A special meeting of the Council for the City of Crystal Falls was held in the Council Chambers at the City Hall on Monday, June 16, 2008 at 5:00 pm Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Valesano, Smokevitch, and Bicigo.

Absent: None

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

Visitors in attendance included: Jeff Bal and Robb Anderson of STS, Lynn Perry, and Ron Basso. Also in attendance was Nancy McIntyre of Superior Reporting who was present to record the Public Hearing on the SRF Sewer System Improvements.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

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

Public Hearing – SRF Sewer System Improvements Project

Resolution for Final Project Plan for the Sewer System Improvements Project.

Public Hearing – Application for Financial Assistance for a Public Parking Facility.

Offer to purchase real estate for public parking facility – Santi, LLC (as amended by Santi and the City).

Legal opinion on construction credit for electric installations.

Mayor Hendrickson temporarily adjourned the meeting to conduct the public hearing on the sewer system improvements at 5:01 p.m.

Jeff Bal of STS explained how the City had obtained an S-2 Grant to pay for the engineering plans of sewer system improvements. He gave a power point presentation on the various options for future sewer improvements with the Western Lift Station and force main at the top of the list. The cost of this project was estimated at $345,000. The funding for the project will be paid with existing funds, the Sewer Bond Reserve, and Sewer Replacement and Repair Accounts currently held by the City with no rate increase to the consumers. Mr. Bal went over the adverse impacts of the proposed project which included construction dust, noise and traffic delays. The proposed schedule for the project was reviewed. July 1, 2008 is the deadline to submit the final plan, in October the project will be ranked by DEQ, during the fall and winter, 2008-2009, the design engineering will be developed, and in July 2009 the construction will begin.

There were no public questions or comments.

The City Councilors asked various questions regarding funding, project priorities, and the rating of the project by the State. Manager Nordeman commended the City Council for being proactive enough to proceed with this project.

Mayor Hendrickson closed the public hearing at 5:23 p.m.

(A verbatim record of this hearing was taken by Superior Reporting and will be bound in the project file and kept at the City Hall)

Special Meeting reconvened.

Mayor Hendrickson seconded by Councilor Valesano moved to adopt the following:

A RESOLUTION ADOPTING A FINAL PROJECT PLAN

FOR THE CITY OF CRYSTAL FALLS

SEWER SYSTEM IMPROVEMENTS PROJECT

AND

DESIGNATING AUTHORIZED PROJECT REPRESENTATIVES

WHEREAS, the City of Crystal Falls recognizes the need to make

improvements to its wastewater sanitary sewer system; and

WHEREAS, the City of Crystal Falls authorized STS to prepare the Project Plan, which recommends the replacement of the Western Lift Station and its forcemain; and

WHEREAS, said Project Plan was presented at a Public Hearing held on June 16, 2008 at 5:00 P.M. at the Crystal Falls City Hall and all public comments have been considered and addressed;

NOW THEREFORE BE IT RESOLVED, that the City of Crystal Falls formally adopts said Project Plan and agrees to implement the selected alternative including the replacement of the Western Lift Station and its force main.

BE IT FURTHER RESOLVED, that the City of Crystal Falls City Manager, a position currently held by Charles Nordeman and the City of Crystal Falls

Public Works Foreman, a position currently held by Kelly Stankewicz, are

designated as the authorized representatives for all activities associated with the project referenced above, including the submittal of said Project Plan as the first step in applying to the State of Michigan for a State Revolving Fund Loan to assist in the implementation of the selected alternative.

YEAS: Mayor Hendrickson, Councilors Heikkinen, Smokevitch,

Valesano, and Bicigo.

NAYS: None

Resolution adopted.

Mayor Hendrickson temporarily adjourned the meeting to conduct the public hearing on the application for Financial Assistance for a Public Parking Facility at 5:34 p.m.

Manager Nordeman explained the plans for a parking facility which will be located to the West and North of the former Crystal Manor building. He advised that the amended Offer to Purchase Real Estate has been signed by Ken Santi and remains to be approved by the City Council. The application shows the estimated funding as $181,900 in federal funds, $120,000 in State funds, and $60,000 in local funds for a total of $361,900.

