A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, June 11, 2001, at 4:30 P.M. Central Time.

Roll call: Mayor Cram, Councilors Hendrickson, Benda, Nylund and Lind

Also Present: City Manager, City Attorney and City Clerk.

Mayor Cram opened the meeting by leading all present in the Pledge of Allegiance.

Mayor Cram supported by Councilor Nylund moved to accept the minutes of the regular meeting of May 14, 2001 and the special meeting of June 4, 2001 as written.

Motion carried.

Mayor Cram presented City police officers Anthony Starr and Tim Bean with the following "Resolutions of Commendation" in recognition of their role in the capture of armed robbery suspects during the previous year:

Officer Starr thanked the council for the recognition saying it meant a lot to him.

John Plowe, representing the local veteran organizations, requested the Council donate a section of cemetery lots for burial of single veterans. He indicated a 10’ x 40’ area near Block 10 that would allow room 10 vault burials and 10 cremation burials. Councilor Hendrickson supported by Councilor Benda to approve the donation of the requested 10’ x 40’ section at the Evergreen Memorial Cemetery for the burial of single veterans. It is understood that the families of the deceased will pay the burial fees.

Motion carried.

Brian Rose and David Weaver of Crystal Falls Springs, L.L.C. approached the Council with a request for a 6-month option to purchase lots 3,4,9,10, and 11 in the Industrial Park. Their plan is to construct a pipeline from the springs located North of the City to a bottling plant in the Industrial Park. At this time they anticipate building this fall and employing at least 12 people. Mayor Cram directed Manager Nordeman and Attorney Lawrence to work with these gentlemen to negotiate a proposal.

There was no representation from the Contemporary Center present.

Mike Ferguson, Chairman of the Downtown Development Authority, requested Council approval of payment of invoices generated by the DDA and $400.00 for use as prize money in the Bass Festival and Humongus Fungus parades. He also requested the Council consider re-hiring Norm Mika as an economic coordinator for the City. Mayor Cram noted that the County economic coordinator should be used instead and felt a city coordinator to be a duplication of services and suggested the DDA look into utilizing the County coordinator more. Mayor Cram supported by Councilor Lind, moved to approve the release of DDA funds for the payment of the following invoices: Melson’s Copy Center - $20.00 (for stationary), City of Crystal Falls - $105.00 (for electric bills), The Paint River Pub - $270.00 (for Welcoming Dinner).

Motion carried.

Councilor Lind, supported by Councilor Benda, moved to approve the release of DDA funds in the amount of $400.00 for float prize money ($200.00 for Bass Festival parade and $200.00 for Humongus Fungus parade).

Motion carried.

Mike Gatzow updated the Council on matters concerning the completion of the sewer project. He noted that C. Oberstar Excavating would be back in town soon to complete the work on the punch list. Mayor Cram requested a deadline of June 30^th for the completion of the punch list items.

Mr. Gatzow reviewed the Water System Master Plan with Council. He noted there are several areas of concern regarding the city’s water supply with an estimated cost of over 7 million dollars to complete the improvements. Mayor Cram suggested prioritizing the identified needs regarding the water system improvements and perhaps doing them a little at a time. Manager Nordeman pointed out that the water fund revenues simply do not allow for anything other than the routine maintenance to be done at this time. Councilor Lind supported by Councilor Benda, moved to increase the minimum water rate to $22.50/month effective immediately.

Ayes: 2 Nays: 3 Motion rejected.

Mayor Cram, supported by Councilor Nylund, moved to increase the minimum water rate by $7.50/month (City = $15.00/month, Township = $16.50/month). Said increase will take effect with the next billing mailed to customers.

Motion carried.

Ron Sherwood, president of the Chippewa Sno Kats explained the proposed snowmobile trail across city property. Mayor Cram, supported by Councilor Lind, moved to grant the snowmobile trail permit to cross City owned property immediately to the east of the city’s well buildings and instructed Attorney Lawrence to proceed with the preparation of said permit.

Motion carried.

Manager Nordeman reported on the denial of the City’s "Streetscape Grant Application" (for Superior Avenue improvements) to the State of Michigan. The Council agreed to re-apply for said grant and directed Manager Nordeman to proceed with the plans for the sewer separation in Superior Avenue.

Jim Hammill of the DNR was present to discuss deer feeding in the City of Crystal Falls. He noted that deer feeding for recreational viewing is not illegal in the State of Michigan. He suggested the Council first determine if there is enough of a problem with deer in the City to warrant the passing of a deer-feeding ban. Mayor Cram directed Attorney Lawrence to secure copies of the Iron Mountain/Kingsford ordinance on the banning of deer feeding and further directed Manager Nordeman to contact Crystal Falls Township officials requesting their cooperation.

Manager Nordeman advised the Council of an upcoming meeting regarding the MERS Defined Contribution plan on Wednesday, June 13, 2001.

Manager Nordeman announced the resignation of City Assessor, Jeff Sabotta and advised the Council that applications were received for a replacement and interviews were underway. Clerk Olson was directed to research and prepare a report for the Council regarding compensation of past assessors.

Councilor Nylund supported by Councilor Lind moved to purchase a copy of the Iron County Courthouse, Circa 1890 print at the cost of $150.00.

Motion carried.

Mayor Cram supported by Councilor Benda, moved to impose a $25.00 penalty on the annual golf cart stall rentals if not paid by July 1^st, 2001, and by June 1^st in subsequent years, and further, to impose an $8.00 penalty on annual trail fees not paid by July 1^st, 2001, and by June 1^st in subsequent years.

Motion carried.

Manager Nordeman advised the Council that he had received requests for the sale of two parcels of City owned properties to private individuals. Mayor Cram supported by Council Benda, moved to advertise Lot 13 of Government Lot 3 (minimum bid $800.00), and a small parcel near the intersection of South 4^th and South 3^rd Streets (minimum bid $500.00) for sale following the "Policy for the Solicitation of Bids for the Sale of City Property & Equipment".

Motion carried.

Councilor Hendrickson supported by Councilor Nylund, moved to approve the payrolls and disbursements in the amount of $250,005.48 for the month of May 2001, and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Mayor Cram supported by Councilor Lind, moved to accept the following reports for the month of May 2001:

Police Chief’s report indicating 116 complaints, 8 of which were closed by arrest and 3,696 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 2 fire calls; spending approximately 24 man-hours fighting fires; and holding 1 practice and training session.

Public Works Foreman’s report of department activities.

Motion carried.

Councilor Hendrickson commended the City work crews for their exemplary work in the preparation of the cemetery, golf course, and park this spring.

Mayor Cram read a thank you note from the Crystal Falls Beautification Committee for the donation and assistance in the planting of trees and flowers.

Councilor Hendrickson noted the need to have sidewalks cleaned throughout the city.

Mayor Cram requested Manager Nordeman pen a letter to find out why we are no longer receiving prison labor as we do have a signed contract with the Michigan Department of Corrections.

Manager Nordeman was instructed to look into securing guardrail for Power Plant Road near the intersection of Fairbanks Road.

Manager Nordeman received permission to advertise for bids for auditing services.

Councilor Benda, supported by Councilor Nylund, moved to finance the purchase of a new bucket truck for the City Electric Department in the amount of $100,000.00. Said tax exempt financing is at 4.9% for 5 years with the First National Bank of Crystal Falls.

Motion carried.

There being no further business to come before the Council, meeting adjourned at 7:01 p.m.