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 12, 2006, at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Thrasher, and Valesano.

Absent: Councilor Stachowicz

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

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Councilor Heikkinen seconded by Councilor Valesano moved that the minutes of the regular meeting and the Zoning Board meeting of May 8, 2006 and the special meeting of May 10, 2006, be approved as written. Motion carried.

At 5:06 p.m. Mayor Hendrickson temporarily adjourned the meeting to meet as the Zoning Board of Appeals and conduct a Public Hearing on a variance request from Mike and Kristin Onderak.

(See Zoning Board minutes for the Public Hearing details)

Regular session reconvened at 5:23 p.m.

Mayor Hendrickson seconded by Councilor Heikkinen moved to deny the Mike and Kristin Onderak request for a variance to allow a commercial use in a residential district at their home located at 11 Wagner Street in Crystal Falls.

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

Motion carried.

Bridget Bergwall, representing the Runkle Lake Association, updated the Council on the milfoil infestation treatment at the lake. She applauded the Runkle Lake Park staff for their assistance in informing the public during the treatment.

Mayor Hendrickson reported on the DDA meeting held earlier in the day.

Scott McNeilis of Coleman Engineering updated the Council on the progress of the Water Project and requested a special meeting to review the project. Mayor Hendrickson set Wednesday, June 21, 2006 at 5:00 p.m. as the date of the special meeting to discuss water project issues.

There was nothing to report on the Crystal Manor.

Councilor Thrasher seconded by Councilor Heikkinen moved to adopt the following Travel/Education Expense Policy:

TRAVEL/EDUCATION EXPENSE POLICY

The City of Crystal Falls shall, within the constraints of the annual budget, provide for the reimbursement of reasonable conference, training, and travel related costs for City officials and employees.

1. Use of personal vehicle: City officials and employees attending bona-fide conferences, training, or other business on behalf of the City of Crystal Falls shall be reimbursed for travel expenses based on the current mileage reimbursement rate established by the Internal Revenue Service as stated in the current IRS Publication 15 (Circular E) Employer’s Tax Guide.

2. City – owned vehicle: If a city-owned vehicle is available for the trip, then the official or employee shall not be reimbursed for an amount greater than the cost of operation of the city-owned vehicle – receipts for said reimbursement must be provided.

Air Travel: All air travel will be in coach class.

1. Travel meals:

In order for travel meal reimbursements to be made, officials or employees must be traveling away from home on City business overnight. These meals will be reimbursed for actual expenses incurred for meals up to the per diem amounts established by the General Services Administration (GSA) which is the basis for federal employees.

Employees must obtain receipts for meals and document all expenses on the expense form. Failure to do so may result in a situation of non-reimbursement.

2. Entertainment meals:

Reimbursement will be made to officials and employees for meals if the main purpose is a combined business and meal and business is actually conducted during the meal period.

3. Meals on an occasional basis:

On an occasional basis a meal that is reasonable in value, and is not provided regularly or frequently, for overtime work, may be provided to enable the employee to work overtime. These meals are provided on the employer’s premises and are consumed during the overtime period, are approved by the City Manager and will be reimbursed for actual expenses incurred by the employee.

The costs for lodging while attending out of town conferences or other City business shall be reimbursed at the most economical single person lodging rate available. Receipts for lodging must be submitted with the expense form.

When the traveler shares lodging with others, reimbursement to the traveler will be as follows:

1. If lodging is shared with one or more travelers who are not eligible to receive travel reimbursement from the City, reimbursement will be at the single occupancy rate of the hotel or motel, regardless of the number of persons and/or rooms occupied. The single occupancy rate should be noted on the receipt.

If hotel or other lodging is shared with one or more city officials or employees, reimbursement will be a proportionate amount of the bill, based on the number of persons occupying the room. It is encouraged, where feasible, that travelers share the same room.

