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 10, 2007, at 5:00 P.M. Central Time.

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

Absent: Councilor Valesano

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

Visitors in attendance were: Ron Basso, Julie Melchiori, Mark Simeoni, Donna Nelson, Jeff Sjoquist, Gerry Boehmke, Lynn Perry, Valarie Novak, Larry Bicigo, Tim Bean, and Jon Bendick.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Mayor Hendrickson allowed Donna Nelson, Harbour House Museum Secretary, to address the Council. Ms. Nelson introduced Gerry Boehmke and Valarie Novak as new members of the Harbour House Board.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve payment of an invoice from MaryAnn Harrington for secretarial services and postage for the DDA in the amount of $106.40.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to execute the following lease agreement:

NET LEASE OF PREMISES: Comprehensive lease of premises

LEASE AGREEMENT

This lease agreement was entered into on November 16, 2007, between of the City of Crystal Falls, Michigan, referred to as "lessor," and Crystal View LDHALLC, a jointly organized under the laws of the State of Michigan, having its principal place of business at 124 E Washington Street, Suite C, Dewitt, Michigan 48820, referred to as "lessee."

SECTION ONE
DESCRIPTION OF PREMISES

Lessor leases to lessee the premises located at 400 Superior Street, Crystal Falls, Michigan 49920 otherwise know as the Crystal Manor.

SECTION TWO
TERM

The term of this lease agreement is 180 days, beginning on November 16, 2007, and terminates on May 16, 2008 at 1200 hours. Term is renewable with 5 day notice.

SECTION THREE
RENT

The total rent under this lease agreement is $10.00.

Lessee shall pay lessor the above-specified amount in full at the time of agreement execution.

SECTION FOUR
USE OF PREMISES

The demised premises are to be used for the purposes of site development activity.

SECTION FIVE
RESTRICTIONS ON USE

Lessee shall not use the demised premises in any manner that will increase risks covered by insurance on the demised premises and result in an increase in the rate of insurance or a cancellation of any insurance policy, even if such use may be in furtherance of lessee’s purposes.

Lessee shall not keep, use, or sell anything prohibited by any policy of fire insurance covering the demised premises, and shall comply with all requirements of the insurers applicable to the demised premises necessary to keep in force the fire and liability insurance.

SECTION SIX
WASTE, NUISANCE, OR UNLAWFUL ACTIVITY

Lessee shall not allow any waste or nuisance on the demised premises, or use or allow the demised premises to be used for any unlawful purpose.

SECTION SEVEN
DELAY IN DELIVERING POSSESSION

This lease agreement shall not be rendered void or voidable by the inability of lessor to deliver possession to lessee on the date set forth in Section Two. Lessor shall not be liable to lessee for any loss or damage suffered by reason of such a delay; provided, however, that lessor does deliver possession no later than November 16, 2007. In the event of a delay in delivering possession, the rent for the period of such delay will be deducted from the total rent due under this lease agreement. No extension of this lease agreement shall result from a delay in delivering possession.

SECTION EIGHT
ENTRY ON PREMISES BY LESSOR

Lessor reserves the right to enter on the demised premises at reasonable times to inspect them, perform required maintenance and repairs

SECTION NINE
NONLIABILITY OF LESSOR FOR DAMAGES

Lessor shall not be liable for liability or damage claims for injury to persons or property from any cause relating to the occupancy of the demised premises by lessee, including those arising out of damages or losses occurring on sidewalks and other areas adjacent to the demised premises during the term of this lease agreement or any extension of such term. Lessee shall indemnify lessor from any and all liability, loss, or other damage claims or obligations resulting from any injuries or losses of this nature.

SECTION TEN
ASSIGNMENT, SUBLEASE, OR LICENSE

Lessee shall not assign or sublease the demised premises, or any right or privilege connected with the demised premises, or allow any other person except agents and employees of lessee to occupy the demised premises or any part of the demised premises without first obtaining the written consent of lessor. A consent by lessor shall not be a consent to a subsequent assignment, sublease, or occupation by other persons.

The interest of lessee in this lease agreement is not assignable by operation of law without the written consent of lessor.

CONDEMNATION

Eminent domain proceedings resulting in the condemnation of a part of the demised premises, but leaving the remaining premises usable by lessee for the purposes of its business, will not terminate this lease agreement unless lessor, at its option, terminates this lease agreement by giving written notice of termination to lessee. The effect of any condemnation, where the option to terminate is not exercised, will be to terminate this lease agreement as to the portion of the demised premises condemned, and the lease of the remainder of the demised premises shall remain intact. The rental for the remainder of the lease term shall be reduced by the amount that the usefulness of the demised premises has been reduced for the business purposes of lessee. Lessee assigns and transfers to lessor any claim it may have to compensation for damages as a result of any condemnation.

