Bittersweet

Today was my last City Council Meeting as Mayor of Grand Marais.  My term officially ends January 3, 2011.  I will miss being the Mayor. 

Thank you to all of the City staff, City employees, residents and business owners of Grand Marais for making our town a great place to live, work and visit.  Thank you for allowing me to represent you as Mayor and for making the job so rewarding.  I'm grateful for the experience and for everything I've learned. 

The conclusion of my mayoral term is bittersweet. On Tuesday, January 4, 2011, I will be sworn in as the Cook County Commissioner for District 3.  I look forward to representing District 3 (half of which is in the City of Grand Marais) and working for all the residents of Cook County.  If you're interested, check my new blog at http://www.cookcountydistrict3.blogspot.com/

Happy New Year! 

Sue Hakes

Last City Council Meeting

Today's City Council Meeting was attended by Mayor Sue Hakes and Councilors Costello, Kennedy, Lenz and Sivertson.  Also present was Finance Director Kim Dunsmoor.  City Administrator Mike Roth and City Attorney Chris Hood were absent.

Open Forum
No member of the Public opted to speak at the Open Forum.

Consent Agenda
The Consent Agenda was approved with no changes.

2011 Legal Fees
Council unanimously approved a $5/hour increase in the hourly fees to be paid to Flaherty & Hood, the legal firm representing the City of Grand Marais.  This increase was to occur for the year 2010, but Flaherty & Hood postponed the fee increase until 2011 because of the significant cuts to the City's LGA (Local Government Aid).

2011 Mileage Reimbursement Rate
Council voted unanimously to accept the Internal Revenue Service 2011 Standard Mileage Rates to calculate the costs of operating an automobile for City Business.  The rate was increased by $.01 to $.51.

Council & Staff Reports
Kay Costello reported that she will attend the next (2) Library Board Meetings on her own behalf.  Kay's term as a City Councilor expires this term, but she is committed to making a seamless transition from her position on the Library Board to the new City appointee.
Bill Lenz reported that the roof on the Municipal Pool is complete.  The Pool will re-open Monday, January 3 for use in the hot tub, sauna and kiddie pool.  The main pool will take some time to warm up, but is anticipated to be ready to use mid-January. 

Mark Your Calendars
Wednesday, January 12 at 4:30 pm, City Council Meeting

City Council Meeting with Budget and Levy Public Hearing

Mayor Hakes and Councilors Costello, Kennedy and Lenz were all present for today's City Council Meeting, as well as the Budget and Levy Public Hearing. Councilor Sivertson was absent. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor and City Attorney Chris Hood (via telephone).

Open Forum
Maggie Barnhard, Events Director for the Cook County Events and Visitors Bureau, came before the Council to share plans being made for Cook County Winter Festival scheduled for February 4-13, 2011. Cook County Winter Festival is a winter festival that builds on winter activities already occurring in the County and provides a unique opportunity to enhance our brand message by incorporating all the ways residents and visitors can "Do North". Events will include a) Cook County Ridge Riders Snowmobile Club Fun Run, b) Easter Seals Snowarama Snowmobile Event, c) Lutsen Family Fun Fest, d) Volks Ski 400, e) The Bearskin Pursuit: Man vs. Dog. Snow Sculptures in Harbor Park will also be part of the Festival and Barnhard requested permission to use Harbor Park for this event. She also requested an in-kind contribution of $500 in the form of labor and equipment to build (4) blocks to be used for snow sculpturing. Council supported this event and approved the City's contribution unanimously.

Consent Agenda
The Consent Agenda was approved with minor corrections.

Planning Commission Report
Council unanimously approved a Conditional Use Permit request from Karen Holte/Randall & Cheryl Woodward to operate a bed and breakfast as a boarding house at the Holte property located in the R-1 district. The building is currently operating as a bed and breakfast under a conditional use permit that requires a new conditional use permit to continue after a sale. The potential new owners are not proposing any changes to the operation.

