JUNE 21, 2006

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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 Wednesday, June 21, 2006 at 5:00 p.m. Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, and Valesano. Councilor Thrasher arrived at 5:12 p.m.

Absent: Councilor Stachowicz.

Also present were City Manager Nordeman, City Attorney Lawrence, Deputy City Clerk/Treasurer Simeoni, members of the local press, William Leonoff, Julie Melchori, Jeff Sjoquist, and Larry Bicigo.

The purpose of this special meeting was to discuss and consider action on:

Michigan Consolidated Gas Company v. Crystal Falls MTT Docket No. 248692 – settlement of tax assessment.

Request to Iron County EDC to officially adopt the Crystal Manor project.

Golf Course related issues.

Water Project review with Coleman Engineering

Mayor Hendrickson led all present in the Pledge of Allegiance.

Attorney Lawrence explained the Michcon suit regarding the tax assessment and recommended to settle by signing the consent order.

Mayor Hendrickson seconded by Councilor Valesano moved to sign the Stipulation for Consent Judgment with Michigan Consolidated Gas Company regarding the tax assessment utility multiplier table case.

Motion carried.

Councilor Thrasher entered the meeting at 5:12 p.m.

Iron County Economic Development Corporation (EDC) member William Leonoff explained how the EDC supplies technical expertise and information to municipalities pursuing economic development projects.

Mayor Hendrickson seconded by Councilor Heikkinen moved to request the Iron County Economic Development Corporation (EDC) adopt the Crystal Manor redevelopment as an official EDC project.

Motion carried.

Jeff Sjoquist of Coleman Engineering reviewed the water project status with the Council including an overview of the new mains, the City’s contract with MDOT for Superior Avenue, and the 4.224 million dollar loan from Rural Development. He noted the need to begin looking at rate scenarios as the user fees will be the source for payback of the Rural Development loan. He advised that MDOT will open bids on the Superior Avenue project December 1, 2006 with construction scheduled for spring 2007. Sjoquist reported that the agreement with Crystal Falls Township is expected to be ready for the July 10th Council meeting.

Manager Nordeman advised the Council that Robert Sliva was offered the $500 fee for Golf Course Marshal services proposed by the City Council at the June 12th meeting. Mr. Sliva countered with a figure of $600 which Manager Nordeman thought was reasonable enough as Mr. Sliva does do a good job with these duties.

Mayor Hendrickson seconded by Councilor Thrasher moved to pay Robert Sliva $600.00 for the 2006 season to perform the duties of Golf Course Marshall.

Ayes: Mayor Hendrickson, Councilors Valesano and Thrasher.

Nays: Councilor Heikkinen

Motion carried.

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

Motion carried.

Meeting adjourned at 6:31 p.m.