NOV 10, 2008

UTILITY BILL PAYMENT OPTIONS

A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, November 10, 2008 at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Hagglund, Burke, Bicigo, and Smokevitch.

Absent: None

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

Visitors: Jeff Sjoquist; Tara Peltoma; Donna Nelson; Lynn Perry; Edna Heikkinen; and Jack Schultz.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Mayor Hendrickson welcomed the two newly elected members of the City Council, Jim Burke and Jeff Hagglund.

City Clerk/Treasurer, Dorothea Olson, administered the Oaths of Office to Councilors Jim Burke and Jeff Hagglund.

Mayor Hendrickson seconded by Councilor Smokevitch moved to accept the Iron County Board of Canvassers Certificate of Determination of the General Election held on November 4, 2008 which showed that Jim Burke and Jeff Hagglund were each elected to the Office of City Councilor for four (4) year terms which will expire in November 2012.

Motion carried.

Councilor Bicigo seconded by Councilor Burke moved to accept Mayor Hendrickson’s list of Council assignments as follows:

CITY OF CRYSTAL FALLS

COUNCIL ASSIGNMENTS

NOVEMBER 2008 - NOVEMBER 2010

Mayor Janet Hendrickson:

Member – Crystal Falls Fire Authority

Golf Advisory Committee

Planning Commission

Downtown Development Authority

Employee Negotiations

Liaison – Community Library Board

Harbour House Museum Board

Dickinson-Iron Community Services Agency

Upper Peninsula Community Services Inc.

Councilor Jeff Hagglund:

Member - Golf Course Advisory Committee

Liaison - Contemporary Center

Crystal Theater Board (Sub Liaison)

Councilor Jim Burke:

Liaison - Crystal Theater Board

Downtown Development Authority

Contemporary Center (Sub Liaison)

Councilor Jack Bicigo:

Member - Planning Commission

Industrial Park Committee

CATV System

Employee Negotiations

Councilor Mike Smokevitch:

Crystella Ski Hill

Runkle Lake Park

Lincoln Park

Motion carried

In addition to the above each Councilor shall serve on the audit committee per a schedule compiled by Mayor Hendrickson.

Councilor Hagglund seconded by Councilor Burke moved to set the date and time of the regular meetings of the City Council to be the 2^nd Monday of each month at 5:00 p.m.

Motion carried.

Councilor Bicigo seconded by Councilor Hagglund moved to retain the current depositories for City funds (First National Bank of Crystal Falls, Fifth Third Bank Northern Michigan, and the American Transmission Company).

Motion carried.

Councilor Bicigo seconded by Councilor Hagglund moved to adopt the Council rules as amended.

Motion carried.

Mayor Hendrickson signed a "Conflict of Interest Declaration" with no conflicts identified.

Councilor Bicigo signed a "Conflict of Interest Declaration" declaring his conflicts as: City Mechanic, Larry Bicigo, brother and issues regarding retirees (himself and his father – Emil Bicigo).

Councilor Smokevitch signed a "Conflict of Interest Declaration" declaring his conflicts as: City Crossing Guard – Albert Smokevitch, brother and issues regarding retirees (himself and his father – Joseph Smokevitch.

Councilor Burke signed a "Conflict of Interest Declaration" with no conflicts identified.

Councilor Hagglund signed a "Conflict of Interest Declaration" declaring his conflicts as: Public Works employee, John Lortie, his father-in-law and his great uncle, Walt Hagglund is a retiree.

Councilor Bicigo seconded by Councilor Burke moved that the items on the Consent Agenda be approved as noted below:

The minutes of the regular meeting of October 13, 2008 as written.

The following reports for the month of October 2008:

Joint Fire Authority report, as submitted by Fire Chief Ahola, indicating answering four (4) fire calls; spending approximately 153.5 man-hours fighting fires; and holding no (0) practice and training sessions.
Police report, as submitted by Police Chief Robert Sherwin, indicating 220 complaints, of which 7 were closed by arrest, and logging of 2,193 miles on patrol duty.
Electric Department activity report as submitted by David Graff, Chief Electrician.
Public Works Department activity report as submitted by Foreman Kelly Stankewicz.
Treasurer’s Revenue Report as submitted by Clerk/Treasurer Dorothea Olson.

3. Payrolls and disbursements in the amount of $509,633.20, be approved, and instruct the City Clerk to draw checks on the City Treasury in payment of same.

Motion carried.

Mayor Hendrickson noted that when employees are traveling on City business the tax exemption certificate should be used when possible to reduce the cost to the City.

Mayor Hendrickson amended the agenda to move New Business, Item B the use of ACH/Credit card payments up to the visitors in attendance section.

Visitors: Donna Nelson of 501 Fairway Rd addressed the Council with concerns about her water line and a "standing water" problem at her home.

Jack Schultz addressed the Council concerning a billing for water in his rental unit on S. 4^th street. He requested some form of relief from the billings as they were quite high. The Council expressed their sympathy but did not give any concessions to Mr. Schultz as the billings were correct for the amount of water that passed through the meter.

Tara Peltoma, representing the Lincoln Park Playground Committee, presented a proposal to use the kitchen at the ski hill to sell concessions during the ski season with all the proceeds going toward the playground equipment.

Mayor Hendrickson seconded by Councilor Smokevitch moved to approve the use of the Ski Hill Concession area for fund raising by the Lincoln Park Playground Committee, and further that the City will pay the health department license fees that will be required.

Motion carried.

