A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, December 8, 2008 at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Hagglund, Burke, Bicigo, and Smokevitch.

Absent: None

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

Visitors: Jeff Sjoquist, Lynn Perry, Larry Bicigo, Larry Hogenson, Tara Peltoma, David Graff, and Mark Simeoni.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Mayor Hendrickson seconded by Councilor Bicigo moved that the items on the Consent Agenda be approved as presented with the exception of the Electric department and Treasurer’s reports.

Motion carried.

Larry Hogenson, U. P. Engineers, updated the Council regarding the Façade Grant.

Councilor Hagglund seconded by Councilor Burke moved to approve the CDBG Grant Payment Requests dated 11/26/08 ($21,650.00) and 12/08/08 ($32,937.00) for the Façade Project.

Motion carried.

Manager Nordeman and Mayor Hendrickson updated the Council on the issues discussed at the DDA meeting held earlier in the afternoon.

Mayor Hendrickson seconded by Councilor Burke moved to approve the invoice for DDA Secretarial Services and postage for Mary Ann Harrington in the amount of $68.40. Motion carried.

At 6:16 pm Mayor Hendrickson temporarily adjourned the regular meeting to conduct a Public Hearing regarding the amendment to the CDBG application with MSHDA and the supporting documents for the Crystal Manor renovation project.

PUBLIC HEARING:

Manager Nordeman explained the amendment to the MSHDA application that will allow for an additional grant allocation of $400,000 to be used for the renovation of the former Crystal Manor building. This grant will remove the need to sell Tax Credits for the project.

Public Comments: None

Council Comments: Mayor Hendrickson noted that she was pleased that this grant will allow the project to proceed. Councilor Bicigo noted that the City will be the recipient of the grant.

PUBLIC HEARING CLOSED AT 6:20 PM

Meeting reconvened.

Councilor Hagglund seconded by Mayor Hendrickson moved to approve the following resolution:

WHEREAS, The City of Crystal Falls has previously been awarded a Façade Grant (200717 – CAT) from the Michigan State Housing Development Authority for renovations to be made to the Crystal Manor Building located at 400 Crystal Ave, Crystal Falls, MI. 49920, and

WHEREAS, The City of Crystal Falls has previously entered into an agreement with the Hovey Companies to redevelop the Crystal Manor Building into an affordable Housing Project with assistance from the Michigan State Housing Development Authority, and

WHEREAS, It has been determined in consultation between the City of Crystal Falls, the Hovey Companies, and the Michigan State Housing Development Authority that additional grant funding is needed to supplement the redevelopment package in the amount of $400,000, and

WHEREAS, the additional grant request is in addition to the previously approved sum of $133,780 for a total grant commitment/request of $533,780, now

THEREFORE, the Council for the City of Crystal Falls did hereby authorize this request for additional project funding.

Ayes: Mayor Hendrickson, Councilors Bicigo, Hagglund, Burke, and Smokevitch

Nays: None

At 6:25 p.m. Mayor Hendrickson temporarily adjourned the regular meeting to conduct the scheduled Public Hearing for the close out of the Water Meter Project.

PUBLIC HEARING:

Jeff Sjoquist of Coleman Engineering explained the need for this hearing regarding the CDBG Water Meter Project Grant. He reviewed the highlights of the project including that the City was the recipient of a grant in the amount of $510,000 to purchase and install water meters in the homes and business’s in the City of Crystal Falls. He noted that the work was performed by Berger & King, Inc. of Escanaba, MI, (the low bidder on the project). Sjoquist also noted that the grant paid for the installation of transceiver units for radio reading, two radio transceiver units to collect those meter readings, and a water meter test bench. The construction items were completed by November 30, 2008 as per the grant agreement terms.

PUBLIC COMMENTS: NONE

COUNCIL COMMENTS: Mayor Hendrickson expressed how fortunate the residents were to have received this grant to put the water meters in. Without it, the individual home owners would have been asked to pay for the meters themselves.

PUBLIC HEARING CLOSED AT 6:30 PM

Meeting reconvened.
Councilor Hagglund seconded by Councilor Burke moved to close out the water meter project.

Motion carried.

Jeff Sjoquist of Coleman Engineering presented final invoices for the water project.

Councilor Bicigo seconded by Councilor Burke moved to approve the following resolution:

A Resolution of the City of Crystal Falls to approve final payments for their water transmission system project

WHEREAS, the final application for payment to the Michigan Department of Transportation is $58,556.15; and

WHEREAS, the final application for payment to Coleman Engineering Company, Inc is $9,232.75; and

WHEREAS, the total remaining amount available from Rural Development loan funding is $49,699.49; and

WHEREAS, the City will need to deposit $18,089.41 of City funds into the Construction Account to make final payments; and

WHEREAS, these payments will complete payments for the entire project;

NOW, THEREFORE, BE IT RESOLVED, THAT THE COUNCIL OF THE CITY OF CRYSTAL FALLS, IRON COUNTY, STATE OF MICHIGAN

1. Authorizes final payment in the amount of $58,556.15 for Michigan Department of Transportation work.
2. Authorizes final payment in the amount of $9,232.75 for Coleman Engineering Co, Inc. work.

