NOV 8,2004

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 8, 2004, at 4:30 P.M. Central Time.

Mayor Hendrickson led all present in reciting the Pledge of Allegiance.

As this was the re-organizational meeting of the Crystal Falls City Council, Clerk Olson administered the Oaths of Office to the Councilors elected on November 2, 2004, Councilor Edna A. Heikkinen, Councilor Mark Valesano, and Councilor Jack Stachowicz.

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

Also Present City Manager, City Attorney, City Clerk/Treasurer, and a contingent of citizens.

Absent: None

Councilor Thrasher seconded by Mayor Hendrickson moved to accept the Canvas of Votes for the General Election held on November 2, 2004, as canvassed by the Iron County Board of Canvassers, as follows:

Mark Valesano-------Councilor (4-yr term)------------630 votes

Michael Koszyk------Councilor (4-yr term)------------254 votes

Edna A. Heikkinen---Councilor (4-yr term)------------425 votes

Jack Stachowicz-----Councilor (balance of 2-yr term)-587 votes

Motion carried.

Mayor Hendrickson noted that the Council committee appointment listing would be presented at the December meeting of the Council.

Councilor Heikkinen seconded by Councilor Stachowicz moved to set the time of the regular monthly meeting of the Council to 6:00 p.m. on the 2^nd Monday of each month.

Ayes: Councilors Thrasher and Stachowicz.

Nays: Mayor Hendrickson, Councilors Heikkinen and Valesano.

Motion lost.

Councilor Heikkinen seconded by Councilor Valesano moved to set the time of the regular monthly meeting of the Council to 5:00 p.m. on the 2^nd Monday of each month.

Ayes: Mayor Hendrickson, Councilors Valesano, Heikkinen, and Thrasher. Nays: Councilor Stachowicz.

Motion carried.

Mayor Hendrickson seconded by Councilor Valesano moved to designate the First National Bank of Crystal Falls as the depository for City funds and further to designate the City Manager, Clerk/Treasurer, and Deputy Clerk/Treasurer as those authorized to sign financial documents on behalf of the City of Crystal Falls.

Motion carried.

Councilor Thrasher suggested that perhaps the City should be "spreading some of our money around" and using other banking facilities for deposits as well as First National. Manager Nordeman will investigate and report to the Council regarding this matter at the next regular meeting.

Mayor Hendrickson postponed the review of the Council Rules to the December 13^th meeting of the Council.

Councilor Valesano seconded by Mayor Hendrickson moved to select Councilor Scott Thrasher as the Mayor Pro-Tem of the City Council.

Motion carried.

This concluded the Council’s re-organization.

Councilor Heikkinen seconded by Councilor Thrasher moved that the minutes of the regular meeting of October 11, 2004 and special meetings of October 20,2004 and October 29, 2004 be approved as written.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to re-appoint Lori Baukus to serve a 4-year term (ending on November 30, 2008) on the Downtown Development Authority.

Motion carried.

At 4:55 p.m. Mayor Hendrickson declared the Public Hearing on Proposed Ordinance No. 2.22- an Ordinance to regulate the installation and use of outdoor furnaces designed for structure heat, to be open.

Crystal Falls Township resident and Board member, Sherri Sandstrom asked why outdoor furnaces were allowed to be placed within 10 feet of another property owners property line and also required an area of 30 feet around the furnace to be clear of vegetation. Councilor Thrasher asked why an outdoor furnace could not be placed next to the owners own garage and make use of the same chimney in the garage, why the 40’ setback from other structures?

Mayor Hendrickson declared the Public Hearing on Proposed Ordinance No. 2.22 closed at 5:12 p.m. and returned the meeting to the regular session.

Councilor Thrasher seconded by Councilor Valesano moved amend the Proposed Ordinance No. 2.22 as follows:

Section 3. Regulations. Paragraph 1- Outdoor furnaces shall not be placed less than forty (40) feet from the nearest point of intersection of any other adjacent property owners structure and shall have a chimney stack….."

And, Paragraph 2 – "Outdoor furnaces shall not be placed less than twenty (20) feet from the nearest point of intersection of the property line of another property owner."

And, Paragraph 3 – "An area of twenty (20) feet around the outdoor furnace structure shall be free of vegetation, except grass not exceeding four (4) inches in length."

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to set the Public Hearing for the Amended Proposed Ordinance No. 2.22 to be Monday, December 13, 2004 at 5:00 p.m.

Motion carried.

Maureen Elson, President of the Crystal Falls Contemporary Center Board, introduced the center’s new director, Sherrie Ivans, to the City Council.

Mayor Hendrickson seconded by Councilor Stachowicz moved to accept Sherrie Ivans as the new Crystal Falls Contemporary Center Director.

Motion carried.