Tara Peltoma, Deputy Clerk/Treasurer, reviewed proposals for ACH/Credit card payment services to be implemented by the City.

Mayor Hendrickson seconded by Councilor Burke moved to approve ACH and Credit Card payments to the City through the use of the services of the First National Bank of Crystal Falls.

Motion carried.

Manager Nordeman and Mayor Hendrickson updated the Council on the issues discussed at the DDA meeting held earlier in the afternoon.

Mayor Hendrickson seconded by Councilor Hagglund moved to appoint Jeff Syrjanen to the DDA for another 4 year term.

Motion carried.

Mayor Hendrickson seconded by Councilor Burke moved to appoint Pat Sommers to the DDA for another 4 year term.

Motion carried.

Manager Nordeman updated the Council on the Crystal Manor project and announced that Hovey Companies will no longer be required to sell tax credits and the reconstruction could begin soon.

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

RESOLUTION

WHEREAS, the City of Crystal Falls is desirous of undertaking the construction of a public parking lot with dedicated tenant parking for the Crystal View Apartments, and

WHEREAS, the funding for the public parking lot is anticipated to be compiled of a loan from USDA Rural Development in the amount of $212,000; a grant from the Michigan State Housing Development Authority (MSHDA) in the amount of $120,000; and a local match from the City of Crystal Falls in the amount of $60,000, with the grand total construction cost of $392,000, and

WHEREAS, this project is consistent with the overall community development plan for downtown Crystal Falls and more importantly, the renovation of this structure is critical to the City’s overall marketing plan and is a complimentary project to the recently completed Streetscape project, and

WHEREAS, at least 51% of the beneficiaries of the proposed project would be low and moderate income persons, and

WHEREAS, no project cost (either CDBG or non-CDBG) will be incurred prior to a formal grant award, completion of the environmental review procedures and formal, written authorization to incur costs is received from MSHDA,

NOW THEREFORE BE IT RESOLVED, that the Council for the City of Crystal Falls hereby authorizes City Manager, Charles C. Nordeman to submit the Michigan CDBG Grant Application and associated documents, and

FURTHER BE IT RESOLVED, that Barry Polzin, Architect, is hereby designated as the certifying officer for the environmental review required for this project.

Resolution adopted.

Jeff Sjoquist of Coleman Engineering presented invoices for the water project.

Councilor Bicigo seconded by Mayor Hendrickson moved to approve the MEDC Grant Payment Request in the amount of $18,935.61 for the water meter project.

Motion carried.

Mayor Hendrickson set a public hearing date of December 8^th at 5:00 pm for the close out of the meter project.

Mayor Hendrickson seconded by Councilor Bicigo moved to approve the Estimate of Funds needed from Rural Development for the water project in the amount of 1,561.50.

Motion carried.

Jeff Sjoquist explained the events of the past week concerning the DEQ’s Boil Water notice. He noted that the bacteria that were detected in the City’s water supply were "Serratia" and the boil water notice was done as a precaution along with a proactive approach to chlorinate the supply.

The "5 Step Wage Scale" will be presented to the Council for consideration at the December meeting.

Manager Nordeman advised that there has been no news on the Grell’s proposal for the Industrial Park.

Attorney Lawrence presented his opinion regarding the missing Women’s golf club vanity. He noted that because the vanity was attached to the wall of the club house for some 17 years it was therefore a part of the property of the club house and determined it to be a fixture making it the city’s option as to what to do with the vanity when the bathroom was renovated. The city is under no legal obligation to replace the vanity. Manager Nordeman was directed to send a copy of the attorney’s opinion letter to the women’s club and the council took no action to replace the vanity.

Mayor Hendrickson seconded by Councilor Bicigo moved to adopt the following resolution of recognition:

RESOLUTION

WHEREAS, Edna Heikkinen has served the citizenry of the City of Crystal Falls as a Councilor for a full term of 4 years following her election to the office in November 2004, and

WHEREAS, her devoted dedication to the people while serving as Council representative on the Crystal Theater Board, the Crystal Falls Contemporary Center Board, and on the Downtown Development Authority, not to mention her commitment to various other projects that have further served to improve the way of life enjoyed by all in the Crystal Falls community,

NOW THEREFORE BE IT RESOLVED That the Council for the City of Crystal Falls hereby expresses its thanks to Edna for giving of her personal time and energy for the betterment of the City of Crystal Falls while serving as a fellow City Councilor, and further encourages all the citizens to follow, and be encouraged by, Edna, this shining example of the City’s slogan "City of Community Pride"

Resolution adopted.

There was some discussion regarding Axel Anderson’s request for early retirement. Manager Nordeman advised that no action was required at this time but perhaps around May 2009 steps should be taken if it is the Council’s desire to grant this request. Further discussion will take place at the December meeting.

Mayor Hendrickson seconded by Councilor Bicigo moved to direct Attorney Lawrence to draft a letter to Michael Casanova regarding his request for an easement across City owned property. The letter should state that the city does not oppose the easement but that Mr. Casanova should retain legal council to draft the easement and ready it for City Council approval.

Regarding Mr. Casanova’s request to name the road to his campground Attorney Lawrence was directed to inform him that the City does not name private roads.

Councilor Bicigo seconded by Councilor Hagglund moved to accept the bid from AIS Engine Corporation on the Kohler electric plant in the amount of $4000.00.and the snow blower motor in the amount of $2,500.00.

Motion carried.

Councilor Smokevitch seconded by Mayor Hendrickson moved to adjourn this meeting.

Motion carried.

Meeting adjourned at 8:14 p.m.