Ayes: Mayor Hendrickson, Councilors Burke, Smokevitch, and Bicigo. Nays: None Abstain: Councilor Hagglund Resolution adopted.

Councilor Bicigo seconded by Councilor Hagglund moved to approve the Estimate of Funds needed from Rural Development for the 2008 Patrol Vehicle Grant in the amount of $6,528.49.

Motion carried.

Manager Nordeman presented his proposal for a 5 Step Wage Scale for the non-union employees. This item will be further discussed at the January 2009 meeting.

Councilor Bicigo seconded by Councilor Smokevitch moved to adopt the following:

WHEREAS the Crystal Falls City Council has determined that a true and very real need exists for the acquisition of the Equipment described in the Lease Agreement and Lease Supplement with 1st Source Bank presented to this meeting; and

 WHEREAS, the Crystal Falls City Council has taken the necessary steps, including any legal bidding requirements, under applicable law to arrange for the acquisition of such Equipment.

BE IT RESOLVED, by the Crystal Falls City Council that the terms of said Lease Agreement are in the best interests of the City of Crystal Falls for the acquisition of such Equipment, and the Crystal Falls City Council designates and confirms the following persons to execute and deliver, and to witness (or attest), respectively, the Lease Agreement and any related documents necessary to the consummation of the transactions contemplated by the Lease Agreement.

FURTHERMORE BE IT RESOLVED, that the Crystal Falls City Council hereby represents that the reasonably anticipated amount of qualified tax-exempt obligations which have been and will be issued by the Lessee does not exceed $10,000,000.00 for the calendar year within which this Lease Agreement is to be "qualified tax-exempt obligation" pursuant to Section 265 (b) (3) of the Internal Revenue Code.

Mayor Hendrickson seconded by Councilor Hagglund moved to authorize Manager Nordeman to seek an actuarial evaluation regarding the retirement of Axel Anderson under an "early out" with the stipulations of 50 years of age and 30 years of service.

Motion carried.

Councilor Burke seconded by Councilor Bicigo moved to pay $125.00 for the renewal of Assessment Administration Certification for City Assessor Patti A. Roell.

Motion carried.

Councilor Burke seconded by Mayor Hendrickson moved to enter into an agreement with Aramark Uniform Services for Flame Resistant uniforms for the electric department employees.

Motion carried.

Discussion regarding the need for a different method of thawing water lines led to directing Manager Nordeman to compile information and cost for the purchase of new equipment for the next meeting.

Mayor Hendrickson set the date of January 12, 2009 for a public hearing at 5:00 PM to take public comments regarding the proposed land swap of lot #83 of the Glendale Addition (currently owned by Larry Bicigo) for lot #81 of the Glendale Addition (currently owned by the City). Clerk Olson was directed to publish & post the notice of the public hearing.

Councilor Bicigo seconded by Councilor Smokevitch moved to adopt the following resolution:

WHEREAS the City of Crystal Falls has regularly provided the Michigan Department of Transportation with traffic signal energy in order to power specific traffic signal devices within the City limits.

WHEREAS the City of Crystal Falls desires to continue to provide traffic signal energy to the Michigan Dept. of Transportation

BE IT RESOLVED that the City of Crystal Falls does hereby elect to provide traffic signal energy to the Michigan Department of Transportation. As such, this energy is to be charged to the Michigan Department of Transportation at the appropriate rate set for all other commercial enterprises on a continuous basis. Said rate subject to change dependent upon City Council action as deemed necessary.

Ayes: Mayor Hendrickson, Councilor Burke, Smokevitch, Hagglund, and Bicigo.

Nays: None

Discussion regarding the waiver of water surcharges, much the same as the waiver for sewer surcharges already in place, led to the recommendation of Manager Nordeman that we not waive either of the surcharges as that revenue is needed to meet the debt of the water and sewer loans from Rural Development.

Mayor Hendrickson seconded by Councilor Hagglund moved to reinstate the application of sewer surcharges to all equivalent dwelling units (EDU) in the City of Crystal Falls effective immediately.

Motion carried

Councilor Smokevitch seconded by Councilor Hagglund moved to set the ski hill rates for the 2008-2009 season as: Season Pass = $30.00 Daily = $5.00

Motion carried.

Mayor Hendrickson seconded by Councilor Burke moved to authorize Manager Nordeman to respond to the Michigan Municipal Electric Association (MMEA) regarding P.A. 295 compliance pending further investigation.

Motion carried.

Councilor Bicigo seconded by Mayor Hendrickson moved to approve the appointments of Charles Sandstrom and Pat Milliron (terms expire 12/31/2011), and Paul Dalpra (term expires 12/31/2010), and Jim Burke (as the City Liaison) to theatre board.

Motion carried.

Meeting adjourned at 8:10 p.m.