2011 Budget Discussion
Mike Roth presented the Council with a list of the risk factors to be considered before setting the final budget and levy for the City of Grand Marais. The largest risk to the City's budget is the unknown cuts in State Aid (LGA and MVHC). Although the State has informed the City that they have certified the full amount of $204,396 for LGA and MVHC combined, it is highly unlikely that this amount will actually be received. Knowing this, City Staff and the Council, built the budget around the amount received in 2010 of $111,577. The State is reporting a $6 Billion deficit for 2011, so the $111,577 is still at high risk. Other risk factors include to-be-negotiated wages, aging building and mechanical repairs (including a possible boiler replacement) at the pool, other. On the brighter side, the Rec Park continues to provide good income with projected revenues over $700,000. Gunflint Hills had a decent year showing a ~$10,000 loss in a declining golf market.

Budget and Levy Public Hearing at 6:00 pm
No member of the public attended the Budget and Levy Public Hearing

Certification of the Final Levy
Council adopted Resolution 2010-16 certifying the final levy at $825,997.43. This is a 3% increase which amounts to $23,340.05.

Council & Staff Reports
Tim Kennedy reported that there will be (2) public meetings held this month. The first is 12/9 at 7 PM in the County Commissioner's Room to provide information and solicit input regarding the Biomass Energy Feasibility Study. The second is 12/14 at 5 PM at the Community Center on the Joint City/County Energy Plan. Kennedy also reported that the PUC will not be raising rates for electric or sewer in 2011. There will be a slight increase in water rates.
Bill Lenz reported that the Park Board has been working on 2011 Rec Park Rates. There will be modest increases in some areas. Lenz also reported that the Community Center Steering Committee is reviewing Architect proposals tomorrow.
Kay Costello reported that the Library Board met with DSGW to review preliminary plans for the Library expansion. She also reported that she was interviewed by AEOA personnel regarding homelessness in Cook County. (Mayor Hakes and Mayor-elect Larry Carlson noted that they were also interviewed.)
Sue Hakes reported that she has received multiple complaints regarding icy sidewalks both along the harbor and in residential areas.


Mark Your Calendar

Wednesday, December 29 at 4:30 PM, City Council Meeting
Wednesday, January 12 at 4:30 PM, City Council Meeting
Wednesday, January 26 at 4:30 PM, City Council Meeting

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's City Council Meeting.  Also present were Mike Roth, Kim Dunsmoor and Attorney Chris Hood (via phone).

Open Forum
No member of the public opted to speak at the Open Forum.

Consent Agenda
The Consent Agenda was approved with (1) minor correction.

Snowmobile Club Request
Kim Linnell, Chamber of Commerce President, and Dan Anderson of the Ridge Riders Snowmobile Club requested the Council consider and approve the bike trail between 3rd Avenue West and the west edge of Grand Marais for snowmobile traffic.  The Snowmobile Club will be responsible for grooming the trail and signage.  Linnell and Anderson presented a letter of support with signatures from nearly all of the business owners along this portion of the bike trail.  Council expressed concern for pedestrian traffic, noise, logistics of trail grooming.  Council voted 5-0 to approve this portion of the trail be used for snowmobile traffic for the winter season of 2010-2011, subject to review in the Spring 2011.

PUD/Subdivision Regulation Issue 
Cook County Planning and Zoning has received an application for a Planned Unit Development (PUD) under the County's zoning ordinance.  The PUD at issue is proposed to be located outside the City, but is located within the two mile area upon which the City's subdivision regulations apply.  In this case, the County has zoning jurisdiction and the City has subdivision jurisdiction which raises the question of who should process the PUD application.  Both governmental jurisdictions have a portion (but not all) of the legal authority governing a PUD application under these circumstances.  Council directed Mike Roth and Tim Kennedy to set up a meeting with Tim Nelson (County Planning & Zoning), Tim Scannell (County Attorney) and Jan Hall (Commissioner District 5) to discuss potential solutions for consideration by the County Board and City Council.

