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 14, 2008 at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Valesano, Bicigo, and Smokevitch.

Absent: None

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

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Councilor Valesano seconded by Councilor Heikkinen moved that the items on the Consent Agenda be approved as noted below:

The minutes of the meetings of June 9, 2008, June 16, 2008 and July 8, 2008 as written.

The following reports for the month of June 2008:

A. Police report, as submitted by Police Chief Sherwin, indicating 231 complaints, of which 4 were closed by arrest, and logging of 2,537 miles on patrol duty.

B. Joint Fire Authority report, as submitted by Fire Chief Ahola, indicating answering six (6) fire calls; spending approximately 58.5 man-hours fighting fires; and holding no (0) practice and training sessions.

C. Electric Dept report, as submitted by Chief Electrician David Graff.

D. Treasurer’s Revenue Report as submitted by Clerk/Treasurer Dorothea Olson.

Payrolls and Disbursements in the amount of $406,922.94 and instruct the City Clerk/Treasurer to draw checks on the City Treasury in payment of same.

Ayes: Mayor Hendrickson Councilors Heikkinen, Smokevitch, Valesano, and Bicigo. Nays: none Absent:
Motion carried.

Attorney Ron Basso gave the Council an update on the status of the Crystal Manor Redevelopment Project indicating that the developer is looking at a loan closing with MSHDA on July 29^th.

Visitor Joyce Bendick approached the Council with concerns about the condition of the bathrooms at Runkle Lake Park and urged them to find the money to update this facility. Mayor Hendrickson thanked Mrs. Bendick and reminded everyone that the City is selling booster clings for $10 each to raise funds for the much needed park upgrades and maintenance.

Roberta Bonetti addressed the Council regarding her dismay with the receipt of a letter from the City requiring an electric service upgrade to her son’s home at 338 Tobin Street. She claimed that there is nothing wrong with the electric service and that her son can not afford to upgrade it by the 12^th of August, the deadline set forth in the letter. Mayor Hendrickson instructed City Manager Nordeman to see that Mrs. Bonetti receives a clarification from Gary Van Oss, the State Electrical Inspector, regarding the condition of the electric service at 338 Tobin Street.

Lori Hauswirth, Associate Planner for WUPPDR, presented the City Council with the Iron County Heritage Trail Pathway Study. She advised that the US 2 Enhancement project will help the City with their portion of the project.

Melissa Powell Westin introduced herself to the City Council as a candidate for Iron County Prosecuting Attorney.

Al Skurka, representing the Chippewa Sno-Kats Trail Club, Inc. presented a plan for a proposed A.T.V./O.R.V. route through the City of Crystal Falls.

Councilor Valesano seconded by Mayor Hendrickson moved to approve the alternate ATV/ORV route through the City of Crystal Falls as presented by the Chippewa Sno-Kats Trail Club, Inc. with the route allowing the use of portions of N. Sixth Street, Harrison Avenue, N. Third Street, Crystal Avenue, and Second Street.

Motion carried.

Manager Nordeman gave an update on the Downtown Development Authority (DDA) meeting held earlier in the day.

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

County of Iron, State of Michigan

__________________________________

WHEREAS, the City Council (the "Council") of the City of Crystal Falls, County of Iron, State of Michigan (the "City"), has determined that it is in the best interests of the residents and property owners of the City that the City acquire land and construct a parking lot and related improvements on and/or in close proximity to the site of the Crystal Manor building (the "Project"); and

WHEREAS, the Council deems it to be necessary and desirable for the City to issue and sell general obligation limited tax capital improvement bonds, pursuant to Act 34, Public Acts of Michigan, 2001, as amended ("Act 34"), in an amount not to exceed Three Hundred Ninety Two Thousand Dollars ($392,000) for the purpose of paying all or part of the costs of the Project; and

WHEREAS, a notice of intent to issue said general obligation limited tax capital improvement bonds must be published before the issuance of the aforesaid bonds in order to comply with the requirements of Section 517 of Act 34; and

WHEREAS, the City wishes at this time to state its intention to be reimbursed from proceeds of said general obligation limited tax capital improvement bonds for any expenditures undertaken by the City for the Project prior to issuance of said bonds; and

WHEREAS, the City must either be granted qualified status within the meaning of Act 34 or receive prior approval from the Michigan Department of Treasury (the "Department") before said general obligation limited tax capital improvement bonds may be issued.

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The City Clerk is hereby authorized and directed to publish a notice of intent to issue bonds in the Reporter, a newspaper of general circulation in the City.

2. Said notice of intent shall be published as a one-quarter (1/4) page display advertisement in substantially the form attached hereto as Appendix A, as the same may be modified or amended by the City Manager or the City Clerk upon the advice of the City’s bond counsel, provided that the principal amount of bonds may not be increased without the approval of the Council.

3. The Council does hereby determine that the foregoing form of Notice of Intent to Issue Bonds and the manner of publication directed is the method best calculated to give notice to the City’s taxpayers and electors of the Council’s intent to issue the bonds, the purpose of the bonds, the security for the bonds, and the right of referendum relating thereto, and the newspaper named for publication is hereby determined to reach the largest number of persons to whom the notice is directed.

4. Each of the officers of the City is hereby authorized and directed to execute and deliver such applications, documents, instruments and certificates with the Michigan Department of Treasury in support of an application of the City for "qualified status" or, in the alternative, for prior approval to issue the bonds, and to file for such waivers as may be necessary or advisable with respect to the bonds.

