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 3, 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: Mark Simeoni, Scott McNeilis, Jeff Sjoquist, Jeff Bal, Lynn Perry, and Tom Lesandrini.

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

Water Project matters (water agreement, rates, etc).

Resolution to commence with the acquisition of

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Jeff Sjoquist of Coleman Engineering explained the City/Township water agreement noting that the City will purchase water from Crystal Falls Township and pay a connection and commodity fee.

Councilor Thrasher seconded by Councilor Valesano moved to approve the water agreement as amended by Rural Development, inclusive of exhibits A and B, and authorize the Mayor and City Clerk to execute said agreement.

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

Nays: None

Motion carried.

Jeff Sjoquist continued with an explanation of the need for a "Rate Resolution". Based on the amount of the loan and Rural Development’s requirements for payback of said loan, Sjoquist suggested a minimum charge of $36.00/month plus usage over 4,500 gallons at $8.00 per 1000 gallons. A draft of the resolution will be presented to the Council at the October 9, 2006 meeting for consideration.

The possible receipt of CDBG funds was discussed. The City has been invited to apply for no more than $510,000 for use on the water project. It was the consensus of the Council that these funds would be best used to pay for the water meters needed in the residences. Jeff Sjoquist will include that suggestion in the application for the funds.

A discussion regarding the installation of water meters ensued including who will install them, who will pay for the installations, and when the City would begin billing based on the meters.

Jeff Sjoquist advised of the need to draft a new water ordinance. This ordinance would govern the installation of water meters, how to address water leaks, tap on fees, billing, and all other issues regarding the usage of the water system.

Mayor Hendrickson seconded by Councilor Heikkinen moved to grant a Water Line Easement to Crystal Falls Township to allow for the installation of the principal Township to City supply and meter location.

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

Nays: None

Motion carried.

Attorney Geoffrey Lawrence advised the Council of the need to adopt a resolution regarding the acquisition of the TV tower land.

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

WHEREAS, the City of Crystal Falls is a Municipal Corporation and a public corporation as defined under the provisions of Public Act 1911 No. 149 being known as the Acquisition of Property By State Agencies and Public Corporation Act, MCL 213.21 et seq., and

WHEREAS, the City of Crystal Falls is a Municipal Corporation and a public agency as defined under the provision of Public Act 1980, No. 87 being known as the UNIFORM CONDEMNATION PROCEDURES ACT, MCL 213.51 et seq., and

WHEREAS, the City of Crystal Falls under the provisions of its Charter and the laws of the State of Michigan owns and operates a municipal television franchise whereby it purchases television signals and retransmits said signals to the subscribing citizens of the City and surrounding areas for the purpose of providing economical television signals to its citizens, and

WHEREAS the City has since March 8, 1991 and for a substantial period of time prior to that date, leased a 40 foot by 40 foot portion of real property upon which is constructed its television antenna and equipment for the operation of its television franchise, said leased property being located in Crystal Falls Township, Iron County, Michigan described as:

A plot of land forty feet (40’) square, commencing at a point 555 feet West of the East line and 145 feet South of the North line of the NE ¼ of the NE ¼ of Section 32, Township 43 North, Range 32 West, Iron County, Michigan, thence West 40 feet and parallel to the North boundary line of said quarter section; thence South and parallel to the East boundary line of said quarter section a distance of 40 feet; thence East and parallel to the North boundary line of said quarter section a distance of 40 feet; thence North 40 feet to the point of beginning, and

WHEREAS the above described parcel is located in a 40 acre parcel of land described as the NE ¼ of the NE ¼, Section 32, T43N, R32W, Crystal Falls Township, Iron County, Michigan currently owned by BARBARA DESONIA, and

WHEREAS the City of Crystal Falls declares it is necessary for the benefit of the public to continue operation of its television franchise and have a new receiving tower constructed on the above described 40 acre parcel to be able to continue to provide the public with affordable cable television reception, and

WHEREAS the City of Crystal Falls declares that the continued operation of its television franchise is necessary for the benefit of the public and within its powers and taking of such portion or all of the 40 acre parcel described above of private property is necessary for the continued operation of that franchise and the taking is necessary for the benefit of the public, and

WHEREAS the City of Crystal Falls believes acquisition of the 40 acre parcel or such smaller portion thereof necessary for the safe operation of its tower is necessary for the benefit of the public, including any necessary easements should the portion deemed necessary for the operation of the tower be less than the entire 40 acre parcel, and

WHEREAS the City has been unsuccessful in its attempts to locate Barbara DeSonia to negotiate a purchase of the above described parcel of land, and

WHEREAS this Resolution is made as authorization to commence proceedings of judicial proceedings by the City of Crystal Falls, a municipal corporation, in pursuance of the Acquisition of Property by State Agencies and Public Corporations Act to acquire the right to take private property for the use or benefit of the public, without the consent of the owners, for a public purpose of operating its television franchise and this purpose is within the scope its power and just compensation will be made, and

WHEREAS said petition will ask that a jury be summoned and impaneled to ascertain and determine whether it is necessary to make such public improvements or fulfill such purpose and whether it is necessary to take such property as it is proposed to do for the use or benefit of the public and to ascertain and determine the just compensation to be made therefore, and

WHEREAS the City of Crystal Falls is prepared to pay the owner of said parcel just compensation

NOW BE IT HEREBY RESOLVED BY THE CITY OF CRYSTAL FALLS THAT the City Attorney is directed to institute the necessary proceedings on its behalf in the Iron County Circuit Court and file a petition for the taking such portion of the above described real property as is necessary for the operation of its television tower facility under the provisions of the Acts first cited in this Resolution, said petition signed by him in his official character and duly verified by him, to which petition a certified copy of this Resolution of the City shall be annexed which certified copy shall be prima facie evidence of the intent and action taken by the City to take said real property and the passage of this Resolution as recited above.

Councilor Heikkinen seconded by Mayor Hendrickson moved to adjourn this special meeting of the City Council.

Motion carried.

Meeting was adjourned at 7:58 p.m.