A special meeting of the Council for the City of Crystal Falls was held in the Council Chamber of the City Hall on Tuesday, October 24, 2006 at 5:00 p.m. Central Time.

Present: Mayor Hendrickson, Councilors Heikkinen, Stachowicz, Valesano, and Thrasher

Absent: None

Also present were City Manager Nordeman, City Attorney Lawrence, and City Clerk/Treasurer Olson.

Visitors in attendance included: Jeff Sjoquist of Coleman Engineering, Mark Simeoni, Tom Stachowicz, David Graff, Larry Bicigo, Gerard Valesano, Julie Melchori, Al Greg, Bob Black, John Moon, Marilyn Moon, Gerri Trzeciak, Walter Trzeciak, Steve Tinti, Mike Koszyk, Richard Hendrickson, Mike Smokevitch, Jim Ponchaud, and Lynn Perry.

The purpose of this special meeting was to consider the following items:

Replacement of Truck #7 (Electric Dept bucket truck)

Crystal Manor issues

Review of Utility Rates

Employee Comp Time for "on call" time

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

City Mechanic Larry Bicigo explained the possible option of payments regarding the purchase of a new replacement for Truck #7, the Electric Department bucket truck. Manager Nordeman advised that this arrangement would require permission from the State Treasury. Nordeman also noted that only $40,000 was budgeted for a used bucket truck and the new truck would cost twice that amount. Action on the truck was postponed pending the receipt of a statement from the Michigan Dept of Treasury. (Manager Nordeman will work with Scott Kenney on the request and this issue will be revisited at the November 2, 2006 Special meeting of the City Council.)

Questions were asked about a possible lien against the Crystal Manor property from when Iron County Community Hospitals was the owner. Julie Melchori, Iron County EDC, assured the City Council that clearing up the lien was simply a matter of filing some paperwork.

Mayor Hendrickson seconded by Councilor Heikkinen moved to accept the September 26, 2006 offer recommended to the Iron County Board of Commissioners by the Iron County Department of Human Services Board regarding the Crystal Manor which included: 1) the sum of $50,000 in exchange for immediately releasing the County of Iron, Iron County Medical Care Facility, and Iron County Department of Human Services Board of any and all liability and/or responsibility relative to the Crystal Manor building, with payment to be made by November 1, 2006, and 2) Within twelve (12) months from November 1, 2006, an additional $25,000.00 will be given once they have established the start of construction on a viable project involving the Crystal Manor building. Further, Manager Nordeman was directed to have the Crystal Manor building winterized immediately.

Ayes: Mayor Hendrickson, Councilors Heikkinen and Valesano

Nays: Councilors Thrasher and Stachowicz

Motion carried.

Attorney Lawrence was directed to pen a letter to the Iron County Board of Commissioners accepting the offer.

Jeff Sjoquist of Coleman Engineering explained to the City Council that Rural Development mandated that the water rates be set prior to the loan closing and that is why the rates needed to be adjusted in November. He noted that Crystal Falls Township will most likely be setting their rates very soon also, however, due to the fact that they had secured grants in addition to their loan from Rural Development it was possible that the township rates will not be set as high as the City’s.

Mayor Hendrickson questioned why the electric rates needed to increased as much as they were in May of 2006. Manager Nordeman was directed to calculate what the increase would have been had electric department wage increases not been a factor and bring his findings back to the City Council at the special meeting scheduled for November 2, 2006.

The issue of compensatory time for "on call" time at the power plant was addressed. Manager Nordeman noted that the Council had been advised of this matter at the June 13, 2005 meeting. Following a brief recess, Clerk Olson advised that per her notes, the "on call" schedule had been on the June 13, 2005 agenda and discussion was conducted, however, no supporting documents, such as schedules or written explanations of "on call" compensation, were on file with that agenda, and further, no action had been taken by the City Council on the matter at that time. A debate on compensation for "on call" time ensued, however, no action was taken at this time.

Councilor Thrasher seconded by Councilor Stachowicz moved to adjourn the meeting.

Motion carried.

Meeting adjourned at 7:57 p.m.