A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Thursday, February 21, 2002 at 10:00 a.m. Central Time.

Present: Mayor Cram, Councilors Hendrickson, and Lind.

Absent: Councilors Nylund and Benda.

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

The purpose of this special meeting was to take action on the sale of real estate property to Baraga Telephone, Co.

Mayor Cram led all present in reciting the Pledge of Allegiance.

Mayor Cram addressed Attorney Lawrence with a question as to whether the renegotiated price on the parcel of land with Baraga Telephone was a violation of the City’s bid policy or not. Attorney Lawrence noted that he did not see it as a violation as the bid process had been followed, only one bid was received, the Council had rejected that bid and further went on to authorize the City Manager to make a counter offer to the bidder regarding the sale of the property.

Another question arose as to the legality of selling city property with only three (3) of the City Council members in attendance. Attorney Lawrence said he would have to review the statutes prior to giving his opinion.

Councilor Lind moved to consummate the price of $26,500.00 for the sale of the property in question to Baraga Telephone, Co.

This motion died for lack of support.

Mayor Cram supported by Councilor Lind, moved to accept Baraga Telephone Co. original bid price of $25,125.00 for the property in question.

Following discussion on the above motion, Councilor Lind withdrew his support and the motion died for lack of support.

Councilor Lind supported by Mayor Cram, moved to recess the meeting for 1 hour to allow Attorney Lawrence to research the legal questions regarding the bidding and voting process.

Ayes: Councilor Lind and Mayor Cram

Nays: Councilor Hendrickson

Motion carried.

Meeting recessed at 10:20 a.m.

Meeting reconvened at 11:20 a.m.

Councilor Nylund entered the meeting upon the reconvening. All other officials previously present were also in attendance.

Attorney Lawrence addressed the questions regarding the bidding process. He said the Council did not have to re-bid in order to sell the property, as there was no prejudice due to the fact that every opportunity had already been given for interested parties to bid on the property. Council action at the meeting held on February 11, 2002 allowed Manager Nordeman to proceed with a counter offer to Baraga Telephone Co., they had come to an agreement and now the Council merely needed to approve that agreement. However, state statute dictates the number of votes needed to sell property owned by the City as a 2/3-majority vote of all the elected officials of the City Council. This means that 4 of the 5 elected officials must vote affirmative to sell property.

Councilor Nylund supported by Councilor Hendrickson moved to accept $26,500.00 for the sale of the 50’ x 150’ parcel of land in question to Baraga Telephone Co.

Ayes: Councilors Lind, Nylund and Hendrickson

Nays: Mayor Cram

Motion defeated.

(Sale of property requires 4 affirmative votes of the City Council).

Meeting was adjourned at 11:40 a.m.