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 9, 2006, at 5:00 P.M. Central Time.

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

Absent: None

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

In attendance in the audience were: Jeff Sjoquist and Scott McNeilis of Coleman Engineering, Julie Melchori, Dan Graff, Robert Fabbri, Steven Fabbri, Emil Bicigo, Lynn Perry, Mark Simeoni, Larry Bicigo, Geri Trzeciak, and Walter Trzeciak.

Mayor Hendrickson led the reciting of the Pledge of Allegiance.

Councilor Heikkinen seconded by Mayor Hendrickson moved that the minutes of the regular meeting of September 11, 2006 be amended to read "Councilor Thrasher seconded by Councilor Valesano moved that the minutes of the regular meeting….", and the special meeting of October 3, 2006 be approved. Motion carried.

Jeff Sjoquist updated the Council regarding the water project. Councilor Valesano seconded by Councilor Stachowicz moved that the water rate charges to customers shall be set at $8.00 per 1,000 gallons for metered accounts with a minimum charge of $36.00 per month effective immediately after the October 2006 billing cycle*. Those accounts without meters as of the effective date of this rate adjustment shall be billed the $36.00 minimum charge for each residential equivalent unit. A residential equivalent unit shall be defined as an estimated 4,500 gallons per month. All residential customers shall be considered one (1) residential unit. At such time that a substantial number of meters have been installed in residences, the City Council shall decide to implement rates based on actual meter readings for all customers.

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

Motion carried.

(*Utility bills mailed on November 30, 2006)

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve a proposal from STS Consultants for the Phase I Environmental Services for the Crystal Manor building at a cost of $2,200.00.

Motion carried.

Councilor Heikkinen seconded by Mayor Hendrickson moved to approve the proposal of Paragon Appraisals for an amount not to exceed $3000.00 for an appraisal of the Crystal Manor building.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to contract with Patti A. Roell for tax assessing services for the City in the amount of $800.00/month with any additional work required to bring the City’s tax records into compliance to be billed at $15.00/hour.

Motion carried.

Councilor Thrasher seconded by Councilor Valesano moved to authorize the purchase of BS&A Equalizer Software in the amount of $4,195.00 for the tax assessor ‘s use.

Motion carried.

There were no bids on the 1999 Ford Explorer and it was the consensus of the Council to keep the vehicle for use by the City Mechanic.

Manager Nordeman reported on possible alternatives to the HBO channel.

Councilor Thrasher seconded by Councilor Valesano moved to offer The Movie Channel as an alternative to HBO to the City cable TV subscribers.

Motion carried.

Manager Nordeman will survey the current HBO subscribers regarding this change.

Councilor Thrasher seconded by Councilor Heikkinen moved to contract with U.P.S.E.T. for their services in the amount of $1,791.00.

Motion carried.

Councilor Valesano seconded by Councilor Stachowicz moved to refund David Anderson $75.00 for a variance fee paid to the City.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve a 4.3% Cost Of Living Allowance increase for all City employees except Tom Stachowicz and Gerard Valesano.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve a 4.3% Cost of Living Allowance increase for Tom Stachowicz.

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

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to approve a 4.3% Cost of Living Allowance increase for Gerard Valesano. Ayes: Mayor Hendrickson, Councilors Heikkinen, Thrasher, and Stachowicz. Nays: None Abstain: Councilor Valesano.

Motion carried.

Mayor Hendrickson seconded by Councilor Valesano moved to make the effective date of the Cost of Living Allowance increases effective September 24, 2006.

Motion carried.

Councilor Heikkinen seconded by Councilor Valesano moved to approve up to $40,000 for the purchase a used truck to replace old truck #7 as seen fit by the City Manager.

Motion carried.

Councilor Valesano seconded by Councilor Stachowicz moved to allow the City Manager to draft a letter to the home owner at 321 S. 5^th Street to allow for a rebuild of a residential structure in the commercial district should that home be destroyed.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to direct Manager Nordeman and Attorney Lawrence to draft a letter to the Iron County Medical Care Facility regarding the heating of the Crystal Manor building pursuant to their responsibilities as stated in the lease agreement.

Motion carried.

Manager Nordeman presented a quote from Teck Solutions for a laptop computer for the Public Works Foreman. Nordeman was directed to seek additional quotes prior to Council action.

Manager Nordeman was instructed to investigate the aspects of composting and chipping yard waste and brush as a service for the citizens of the City.

Mayor Hendrickson seconded by Councilor Heikkinen moved to abolish the Electric Advisory Committee as it has not met and appears to have served the purpose for which it was formed.

Ayes: Mayor Hendrickson, Councilors Heikkinen and Thrasher.

Nays: Councilors Valesano and Stachowicz.

Motion carried.

Councilor Valesano commended Monica and Jeff Joseph for their work on the renovation of the Runkle Lake Park Tennis Courts.

Councilor Valesano encouraged everyone to donate to the Contemporary Center Annual Fundraising.

Councilor Thrasher seconded by Councilor Stachowicz moved that the payrolls and disbursements in the amount of $580,011.82 for the month of September 2006 be approved, and the City Clerk is instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Mayor Hendrickson seconded by Councilor Heikkinen moved to accept the following reports for the month of September 2006:

Police Chief’s report indicating 263 complaints, 10 of which were closed by arrest and 2,542 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 5 fire calls; spending approximately 61 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.

City Treasurer’s report on the monthly revenues.

Motion carried.

Councilor Heikkinen seconded by Councilor Thrasher moved to adjourn this meeting of the City Council.

Motion carried.

Meeting adjourned at 8:35 p.m.