Biomass Proposal Worksession and City Council Meeting

All City Council Members were present at both the City Council Worksession on the Biomass District Heating Grant Opportunity and the regularly scheduled City Council Meeting.

Worksesssion on Biomass District Heating Grant Opportunity

Chuck Hartley, Director of Energy Management Services for LHB Corporation and Buck Benson of Cook County Local Energy Project (CCLEP) gave an overview of their proposed project entitled "Boundary Waters Renewable District Heat and Combined Heat & Power" to be submitted to the Department of Energy for funding.

To summarize, Grand Marais will join with the City of Ely to submit a proposal for a ~$20 million District Heating project. Ely and Grand Marais would each build a Centralized District Heating Plant; in Grand Marais the plant would generate electricity and provide heat to the School, Hospital, County Courthouse, the proposed Cook County Community Center and 100-300 homes. Benefits of such a plant are believed to be job creation, energy savings, reduction in fuel oil and propane, fossil fuel displacement, energy independence and reduction of CO2 emissions.

There is a 50/50 cost-share so if the proposal is successful, Grand Marais will receive $5.646 million and provide cost-share of $5.646 million, most likely by selling bonds. The proposal is due Tuesday 7/14 with awards to be announced in October 2009.

Council discussed the many unanswered questions in this proposal, and voted 4-1 to take a "leap of faith" and submit the proposal, using the 3 months between now and October to determine project feasibility both technically and financially.

Mayor Hakes cast the dissenting vote stating that while she supports the overall objectives and exploration of Centralized District Heating with Biomass, she feels it is irresponsible to move forward with so many unanswered questions and critical unknowns about the technical and financial viability of the project and whether it is a good use of public funds.

City Council Meeting

Open Forum
Bradley Peterson of the Coalition of Greater MN Cities gave an overview of the services provided by the Coalition. The Grand Marais membership in the Coalition expires at the end of 2009.

Permits Granted
Council granted several permits including The American Legion's Fisherman's Picnic Bingo Permit and Temporary ON-Sale Liquor Permit and Beer Tent, the NSFCU Street Permit for Customer Appreciation Days, the Dragon Boat Festival Permit, the Fisherman's Picnic Permit, and the Sawtooth Challenge Bike Race Street Permit.

Planning Commission Report
Council unanimously supported the the Planning Commission's approval for a Conditional Use Permit to allow (2) roof signs at the Cook County Whole Foods Coop.

Council voted unanimously to officially deny a request to rezone a lot in the EDA Business Park to R-1 to accomodate an affordable housing development. Funding used for the construction of the Business Park would not allow this rezone. Both the Planning Commission and Council expressed their disapointment in the EDA for moving this proposal forward in the first place.

Grand Marais Area Tourism Association (GMATA)
GMATA Director Diane Brostrom gave an overview of the 2009 GMATA Budget and County Lodging Tax. The Budget is on plan. The Lodging Tax Report through May 2009 shows a 16.5% reduction in tax for the Lutsen-Tofte Area, a 5.0% reduction for Grand Marais, and 11.4% reduction for the Gunflint Trail. There is optimistic that this downturn will change during the last half of 2009.

Noise Ordinance 2009-02 Second Reading
A second reading of Ordinance No. 2009-02 aka the Noise Ordinance was read and approved by Council 4-1. Councilor Bill Lenz cast the dissenting vote stating he wasn't convinced that we needed any change to the existing ordinance. He also expressed concern about no noise limits during the exception periods. Council appreciated the value of Public input in this matter and agreed to hold a Public Hearing in the Fall to solicit public input about the effectiveness of the amended ordinance.

County Prosecution Services
Council unanimously approved the Agreement for Prosecution Services provided by County Attorney Tim Scannell. In the agreement, the County agrees to provide the City of Grand Marais prosecution services for petty misdemeanors, misdemeanor, and gross misdemeanor violation of state law or city ordinance that occur within the city limits of Grand Marais. A quarterly fee of $3125 will be paid to the County. This agreement will now move to the County Board for approval.

Resolution 2009-05 Declaring Costs to be Assessed and Ordering Preparation of Proposed Assessment for 2008 Improvements Project
Council voted unanimously to pass this resolution authorizing Mike Roth to prepare the Assessment Role for the 2008 Improvements Project.

MN DOT Pedestrian Safey Project
Council and Mike Roth continue to work with Rob Ege of MN DOT to slow traffic along Highway 61 through Grand Marais. Of most significance, a new crosswalk has been added between the Dairy Queen and the Pumphouse. "EVENT CONGESTION AHEAD" signs have been ordered. And, MN DOT has provided the specifications for a "YOUR SPEED IS" sign to be placed along with a REDUCED SPEED AHEAD sign at approximately MM 108.593. MN DOT will also monitor traffic before/after these signs are placed to determine effectiveness.

Council Reports
Tim Kennedy reported on the Broadband Project noting that the Committee continues to work on Grant Funding for this County-wide project. Arrowhead Electric Coop is the proposed vendor for this service. Broadband is also a candidate for the 1% sales tax opportunity.

Bill Lenz reported that the Park Board has agreed upon a final recommendation for the Park Master Plan. Lenz reported that the Board was in agreement about the Plan to be presented to the Public on July 28 at 7 PM. The recommended Master Plan will be forwarded to the City Council for consideration and approval.

Mike Roth said (2) bids for wetland delineation in the Rec Park are being solicited.

Mayor Hakes updated the Council on her conversations with the DNR regarding the Safe Harbor/Marina project. The DNR suggested a face-to-face meeting with the City to discuss both DNR and City requirements for a Safe Harbor/Marina. The City will use Resolution 2007-05 as passed under Mayor Larsen as its basis for requirements.

Hakes also reported that the Grand Marais Volunteer Fire Department is working on a grant proposal to expand the current Fire Station in Grand Marais. The grant will be submitted to FEMA this week.

Mark Your Calendars
Tues July 28 at 7 PM Park Board Presentation of Master Plan at location TBD
Wed July 29 at 3:30 PM Capital Improvement Worksession
Wed July 29 at 4:30 PM City Council Meeting
Wed Aug 12 at 3:30 PM Budget Worksession
Wed Aug 12 at 4:30 PM City Council Meeting