Incidental expenses incurred by an official or employee of the City while traveling on behalf of the City will be reimbursed. Incidental expenses include but are not limited to: bridge fares, parking fees, taxi fares, transit passes, baggage handling, tolls, and other attendant expenses. Reimbursement will be made when these expenses are included on the Expense Reimbursement Form with receipts, when applicable, are attached. Under no circumstances will expenses of a personal nature be included in a charge against public funds.

Traffic and/or parking fines will not be reimbursed and no employee will be reimbursed for travel from his/her home to their place of regular employment.

Employees who are on travel status will be compensated for time worked only. Time worked includes business related activities and may include transportation to and from the activities. Time worked does not include lunch breaks, entertainment, and overnight lodging. The City Manager shall determine time worked based on the employee’s expense form. Overtime will not be paid while traveling on City business. Straight time will be paid while traveling on City business when the travel time causes time away from the City to be longer than the normal 8 hour workday. Travel on the weekend in order to attend a conference or other event on behalf of the City will be compensated as straight time or as comp time equal to the time spent traveling.

Non-tuition education/training expenses will be available to all full-time employees who are enrolled in job-related courses or programs. Application must be approved by the applicable department head and then submitted to the City Manager for approval prior to attending said courses or programs.

Cost for this type of expense is set at a maximum of $1,000 for any one calendar year for each employee. Amounts greater than $1,000 may be approved in advance on a case by case basis by the City Council.

(This policy also includes an expense form not included in these minutes)

Councilor Thrasher seconded by Mayor Hendrickson moved to extend the meeting of the City Council beyond the 7:00 p.m. adjournment time.

Motion carried.

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

RESOLUTION

CITY OF CRYSTAL FALLS

COUNTY OF IRON

 RESOLUTION AUTHORIZING THE S2 GRANT AGREEMENT

WHEREAS, Part 52 (strategic water quality initiatives) of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended ("Part 52"), provides at MCL 324.5204a that the Michigan Municipal Bond Authority (the "Authority") in consultation with the Michigan Department of Environmental Quality (the "DEQ", collectively with the Authority, the "State") shall establish a strategic water quality initiatives grant program to provide assistance to governmental units to complete the application for a loan under the State Revolving Fund ("SRF") program or Strategic Water Quality Initiatives Fund ("SWQIF") program; and

WHEREAS, in accordance with the provisions of 1985 PA 227, as amended (the "Act"), Part 52, and other applicable provisions of law, the Authority, the DEQ, and a governmental unit (the "Governmental Unit") that is a grant recipient shall enter into a grant agreement (the "S2 Grant Agreement") that requires the Governmental Unit to repay the grant under certain conditions as set forth in MCL 324.5204a; and

WHEREAS, the Governmental Unit does hereby determine it necessary to undertake planning and/or design activities related to a future project for which an SRF or SWQIF loan will be sought; and

WHEREAS, it is the determination of the Governmental Unit that at this time, a grant in the aggregate principal amount not to exceed $33,000 ("Grant") be requested from the Authority and the DEQ to pay for the planning and/or design activities; and

WHEREAS, the Governmental Unit shall obtain this Grant by entering into the S2 Grant Agreement with the Authority and the DEQ.

NOW, THEREFORE, BE IT RESOLVED THAT:

Mayor Janet Hendrickson and City Manager Charles Nordeman are each designated as an Authorized Representative for purposes of the S2 Grant Agreement.

The proposed form of the S2 Grant Agreement between the Governmental Unit and the State (attached hereto as Appendix I) is hereby approved and the Authorized Representative is authorized and directed to execute the S2 Grant Agreement with such revisions as are permitted by law and agreed to be the Authorized Representative.

As stated in the S2 Grant Agreement, the Grant shall become a repayable obligation (the "Repayable Obligation") if any of the following occur:

(a) the Governmental Unit fails to submit an administratively complete loan application for assistance from the SRF or the SWQIF for the project within 3 years of the Grant award;

(b) the project has been identified as being in the fundable range and the Governmental Unit declines loan assistance from the SRF or the SWQIF in that fiscal year; or

(c) The Governmental Unit is unable to, or decides not to, proceed with constructing the project or opts to finance construction by means other than a loan from the SRF or the SWQIF.

