A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, February 14, 2005, at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Valesano, Thrasher, and Stachowicz.

Absent: None

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

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Councilor Stachowicz seconded by Councilor Thrasher moved that the minutes of the regular meeting of January 12, 2005 be approved as written.

Motion carried.

Jeff Sjoquist of Coleman Engineering updated the Council on the water project.

Councilor Thrasher seconded by Councilor Valesano moved to conduct a public hearing during the next regular meeting of the Council on March 14, 2005 at 5:00 p.m. to hear comments regarding the hospital building.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz. Nays: None

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to accept the bid on a new telephone system for the City Hall complex from Sentinel Technologies in the amount of $14,997.00.

Ayes: Mayor Hendrickson, Councilors Thrasher, Valesano, Stachowicz, and Heikkinen. Nays: None.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to increase the cable TV rates to $18.00 Basic – City, $18.50 Basic- Township, and $9.50 – HBO, said rates will be effective with the next billing of utilities (bills mailed to customers for delivery on March 1,2005).

Ayes: Mayor Hendrickson, Councilors Valesano, Stachowicz, Heikkinen, and Thrasher. Nays: None.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve Clerk Olson’s attendance at the 2005 International Institute of Municipal Clerks Conference in St. Paul, Minnesota.

Ayes: Mayor Hendrickson, Councilors Stachowicz, Heikkinen, Thrasher, and Valesano. Nays: None.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the renewal of the Home & Garden TV (HGTV) contract. Said contract is for five (5) years, expiring December 31, 2009.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz. Nays: None.

Motion carried.

Mayor Hendrickson seconded by Councilor Stachowicz moved to approve the payment of medical bills for Marcel Fraser in the amount of $973.37, with the stipulation that if he recovers the payments of these bills from his current insurance carrier, TriCare, then he will reimburse the City.

Ayes: Mayor Hendrickson, Councilors Thrasher, Valesano, and Stachowicz. Nays: Councilor Heikkinen.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to authorize the transfer of $15,000.00 into the Local Street Fund for local street improvements for the 2003 fiscal year.

Ayes: Mayor Hendrickson, Councilors Valesano, Stachowicz, Heikkinen, and Thrasher. Nays: None.

Motion carried.

Employee Michael Smokevitch made a request to the Council to consider buying "Military Time" for him to assist in his retirement. No action was taken at this time regarding this matter.

Manager Nordeman advised he will present the detail of an "Early Out" window to the Council for consideration at the March meeting.

Councilor Valesano seconded by Councilor Thrasher moved that anyone hired by the City after this date, February 14, 2005, not be eligible for health care benefits upon retirement. This would include a spouse if applicable.

Ayes: Mayor Hendrickson, Councilors Valesano, Stachowicz, and Thrasher. Nays: Councilor Heikkinen.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved that the payrolls and disbursements in the amount of $391,722.19 for the month of January 2005 be approved, and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz. Nays: none.

Motion carried.

Mayor Hendrickson seconded by Councilor Valesano moved to approve the disbursements from the Electric Utility Construction Account in the amount of $11,194.97 as drawn on checks #1046 - #1051 by the City Clerk.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz. Nays: none.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen, moved to accept the following reports for the month of January 2005:

Police Chief’s report indicating 122 complaints, 22 of which were closed by arrest and 2,103 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering no fire calls; spending approximately 0 man-hours fighting fires; and holding 2 practice and training sessions.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department activities.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to accept the annual reports of and release the annual contributions to the Harbour House Museum ($1,100), and the Crystal Theater ($2,200).

Ayes: Mayor Hendrickson, Councilors Stachowicz, Heikkinen, Thrasher, and Valesano. Nays: None.

Motion carried.