A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, March 14, 2005, at 5:00 P.M. Central Time.

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

Absent: None

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

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Councilor Thrasher seconded by Councilor Valesano moved that the minutes of the regular meeting of February 14, 2005 be approved as written.

Motion carried.

An amendment to add an item to "New Business": H. Appointments to the DDA was made by Mayor Hendrickson.

At 5:01 p.m. Mayor Hendrickson temporarily adjourned the meeting to conduct a public hearing regarding the Crystal Falls hospital facility.

PUBLIC HEARING:

Mayor Hendrickson explained that the City of Crystal Falls has the right to purchase the Crystal Falls hospital facility for $1.00 now that the Iron County Community Hospital (ICCH) has vacated the building. She went on to explain that should the City not re-acquire the building the ICCH board intends to demolish it before June 2005. Comments in favor of finding a use for the hospital building were heard from Jerry Cram, Packy Eckola, Mary Jane Soderberg, and John Faccin. The City Council all agreed that it would be nice to find a use and keep this historic landmark in the City, however, the City of Crystal Falls is not in a financial position to take on the project without passing the burden on to the taxpayers. Further they noted that with the demolition scheduled to take place before June 2005 there was no time to find an investor, that if someone was interested they would have to contact the ICCH Board and deal directly with them, not the City. The public hearing was adjourned at 5:37 p.m.

Meeting reconvened at 5:37 p.m.

Visitor William Leonoff introduced himself as the new Iron County Chamber of Commerce Director. He expressed the Chamber’s appreciation of the City’s membership and offered his assistance and cooperation to the City of Crystal Falls and all the business’s located here. He was congratulated on his new position and thanked by the Council for his commitment.

Tom Butz of Power System Engineering, Inc. gave a presentation on the Crystal Falls Purchase Power Costs, the history, trends, and alternatives.

Jeff Sjoquist of Coleman Engineering updated the Council on the water project including the 8-hour pumping test conducted on the Crystal Falls Township Lind well. He noted that the test went well and the Michigan Department of Environmental Quality was very optimistic about the venture.

Mayor Hendrickson seconded by Councilor Thrasher moved to accept the bid for sidewalk removal/replacement from Northern Concrete, Inc.(Said bid was:4" reinforced concrete sidewalk = $3.80 per sq. ft./6" reinforced concrete sidewalk = $4.45 per sq. ft. – includes rebar 3’ on center and 3 runs continuous.)

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

Motion carried.

The only other bidder on the sidewalk removal/replacement was Crystal Ridge Contracting.

Manager Nordeman reported on financial institution opportunities for the City. He recommended the City continue to hold First National Bank of Crystal Falls as its’ depository.

Councilor Thrasher seconded by Councilor Valesano moved to adjust the "Early-Out" retirement window to 1/6/2006 – 7/4/2006, to include the following hospitalization insurance:

The employee’s hospitalization insurance will be paid by the City until the employee’s demise.

Upon retirement the employee will be covered by a Master Medical Plan with a drug card until they become eligible for Medicare, at which time they will be required to accept all plans offered by Medicare.

Once on Medicare coverage the employee will be covered by a supplemental policy with premiums paid by the City.

The retired employee’s spouse’s insurance will be paid by the City only until the spouse becomes eligible for Medicare or the employee dies, whichever comes first.

In addition, the employees eligible for this "Early Out" retirement must advise the City Manager by May 1, 2005 as to their intentions regarding this option.

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

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to NOT purchase military time for employees.

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

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to extend the meeting beyond the 7:00 p.m. adjournment time.

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to accept the distribution of the V-J Day Celebration Committee funds and also to accept ownership of the V-J Day Celebration float, and to direct the City Clerk to forward a letter of thanks to the V-J Day Committee.

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

Motion carried.

Councilor Thrasher seconded by Councilor Valesano, moved to send a letter to the Iron County Community Hospital Board of Directors indicating that the City of Crystal Falls does not wish to exercise its right to assume ownership of the Crystal Falls hospital facility.

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

Motion carried.

Mayor Hendrickson seconded by Councilor Thrasher moved to appoint Carol Azan to the Crystal Falls Planning Commission to the remainder of a term that expires April 30, 2005.

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

Motion carried.

Mayor Hendrickson seconded by Councilor Thrasher moved to approve and authorize the Mayor and City Clerk to sign the 2005-2006 cemetery agreements with Crystal Falls, Mastodon, and Mansfield Townships.

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

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to accept the City Manager’s recommendation to restrict septic hauling to the City’s sewer system to May 1 – September 15 each year.

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

Motion carried.

Council Thrasher seconded by Mayor Hendrickson moved to instruct the City Manager to negotiate with septic haulers for a fee to dump into the City’s sewer system, and for a contract for services they provide to the City.

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

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to adopt the following resolution:

RESOLUTION

Whereas, the Michigan Department of Transportation is planning realignment work on portions of Highway US-2 in Crystal Falls Township to allow for the construction of a passing relief lane, and

Whereas, it has been determined by the Michigan Department of Transportation that certain facilities, power lines and poles, are owned by the City of Crystal Falls require relocation to facilitate the construction of said passing relief lane, and

Whereas, the parties hereto have reached an understanding regarding this relocation project and desire to set this forth in the form of a written agreement,

Now Therefore Be It Resolved, the Council for the City of Crystal Falls authorizes the City Manager and City Clerk/Treasurer to execute said written agreement on behalf the City of Crystal Falls.

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

Resolution Adopted.

Councilor Thrasher seconded by Councilor Stachowicz moved to adopt the following resolution:

RESOLUTION

Whereas, the Council for the City of Crystal Falls is deeply concerned for the safety and well being of the whole of Iron County and the detrimental impact of the proposed closure of the Iron River State Police Post, and

Whereas, the Council for the City of Crystal Falls is cognizant of the fact that the Iron River State Police Post plays an important role in the safety of citizens and visitors alike, and

Whereas, 60% of the cases handled by the 95-B District Court in Iron County in 2003 and 71% in 2004 were Michigan State Police cases that resulted in an estimated $240,000 benefit to the Libraries and Court system, and

Whereas, the location of Michigan State Correction Camp Ottawa is in close proximity to the Iron River State Police Post and the closure of this post will result in an additional one hour response time from either the Wakefield or Iron Mountain State Police posts, posing even further safety concerns for the citizens of Iron County,

Now Therefore Be It Resolved, that the Council for the City of Crystal Falls hereby opposes the closure of the Iron River Post of the Michigan State Police due to the economic and safety impact on Iron County,

Be it Further Resolved, that a copy of this resolution be sent to Governor Granholm, Representative Rich Brown, and Senator Mike Prusi.

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

Resolution Adopted.

Mayor Hendrickson seconded by Councilor Thrasher moved to appoint Patrick Sommers to the Downtown Development Authority to serve the remainder of a term that expires November 30, 2008, and further, to appoint Jeffrey Syrjanen to the Downtown Development Authority to serve the remainder of a term that also expires November 30, 2008.

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

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved that the payrolls and disbursements in the amount of $355,074.73 for the month of February 2005 be approved, and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

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

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to approve the disbursements from the Electric Utility Construction Account in the amount of $146,455.14 as drawn on checks #1052-1058 by the City Clerk.

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

Motion carried.

Councilor Thrasher seconded by Councilor Valesano, moved to accept the following reports for the month of February 2005:

Police Chief’s report indicating 89 complaints, 2 of which were closed by arrest and 1,956 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 2 fire calls; spending approximately 36.5 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.

Reports from the Councilors were heard regarding the Contemporary Center, Theater, and Museum board meetings.