The Governmental Unit hereby pledges its limited tax full faith and credit for payment of the Repayable Obligation subject to applicable constitutional, statutory and Governmental Unit tax rate limitations.

The Governmental Unit shall not invest, reinvest or accumulate any moneys deemed to be Grant funds, nor shall it use Grant funds for general local government administrative activities or activities performed by municipal employees.

The Authorized Representative is hereby jointly or severally authorized to take any actions necessary to comply with the requirements of the State in connection with the issuance of the Grant. The Authorized Representative is hereby jointly or severally authorized to execute and deliver such other contracts, certificates, documents, instruments, applications and other papers as may be required by the State or as may be otherwise necessary to effect the approval and delivery of the Grant.

The Governmental Unit acknowledges that the S2 Grant Agreement is a contract between the Governmental Unit and the State.

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

YEAS: Members: Mayor Janet Hendrickson, Councilors Edna Heikkinen, Scott Thrasher, and Mark Valesano.

NAYS: Members: None

Mayor Hendrickson seconded by Councilor Thrasher moved to increase wages of Randy Curnow and Gerard Valesano to $16.67/hour during periods of which they are employed in supervisory positions.

Ayes: Mayor Hendrickson, Councilors Thrasher and Heikkinen.

Nays: None.

Abstain: Councilor Valesano (due to conflict of interest)

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to that the wage increase of Randy Curnow and Gerard Valesano be effective beginning with the current payroll cycle.

Ayes: Mayor Hendrickson, Councilors Thrasher and Heikkinen.

Nays: None.

Abstain: Councilor Valesano (due to conflict of interest)

Motion carried.

Mayor Hendrickson commended the work crews for the spring cleanup of the Golf Course, Cemetery, and parks.

Mayor Hendrickson seconded by Councilor Valesano moved to offer Robert Sliva a contract, in the amount of $500.00, to serve as Golf Marshall for the 2006 golf season.

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to authorize Manager Nordeman to enter into contracts for materials for the Golf Course Irrigation Project with: Reinder Brothers for a Rainbird System in the amount of $68,987.75; and Watertronics for a pump system package in the amount of $26,509.00.

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to authorize Manager Nordeman to enter into a contract with Greener Grass Systems for the installation of an irrigation system at the golf course per their base bid of $68,850.00, with anything beyond that price requiring Council approval.

Motion carried. Discussion of a heating system for the public works garage was postponed to the next meeting.

Councilor Thrasher seconded by Councilor Heikkinen moved that there be no complimentary golf allowed per the legal opinion of City Attorney Lawrence.

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to authorize the City Clerk to adjust the dollar amount of service deposits, to reflect the total of three (3) months of an average utility billing, as needed due to utility rate increases.

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to approve the following proclamation presented by Mayor Hendrickson:

Proclamation adopted.

Councilor Thrasher seconded by Councilor Heikkinen moved to approve a revised phone system contract with Sentinel Technologies in the amount of $1,891 ($472.00 more than that approved on March 27, 2006).

Motion carried. 

Councilor Thrasher seconded by Councilor Heikkinen moved to approve the Iron County Fair Premium Fair Book ad in the amount of $75.00 for a 1/8 page.

Motion carried.

Mayor Hendrickson set the date of Monday, June 26, 2006 at 5:00 p.m. for the annual Budget Workshop meeting of the City Council.

Councilor Thrasher seconded by Councilor Heikkinen moved to approve a request from Kristi Fabbri to use the Paint River Walkway for her wedding ceremony on Saturday, September 2, 2006.

Motion carried.

Mayor Hendrickson seconded by Councilor Thrasher moved that the payrolls and disbursements in the amount of $447,307.02 for the month of May 2006 be approved, and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to accept the following reports for the month of May 2006:

Police Chief’s report indicating 242 complaints, 28 of which were closed by arrest and 2,423 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 4 fire calls; spending approximately 134 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.

City Treasurer’s report on the monthly revenues.

Motion carried.

Meeting adjourned at 9:09 p.m.