A regular meeting of the Council for the City of Crystal Falls was held in the Council Chambers of the City Hall on Monday, September 10, 2001, at 4:30 P.M. Central Time.

Roll call: Mayor Cram, Councilors Hendrickson, Benda, Nylund and Lind

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

Mayor Cram opened the meeting by leading all present in the Pledge of Allegiance.

Mayor Cram supported by Councilor Lind moved to change the minutes of the regular meeting of August 13, 2001, 3^rd paragraph, to read "Mayor Cram supported by Councilor Hendrickson moved to adopt a 2001 – 2002 fiscal year budget using the previous fiscal year budget figures and including; a 1.2% adjustment to the employees wages, granting an additional holiday (Christmas Eve), a DDA budget of $7,400, replacement of the Power Plant roof ($30,000), conduction of a Power Plant automation study ($23,000), and commercial circuit upgrade ($60,000), and to remove the police car purchase for the upcoming year from the 5 year capital plan."

Ayes: Mayor Cram, Councilors Nylund, Hendrickson & Lind.

Nays: Councilor Benda

Motion carried.

Mayor Cram supported by Councilor Nylund, moved to approve the minutes of the special meetings of August 22, 2001 and September 5, 2001 as written.

Motion carried.

Mayor Cram presented the following resolution to Fire Department representative Kim Nylund:

Iron County Commissioner Lawrence Harrington and Administrator Jan Huizing presented the Council with details surrounding the upcoming Courthouse election scheduled for September 25, 2001. Councilor Hendrickson supported by Mayor Cram moved to endorse the Iron County Bonding Proposal and urged the citizens to vote in the special election scheduled for September 25, 2001.

Motion carried.

Visitors expressed concerns about the lack of football coverage, in particular, the Packer games, on the City cable system. Manager Nordeman advised that he is in the process of securing a signal from WLUK TV – Green Bay, a Fox network that will have the Packer football games. In addition, the Calumet ABC station is in the process of constructing a transmission tower that will enable the City to receive their signal and possibly eliminating the need to contract with WAOW from Wausau.

Maureen Elson reported on the Contemporary Center activities and announced they will be conducting a Haunted House for Halloween.

Mike Ferguson brought several DDA requests to the Council.

Mayor Cram supported by Councilor Lind moved to approve the release of DDA funds in the amount of $1,056.00 for the purchase of a sign for the South entrance to the city.

Ayes: Mayor Cram, Councilors Nylund, Hendrickson, and Lind.

Nays: Councilor Benda

Motion carried.

Councilor Lind supported by Mayor Cram moved to approve expenditures and release DDA funds not to exceed $1,000.00 for the Harvest Festival scheduled for the weekend of September 28-29.

Motion carried.

Mayor Cram supported by Councilor Hendrickson moved to approve the release of DDA funds in the amount of $50.00 for the lighting electric bill.

Motion carried.

Mayor Cram supported by Councilor Hendrickson moved to approve the release of DDA funds, not to exceed $1,000.00, for the purchase of trash receptacles for the light poles on Superior Avenue in the downtown area.

Motion carried.

Mike Gatzow updated the Council regarding the sewer project. He noted that the portable generator failed to operate properly and was being returned to the manufacturer.

Mike Gatzow advised the Council on the Riverwalk bids received. He reported that Butch Neuens Landscaping, Inc. submitted the lowest bid at $237,427.57, which was still over the budget. He did think that the contractor would be receptive to scaling back the project to meet the budget.

Councilor Hendrickson supported by Mayor Cram moved to accept the bid of $237,427.57 from Butch Neuens Landscaping, Inc. and instructed Manager Nordeman to meet with the engineers and the contractor to scale back the project to meet the budget, all pending DNR approval of the revised project.

Motion carried.

Regarding the re-submittal of application for the Streetscape Grant, Mr. Gatzow advised a deadline of early October. He suggested revising the application to make it more appealing to MDOT and increase the chances of funding. Councilor Lind supported by Councilor Hendrickson moved to resubmit the streetscape application and adopt the following resolution:

WHEREAS, the City of Crystal Falls has conducted public hearings to discuss proposed streetscape improvements to M69/Superior Avenue; and

WHEREAS, the residents and business owners of the City have shown support of the proposed improvements to M69/Superior Avenue which serves as the downtown area of their city through letters of support, and

WHEREAS, it is the belief of the residents, business owners, and Council for the City of Crystal Falls that the proposed improvements to M69/Superior Avenue will greatly enhance the downtown area and provide an attractive shopping environment, and

WHEREAS, the City of Crystal Falls previously submitted an application for Transportation Enhancement Activity Funds and was denied due to limited funding;

NOW THEREFORE BE IT RESOLVED, the Council for the City of Crystal Falls approves the reapplication to the Michigan Department of Transportation for "MDOT Enhancement Grant Funds", with said funds to be used for the streetscape improvements to that section of M69/Superior Avenue from the River to 5^th Street intersections, and

FURTHER BE IT RESOLVED, that the Council for the City of Crystal Falls pledges to provide Twenty Five Percent (25 %) of matching funds and/or in-kind services, and further, authorizes City Manager, Charles Nordeman, to proceed with and sign said application for the MDOT Enhancement Grant Funds on behalf of the City of Crystal Falls.