5. The City makes the following declarations for the purpose of complying with the reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended:

(a) As of the date hereof, the City reasonably expects to reimburse itself for the expenditures described in (b) below with proceeds of debt to be incurred by the City.

(b) The expenditures described in this paragraph (b) are for the costs of acquiring, constructing, and equipping the Project which were or will be paid subsequent to sixty (60) days prior to the date hereof.

(c) The maximum principal amount of debt expected to be issued for the Project, including issuance costs, is $392,000.

(d) A reimbursement allocation of the expenditures described in (b) above with the proceeds of the borrowing described herein will occur not later than 18 months after the later of (i) the date on which the expenditure is paid, or (ii) the date the Project is placed in service or abandoned, but in no event more than three (3) years after the original expenditure is paid. A reimbursement allocation is an allocation in writing that evidences the City’s use of the proceeds of the debt to be issued for the Project to reimburse the City for a capital expenditure made pursuant to this Resolution.

(e) The expenditures described in (b) above are "capital expenditures" as defined in Treas. Reg. § 1.150-1(b), which are any costs of a type which are properly chargeable to a capital account (or would be so chargeable with a proper election or with the application of the definition of placed in service under Treas. Reg. § 1.150-2(c)) under general Federal income tax principles (as determined at the time the expenditure is paid).

(f) No proceeds of the borrowing paid to the City in reimbursement pursuant to this Resolution will be used in a manner described in Treas. Reg. § 1.150-2(h) with respect to abusive uses of such proceeds, including, but not limited to, using funds corresponding to the proceeds of the borrowing in a manner that results in the creation of replacement proceeds (within Treas. Reg. § 1.148-1) within one year of the reimbursement allocation described in (d) above.

6. All resolutions and parts of resolutions insofar as they conflict with the provisions of this Resolution be and the same hereby are rescinded.

Ayes: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, Valesano, and Bicigo.

Nays: None

RESOLUTION DECLARED ADOPTED.

Jeff Sjoquist of Coleman Engineering updated the Council on the water projects. He advised that nearly all the water meters are now installed and only those requiring meter pits were left to do.

Some of the issues yet to be completed include: Abandonment of test wells and some MDOT and Township issues.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the Estimate of Funds Needed in the amount of $112.50 from Rural Development.

Motion carried.

Councilor Valesano seconded by Councilor Bicigo moved to approve the MEDC Grant Payment Request for the water meter project in the amount of $14,296.28 for payment to Berger & King.

Motion carried.

Councilor Heikkinen seconded by Councilor Valesano moved to approve the use of water meter readings for billing purposes with the utility billings mailed to customer on September 30, 2008.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to move forward toward the acceptance of a quit claim deed for the "Costume Closet" building from the Crystal Theater Board with said deed including a reverter clause should the building use change.

Motion carried.

The appointment of a committee to examine the installation of new electric meters system wide was postponed.

Councilor Valesano seconded by Councilor Smokevitch moved to accept the bid of $50.00 from the Crystal Theater Board for the AR-160 Copier.

Motion carried.

(This was the only bid received for the used copier)

Mayor Hendrickson set the date of the Annual Budget Hearing to be Monday, August 11, 2008 at 4:00 p.m.

No action was taken on the request to use city property for a bee hive operation.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve payment of $600.00 to Robert Sliva for services as Golf Course Marshall for the 2008 golf season.

Motion carried.

Councilor Valesano seconded by Mayor Hendrickson moved to contribute $50.00, to be paid to U.S. 2 Rental, toward repairs to the snowmobile trail that connects to the city’s industrial park area.

Ayes: Councilor Valesano.

Nays: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, and Bicigo.

Motion defeated.

(This issue will be researched further and taken up at the August meeting of the City Council.)

Councilor Valesano seconded by Mayor Hendrickson moved to place a quarter page advertising, for $745.00, in the Tourism Guide being put together by the Iron County Alliance.

Motion carried.

Councilor Bicigo seconded by Councilor Heikkinen moved to approve the request of the Crystal Falls Business Association for use of the parking lot (Crystal Ave/N. 3^rd St) and the lawn between that lot and the museum, and for a relaxation of the noise ordinance to allow for a street dance and other Fungus Fest activities on Friday, August 8^th .

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the bid from Tech Solutions, Inc. for annual maintenance on the city’s phone system in the amount of $1,336.00 pending satisfactory clarification of certain items quoted to the City Manager.

Motion carried.

(Sentinel Technologies also presented an agreement for the above in the amount of $2,000.00)

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

WHEREAS, the Council for the City of Crystal Falls is desirous of extending congratulations and a thanks to employees who have spent their working years as public servants with the City of Crystal Falls, and

WHEREAS, Mark Simeoni first began his career with the City as the Utility Billing Clerk in April of 1994 and then as the Deputy Clerk/Treasurer since December of 1995, and

WHEREAS, as of his retirement on July 18, 2008, Mark gave 14 ½ years of his life as a public servant in the front office for the City of Crystal Falls, and

NOW THEREFORE BE IT RESOLVED, that the Council for the City of Crystal Falls hereby recognizes Mark for his dedication and wholeheartedly congratulates and thanks him for his years of service during which he was truly a shining example of the City’s slogan "City of Community Pride".

Resolution adopted.

Councilor Valesano seconded by Councilor Bicigo moved to approve the amount of $5,298.49 for the ATC additional capital call contribution.

Motion carried.

Attorney Lawrence was instructed to respond to a letter received from Gail Schnieder regarding a cemetery issue.

Councilor Heikkinen seconded by Councilor Valesano moved to adjourn this meeting.

Motion carried.

Meeting adjourned at 8:17 p.m.