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

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

Also Present: City Manager, City Attorney, City Clerk/Treasurer, and a contingent of citizens.

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

Councilor Koszyk seconded by Councilor Benda moved to approve the minutes of the regular meeting of June 21, 2004 and special meetings of June 21, 2004 and June 29, 2004 as written.

Motion carried.

Amendments to the Agenda included the addition to "New Business" of the designation of a representative to vote on behalf the City at the annual MML meeting.

Visitor Jack Stachowicz expressed his disappointment in the lack of enforcement of ORV use by underage drivers. Manager Nordeman was directed to confer with Police Chief Bicigo regarding the issue.

Helen Beck, representing the VFW Ladies Auxiliary, presented the City Council with the gift of a picnic table for use at the Paint River Walkway. The Council thanked and applauded the VFW Ladies Auxiliary.

Drain Commissioner candidate Ben Smith introduced himself to the Council.

At 4:38 p.m. Mayor Hendrickson moved the meeting into the scheduled Zoning Board of Appeals Public Hearing regarding the Ed Ross request for a variance.

Bill Sleeter presented the various options available to Mr. Ross for the construction of his water bottling facility. He noted that the proposed pipeline to the Industrial Park is Plan A, however, Plan B includes a site in the City that is currently zoned as "residential" and would need to be re-zoned as "industrial" to accommodate Mr. Ross. Mr. Ross explained that the site is away from all residential neighborhoods and would not be intrusive on the community. Councilor Koszyk, also a member of the Planning Commission, explained that the Planning Commission agreed the pipeline plan was the least intrusive and further that they did not favor Plan B with the construction of a roadway across the old airport to the park area as a truck route. The Planning Commission recommendation was that the Council works with Ross toward realizing the pipeline option prior to consideration of Plan B.

The Zoning Board of Appeals hearing was closed at 5:04 p.m.

Councilor Thrasher seconded by Councilor Benda moved to postpone action on a Zoning Variance request from Mr. Ross until such time as Mr. Ross holds title to the property (now owned by Michael Casanova), and further, to encourage Mr. Ross to work with the City toward a pipeline to the Industrial Park to a water bottling plant.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

There was no report from the Downtown Development Authority.

At 5:09 p.m. Mayor Hendrickson temporarily adjourned the regular meeting to open the scheduled Public Hearing on the Tax Increment Financing (TIF) Plan. Clerk Olson noted that the requirements of the DDA Act have been met to allow for the adoption of the TIF plan. Clerk Olson also noted the receipt of a letter from the Iron County Board of Commissioners officially supporting the Crystal Falls TIF plan. Olson reported that the Crystal Falls Community District Library has not yet responded regarding their involvement in the plan, however, they do have some time left before the deadline to opt out. There was no public comment regarding the TIF plan. Attorney Lawrence advised the need to adopt an amendment to the Downtown Development Authority Ordinance prior to the adoption of the TIF plan. Said Ordinance will be introduced following this hearing.

Public Hearing was declared closed at 5:16 p.m. by Mayor Hendrickson.

Meeting reconvened at 5:16 p.m.

Councilor Thrasher seconded by Councilor Benda moved to introduce an amendment to Ordinance No. 1.04, an amendment to allow for the establishment of a Tax Increment Finance District and Plan, and further, to set the date of the public hearing for this ordinance amendment to be held on August 9, 2004 during the regular meeting of the City Council scheduled for 4:30 p.m.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Jeff Sjoquist of Coleman Engineering reported on the water project. He passed out a draft of the proposed improvements showing a total project cost of approximately $9,000,000.00

Councilor Koszyk seconded by Councilor Valesano moved to accept the bid of $8,001.00 from Sentinel Technologies for Lots #1, 2, and 3 of the Village (now City) of Crystal Falls.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

(Sentinel Technologies was the only bidder on this parcel.)

Councilor Koszyk seconded by Councilor Benda moved to participate in an additional capital contribution in the amount of $4,761.00 with the Upper Peninsula Public Power Agency.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None

Motion carried.

Manager Nordeman noted the receipt of a letter from John Harrison, General Chairman of the V. J. Day Committee which explained that although the V. J. Day Celebration has been discontinued, the committee has not yet been disbanded and intends to distribute all its assets to other charitable organizations prior to dissolving the Corporation.

Councilor Koszyk seconded by Councilor Benda moved to introduce the Employee Handbook to the City Council for action at the August 9, 2004 meeting.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Councilor Koszyk seconded by Councilor Thrasher moved to extend the meeting beyond the suggested 6:30 adjournment time.

Motion carried.

Mayor Hendrickson expressed some concern that the Iron County Community Hospital Board has not tried to market the Crystal Falls building and suggested a committee be formed to take on the task. Manager Nordeman reported that he has requested a list of deficiencies of the building from Paul Gurgle, CEO of I.C.C.H. Councilor Koszyk seconded by Councilor Benda moved to direct the City Clerk to draft a letter to the Iron County Community Hospital Board encouraging them to take steps toward the selection of a committee to facilitate the marketing of the Crystal Falls Hospital building.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Councilor Koszyk seconded by Councilor Valesano moved to designate Manager Nordeman as the City’s official representative at the Annual Business meeting of the Michigan Municipal League, and further, that Mayor Hendrickson is designated as the City’s alternate representative.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Mayor Hendrickson seconded by Councilor Benda moved to direct the City Manager to permanently restrict all former employees or the public from the Public Works, Electric, and Mechanic garages unless the individual(s) has a specific business purpose. Any such specific business purpose must firs be communicated to the City Manager directly or through the City Clerk’s office in the Manager’s absence.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Councilor Thrasher seconded by Councilor Benda moved to set the date of the Annual Budget Hearing to be August 9, 2004 at 2:30 p.m. in the City Council Chambers at City Hall.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Councilor Koszyk seconded by Councilor Benda moved that the payrolls and disbursements in the amount of $291,915.98 for the month of June 2004 are approved and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Ayes: Mayor Hendrickson, Councilors Thrasher, Benda, Koszyk, and Valesano. Nays: None.

Motion carried.

Councilor Koszyk seconded by Councilor Thrasher, moved to accept the following reports for the month of June 2004:

Police Chief’s report indicating 222 complaints, 2 of which were closed by arrest and 2,668 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 3 fire calls; spending approximately 33 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 activities.

Motion carried.

Manager Nordeman reported on the possibility of opening and "early retirement" window for a select group of employees. He will keep the Council advised of the interest.

Councilor Koszyk reported on his attendance at the Iron County Emergency Preparedness Drill.

Councilor Koszyk seconded by Councilor Benda moved to adjourn the meeting at 7:03 p.m.