A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, October 13, 2008 at 5:00 P.M. Central Time.

Roll Call: Mayor Hendrickson, Councilors Heikkinen, Bicigo, and Smokevitch.

Absent: None

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

Visitors: Larry Bicigo/Jeff Hagglund/Mary Lahna/Jean Forstrum/Alda Martin/Ann Wagner/James Stewart/Scott McNeilis/John Heikkinen/Sandra Hendrickson/Mark Valesano/Lynn Perry

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

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

The minutes of the regular meeting of September 8, 2008; and Special meetings of September 22, 2008; September 29, 2008; and October 6, 2008 as written.

The following reports for the month of September 2008:

A. Joint Fire Authority report, as submitted by Fire Chief Ahola, indicating answering zero (0) fire calls; spending approximately no man-hours fighting fires; and holding one (1) practice and training sessions.

B. Police report, as submitted by Police Chief Robert Sherwin, indicating 206 complaints, of which 6 were closed by arrest, and logging of 2,161 miles on patrol duty.

C. Electric Department activity report as submitted by David Graff, Chief Electrician.

D. Public Works Department activity report as submitted by Foreman Kelly Stankewicz.

E. Treasurer’s Revenue Report as submitted by Clerk/Treasurer Dorothea Olson.

Payrolls and Disbursements in the amount of $717,759.78 and instruct the City Clerk/Treasurer to draw checks on the City Treasury in payment of same.
Ayes: Mayor Hendrickson Councilors Heikkinen, Smokevitch, and Bicigo. Nays: None

Motion carried.

Councilor Heikkinen, seconded by Councilor Bicigo moved to adopt the following resolution:

RESOLUTION

WHEREAS, his dedication to the people while serving as Council representative on the Crystal Falls Contemporary Center Board, as Council liaison, and on the Crystal Theatre Board, as a sub-liaison, his involvement in employee negotiations, and his commitment to various other projects that have further improved the way of life in the Crystal Falls community, and

WHEREAS, Mark has been duly appointed to the office of Iron County Sheriff following his successful campaign in the August 2008 Primary Election and the subsequent retirement of the sheriff, and found it necessary to resign his position with the Crystal Falls City Council on September 8, 2008,

NOW THEREFORE BE IT RESOLVED That the Council for the City of Crystal Falls hereby expresses its thanks to Mark for giving of his personal time and energy for the betterment of the City of Crystal Falls while serving as a fellow City Councilor and looks forward to his continuance of public service as the Sheriff of Iron County.

Resolution adopted

Mr. James Stewart, representing the Crystal Falls Contemporary Center, advised the Council about plans for kitchen at the center and asked permission to transfer the 3 hole sink from the manor to the center.

Mayor Hendrickson seconded by Councilor Heikkinen moved to authorize the transfer of a sink from the Crystal Manor building to the Crystal Falls Contemporary Center.

Motion carried.

Ann Wagner, representing the Women’s Golf Club, addressed the issue of a missing vanity that the club had purchased and placed in the bathroom at the golf course club house. After a lengthy discussion with no resolution the matter was referred to Attorney Lawrence for an opinion on the ownership of the vanity.

An update on the Downtown Development Authority (DDA) meeting held earlier in the day was given by Manager Nordeman and Mayor Hendrickson.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve that the DDA enter into a 1 year program with Michigan Webs "Terrific Towns" at a cost of $500.00.

Motion carried.

Manager Nordeman reported that the Crystal Manor project is pending the sale of tax credits.

Councilor Heikkinen seconded by Mayor Hendrickson moved to pay the amount of $81,800.00 due to Hovey Companies for architect fees of the Crystal Manor building completing the City’s obligation of $100,000 for the architect fees.

Motion carried.

Scott McNeilis of Coleman Engineering presented a grant pay request and change orders for the water meter project for City Council approval.

Mayor Hendrickson seconded by Councilor Bicigo moved to approve the MEDC grant payment request for the water meter project in the amount of $52,485.66.

Motion carried.

Councilor Bicigo seconded by Councilor Heikkinen moved to approve change order #2 to Berger and King, Inc. to decrease the contract amount by $998.00.

Motion carried.

Councilor Bicigo seconded by Councilor Heikkinen moved to approve the change order #3 to Berger and King, Inc. to increase the contract amount by $1,410.00.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to authorize Manager Nordeman to sign the Grant Payment Request to MEDC and Change Orders No. 2 and No. 3 to Berger & King, Inc.

Motion carried.

Manager Nordeman advised that he will forward the proposed 5 step pay range to the Council for their review in the next few days.

Manager Nordeman also noted that he has had no response regarding his inquiries about the intent of the Grell’s regarding their proposal for the Industrial Park.

Mayor Hendrickson seconded by Councilor Heikkinen moved to authorize Manager Nordeman to proceed with billing the participants in the façade program for their pro-rated share of the engineering and architectural fees paid to U.P. Engineers by the City.

