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 14, 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 and then asked for a moment of silence in remembrance of late President Ronald Reagan.

Councilor Benda seconded by Councilor Koszyk moved to approve the minutes of the regular meeting of May 10, 2004 and special meeting of May 24, 2004 as written.

Motion carried.

Ed Ross approached the City Council with a request to purchase land from the City and to rezone other lands. Councilor Koszyk seconded by Councilor Benda moved to send Mr. Ross’ request to the Planning Commission prior to any further consideration by the City Council.

Motion carried.

There were no applications for the Downtown Development Authority vacancies to consider.

At 4:48 p.m. Mayor Hendrickson declared the Public Hearing for the Tax Increment Financing (TIF) Plan to be open.

Manager Nordeman presented a brief overview of the TIF plan and explained the mechanics of it. Several business owners were present and encouraged the City Council to implement the development of the TIF District and the TIF plan. Jeff Syrjanen asked what, if any, downside of TIF there was. Gary Hough, DDA representative, noted that it ties the TIF funds to a specific district. Councilor Thrasher pointed out the benefit of using TIF to leverage other types of funding such as bonds, grants, and state monies by both the City and private developers. Councilor Valesano noted that most surrounding communities have TIF already in place and praise it highly. He also observed that developers look for progressive communities to locate in, and TIF is one of the indicators they seek out. Iron County Commissioner Larry Harrington noted several of his fellow board members voiced their support of the Crystal Falls TIF plan and wondered why it has taken so long to get it in place. Councilor Koszyk said he is still waiting to be convinced that TIF can do what the General Fund and grant monies cannot do. Mayor Hendrickson thanked everyone for their insight and added that if TIF does nothing other than market the Manor building she is in favor of it.

Mayor Hendrickson declared the Public Hearing closed at 5:23 p.m.

The regular meeting was reconvened at 5:23 p.m.

Mayor Hendrickson seconded by Councilor Benda moved to approve proceeding toward the adoption of the Tax Increment Financing (TIF) Plan as presented by the TIF Committee. The City Clerk is instructed to proceed with the implementation of the requirements of the Downtown Development Authority Act 197 of 1975, 125.1668, Sec. 18, and further, the date of July 12, 2004 at 4:30 p.m. is set for the official public hearing required preceding the adoption of an ordinance approving the TIF Plan.

Ayes: Councilor Benda, Mayor Hendrickson, Councilors Koszyk, Valesano, and Thrasher.

Nays: None

Motion carried.

Jeff Sjoquist of Coleman Engineering reported on the progression of the Preliminary Engineering Report for the water project.

There were no bids received for Lots 1, 2, and 3 of the City located on the East end of Crystal Avenue.

Councilor Thrasher seconded by Councilor Benda, moved to postpone the sale of Lots 1, 2, and 3 of the City of Crystal Falls until such time as the TIF District is in place.

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

Motion Lost.

Councilor Valesano seconded by Councilor Koszyk, moved to advertise for bids for the sale of Lots #1, 2, and 3 of the plat of the City of Crystal Falls, with the minimum bid set at $8,000. Said sealed bids will be received by the City Clerk until 4:30 p.m. on Monday, July 12, 2004 and will be opened at the regular meeting of the City Council on that date.

Motion carried.

There were no applications received for the Planning Commission vacancy.

Manager Nordeman reported he has not yet received a reply to his letter to John Harrison regarding the V. J. Day Committee funds. Mayor Hendrickson requested the issue be placed on the agenda for the July 12^th meeting of the City Council for further consideration.

Councilor Thrasher seconded by Mayor Hendrickson moved to add WLUK-TV, FOX 11, to the City cable TV system and increase the cost to each subscriber by $1.00 once the channel is broadcast on the system.

Motion carried.

Mayor Hendrickson declared at 5-minute recess at 6:04 p.m.

Meeting resumed at 6:09 p.m.

Mayor Hendrickson appointed a committee including: Attorney Geoffrey Lawrence, Manger Charles Nordeman, City Clerk/Treasurer Dorothea Olson, Mayor Janet Hendrickson, and CEO President Tom Stachowicz to review and revise the personnel policy. Said committee will meet as often as necessary to complete the policy and present it to the City Council for action at the July 12, 2004 meeting. The first meeting of this committee was set for June 21, 2004 at 3:00 p.m. at City Hall.

Councilor Koszyk seconded by Councilor Benda to extend the meeting beyond the 6:30 p.m. adjournment deadline.

Motion carried.

Attorney Lawrence advised the Council that the hearing on the retiree’s lawsuit is scheduled for Tuesday, June 15^th at 2:00 p.m. at the Dickinson County Court House. Councilor Koszyk thanked Attorney Lawrence for his services regarding the lawsuit and commended him for his writing of the brief for the case.

Manager Nordeman was instructed to investigate the transfer agreement regarding the Crystal Falls Community Hospital building and the Council postponed action pending attempts to market this building.

Mayor Hendrickson seconded by Councilor Benda moved to approve the purchase of an ad in the Iron County Fair Book, 1/8 page for $75.00.

Motion carried.

Councilor Benda seconded by Councilor Valesano moved to approve and agreement with STS for professional engineering services for upgrades to the fire station floor. The amount of said contracted services is $2,880.00.

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to approve an agreement for ESPN (10 years) with National Cable Television Cooperative.

Ayes: Councilors Koszyk, Valesano, Thrasher and Mayor Hendrickson.

Nays: Councilor Benda.

Motion carried.

Mayor Hendrickson seconded by Councilor Benda moved to approve the following proclamation:

WHEREAS: The City of Crystal Falls, Michigan and the surrounding area have a long history of Finnish settlement; and

WHEREAS: Those Finnish immigrants who settled in this area were proud and resourceful citizens of this, their new country; and

WHEREAS: These same immigrants, realizing their future in this new land would depend entirely upon their efforts to build the community of Crystal Falls, thus labored in the fields, in the woods, and in the mines, performing with skill and determination whatever task to which they were assigned; and

WHEREAS: Because of these efforts their children and grandchildren and great grandchildren are proud to be called Finnish Americans; now

THEREFORE: By virtue of the authority vested in me by law, I, Janet Hendrickson, Mayor of the City of Crystal Falls, do hereby proclaim July 31, 2004 as Finnish Heritage Day, and further, I encourage all of the citizenry to support their Finnish-American neighbors in celebrating their heritage.

Proclamation adopted.

Mayor Hendrickson seconded by Councilor Benda moved that the payrolls and disbursements in the amount of $315,368.32 for the month of May 2004 are approved and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

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

Police Chief’s report indicating 144 complaints, 7 of which were closed by arrest and 3,173 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 2 fire calls; spending approximately 61.5 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.

Thank you letters from Bay Cliff Health Camp and the Crystal Falls Beautification Committee were read by Mayor Hendrickson.

Councilor Thrasher commended the Crystal Falls Beautification Committee for all their efforts to improve the perception of the City of Crystal Falls to visitors and residents through the annual flower and tree plantings.

Mayor Hendrickson commended the cemetery, park, and golf course works crews for "A Job Well Done" during the spring clean up in preparation for Memorial Day and the opening of the park and golf course.

Manager Nordeman advised the Council that Officer Greg Anderson has left his position with the City police force. The City is now operating with a 4-man police force.

Councilor Benda seconded by Councilor Koszyk move to adjourn the meeting at 7:05 p.m.