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 14, 2002, at 4:30 P.M. Central Time.

Roll call: Mayor Nylund, Councilors Hendrickson, Thrasher, Benda and Lind.

Also Present: City Manager, City Attorney and City Clerk.

Mayor Nylund called the meeting to order at 4:30 p.m. and led all present in the Pledge of Allegiance.

Councilor Benda supported by Councilor Hendrickson moved to approve the minutes of the special and regular meetings of September 9, 2002 and September 25, 2002 as written.

Motion carried.

Frank Groeneveld, representing the Harbour House Advisory Board, submitted a letter of application to the Council on behalf of Martha Huhta. Councilor Thrasher supported by Councilor Hendrickson moved to appoint Martha Huhta to the Harbour House Advisory Board.

Motion carried.

Flora Dawe reported to the Council on the receipt of a grant in the amount of $36,100.00 to be used toward the purchase of the Contemporary Center building. Mayor Nylund commended the efforts of the Contemporary Center Board in the securing of the grant and other funds to make this project a reality.

Crystal Falls Fire Chief John Ahola announced the receipt of a grant in the amount of $49,896.00 to be used for the purchase of safety equipment for the department. Councilor Hendrickson applauded Chief Ahola for his efforts in the securing of this grant.

Mike Ferguson, Chairman of the DDA, went over a list of action items including: cancellation of a Riverwalk grand opening ceremony; request for a determination of DDA membership status of Mary Randolph Maki; and release of funds from the 2001-2002 fiscal year budget for items relative to the Harvest Fest, Harbour House porch repairs, and postage. Councilor Lind supported by Councilor Hendrickson moved to approve the release of DDA funds from 2001-2002 fiscal year budget as follows: $1000.00 to the Harbour House for porch repairs; $1000.00 for additional Harvest Fest expenditures; and $74.00 for postage.

Motion carried.

Councilor Benda supported by Councilor Thrasher moved to rescind the September 9, 2002 motion appointing Donald Boulanger and Kristine Coopman to terms on the Crystal Falls Planning Commission as these appointments were discovered to be in violation of the Planning Act 285 of 1931, and further, to reopen the application process for the two vacancies.

Ayes: Mayor Nylund, Councilors Thrasher, Hendrickson & Benda.

Nays: Councilor Lind.

Motion carried.

All applications for the Planning Commission positions must be written and are due to the City Clerk by Noon on Monday, November 4, 2002 as directed by the City Council.

Mayor Nylund supported by Councilor Thrasher moved to temporarily adjourn to conduct a Public Hearing regarding the Planning Commission appointments.

Meeting temporarily adjourned at 5:10 p.m.

Kristine Coopman voiced her dissatisfaction with City Council’s decision regarding the Planning Commission appointments. She felt that she should be allowed the opportunity to resign from the Board of Review and retain her appointment to the Planning Commission. Attorney Geoffrey Lawrence explained that when a motion violates a State statute, such as that of the Planning Commission appointments, it must be declared null and void. Jim Nocerini commended the City Council for admitting to the mistake and taking steps to correct it. Donna Nelson asked for clarification on the application process and Mayor Nylund repeated the need to have a written application to the City Clerk by Noon on November 4, 2002 in order to be considered for an appointment. Councilor Hendrickson encouraged the submission of applications, including those of Donald Boulanger and Kristine Coopman should they first resign from the Board of Review. Councilor Lind suggested that prior to submission to the Council for consideration, City Clerk Olson will determine the eligibility of each applicant.

Mayor Nylund closed the Public Hearing at 5:20 p.m. and returned the Council to the regular meeting.

Councilor Benda supported by Councilor Hendrickson moved to enter into a Fire Authority agreement with Crystal Falls Township for a period of 5 years with the following stipulations: During year 1 Crystal Falls Township will pay 52% and the City of Crystal Falls will pay 48% of the operating budget, year 2 the split will be Crystal Falls Township = 51% and Crystal Falls City = 49%, and year 3 through year 5 the split will be 50%/50%; the term of the agreement will be from December 1, 2002 – November 30, 2007; the agreement will include a non-binding arbitration clause; and Crystal Falls Township Attorney Steve Tinti will draft the agreement.