Motion carried.

Councilor Bicigo seconded by Councilor Heikkinen moved to set the Zoning variance application fee at $200.00.

Motion carried.

Councilor Bicigo seconded by Councilor Heikkinen moved to adopt the following policy:

To establish an Identity Theft Prevention policy designed to detect, prevent and mitigate identity theft in connection with the opening of a covered account or an existing covered account and to provide for continued administration of the policy in compliance with the Federal Trade Commission's Red Flags Rule (Part 681 of Title 16 of the Code of Federal Regulations) implementing Sections 114 and 315 of the Fair and Accurate Credit Transactions Act (FACTA) of 2003.

Under the Red Flag Rule, every financial institution and creditor is required to establish an "Identity Theft Prevention Program" tailored to its size, complexity and the nature of its operation. Each program must contain reasonable policies and procedures to:

Identify relevant Red Flags for new and existing covered accounts and incorporate those Red Flags into the Program;

Detect Red Flags that have been incorporated into the Program;

Respond appropriately to any Red Flags that are detected to prevent and mitigate Identity Theft; and

Ensure the Program is updated periodically, to reflect changes in risks to customers or to the safety and soundness of the creditor from Identity Theft.

Identifying information means any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including: name, address, telephone number, social security number, date of birth, government issued driver’s license or identification number, alien registration number, government passport number, employer or taxpayer identification number, unique electronic identification number, computer’s Internet Protocol address, or routing code.

Identify theft means fraud committed or attempted using the identifying information of another person without authority.

A covered account means:

An account that a financial institution or creditor offers or maintains, primarily for personal, family, or household purposes that involves or is designed to permit multiple payments or transactions. Covered accounts include credit card accounts, mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, checking accounts and savings accounts; and

Any other account that the financial institution or creditor offers or maintains for which there is a reasonably foreseeable risk to customers or to the safety and soundness of the financial institution or creditor from identity theft, including financial, operational, compliance, reputation or litigation risks.

A red flag means: a pattern, practice or specific activity that indicates the possible existence of identity theft.

IDENTIFICATION OF RED FLAGS. The City identifies the following red flags, in each of the listed categories:

1. Suspicious Documents

i. Identification document or card that appears to be forged, altered or inauthentic;

ii. Identification document or card on which a person’s photograph or physical description is not consistent with the person presenting the document;

iii. Other document with information that is not consistent with existing customer information (such as if a person’s signature on a check appears forged); and

iv. Application for service that appears to have been altered or forged.

2. Suspicious Personal Identifying Information

i. Identifying information presented that is inconsistent with other information the customer provides (example: inconsistent birth dates);

ii. Identifying information presented that is inconsistent with other sources of information (for instance, an address not matching an address on a credit report);

iii. Identifying information presented that is the same as information shown on other applications that were found to be fraudulent;

iv. Identifying information presented that is consistent with fraudulent activity (such as an invalid phone number or fictitious billing address);

v. Social security number presented that is the same as one given by another customer;

vi. An address or phone number presented that is the same as that of another person;

vii. A person fails to provide complete personal identifying information on an application when reminded to do so (however, by law social security numbers must not be required); and

viii. A person’s identifying information is not consistent with the information that is on file for the customer.

3. Suspicious Account Activity or Unusual Use of Account

i. Change of address for an account followed by a request to change the account holder's name;

ii. Payments stop on an otherwise consistently up-to-date account;

iii. Account used in a way that is not consistent with prior use (example: very high activity);

iv. Mail sent to the account holder is repeatedly returned as undeliverable;

v. Notice to the City that a customer is not receiving mail sent by the City;

vi. Notice to the City that an account has unauthorized activity;

vii. Breach in the City’s computer system security; and

viii. Unauthorized access to or use of customer account information.

4. Alerts from Others
i. Notice to the City from a customer, identity theft victim, law enforcement or other person that it has opened or is maintaining a fraudulent account for a person engaged in Identity Theft.

DETECTING RED FLAGS.

5. New Accounts. In order to detect any of the Red Flags identified above associated with the opening of a new account, City personnel will take the following steps to obtain and verify the identity of the person opening the account:

i. Require certain identifying information such as name, date of birth, residential or business address, principal place of business for an entity, driver's license or other identification;

ii. Verify the customer's identity (for instance, review a driver's license or other identification card);

iii. Review documentation showing the existence of a business entity; and/or

iv. Independently contact the customer.

6. Existing Accounts. In order to detect any of the Red Flags identified above for an existing account, City personnel will take the following steps to monitor transactions with an account:

i. Verify the identification of customers if they request information (in person, via telephone, via facsimile, via email);

ii. Verify the validity of requests to change billing addresses; and

iii. Verify changes in banking information given for billing and payment purposes.

PREVENTING AND MITIGATING IDENTITY THEFT. In the event City personnel detect any identified Red Flags, such personnel shall take one or more of the following steps, depending on the degree of risk posed by the Red Flag: