A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, May 10, 2004, at 4:30 P.M. Central Time.

Roll call: Mayor Hendrickson, Councilors Koszyk, Thrasher, 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.

Councilor Koszyk seconded by Councilor Benda moved to approve the minutes of the regular meeting of April 12, 2004 and special meetings of April 18, 2004 and April 22, 2004 as written.

Motion carried.

Mayor Hendrickson announced amendments to the agenda to include moving Items 9 (D) and 9(E) to follow Item 5.

Mayor Hendrickson proceeded with an explanation to the audience of her new position as Mayor. She recited from the City Charter, Section 2.03, which explains that with Mayor Sabo’s resignation, effective April 27, 2004, Mayor Pro-Tem Hendrickson shall become mayor for the remainder of the unexpired term.

Councilor Koszyk seconded by Councilor Thrasher moved to accept Joseph D. Sabo’s resignation from the office of Mayor.

Motion carried.

Mayor Hendrickson reported the receipt of two letters of interest in the vacant seat on the City Council. She indicated that perhaps they should further advertise for the position and invite all the applicants to a special meeting at which they will be interviewed by the City Council. The special meeting was set for Monday, May 24, 2004 at 4:30 p.m.

Councilor Benda seconded by Mayor Hendrickson moved to appoint Councilor Thrasher to be the Mayor Pro-tem for the Council.

Motion carried.

Councilor Thrasher accepted the appointment.

Councilor Benda seconded by Councilor Koszyk moved to approve the contribution of $2000.00 to the Forest Park Community School Summer Recreation Program.

Motion carried.

Mark Agnessi, Iron County Economic Developer, reported on the importance of the implementation of a Tax Increment Financing Plan (TIF) for the City of Crystal Falls. He asked that the City Council take action by the June 2004 meeting in order to allow the renovation of the Crystal Manor building to proceed. Lori Baukus of the Crystal Falls DDA also expressed the need to move forward with the plan. Following a lengthy discussion on the TIF Plan, Mayor Hendrickson directed Clerk Olson to publish notice of a Public Hearing on the TIF Plan to be held on June 14, 2004 during the regular meeting of the City Council.

Frank Groenveld addressed the Council with a request to replace the 6 trees that were removed at the Harbour House Museum with 6 mature maples.

Jeff Sjoquist of Coleman Engineering reported on the water project and indicated they now have the information needed to proceed with the preliminary engineering report and environmental report for a new water filtration system.

Councilor Koszyk seconded by Councilor Benda, moved to contract with STS Consultants for engineering services for modifications to the Wagner Sewer Lift Station at a cost not to exceed $3,500.00.

Motion carried.

Councilor Benda seconded by Councilor Koszyk moved to allow the continued use of a portion of the auditorium stage as a weight lifting room by City and Fire Department employees only, providing it is kept clean, and further, that no one under 18 be permitted.

Ayes: Councilor Benda and Koszyk

Nays: Councilor Thrasher and Mayor Hendrickson

Motion failed.

Councilor Koszyk seconded by Councilor Thrasher moved to allow the continued use of a portion of the auditorium stage as a weight lifting room by City, Fire Department, and County law enforcement employees only, providing it is kept clean, and that no one under 18 be permitted.

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

Motion carried.

Councilor Benda seconded by Councilor Koszyk moved to set the date of May 24, 2004 at 4:30 p.m. as a Public Hearing date for the consideration of Ordinance No. 1.10 – an Ordinance to authorize the City of Crystal Falls to convey or authorize the conveyance of any lands of the city.

Motion carried.

Councilor Thrasher seconded by Councilor Koszyk moved to advertise for bids for the sale of lots #1, 2, & 3 of the plat of the City of Crystal Falls, with the minimum bid set at $15,000.00. Said sealed bids will be received by the City Clerk until 4:30 p.m. on Monday, June 14, 2004 and will be opened at the regular meeting of the City Council on that date.

Motion carried.

Councilor Koszyk seconded by Councilor Thrasher moved to allocate $1,500.00 for tree planting at the Industrial Park and the Harbour House Museum.

Ayes: Mayor Hendrickson, Councilors Thrasher and Koszyk.

Nays: Councilor Benda.

Motion carried.

Council Koszyk seconded by Councilor Benda moved to adopt the following resolution:

County of Iron, State of Michigan

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WHEREAS, the City of Crystal Falls, County of Iron, State of Michigan (the "City") intends to issue and sell bonds, pursuant to Act 94, Public Acts of Michigan, 1933, as amended, in an amount not to exceed Nine Hundred Fifty Thousand Dollars ($950,000) for the purposes of paying all or part of the cost of improvements to the electric utility system, consisting generally of the improvements described on Exhibit A attached hereto, together with related sites, structures, equipment and appurtenances (the "Project"), to serve the City; and

WHEREAS, a notice of intent to issue bonds must be published before the issuance of the aforesaid bonds in order to comply with the requirements of Section 33 of Act 94, Public Acts of Michigan, 1933, as amended; and

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The Clerk of the City is hereby authorized and directed to publish a notice of intent to issue bonds in the Iron County Reporter, a newspaper of general circulation in the City.

