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 7, 2005, at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, 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 Stachowicz moved that the minutes of the regular meeting of October 10, 2005 and the special meetings of October 20^th and October 27^th be approved as written.

Motion carried.

Mayor Hendrickson suggested amending the agenda to move New Business, Item A, Discussion on Wholesale Electric Power Agreement (WE Energies) to be the very next item on the agenda. There were no other amendments.

Phil Theisen of WE Energies addressed the Council regarding ongoing negotiations with the City of Crystal Falls for the purchase of electric energy. He advised the need for an increase and suggested it could be as much as 50% of the current price. He suggested a price freeze until February 2006.

Councilor Valesano seconded by Councilor Heikkinen moved to support a rate freeze on electric energy purchased from WE Energies until February 14, 2006.

Motion carried.

There were no comments from visitors in attendance.

Mayor Hendrickson advised that the DDA meeting scheduled for earlier in the day had been cancelled.

Jeff Sjoquist of Coleman Engineering updated the Council on matters regarding the water project.

Councilor Thrasher seconded by Councilor Stachowicz moved to approve Work Order #8 for amending the funding application for the water project for a cost not-to-exceed $5,000, and to approve Work Order #9 for the Right-of-Way map work for a cost not-to-exceed $8,000, with Coleman Engineering.

Motion carried.

Bridget and Larry Bergwall were in attendance to present their findings on the Eurasion Milfoil infestation in Runkle Lake. They advised of the beginnings of the formation of a lake association to help share the cost of the treatment of the lake with all the land owners. The Bergwalls were commended for their efforts. Councilor Heikkinen volunteered to meet with the Bergwalls further and will report back to the Council as the association proceeds.

Mayor Hendrickson seconded by Councilor Valesano to contribute $300.00 toward the treatment of the Runkle Lake Eurasion Milfoil infestation.

Motion carried.

Councilor Thrasher seconded by Mayor Hendrickson moved to approve the promotion of David Graff to Step #3 of the position of Chief Electrician (annual wage of $45,689.60 or $21.97/hour).

Ayes: Mayor Hendrickson and Councilor Thrasher

Nays: Councilors Valesano, Stachowicz, and Heikkinen

Motion failed.

Councilor Stachowicz seconded by Councilor Valesano moved to approve the promotion of David Graff to Step #6 of the position of Chief Electrician (annual wage of $49,605.95 or $23.85/hour) effective immediately.

Ayes: Councilors Heikkinen, Valesano and Stachowicz.

Nays: Mayor Hendrickson and Councilor Thrasher.

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to accept the recommendation of the Health Care Insurance Committee and approve the implementation of Plan #3, a Health Savings Account plan, with the following stipulations:

The City will fund the HSA plans at a rate of 90% for those employees that are eligible (those hired after July 2005 are capped at a $1,000 contribution to HSA plan). In other words, the City will contribute $1,800 to a Single person plan and $3,600 to a 2 person or family plan HSA. By doing this the employee has the potential of $800/$1,600 additional contribution to the HSA and may be liable for only $200/$400 out of pocket IF they use up their deductible.

The City will fund prescription drugs once the deductible is met with a reimbursement to the employee for costs over $5.00 for each prescription.

The City will fund the co pay amount which will be 20% of the next $5,000 ($1,000) for Single plans and 20% of the next $10,000 ($2,000) for 2 person and family plans.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to approve the implementation of a Health Savings Account for the pre-65 retirees.

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to set a public hearing date of Monday, December 12, 2005 at 5:00 p.m. for the proposed amendment to Ordinance #1.10, an ordinance regarding the City’s authority to convey real property.

Motion carried.

Clerk Olson was directed to publish a notice for said public hearing in accordance with the City Charter.

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

Motion carried.

Mayor Hendrickson seconded by Councilor Valesano moved to approve the purchase of a HP 4250N Laser Printer for use in the City Clerk’s office from Teck Solutions, Inc. for $1,249.00.

Motion carried.

Mayor Hendrickson seconded by Councilor Stachowicz moved to set a public hearing date of Monday, December 12, 2005 at 5:00 p.m. for the 2006-2010 Recreation Plan as updated by the Crystal Falls Planning Commission.

Motion carried.

Clerk Olson was directed to publish a notice for said public hearing in accordance with the City Charter.

Councilor Thrasher seconded by Councilor Heikkinen moved to adopt the City of Crystal Falls Policy and Procedure Regarding Use and Disclosure of Social Security numbers as presented, and, further, to incorporate said policy into the Employee Handbook.

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to amend the City of Crystal Falls City Rules of Procedure for Council Meetings to include language indicating that a "Conflict of Interest" declaration will be completed by each member of the Council in November of each year.

Motion carried.

Manager Nordeman advised that Dan Graff will prepare an estimate for the installation of a microphone system in the Council Chambers for consideration at the next Council meeting.

Councilor Heikkinen seconded by Councilor Thrasher moved to place an ad in the 2006 Iron County Plat Book for the price of $175.00.

Motion carried.

Clerk Olson was directed to advertise for applications for the Crystal Falls District Community Library Board to fill terms set to expire December 31, 2005.

Monica Joseph reported the receipt of a grant from the Dickinson Area Community Foundation in the amount of $5,000 to be used for improvements to the Runkle Lake Park tennis courts. In addition she volunteered to work with the City staff and oversee the project. The Council applauded and thanked Ms. Joseph for her efforts.

Councilor Thrasher seconded by Councilor Valesano moved that the payrolls and disbursements in the amount of $312,529.09 for the month of October 2005 be approved, and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

Motion carried.

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

Police Chief’s report indicating 150 complaints, 9 of which were closed by arrest and 2,349 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 6 fire call; spending approximately 94 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.

City Treasurer’s report on October 2005 revenues.

Motion carried.

Mayor Hendrickson directed Clerk Olson to pen a letter to Representative Richard Brown thanking him for his efforts regarding the cost of purchasing electric energy from WE Energies and to sign said letter on behalf the City Council.

Councilor Heikkinen seconded by Councilor Stachowicz moved to adjourn this meeting of the City Council.

Motion carried.

Meeting adjourned at 7:52 p.m.