Councilor Valesano seconded by Councilor Heikkinen moved to nominate Lee Siler and Charles Sandstrom, in addition to previously nominated Charles Nordeman and Wendy Thrasher, for consideration of appointment to the Iron County Community Hospital Board.

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to approve changing the employee’s health insurance plan to a Health Savings Account - Blue HSA 1000, CMM-PPO, with a 10/60 drug card, and changing the retiree’s drug coverage to a 10/60 drug card, effective January 1, 2005.

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

Motion carried.

The marketing of the hospital building was discussed. Councilor Stachowicz reported on a tour he was given of the building. Councilor Thrasher asked Attorney Lawrence to look at the transfer agreement in regards to maintaining the building.

Councilor Valesano seconded by Councilor Stachowicz, moved to release the mortgage liens held by the City on MacPherson, Inc. and T. J. Motorsports.

Motion carried.

Councilor Thrasher seconded by Councilor Heikkinen moved to accept the Fire Authority Budget for fiscal year 2004-2005 in the amount of $258,475.00 as presented.

Motion carried.

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

RESOLUTION

WHEREAS, Sergeant First Class Marcel Fraser, an employee of the City of Crystal Falls Police Department and a member of the National Guard has altruistically responded to his call to duty for Operation Iraqi Freedom, and

WHEREAS, The call to duty has removed SFC Marcel Fraser from his family, job, and homeland for an extended period beginning in February 2003 and two extensions thereafter, and

WHEREAS, SFC Marcel Fraser has performed the duties asked of him by his Country without question and to the best of his ability, and

WHEREAS, The City of Crystal Falls is eternally grateful to SFC Marcel Fraser and his family for their sacrifices made to ensure the continued freedom of all the citizens of this city and all of the United States of America,

NOW THEREFORE BE IT RESOLVED, The City of Crystal Falls extends a wholehearted "Thank you" to SFC Marcel Fraser and his family for their commitment, sacrifice, and service to this City and this Country, truly in keeping with the slogan of the City of Crystal Falls, "City of Community Pride", a shining example to all. We are very proud of you!

Resolution Adopted.

Mayor Hendrickson will present the above resolution to Marcel Fraser during the annual Veteran’s Day program at the Forest Park Schools on November 11, 2004.

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

RESOLUTION

WHEREAS Michael Koszyk has diligently served the citizenry of the City of Crystal Falls as a Councilor since his appointment in November 2002, and

WHEREAS, his dedication to the people while serving as Council representative on the Crystal Falls Planning Commission, and as Council liaison on the Crystal Falls Theater Board, and his commitment to countless other projects that have further improved the way of life in the Crystal Falls community,

NOW THEREFORE BE IT RESOLVED That the Council for the City of Crystal Falls hereby expresses its thanks to "Mike" for giving of his personal time and energy for the betterment of the City of Crystal Falls while serving as a fellow City Councilor.

Resolution adopted.

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

RESOLUTION

WHEREAS, Judith J. Benda has served the citizenry of the City of Crystal Falls as a Councilor for a term of four years, and

WHEREAS, her dedication to the people while serving as Council representative on the Crystal Falls Fire Authority, as Council liaison on the Crystal Falls Contemporary Center Board, and commitment to various other projects that have further improved the way of life in the Crystal Falls community, and

NOW THEREFORE BE IT RESOLVED That the Council for the City of Crystal Falls hereby expresses its thanks to "Judy" for giving of her personal time and energy for the betterment of the City of Crystal Falls while serving as a fellow City Councilor.

Resolution adopted.

Mayor Hendrickson seconded by Councilor Heikkinen moved that the payrolls and disbursements in the amount of $369,016.63 for the month of October 2004 are approved and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz moved to approve the Electric Utility Construction Expenses for the Hydro plant Automation project in the amount of $293,349.52 and instructed the City Clerk to draw checks on the Electric Utility Construction Account in payment of same.

Motion carried.

Councilor Thrasher seconded by Councilor Stachowicz, moved to accept the following reports for the month of October 2004:

Police Chief’s report indicating 137 complaints, 6 of which were closed by arrest and 2,463 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 4 fire calls; spending approximately 60.5 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.

Councilor Thrasher seconded by Councilor Valesano moved to extend the meeting time beyond the 6:30 p.m. adjournment time as set by the Council rules.

Motion carried.

Mayor Hendrickson seconded by Councilor Stachowicz moved to meet in executive session, pursuant to the Michigan Open Meetings Act, P.A. 1976, No. 267, 15.268, Sect 8 (e), to discuss strategy regarding the ongoing litigation of "Barbara Benda Etal v. City of Crystal Falls".

Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, Valesano, and Stachowicz.

Nays: None.

Motion carried.

Meeting moved to closed session at 6:35 p.m.

Meeting reconvened at 7:35 p.m.

Mayor Hendrickson seconded by Councilor Thrasher moved to adjourn the meeting at 7:36 p.m.