2. Said notice of intent shall be published as a one-quarter (1/4) page display advertisement in substantially the following form:

NOTICE TO TAXPAYERS AND ELECTORS OF THE CITY OF CRYSTAL FALLS,

MICHIGAN AND THE USERS OF THE CITY’S

ELECTRIC UTILITY SYSTEM OF INTENT TO ISSUE BONDS AND THE

PLEASE TAKE NOTICE that the City of Crystal Falls, Michigan (the "City"), intends to issue and sell revenue bonds pursuant to Act 94, Public Acts of Michigan, 1933, as amended, in an amount not to exceed Nine Hundred Fifty Thousand Dollars ($950,000), for the purpose of paying all or part of the cost of improvements and extensions to its electric utility system, consisting generally of the automation of the City of Crystal Falls’ hydroelectric power plant, together with related sites, structures, equipment and appurtenances, to serve the users of the City’s electric utility system.

THE PRINCIPAL OF AND INTEREST ON SAID REVENUE BONDS SHALL BE PAYABLE solely from the revenues received by the City from the operations of said electric utility system. Said revenues will consist of rates and charges that may from time to time be revised to provide sufficient revenues to provide for the expenses of operating and maintaining the system, to pay the principal of and interest on said bonds and to pay other obligations of the system.

SAID BONDS will be payable in annual installments not to exceed thirty (30) in number and will bear interest at the rate or rates to be determined at public or private sale but in no event to exceed seven-percent (7%) per annum on the balance of the bonds from time to time remaining unpaid.

THE REVENUE BONDS WILL BE ISSUED WITHOUT A VOTE OF THE ELECTORS UNLESS A PETITION REQUESTING SUCH A VOTE SIGNED BY NOT LESS THAN 10% OF THE REGISTERED ELECTORS RESIDING WITHIN THE BOUNDARIES OF THE CITY IS FILED WITH THE CITY CLERK OF THE CITY, 401 SUPERIOR AVENUE, CRYSTAL FALLS, MICHIGAN 49920, WITHIN FORTY-FIVE (45) DAYS AFTER PUBLICATION OF THIS NOTICE. IF SUCH PETITION IS FILED, THE BONDS MAY NOT BE ISSUED WITHOUT AN APPROVING VOTE OF A MAJORITY OF THE QUALIFIED ELECTORS RESIDING WITHIN THE BOUNDARIES OF THE CITY VOTING THEREON.

THIS NOTICE is given pursuant to the requirements of Section 33, Act 94, Public Acts of Michigan, 1933, as amended.

___________________________________

Dorothea Olson, City Clerk

City of Crystal Falls

3. The City Council of the City does hereby determine that the foregoing form of Notice of Intent to Issue Bonds and the manner of publication directed is the method best calculated to give notice to the electric system’s users and the electors residing in the boundaries of the City of this City’s intent to issue the bonds, the purpose of the bonds, the security for the bonds and the right of referendum relating thereto, and the newspaper named for publication is hereby determined to reach the largest number of persons to whom the notice is directed.

4. The law firm of Miller, Canfield, Paddock and Stone, P.L.C. is retained as bond counsel in connection with the issuance of bonds for the Project.

All resolutions and parts of resolutions insofar as they conflict with the provisions of this resolution be and the same hereby are rescinded.

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Exhibit A: City of Crystal Falls

Hydroelectric Power Plant Automation

The purpose of the automation of the power plant is twofold:

Replace the existing manual control systems for the three turbine/generators of the plant with automatic control systems in order to decrease operating costs.

Upgrade existing equipment with safer and more efficient equipment. The new major pieces of equipment shall include switchgear, relay panels, governor systems, excitation equipment, crane/hoist system, water pumping equipment, fire prevention system, programmable logic controls and a human interfacing unit.

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AYES: Mayor Hendrickson; Councilors Thrasher, Benda and Koszyk.

Councilor Benda seconded by Councilor Koszyk moved to re-appoint Benjamin Feldhausen to a three (3) year term on the Crystal Falls Planning Commission with said term expiring April 30, 2007.

Motion carried.

Councilor Koszyk seconded by Councilor Benda moved to re-appoint Lee Siler to a three (3) year term on the Crystal Falls Planning Commission with said term expiring April 30, 2007.

Motion carried.