Ordinance 2010-02 2nd Reading
Council unanimously approved the 2nd Reading of Ordinance 2010-02 to amend Grand Marais Zoning Ordinance to rezone Lots 4-17, Block 26 and lots 4-10, Block 27, all in Harbor Addition from C/I Commercial Industiral to MU Commercial-Residential Mixed Use zoning.

Curling Club Consumption and Display Permit Renewal
Council unanimously approved the Renewal of Consumption & Display Permit for the Cook County Curing Club.

Council Feedback to EDA
Councilor Jan Sivertson requested the Council provide her with ideas and feedback on where the EDA should focus its efforts in 2011.  Many ideas were discussed with general agreement that growing existing business was a priority.  Hakes provided written comments for the EDA to consider.

Council & Staff Reports
Tim Kennedy reported that the Biofuels Project hired Gary Atwood as Project Coordinator and is in the process of interviewing engineers.  A Public Meeting will be held on December 9 at 6 PM.
Bill Lenz reported that materials are arriving for the repair of the pool roof.  Lenz said completion of the project is weather dependent.  He is also concerned about the aging boiler.
Sue Hakes reported that the Miss North Shore Pageant will be held on January 8, 2011 at the Two Harbors Auditorium.  The Pageant requested $500 from the City of Grand Marais for their scholarship program.  The City is unable to honor this request and asked Mayor Hakes to send a letter of regret.
Mike Roth reported that Crystal Clemens has resigned from the Park Board.

Mark Your Calendar
Wednesday, December 8 at 4:30 pm, City Council Meeting
Wednesday, December 8 at 6:00 pm, Truth in Taxation Meeting
Wednesday, December 29 at 4:30 pm, City Council Meeting

Do North!

Get into the holiday spirit by coming downtown Grand Marais today to listen to music, enjoy some hot chocolate, see Santa and his sled dogs, and share in the lighting of the holiday tree!

Festivities begin just after 4 pm and all are welcome to share in this family event!  Hope to see you there!

Moose Classroom Visits City Hall

 

Moose Class students get a tour of
the old jail at Grand Marais City Hall!

Mayor Hakes hosted teacher Carrie Otis and (3) students from the Moose Classroom of Great Expectations School.  These students have been studying Federal and State government and wanted to learn more about local government, both at the City and County levels.

Hakes, supported by City Administrator Mike Roth and Finance Director Kim Dunsmoor, led the students through an overview of the services provided by local government, where the funding comes from, and how decisions are made.  The students asked thoughtful questions.

At the end of the visit, Hakes gave the students a tour of City Hall, including the old jail and firehall.  The students also toured the City's main office where they met Public Utilities Commission Administrator Jan Smith who gave each of the students a pocket sized PUC flashlight.

Hakes and Roth expressed their appreciation to the Moose Classroom students and teacher for their interest in local government and encouraged them to attend a City Council or County Board meeting to see local government in action.

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's City Council Meeting.  Also in attendance were Park Manager Dave Tersteeg, Tina Hanson and Attorney Robert Scott filling in for Christopher Hood.  Absent were Mike Roth and Kim Dunsmoor.

Open Forum
(3) members of the Harbor Park Committee--Bette MacDonald, Jim Shinners and Richard Olson--addressed the Council during the Open Forum to ask the Council to consider the creation of a Public Arts Commission.  The purpose of such a commission would be to approve and site public art on city property.  Council agreed to discuss the idea of a Public Arts Commission at a future Council meeting.  The Harbor Park Committee went on record in opposition of the recently proposed memorial flag pole for Harbor Park.  Mayor Hakes reported that Park Johnson withdrew the request for a flag pole in memory of Dick Joynes at Harbor Park.