RESOLUTION ADOPTED

The MERS Defined Contribution Plan discussion was postponed to the October meeting.

The Council revisited the deer problem in the City noting that some action should be taken to deter the feeding of deer within the City limits, thus reducing the reason for deer to enter the City. Mayor Cram directed Attorney Lawrence to draft an ordinance similar to those of Iron Mountain & Kingsford that prohibit the feeding of deer in the City limits and to bring said draft to the Council for consideration at the October meeting.

Clerk Olson requested clarification by the Council regarding the wage adjustment for the upcoming fiscal year and also the adoption of an appropriation resolution authorizing the appropriations for the funds as needed for the final adopted budget of the Council.

Mayor Cram supported by Councilor Lind moved that if the Consumer Price Index is used for wage adjustments, the Midwest, Size D, 50,000 people or less, June to June CPI number will be used.

Ayes: Mayor Cram, Councilors Hendrickson, Nylund, and Lind.

Nays: Councilor Benda

Motion carried.

Councilor Lind supported by Councilor Hendrickson moved to approve the use of the CPI Midwest number of 2.7% for the wage adjustments and the granting of an additional holiday (Christmas Eve) for the city employees for fiscal year 2002, exclusive of the City Manager and Clerk/Treasurer.

Ayes: Mayor Cram, Councilors Hendrickson & Lind.

Nays: Councilors Nylund and Benda.

Motion carried.

Mayor Cram supported by Councilor Hendrickson moved to approve the following appropriation resolution for the 2001-2002 fiscal year budget:

WHEREAS, said budget, after due notice and public hearing has been adopted; and

WHEREAS, pursuant to said budget is necessary that THREE MILLION SIX HUNDRED SIXTY ONE THOUSAND, THREE HUNDRED FIFTY DOLLARS ($3,661,350) has been determined to be necessary to defray the expenditures and liabilities of the City of Crystal Falls for the fiscal year of 2001 - 2002, the following sums shall be and hereby are appropriated:

General ---------------------------------------$1,143,700.00

Major Street-----------------------------------$ 176,000.00

Local Street Fund------------------------------$ 53,000.00

Downtown Development Authority-----------------$ 7,400.00

Recreation-------------------------------------$ 240,000.00

Television-------------------------------------$ 162,000.00

Electric---------------------------------------$1,343,000.00

Sewer------------------------------------------$ 329,000.00

Water------------------------------------------$ 203,000.00

Trust & Agency---------------------------------$ 750.00

Electric Reserve & Contingency-----------------$ 3,500.00

                                               $3,661,350.00

Clerk Olson asked the Council to consider charging interest on accounts receivable billings over 1 year old. Attorney Lawrence suggested researching the legality of this action and will report back to the Council next month.

Councilor Hendrickson supported by Councilor Nylund moved to approve a resolution recommending the approval of a liquor license transfer from Joseph H. Vrancic Jr. and Joseph Harold Vrancic to Nora & Ray Bortolini.

Motion carried.

A copy of this resolution is attached and made a part of the minutes of this meeting.

Councilor Benda supported by Councilor Lind moved to approve the hiring of Emil Kezerle to replace George Pond Jr. as a part time police officer to fill in during scheduled vacations of the police officers.

Motion carried.

Councilor Hendrickson supported by Councilor Nylund moved to approve the payrolls and disbursements in the amount of $276,891.44 for the month of August 2001, and the City Clerk be instructed to draw checks on the City Treasury in payment of same.

Motion carried.

Councilor Hendrickson supported by Mayor Cram, moved to accept the following reports for the month of August 2001:

Police Chief’s report indicating 126 complaints, 16 of which were closed by arrest and 3,153 patrolled miles.

Joint Fire Authority report submitted by Fire Chief John Ahola indicating answering 2 fire calls; spending approximately 17 man-hours fighting fires; and holding one practice and training session.

Chief Electrician’s report of department activities.

Motion carried.

Manager Nordeman was instructed to look into the reason the street department activities report has not been submitted for the past two (2) months.

Mayor Cram supported by Councilor Benda moved to allow the auditor to make the transfers necessary to meet expenditures for the fiscal year end 2001.

Motion carried.

Attorney Lawrence briefed the Council on the results of the hearing regarding the pending litigation, C. Oberstar v. City of Crystal Falls. He noted that the City’s motion to disqualify Oberstar attorney Kerenen was denied, as was Obertar’s motion to compel to pay.

Mayor Cram supported by Councilor Hendrickson moved to meet in closed session to discuss the pending litigation strategy and also the possible repurchase of the Crystal Manor.

Motion carried.

Meeting temporarily adjourned at 7:10 p.m.

Meeting reconvened at 7:55 p.m.

Mayor Cram supported by Councilor Benda moved to authorize the repurchase of the Crystal Manor as a going concern and to appoint a committee of Councilors Lind and Hendrickson, with Councilor Benda as an alternate, Manager Nordeman, and Attorney Lawrence to negotiate the terms of the repurchase agreement with the Iron County Community Hospital Board.

Motion carried.

There being no further business to come before the Council, meeting adjourned at 7:58 p.m.