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DRAFT A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Wednesday, May 10, 2006 at 3:00 p.m. Central Time. Present: Mayor Hendrickson, Councilors Heikkinen, Valesano and Stachowicz. Absent: Councilor Thrasher Also present were City Manager Nordeman, City Attorney Lawrence, City Clerk/Treasurer Olson, Chief Electrician David Graff, and Lynn Perry. The purpose of this special meeting was to discuss and consider action on: WE Energies Contract Electric Rates Hiring of an electric lineman Recommendation on electric line extension charges Recommendation on an Ordinance for utility rate increases Mayor Hendrickson led all present in the Pledge of Allegiance. The meeting was temporarily moved into Manager Nordeman’s office in order to conduct a phone conference with Al Robbins of Jennings, Strouss, and Salmon, who was hired to negotiate a new contract with WE Energies on behalf the City. Mr. Robbins reviewed the terms of the contract and answered questions of the Council. The phone conference ended at 4:00 p.m. and the meeting was moved back to the Council Chambers. Councilor Stachowicz seconded by Councilor Heikkinen moved to ratify the five (5) year contract with WE Energies with the addition of language in 2.08 (a) so it reads.. "(a) The prices and pricing components in sections 2.02, 2.03, 2.04, 2.05, 2.06, and 2.07 shall not be subject to change prior to January 1, 2007, absent mutual consent of the Parties, except that the Distribution Facility Charge set forth in Section 2.04 may be challenged by the City and is subject to refund with interest back to the effective date of this Agreement to the extent that any such challenge by the City results in a rate less than that stated in section 2.04.", and further authorized Manager Nordeman to sign said contract on behalf the City. Motion carried. The added language appears in italics in the previous motion. Councilor Valesano seconded by Councilor Heikkinen moved to approve the hiring of a consultant and attorney to assist in the examination of WE Energies wholesale general formula rate filing with FERC and the distribution charge stated in the contract. Motion carried. Councilor Heikkinen seconded by Councilor Valesano moved to direct Manager Nordeman to look at consolidating interests with Alger Delta and Ontonagon REA in the examination (and protesting if required) of WE Energies FERC filing. Motion carried. Councilor Valesano seconded by Councilor Stachowicz moved to set the electric rates as recommended by the Electric Advisory Committee, and further that the rates are effective retroactively and will be applied to the billing mailed to customers on May 31, 2006. The rates are: Residential Rate: First 30 KWH = $6.50 Balance over 30 KWH @ .0945 per KWH Residential Electric Heat is same as residential rate. Electric Hot Water is same as residential rate. Commercial Rate: Meter Charge =$9.00(Minimum) Next 1000 KWH @ .099 =$ 99.00 Next 3000KWH @ .091=$273.00 5000 $481.00 Balance over 5000 KWH @ .079 per KWH Industrial Rate is same as commercial rate. Electric Heat Commercial is same as commercial rate. Street Lights: 175 W MV/150 W HPS = $11.35 Dusk To Dawn: 175 W MV/150 W HPS D-D = $11.35 Motion carried. Mayor Hendrickson seconded by Councilor Valesano moved to set a public hearing date of June 12, 2006 at 5:00 p.m. for an amendment to Ordinance 2.14, and amendment to provide authority for City Council to regulate rates charged for electricity. Ayes: None Nays: Mayor Hendrickson, Councilors Heikkinen, Valesano, and Stachowicz. Motion failed. The Council referred the ordinance back to the Electric Advisory Committee and Attorney Lawrence for clarification prior to action by the Council. Mayor Hendrickson seconded by Councilor Valesano moved to direct Manager Nordeman to create a written policy on electric line extensions and service installations for both city and township customers. Motion carried. Councilor Heikkinen seconded by Councilor Stachowicz moved to approve the hiring of Robert Fabbri as an electrician and set his compensation at Electrician-Step 1 ($15.36/hour) on the wage scale. Motion carried. It was understood that Mr. Fabbri’s hiring is contingent on the results of a physical examination. Councilor Heikkinen seconded by Councilor Valesano moved to adjourn this meeting. Motion carried. Meeting adjourned at 5:18 p.m.
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