Iron County Reporter
 





New businesses for Crystal Falls’ Industrial Park takes another step - Wednesday, April 23, 2008

IRON COUNTY—The Crystal Falls City Council took one step closer to selling property in its Industrial Park that would bring in three new businesses.

During the council’s April 14 meeting, City Attorney Geoff Lawrence said he and City Manager Charles Nordeman prepared a final memorandum of understanding with Robert Grell, who asked to purchase up to four lots in the Industrial Park in order to construct a truck wash business, a truck parts store, and a trucking firm with dispatching.

The council approved the memorandum of understanding, which will be presented to Grell.

Nordman explained Grell still has to present the city with proof of financing, plus a copy of his business plans and a survey.

Nordeman explained his proposed new retirement plan for employees hired after Jan. 1. The city will contribute 3 percent of the employee’s salary into the plan, and the employee can elect to add more money into it. If it’s greater than 3 percent, the city will contribute another 1 percent.

“This goes a long way to reduce liability,” he said, “because once an employee retires they get that money. In the present plan, the city contributes up to 15 or 20 percent, and the employee only gets the money if he or she stays longer than 10 years.”

Dave Graff, electric department foreman, was concerned changing the policy could create strife with new employees.

“One of the good things with the city is our retirement plan,” he said.

“A lot of municipalities are switching to defined plans,” Nordeman said, “and the city may not have funds in 10, 20 years because our resources would all be going into retirement.”

The council agreed to the plan, with Edna Heikkinen opposed, and instructed Nordeman to work out any final details.

The Board of Review members will no longer receive $10 for meals. Clerk Dorothea Olson was requested to see how other municipalities handle the issue and learned Crystal Falls is the only one that gives Board of Review members meal compensation.

It was agreed they will continue receiving $50 per day, but the meal allowance was discontinued. They meet six times a year for a total of 15 hours, and are compensated $270 for their time.

On the recommendation of Graff, the council agreed to hire former employee Dennis Mitchell as a temporary part-time electrician. Employee Axel Anderson will be on medical leave for six to eight weeks, and the crews have started pole replacement. Mitchell will only work three or four days a week, so the city will not incur any additional expenses.

Councilor Jack Bicigo wondered how the police department will operate over the next few months with three full-time officers, because the part-time officers are not always available in the summer.

Nordeman said the city is saving money using part-time officers because they aren’t paid benefits. He noted he’s going to hold off hiring another full-time officer because he doesn’t know the WE Energies true-up charge for electricity yet, and they still don’t know employee benefit costs. Plus state tax revenues aren’t increasing.

“We have three full-time officers and four shifts,” Bicigo warned, “and in the summers it’s hard to get part-timers.”

Turning to agenda items, Nordeman said he did not run an income statement on last year’s operation of Runkle Lake Park, but historically, he said, it runs at a loss. There haven’t been any applications for lifeguards, he noted, and they won’t put out the dock without one. He also placed ads for a campground host and received no interest.

Mayor Janet Hendrickson noted the city has to maintain the park, the campgrounds, the ball fields and the new soccer field, suggesting an annual permit.

“Other parks around us have stickers,” she noted, “and parents pay an entry fee to watch their kids play ball up at school. So why not to watch baseball or soccer? I cannot see using the park for free when it’s losing money,” she added. “We were going to charge kids to ski at Crystella, why not to swim all summer?”

Councilor Edna Heikkinen also thought a fee was a good idea.

Nordeman said there is a problem with the logistics of where to sell the stickers. The matter was tabled until next month.

He suggested raising Runkle Lake Park camping fees by at least the rate of inflation: from $17 per day to $20 per day for sites with electric and water, and from $22 per day to $25 per day for those with electric, water and sewer. The council concurred. The monthly rate will remain at $300.

Looking at the audit, Nordeman said the golf course lost money last year and the city has to fund the depreciation. To at least break even, he recommended increases of 5 to 8 percent, which equals from $5 to $25. The council agreed.

The greens fees will remain at the level they’ve been at for the past four years, $15 for nine holes and $20 for 18 holes, or all day.




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