SECTION ELEVEN
OPTION TO RENEW

Lessor grants to lessee an option to renew this lease agreement for 30 days after expiration of the term of this lease agreement or another term equal to the term of this lease agreement at a rental of $10.00 per month, with all other terms and conditions of the renewal lease to be the same as those in this lease agreement. To exercise this option to renew, lessee must give lessor written notice of intention to do so at least 5 days before this lease agreement expires. Lessor shall provide reasonable notice of expiration of lease.

SECTION TWELVE
WAIVERS

Waiver by lessor of any breach of any covenant or duty of lessee under this lease is not a waiver of a breach of any other covenant or duty of lessee, or of any subsequent breach of the same covenant or duty.

SECTION THIRTEEN
GOVERNING LAW

It is agreed that this lease agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Michigan.

SECTION FOURTEEN
ENTIRE AGREEMENT

This lease agreement shall constitute the entire agreement between the parties. Any prior understanding or representation of any kind preceding the date of this lease agreement shall not be binding upon either party except to the extent incorporated in this lease agreement.

SECTION FIFTEEN
MODIFICATION OF AGREEMENT

Any modification of this lease agreement or additional obligation assumed by either party in connection with this agreement shall be binding only if evidenced in a writing signed by each party or an authorized representative of each party.

SECTION SIXTEEN
NOTICES

All notices, demands, or other writings that this lease agreement requires to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States mail, registered and postage prepaid, and addressed as follows:

To lessor: City of Crystal Falls, Michigan

To lessee: Crystal View LDHALLC, 124 E Washington St, Suite C, Dewitt, Michigan

The address to which any notice, demand, or other writing may be given or made or sent to any party as above provided may be changed by written notice given by such party as above provided.

SECTION SEVENTEEN
BINDING EFFECT

This lease agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties.

SECTION EIGHTEEN
TIME OF THE ESSENCE

It is specifically declared and agreed that time is of the essence of this lease agreement.

SECTION NINETEEN
PARAGRAPH HEADINGS

The titles to the paragraphs of this lease agreement are solely for the convenience of the parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this lease agreement.

In witness, each party to this lease agreement has caused it to be executed at respective offices.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to meet in closed session pursuant to P.A. 1976, No. 267, 15.268(d) to consider the purchase of real property.

Meeting temporarily adjourned at 5:07 p.m.

Meeting reconvened at 5:45 p.m.

Councilor Heikkinen seconded by Councilor Smokevitch moved that the items on the Consent Agenda be approved as noted below:

The minutes of the meetings of November 12, 2007 and November 28 2007 as written.

The following reports for the month of November 2007:
A. Police report, as submitted by Police Chief Sherwin, indicating 207 complaints, of which 3 were closed by arrest, and logging of 2,268 miles on patrol duty.

B. Joint Fire Authority report, as submitted by Fire Chief Ahola, indicating answering two (2) fire calls; spending approximately 43 man-hours fighting fires; and holding one (1) practice and training session.

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

D. Public Works Dept report as submitted by Foreman Kelly Stankewicz.

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

Payrolls and Disbursements in the amount of $313,984.75 and instruct the City Clerk/Treasurer to draw checks on the City Treasury in payment of same.

The annual contribution to UPSET in the amount of $1,791.00

The annual Christmas programming on WIKB Radio in the amount of $100.00

Ayes: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, and Bicigo. Nays: none Absent: Councilor Valesano
Motion carried.
Jeff Sjoquist announced that the City is now receiving Township water and everything appears to be working well.

Mayor Hendrickson seconded by Councilor Bicigo moved to approve payment of Invoice #807798 to Berger and King, Inc. for the water meter project in the amount of $96,009.50 with said payment to be made with CDBG funds.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the payment package for Estimate of Funds needed in the amount of $191,991.96 for the water construction project.

Motion carried.

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

The City of Crystal Falls
Iron County, Michigan 

Resolution to make Final Payment to Bacco Construction Company for Construction of the City of Crystal Falls Water Transmission System Project

A RESOLUTION OF THE CITY OF CRYSTAL FALLS TO APPROVE FINAL PAYMENT OF THEIR WATER TRANSMISSION SYSTEM PROJECT TO BACCO CONSTRUCTION COMPANY OF IRON MOUNTAIN, MICHIGAN 

WHEREAS, the final Application for Payment (no. 7) from Bacco Construction Company is $67,321.83; and

WHEREAS, the total amount invoiced to date for construction is $1,346,436.45; and

WHEREAS, the total amount paid to date for construction is $1,279,114.62; and

WHEREAS, the date of Substantial Completion for the project is October 15, 2007; and

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

Authorized final payment to Bacco Construction Company of Iron Mountain, Michigan in the amount of $67,321.83 establishing a total contract cost of $1,346,436.45 for construction of the "City of Crystal Falls – Water Transmission System Project".

