Heikkinen moved to authorize the auditor to adjust the budget to the actual expenditures for fiscal year 2007 – 2008.

Motion carried.

Councilor Valesano seconded by Councilor Bicigo moved to approve the "Estimate of Funds Needed" for the Police Patrol Vehicle Grant in the amount of $26,934.51.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to authorize Manager Nordeman to investigate an affiliation with Wisconsin Public Power, Inc. (WPPI) as a resource for future purchases of electric energy.

Motion carried.

Mayor Hendrickson set the date of Tuesday, August 26, 2008 at 5:00 p.m. as that of a special meeting at which the Council will:

Conduct an evaluation of the City Manager

Set wages of City Manager for F/Y 2008-2009

Set wages of City Clerk/Treasurer for F/Y 2008 – 2009

Determine the Health Care Benefit package changes

Councilor Heikkinen seconded by Councilor Valesano moved to adjourn this meeting.

Motion carried.

Meeting adjourned at 7:27 p.m.