Ayes: Mayor Nylund, Councilors Thrasher, Hendrickson and Benda.

Nays: Councilor Lind.

Motion carried.

Daniel Purzycki of North American Hydro Inc. reported on the Power Plant automation study recently conducted by his company. He noted several areas of safety concern at the plant and suggested the upgrading of equipment was necessary. He estimated the total cost of automation to be in the neighborhood of $929,000.00 with a 6 to 7 year payback. Mayor Nylund thanked Mr. Purzycki for the report. Chief Electrician Angelo Diqui suggested the Council consider the power plant automation as a possible future project.

The issue of retaining a "no parking" policy following the current M-69 detour route through the City was discussed. Residents Michelle and Gary Turner of 512 North 6^th Street opposed the continued implementation of this parking ban noting they have no back access to their property to allow for off street parking. Manager Nordeman was instructed to investigate further to determine how many other residents along the route had the same situation at their homes prior to the Council making a decision on the parking ban.

Councilor Benda supported by Councilor Thrasher moved that effective October 1, 2003, any accrued vacation hours exceeding the 192 hours allowed by the City’s Personnel Policy shall be lost to the employees.

Motion carried.

Gloria Fredericksen reported that the Northeast corner of the Theatre building is deteriorating to the point that bricks are falling to the sidewalk below. Brickwork is needed immediately and the Theatre Board has no funds to pay for the project. Jim Nocerini offered his assistance in securing help to fix the immediate problem. The Council agreed that the City’s liability as owner of the building demands they take action to correct the dangerous situation immediately and thanked Nocerini for his assistance.

Jim Nocerini asked the Council to consider a proposal for the placement of his business in the Industrial Park. Mayor Nylund instructed Manager Nordeman and Attorney Lawrence to meet with Mr. Nocerini to work out the details prior to Council approval.

Mayor Nylund supported by Councilor Benda moved to meet in a closed session pursuant to the Michigan Open Meetings Act, P. A. 1976, No. 267, 15.267 Section 8(e), to consult with attorneys regarding the settlement strategy of ongoing litigation of Oberstar vs. City of Crystal Falls.

Ayes: Mayor Nylund, Councilors Lind, Benda, Thrasher, and Hendrickson.

Nays: None

Motion carried.

Meeting temporarily adjourned at 6:59 p.m.

Meeting reconvened at 8:15 p.m.

Mayor Nylund supported by Councilor Thrasher moved to approve the purchase of a debris blower from Reinders at a total cost of $3,900.00. (Includes trade-in)

Motion carried.

Councilor Hendrickson supported by Councilor Benda moved to make the annual contribution to U.P.S.E.T. in the amount of $1,781.00.

Motion carried.

Councilor Hendrickson supported by Mayor Nylund moved to amend the 2001 – 2002 budget to the actual expenditures.

Motion carried.

Councilor Hendrickson supported by Councilor Benda moved that the payrolls and disbursements in the amount of $341,837.00 for the month of September 2002 be approved, and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Mayor Nylund supported by Councilor Benda, moved to accept the following reports for the month of September 2002:

Police Chief’s report indicating 156 complaints, 20 of which were closed by arrest and 3,605 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 2 fire calls; spending approximately 27 man-hours fighting fires; and holding 2 practice and training session.

Chief Electrician’s report of department activities.

Public Work foreman’s report on department activities.

Motion carried.

Councilor Lind noted this would be Mayor Nylund’s last meeting as his term expires in November with the upcoming election. He suggested resolutions of appreciation be drafted by Clerk Olson for both Nylund and Jeffrey Cram thanking them for their service to the City.

There being no further business to come before the Council, meeting adjourned at 8:23 p.m.