A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Wednesday, January 12, 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 all present in reciting the Pledge of Allegiance.

Councilor Thrasher seconded by Councilor Stachowicz moved that the minutes of the regular meeting of December 13, 2004 be approved as written.

Motion carried.

Mayor Hendrickson amended the agenda with the addition of "Fire Authority Request to Hire" to the New Business section.

Packy Eckola presented the City Council with the painting that had been hanging at the Iron County Court House since the Crystal Falls Centennial Celebration in 1980. Ms. Eckola, the artist of the painting, explained the birth of the painting and how the different characters and buildings depicted were a reflection of Crystal Falls. Ms. Eckola suggested the City pen a letter to the Iron County Board of Commissions thanking the County for allowing the painting to be housed at the Iron County Court House with a special thank you to former Commissioner Fred Saigh.

Mayor Hendrickson seconded by Councilor Heikkinen moved to accept the Crystal Falls Centennial painting and to hang it in the Council Chambers at the City Hall, and further, to thank Packy Eckola for her beautiful art work.

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

Motion carried.

Scott Kenney, CPA, presented the 2003-2004 Fiscal Year Audit of the City of Crystal Falls. He explained the differences between this and previous audits with the onset of the GASB34 requirements. Kenney explained his letter of comments and recommendations, which highlighted some areas of concern for the Council and city management to consider.

Councilor Thrasher seconded by Councilor Valesano moved to accept the 2003-2004 Fiscal Year Audit as presented by Scott Kenney, CPA.

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

Motion carried.

Councilor Heikkinen reported on the Downtown Development Authority meeting that took place earlier in the week.

Manager Nordeman read an update from Jeff Sjoquist of Coleman Engineering on the water project.

Mayor Hendrickson reported on the interest of a developer for the hospital and manor buildings.

Councilor Thrasher seconded by Councilor Heikkinen moved to direct Clerk Olson to pen a letter to the Iron County Community Hospital Board of Directors requesting a one-month extension for the City Council decision regarding the re-acquisition of the Crystal Falls hospital facility.

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

Motion carried.

The agenda item regarding the Telephone System Proposal was postponed pending clarification of some items. Only one bid was received, that of Sentinel Technologies of Crystal Falls.

Councilor Thrasher seconded by Councilor Stachowicz moved to fund the Health Saving Account (HSA) for each employee on a monthly basis, however, when a medical event occurs and proof of need is presented from the employee (the Blue Cross Blue Shield Summary of Benefits) then an advance will be made to that employee’s HSA to allow for payment of medical bills. Further, the funded deductible amounts for 2005 are $1,000 for a single plan and $2,000 for a two-person/family plan, and the city will also fund the next $1,000 co-pay (20% of the next $5,000 of claims) for each employee as needed.

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

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to include the insurance deductible amounts as a part of the insurance premium for the purpose of calculating the reimbursement to an employee who "opts out" of the City’s health insurance plan.

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

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to designate the use of one (1) depository, Miners State Bank of Iron River, for the employee’s health saving accounts for 2005.

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

Motion carried.

Manager Nordeman advised the Council of requests for a daily ski hill pass.

Councilor Valesano seconded by Councilor Heikkinen moved to set the rate of $10.00 for a daily pass at the Crystella Ski Hill for the current season.

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

Motion carried.

Manager Nordeman advised the Council that he is waiting for a reply from one of the local banks before presenting his findings regarding other possible depositories for the City’s funds.

Mayor Hendrickson seconded by Councilor Heikkinen moved to contract with Trico Opportunities for plant maintenance (including application of a deer deterrent) at the Riverwalk for 2005 in the amount of $1,320.

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

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to extend

the Council meeting beyond the 7:00 p.m. adjournment time.

Motion carried.

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

RESOLUTION

WHEREAS, the efforts of a number of Iron County citizens promoted the development of the Iron County Friends of the Heritage Trail, to promote, enhance, and maintain the history and culture of Iron County, and

WHEREAS, the Iron County Heritage Trail has been designated a State Historic Heritage Route by the Michigan Department of Transportation making it eligible for federal funding through the Federal Highway Administration’s National Scenic Byways Program, and

WHEREAS, the Corridor Management Plan adopted for the development of the Iron County Heritage Route defines a desire to have a non-motorized trail connecting the various historic points of interest throughout the county and along the Heritage Route Corridor, and

WHEREAS, a study that would examine the feasibility of such a non-motorized trail system would collectively answer all questions regarding cost, property needs, route location, public support, maintenance needs, and segmentation of the proposed system,

NOW THEREFORE BE IT RESOLVED, that the Council for the City of Crystal Falls supports the application for a 2005 Scenic Byways Grant and looks forward to seeing the non-motorized trail become a reality for all, citizens and visitors alike, to enjoy.

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

Councilor Thrasher seconded by Councilor Valesano moved to adopt the following:

RESOLUTION

WHEREAS, the City of Crystal Falls Council wishes to apply to the Secretary of State for a grant to purchase an optical scan voting system and related Election Management System (EMS) software to comply with the Help America Vote Act (HAVA), and

WHEREAS, the City of Crystal Falls Council has chosen to submit a grant application for a new optical scan voting system in 2005, and

NOW THEREFORE, BE IT RESOLVED that the City of Crystal Falls Clerk is authorized to submit a grant application to the Michigan Secretary of State on behalf of the City of Crystal Falls, Iron County.

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

Resolution adopted.

Councilor Heikkinen seconded by Councilor Stachowicz moved to authorize Clerk Olson to enter into a contract with the Forest Park School District for school elections which will now be conducted by the local municipal clerks.

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

Motion carried.

Councilor Valesano seconded by Councilor Stachowicz moved to give approval to the Crystal Falls Fire Authority to hire a replacement for the full time position recently vacated by James Lehto.

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

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved that the payrolls and disbursements in the amount of $341,279.46 for the month of December 2004 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 Heikkinen moved to approve the disbursements from the Electric Utility Construction Account in the amount of $93,018.47 as drawn on checks #1037 - #1045 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 December 2004:

Police Chief’s report indicating 125 complaints, 2 of which were closed by arrest and 2,307 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 4 fire calls; spending approximately 82 man-hours fighting fires; and holding 1 practice and training sessions.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department activities.

Motion carried.