Clerk Olson was instructed to advertise for applicants to fill the vacancy on the Planning Commission, the remainder of a term that will expire on April 30, 2005.

Councilor Thrasher seconded by Councilor Benda moved to set the 2004 Runkle Lake Park camping rates at:

Sites #1-#17-(ELECTRIC/WATER/SEWER)=$17.00/DAY-MONTHLY RATE: $459

Sites #18 -#57-(ELECTRIC & WATER)=$12.00/DAY- MONTHLY RATE: $324 CAMP 7 CONSECUTIVE DAYS AND GET THE 7^TH DAY FREE!

MONTHLY RATES REQUIRE 31 CONSECUTIVE DAYS OF CAMPING.

Motion carried.
Councilor Koszyk seconded by Councilor Thrasher moved to approve the following resolution of proclamation:

PROCLAMATION SUPPORTING BAY CLIFF HEALTH CAMP

AND A PROPOSED FEDERAL APPROPRIATION

FROM HEALTH, LABOR AND SOCIAL SERVICES

WHEREAS, Bay Cliff Health Camp was established in 1934 as a voluntary non-profit organization under the leadership of officials of the Michigan Public Health Department to serve the underprivileged and undernourished children from the fifteen counties of Michigan’s Upper Peninsula; and

WHEREAS, Bay Cliff Health Camp was established in Big Bay, Michigan, in northern Marquette County, utilizing a secluded farm as a site and through special funding from the Michigan Crippled Children’s Fund initiated by Sen. James Couzens, was secure in adding facilities to serve and treat children with polio beginning in the early 1940’s; and

WHEREAS, Bay Cliff Health Camp, as a non-profit 501(c)(3) organization and led by a volunteer board of directors, raises contributions to fund, at no cost to the families, the attendance of all Upper Peninsula children who attend the seven-week summer therapy camp program; and

WHEREAS, during its 70 years, Bay Cliff Health Camp has served over 11,000 children and continues to serve children from across the entire Upper Peninsula who have physical disabilities such as cerebral palsy; traumatic brain injury; spinal cord injury; degenerative neurological diseases; and various speech, hearing, and vision disabilities; and has helped these children to lead successful, productive lives; and

WHEREAS, the Bay Cliff Health Camp board of directors has set a bold vision to renovate its 70-year-old facilities in order to make them accessible by the standards of the Americans with Disabilities Act and to upgrade the facilities to make them inhabitable year round, thereby enabling the camp to offer health and therapy programs year round for more children and adults with various disabilities; and

WHEREAS, this body recognizes the significant benefit that Bay Cliff Health Camp has provided to the health of many members of this community over the years, and offers support for the proposed appropriation in the United States Health, Labor and Social Services fiscal year 2005 budget that would assist Bay Cliff Health Camp with the renovation of its facilities; now

THEREFORE, BE IT RESOLVED that the Council for the City of Crystal Falls proclaims that a special day of recognition be established as Bay Cliff Health Camp Day on Saturday, July 17, 2004.

Councilor Koszyk seconded by Councilor Benda moved to approve the following resolution of recognition:

Resolution adopted.

Mayor Hendrickson at the Citizen of the Year Banquet will present said resolution to Dr. Smith.

Councilor Benda seconded by Councilor Koszyk moved to extend this meeting of the City Council beyond the 6:30 p.m. adjournment time.

Motion carried.

Manager Nordeman advised the Council that June 4^th and 5^th have been set aside for the annual "Spring Clean Up" with the drop-off site located at the Bristol Mine. The annual yard waste pick up will be conducted the week of May 24^th – 28^th. Ads will be placed advising the residents.

Manager Nordeman informed the Council of funds due to the City from the now defunct V.J. Day Committee. He noted that the funds are in the neighborhood of $20,000 and he has penned a letter to John Harrison, Chairman of the V.J. Day Committee regarding the issue. Former committee members Donna Nocerini and Packy Echola offered suggestions on where to spend the monies. Manager Nordeman will keep the Council advised regarding the status of the matter.

Councilor Koszyk seconded by Mayor Hendrickson moved to authorize Manager Nordeman and Attorney Lawrence to pursue the possibility of a land exchange with Mike Casanova regarding property at the Power Plant Boat Landing site.

Motion carried.

Councilor Thrasher seconded by Councilor Benda moved that the payrolls and disbursements in the amount of $314,494.15 for the month of April 2004 are approved and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Benda seconded by Councilor Koszyk, moved to accept the following reports for the month of April 2004:

Police Chief’s report indicating 114 complaints, 6 of which were closed by arrest and 2,872 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 1 fire call; spending approximately 11 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.

A report on the Theater Board was heard from Councilor Koszyk.

A report on the Fire Authority Board was heard from Mayor Hendrickson.