Christmas Parade Street Permit
Council unanimously approved the Chamber of Commerce permit request for their annual Christmas Parade to be held on November 23 from 5:30-6:30 pm.  The City is decorating downtown Grand Marais with decorations and lights.  Anybody interested in volunteering to decorate Harbor Park may meet at Harbor Park this Friday, November 12, at 9 AM to help.

Pool Repairs 
The Municipal Pool building sustained damage to the roof and walls during the wind and rainstorm on 10/27 and is closed until further notice.  The League of MN Cities insurance adjuster has been on site to assess the damage and authorize temporary repairs to prevent further damage.  The insurance adjuster, city staff and contractors met on Friday, 10/29; bids were solicited for replacement of the entire rubber roofing system and additional carpentry work on damaged walls.  Tersteeg presented bids for this work to Council for consideration.

After a lengthy discussion, Council agreed unanimously to repair the storm damage to the roof and walls.  The City's deductible is $10,000 and the repairs wll take approximately 1 month to complete.  Mayor Hakes and Park Board Member Robin DuChien both received several phone calls from the public in support of repairing the pool.

Council agreed to recess today's Council meeting and reconvene Friday, November 12, at 1 PM to select a contractor to do the repair work.

Rezone Request
Council supported the unanimous recommendation of the Planning Commission with a 1st reading of the Ordinance to rezone Lots 3-17, Block 26 Harbor Addition from C/I Commercial Industrial to MU Commercial-Residential Mixed Use zoning.  Among other findings, it was determined that the C/I zoning was not appropriate for this area, and the MU zoning will allow the current single family uses as well as low impact commercial uses.

Council & Staff Reports 
Bill Lenz reported that the Park Board is in the process of reviewing their rates for 2011.  He also reported that both Park and Golf revenues are up.  The 10/27 storm caused damage to the boat ramp at the City Marina, as well as damage in Boulder Park.
Kay Costello reported that the Library has selected DSGW Architectural firm for the Library expansion project.
Jan Sivertson reported that the EDA has created a board to manage the Superior National Golf Course.  She also noted that the EDA has paid back their loan to the County.  Sivertson solicited feedback from the Council about the direction they believe the EDA should take.
Tim Kennedy reported that he met with Safe Routes to School (SRTS) to discuss the drop off area at Great Expectations School.  He also worked with Kim Dunsmoor to intervivew candidates to lead the City/County Energy Plan.  And, Kennedy is part of the committee interviewing for a local coordinator to work on the biofuels project with Dovetail Partners. 
Sue Hakes shared that the 7th grade class from GES will be coming to City Hall next Monday for a tour and presentation on City government to be given by Hakes.  She also reported that the Community Center Steering Committee is making steady progress with ORB Management with a schedule to complete the Community Center by the end of 2012. 

Mark Your Calendars
Thursday, November 18 at 4:00 pm, Joint CCST Meeting at ISD 166
Tuesday, November 30 at 4:30 pm, City Council Meeting (note deviation from regular schedule)
Wednesday, December 8 at 4:30 pm, City Council Meeting
Thursday, December 8 at 6:00 pm, Budget Comment Meeting
Wednesday, December 29 at 4:30, City Council Meeting

Local Election Results

Click here for local election results in Cook County and Grand Marais.

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy and Lenz were present for today's City Council Meeting. Councilor Jan Sivertson was absent. Also in attendance were Mike Roth and Kim Dunsmoor.

Open Forum
Maggie Barnard, Events Director of the Cook County Visitors Bureau (CCVB), informed the Council about the CCVB efforts to fund raise for maintenance and expansion of the downtown holiday lights and decorations. Council supported the CCVB efforts to raise funds to provide greenery for the City window boxes and planters, add outlets to the lamp posts on the Harbor Walk between Java Moose and the Angry Trout, add lights to the centerpiece tree in Harbor Park, replace light strings as necessary. Council expressed gratitude to the CCVB for heading this effort and acknowledged the success of the 2009 combined effort between the City of Grand Marais, CCVB and downtown businesses to decorate for the holidays.