There were no comments from the public.

Councilor comments included the increasing cost of the re-development of the building for the City, the job credits that could be realized with a MSHDA grant, and the expected closing with Hovey Companies in early July. Councilor Bicigo noted that this re-development project was becoming very expensive for the City and was concerned on how to fund the local portion.

Mayor Hendrickson closed the public hearing at 5:55 p.m.

Councilor Heikkinen seconded by Mayor Hendrickson moved to approve the application for financial assistance and/or a resolution, as needed, to complete the application process.

Yeas: Mayor Hendrickson, Councilors Heikkinen, Smokevitch, and Valesano. Nays: Councilor Bicigo.

Motion carried.

The amended offer to purchase real estate from Santi Diversified, LLC was presented and discussed. The amendments included changing #3 from "180 days" to "45 days" and the addition of paragraph #9 which makes the offer contingent on Hovey Companies obtaining final approval of its plan and securing funding from MSHDA.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve the amended "Offer to Purchase Real Estate" from Santi Diversified, LLC for use as a public parking facility as follows:

OFFER TO PURCHASE REAL ESTATE

The undersigned, CITY OF CRYSTAL FALLS, hereby offers and agrees to purchase the following real estate situated in the City of Crystal Falls , County of Iron and State of Michigan, described as follows:

The East 29.87 feet of Lot 217 and the East 29.87 feet of Lot 218, City of Crystal Falls, according to the recorded plat thereof:

together with all improvements and appurtenances thereto, and to pay to the Seller, SANTI DIVERSIFIED, LLC, by Kenneth R. Santi, its President, the sum of Forty-five thousand DOLLARS ($45,000.00), subject to the existing easements, exceptions, reverters and reservations of record; zoning ordinances or regulations, if any, ores and mineral interests of record, together with mining and development rights thereto; and those matters discoverable by an inspection or any accurate survey of the land.

As part of it's consideration in this offer the City of Crystal Falls will also convey to Seller the following described parcel of land situated in the City of Crystal Falls, Iron County, Michigan being that portion of the Northeast Quarter of the Southeast Quarter, Section Twenty-eight Township Forty-three North, Range Thirty-two West LYING NORTH of Bortolini Road.

Seller further agrees to pay 50% of a Phase I Environmental Study on that portion of Lots 217 and 218 to be conveyed up to a maximum of $1,500.00 (the Sellers portion being a maximum of $750.00)

THIS SALE TO BE CONSUMMATED BY DELIVERY OF THE USUAL WARRANTY DEED CONVEYING A MARKETABLE TITLE.

As evidence of title, Seller, "SANTI" agrees to furnish Purchaser, "CITY" a Policy of Title Insurance issued by A Title Insurance Company in an amount not less than the purchase price, bearing date later than the acceptance hereof and guaranteeing the title in the condition required for performance of this offer.

If this offer is accepted by the Seller, and if title can be conveyed in the condition required hereunder, the Purchaser agrees to complete the sale with 45 days of Seller meeting all requirements set forth in the Title Insurance Policy.

In the event of default by the Seller hereunder, the Purchaser may, at Purchaser's option, elect to enforce the terms hereof.

If objections to the title is made, based upon a written opinion of Purchaser's attorney that the title is not in the condition required for performance hereunder, the Seller shall have thirty (30) days from the date Seller is notified in writing of the particular defects claimed to remedy the title.

All taxes and assessments which have become due and a lien upon the land at the date of this agreement shall be paid by the Seller up to the date of the sale. Current taxes that have not become due and payable, if any, shall be prorated and adjusted as of the date of sale.

If the Phase I Environmental Study reveals conditions which make the City of Crystal Falls intended use of Lots 217 and 218 not feasible then the City of Crystal Falls shall have the right to withdraw this Offer to Purchase and both parties will be released from the obligations contained in this agreement.

The covenants herein shall bind and inure to the benefit of the heirs, successors and assigns of the respective parties, including any fiduciaries thereto.

Councilor Heikkinen seconded by Mayor Hendrickson moved to adjourn the meeting.

Motion carried.

Meeting adjourned at 6:50 p.m.