Concurs with October 15, 2007 as being the date of Substantial Completion.

Adopted this 10^th Day of December, 2007

No bids were received on the snow blower attachment and it was the consensus of the Council to continue the posting on EBAY.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve an electric rate increase, effective on the billing mailed in December 2007, as follows:

Residential: Increase minimum charge to $9.00/month

Motion carried.

Regarding the consideration of selling a portion of the land purchased for the CATV site, Mayor Hendrickson directed that this issue be reviewed by the Crystal Falls Planning Commission prior to further consideration by the City Council.

Attorney Lawrence reported that the review of the ordinance regarding the open storage of disabled automobiles is still ongoing and he will report back at a future meeting.

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

WHEREAS, the 2007 Forest Park Trojan Football Team has concluded a successful season, and 

WHEREAS, the 2007 Forest Park Trojan Football Team after first capturing the Division 8 District Title, continued on to secure the Division 8 Regional title, and 

WHEREAS, the 2007 Forest Park Trojan Football Team, still hungry for continued success, moved on to win the State Division 8 semifinals, securing a spot in the State Division 8 title game, and 

WHEREAS, the 2007 Forest Park Trojan Football Team combined all the preparation, confidence, pride, experience, and success gained throughout their season and played an outstanding game in that State title match to bring home the trophy! and 

WHEREAS, the coaches and parents of the members of the 2007 Forest Park Football Team have dedicated endless hours of guidance and support to these fine young men, and

WHEREAS, all of the above have achieved this success through a combination of determination, hard work, loyalty, and teamwork,

NOW THEREFORE BE IT RESOLVED that the Council for the City of Crystal Falls extends its "Thanks and Congratulations" to these remarkable people, who have proven to be excellent ambassadors of this community throughout the State, and further, have given this "City of Community Pride" even more reason to be proud.

RESOLUTION ADOPTED DECEMBER 10, 2007

CITY OF CRYSTAL FALLS
RESOLUTION 

WHEREAS, the 2007 Forest Park Trojan Volleyball Team has completed a successful season as reflected by their outstanding record, and 

WHEREAS, this Trojan Volleyball Team, through a combination of determination, hard work, loyalty, and teamwork, went beyond the regular season in pursuit of, and captured, the Class D District and Regional Championships, and 

WHEREAS, the Lady Trojans continued even further in pursuit of, and capturing the State Class D quarterfinals, where they earned a berth in the State semifinals, and 

WHEREAS, the Lady Trojans, even though they were stopped short of capturing the State Class D title, have given the Forest Park community reason to be filled with pride, and 

WHEREAS, the Council for City of Crystal Falls is desirous of recognizing these fine young women and their coaches, 

NOW THEREFORE BE IT RESOLVED, that the Crystal Falls City Council hereby extends its "Thanks" and "Congratulations" to these amazing young people, who have proven to be wonderful ambassadors of this community, and fine examples of the City’s slogan "City of Community Pride". 

RESOLUTION ADOPTED DECEMBER 10, 2007 

Councilor Heikkinen seconded by Councilor Smokevitch to approve the Christmas Bonus list as presented for active, full time, non-union employees ($55.00), and the crossing guards ($27.50), to be paid on the payroll checks issued the week before Christmas.

Ayes: Mayor Hendrickson, Councilors Heikkinen and Smokevitch.

Nays: None Abstain: Councilor Bicigo Absent: Councilor Valesano

Motion carried.

Mayor Hendrickson seconded by Councilor Bicigo moved to set the 2007 – 2008 Ski Hill rates at: $30.00 – Season Pass and $5.00 – Daily Pass.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the proposal from Scott Kenney, CPA, for audit services for fiscal years 2007, 2008, and 2009.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to advertise in the 2008 – 2009 edition of the Iron County Plat Book with a Full Banner (Quarter Page) ad in the amount of $225.00.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to accept the appointments of Gerry Boehmke, Valarie Novak, and Pat Brown to the Harbour House Museum Board.

Motion carried.

Mayor Hendrickson set the date of a special meeting to further consider the purchase of real property, (closed session expected), to be Monday, December 17, 2007 at 4:00 p.m.

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

Motion carried.

Meeting adjourned at 7:06 p.m.