A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, January 12, 2004, at 4:30 P.M. Central Time.

Roll call: Mayor Sabo, Councilors Hendrickson, Koszyk, Thrasher, and Benda.

Also Present: City Manager, City Attorney, City Clerk and various citizens of the community.

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

The minutes of the regular meeting of December 8, 2003 were approved with the following corrections: On the bottom of page 423 delete "**It is understood that for the purposes of these rates, "Holidays" include the Friday of Bass Festival and the Humongus Fungus Fest."; and on page 425 delete "Councilor Thrasher seconded by Councilor Koszyk moved to extend the meeting beyond the 6:30 adjournment time. Motion carried."

Revisions to the agenda were made to move the Manor Marketing Report to be item #5 on the agenda.

Mark Agnessi introduced Karl Freed of Gove Associates. Mr. Freed presented the Council with the City of Crystal Falls Downtown Market Study. The study provides the initial framework for the enhancement of Downtown Crystal Falls into a shopping and dining destination for area residents and tourists as a goal of the City, the DDA, and local merchants with a focus on the re-use of the Crystal Manor. A copy of the report is on file in the City Clerk’s office. Margaret Lund and Warren Kramer of Northcountry Cooperative Development Fund presented ideas for re-use of the Crystal Manor building noting the need for the City’s participation in securing funding for its rehabilitation.

At 5:09 p.m. Mayor Sabo moved the meeting into the Public Hearing on the City of Crystal Falls Master Plan. Ben Feldhausen, Chairman of the Planning Commission reviewed the compilation of the Master Plan noting that the requirements of Public Act 285 of 1931 have all been met to complete the implementation of this plan. There was no public comment on the plan. Councilor Thrasher asked how often the plan would be updated and Feldhausen indicated it would, at the very least, be reviewed every 5 years. Mr. Feldhausen asked the Council to postpone action on the adoption of the Master Plan pending some minor revisions that would be made at the Planning Commission meeting. He noted that complete copies of the revised document would be forwarded to the Council for action at the next Council meeting.

Mayor Sabo closed the Public Hearing at 5:19 p.m.

Mayor Sabo reported that the DDA will only require a budget of $1,300 for this fiscal year and suggested the balance allotted ($4,000) be used for community events. He announced that future meetings of the TIF Committee would be scheduled to follow the DDA meetings on the 2^nd Monday of each month. He also asked Attorney Lawrence for an opinion on combining the DDA and Planning Commission into one entity.

Councilor Hendrickson, seconded by Councilor Benda moved to reduce the Downtown Development Authority Budget amount for fiscal year 2003-2004 to $1,300.00 with said amount to be used for clerical expenses only.

Motion carried.

Jeff Sjoquist of Coleman Engineering reported on the Water Project. He noted that the township sites have proven to have marginal quality. Two other areas have been identified as possible well sites, one on City owned property near Runkle Lake Park and the other on the far side of the lake on private property.

Councilor Koszyk, seconded by Councilor Hendrickson moved to authorize the execution of a contract and expenditure of $1,000.00 to Ron Paquette for right of entry to drill exploratory wells with option and offer to purchase real property, contingent on the results of exploratory drilling on the City owned property near Runkle Lake Park.

Motion carried.

Councilor Hendrickson seconded by Councilor Benda moved to rescind the electric rate increase to commercial customers when their usage exceeds 2000 kwhrs.

Motion carried.

A discussion regarding the grooming and opening of the ski hill ensued. It was the consensus of the Council to reimburse the snowmobile club for gas used if they assist in the grooming.

Scott Kenney, CPA presented and reviewed the audit of the 2002-2003 fiscal year with the Council and also explained his letter of comments and recommendations.

Councilor Koszyk seconded by Councilor Benda moved to extend the meeting beyond the 6:30 p.m. deadline.

Mayor Sabo directed Clerk Olson to advertise for a Board of Review member to replace Donald Boulanger who recently resigned.

Mayor Sabo suggested postponing the Personnel Policy revisions to the February 9^th meeting of the Council and directed Clerk Olson to notify the employees of said change.

Councilor Hendrickson seconded by Councilor Thrasher moved that the payrolls and disbursements in the amount of $318,189.79 for the month of December 2003 be approved and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Koszyk seconded by Councilor Benda, moved to accept the following reports for the month of December 2003:

Police Chief’s report indicating 106 complaints, 1 of which were closed by arrest and 2,732 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 3 fire calls; spending approximately 56 man-hours fighting fires; and holding 1 practice and training session.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department

Motion carried.

Councilor Benda noted the vagueness of the Public Works monthly reports and Mayor Sabo directed Manager Nordeman to discuss the issue with the Public Works foreman.

Councilor Benda asked for a clarification on what the City can donate funds for. Attorney Lawrence indicated that state law indicates that municipal expenditures are unlawful unless they are for public purposes. Mayor Sabo directed Attorney Lawrence to draft a letter of opinion on donations for the Council’s consideration.

Mayor Sabo seconded by Councilor Benda moved to meet in executive session to discuss issues regarding the ongoing litigation of Barbara Benda etal v City of Crystal Falls, Case No. 03-2529-CZ.

Motion carried.

Meeting temporarily adjourned at 7:00 p.m.

Meeting reconvened at 7:40 p.m.

There being no further business to come before the Council, meeting adjourned at 7:41 p.m.