JULY 31, 2006 SPECIAL

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A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Monday, July 31, 2006 at 5:30 p.m. Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Thrasher, and Stachowicz.

Absent: Councilor Valesano.

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

The purpose of this special meeting was to consider the following items:

Request for Proposals for Developer/Architectural/ Contractor Team for Crystal Manor Property Renovation.

WE Energies presentation.

Electric Advisory Committee matters.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Julie Melchiori, of the Iron County EDC, reviewed the Request for Proposals for the Crystal Manor with the Council, highlighting the sections that the Council previously requested be changed.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve up to $100,000 of In-Kind Services and Matching Funds as a part of the available resources to a selected project team for the Crystal Manor property renovation.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to approve the Request for Proposals for Developer/Architectural/ Contractor Team for Crystal Manor Property Renovation dated July 31, 2006.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to obtain a Phase I and Phase II Environmental Review of the Crystal Manor building at a cost not to exceed $5,000.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to obtain a market appraisal on the Crystal Manor building at a cost not to exceed $3,000.00

Motion carried.

Phil Thiesen of WE Energies gave the City Council a brief report on the upcoming Formula Rate proposed by his company. He assured the Council that the rates charged to the City would be based on the same formulas used to establish rates to all other WE Energies customers. He noted that WE Energies and the City of Crystal Falls have been working together for nearly 100 years and hoped they could continue to do so.

Merle Labakken of Labakken Consulting reported to the Council that he will proceed to examine the formula rate imposed on the City by WE Energies to insure that the City will be treated the same as other WE Energy customers.

A lengthy discussion regarding the Electric Advisory Committee matters ensued. David Graff, Chief Electrician, fielded the questions asked by the Councilors regarding proposed wage increases for the electric department staff, on call time, power plant operator hours, electric rate increases, and the distribution of Electric Advisory Committee minutes to the City Council. No action was taken on any of the issues discussed.

Councilor Thrasher seconded by Councilor Heikkinen moved to adjourn this special meeting of the City Council.

Motion carried.

Meeting adjourned at 7:20 p.m.