Consent Agenda
Consent Agenda was approved with no changes.

Park Board Application
Crystal Clemons has applied for the open position on the Park Board and was available to the Council for introductions and questions. Council unanimously approved the appointment of Crystal Clemons to the Park Board and thanked her for her willingness to serve.

Council & Staff Reports
Tim Kennedy reported that the PUC replaced water lines in (2) areas of Grand Marais last week. This work was funded in part through a $100,000 IRRB grant and included the replacement of 3-4 fire hydrants. Kennedy also reported that the Planning Commission will be addressing the request for rezoning a portion of Grand Marais at their next meeting to be held at 4 PM on Wednesday, November 3.
Kay Costello reported that the Library Board Executive Committee met with their architectural firm to discuss the library expansion project. She also reported that $60,000 of 1% Sales Tax funding has been approved by the County Board for this work. The estimated project cost will be $800,000.
Bill Lenz reported that the roof blew off of the Pool Building during last night's storm. Mike Roth added that the Insurance Company adjuster was on site today to assess the damage. Lenz also reported that the Community Center Steering Committee had a productive meeting with Construction Manager ORB.

Mark Your Calendars
Wednesday, Nov 10 at 4:30 pm, City Council Meeting
Thursday, November 18 at 4:00 pm, Joint CCST Meeting, Location TBD
Wednesday, November 30 at 4:30 pm, City Council Meeting (NOTE THIS CHANGE IN DATE!!)
Wednesday, December 8 at 4:30 pm, City Council Meeting
Thursday, December 8 at 6:00 pm, Budget Comment Meeting

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's regularly scheduled City Council Meeting. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor and Park Manager Dave Tersteeg. City Attorney Christopher Hood was in attendance via telephone.

Open Forum
Steve Schug of the US Forest Service gave the Council an overview of the coming Boy Scout's Order of the Arrow project. In June 2011, approximately 500-700 Boys Scouts and their leadership will be coming to Grand Marais to voluntarily work several projects including improvements to the Superior Hiking Trail, building a single track bike trail in the Pincushion and Tofte areas and improving campsites in the area of the Vegetable Lakes chain. This project is about mentoring young men and women in leadership and providing community service. Council agreed this will be a great event for Grand Marais and Cook County.

Consent Agenda
Council approved Consent Agenda with no changes.

Planning Commission Report
Council unanimously approved a request from Crystal Nelson for a conditional use permit to operate a quilting class as a home based business at her property located in the R-1 district.

Pool Boiler
Council considered the request from the Park Board to authorize funds for the replacement of the pool boiler at an estimated cost of between $15,000 and $20,000. The LPG central boiler that heats the pool building, domestic hot water, big pool and hot tub has developed cracks in 2 of 7 heat exchangers. Council tabled the issue until more information is provided regarding the cost of a used boiler, resale value and payback period.

IRR Renewable Energy Grant Agreement
The City of Grand Marais has been awarded a renewable Energy Grant from the Iron Range Resources Board to install a solar photovoltaic electrical system at the Gunflint Hills Golf Course.

Council & Staff Reports
Tim Kennedy reported that the Planning Commission is still considering the request to rezone the southern portions of 7th and 8th Avenues West in Grand Marais from C/I to Mixed Use or R1.
Jan Sivertson reported that the EDA unanimously voted to create a 7-member Superior National Management Board. Details are to be worked out. Sivertson also reported on the North Shore Management Board where an overview of the Silver Bay Eco Business Park was given.
Kay Costell0 reported that the Library Board has selected an Architectural Firm to recommend to the County Board for the Library expansion.
Sue Hakes reported that the Garden Club called her to say they do not endorse the installation of a memorial Flag Pole in Harbor Park. Mike Roth reported that he received a phone call from the DNR in response to his inquiry about whether or not a flag pole could be installed. The DNR informed Roth that more details are required.

Mark Your Calendars
Wednesday, October 27 at 4:30 pm, City Council Meeting
Wednesday, November 10 at 4:30 pm, City Council Meeting
Thursday, November 18 at 4:00 pm, Joint City/County/School/Tribe Meeting
Wednesday, November 24 at 4:30, City Council Meeting (day before Thanksgiving)

City Council Meeting with Burn Pile Public Meeting

Mayor Hakes, Councilors Costello, Kennedy, and Sivertson were all present for today's Council Meeting with Burn Pile Public Meeting. Councilor Lenz was absent. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor and Street Department Head Len Bloomquist.

City Council Meeting

Consent Agenda
The Consent Agenda was approved with a minor change.

Insurance Renewal
Paul Coe, Security State Insurance, presented the City's League of MN Cities Insurance Trust (LMCIT) renewal policy which includes the Liquor Liability renewal. Coe answered several questions after which the Council unanimously (4-0) approved this renewal premium at a cost of $67,105.

Park Board Application
Council received an application for the open seat on the Grand Marais Park Board. Council asked Mike Roth to invite the candidate to the next City Council meeting so they could meet her. The Park Board is currently a (7) member board, but has had some difficulty filling the open positions. Council anticipates further openings on this board effective January 1, 2011.

Council discussed briefly, the overall process for recruiting board members and asked Mike Roth to enhance the current application form to enable candidates to provide more detailed information to the Council.

Council & Staff Reports
Kay Costello reported that the Library Board was reviewing proposals from several architects for the Library addition and preparing to make a recommendation to the County Board.
Sue Hakes reported that the County Board agreed to begin negotiation with ORB Management for the job of Construction Manager on the Community Center project. ORB Management was recommended to the County by the Community Center Steering Committee; the County will lead these negotations.
Mike Roth shared good news that several Grand Marais businesses have made application for a Small Cities Grant effort to be led by Lake County. This funding is to be used for rehabilitation purposes.

Burn Pile Public Meeting
In recognition of both the negative effects and the popularity of the City's burn pile, the City Council invited the public to share their views and listen to those who have been affected positively or negatively by the burn pile as part of today's regularly scheduled Council Meeting. As noted in the City's September 8, 2010 press release:

The burn pile has been a topic of discussion for the Council and City staff since last October (2009). Smoke from the burning debris of a very full burn pile caused problems for both the Hospital and School. In response to the smoke complaints, the City has limited the size of the pile to what can burn in a single day. This has meant burning more often, including approximately seven times in 2010.

Many residents and contractors who use the pile have noticed the more frequent closing of the site as the City waits for optimal weather for burning. City staff consider moisture levels, current weather and forecast wind speed and direction before lighting the fire. "Even with the precautions we have taken, there is no guarantee that smoke will not cause problems with a burn pile this close to town," says City Administration Mike Roth".

Input was received from Cook County Hospital (Rory Smith) ISD 166 (Beth Schwarz) , Cook County (Fritz Sobanja and Jim Johnson), FireWise (Paul Nelson, Dick Parker) and the Forest Service (Patty Johnson). Written comments were also received from Hospital Administrator Diane Pearson, DNR Aaron Mielke and Mary Manning and an ISD 166 teacher. These groups (along with others) were specifically invited to give input at today's meeting, along with the general public.

The major problem identified from the school and hospital group was health related. Smoke from the burn pile has caused hazardous air quality conditions in both the hospital and the school causing illness to both patients and employees. The air handlers at the hospital cannot handle the smoke and it's extremely difficult to get rid of once it has infiltrated. This condition is unacceptable to both the hospital and school.

Both Aaron Mielke and Mary Manning, in their written responses, identified the problem of prohibitive materials dropped off in the burn pile. City Staff and others confirmed this as a difficult problem to police and manage. Burning prohibitive materials could result in the loss of the burn permit.

Approximately 12 members of the general public shared their views on the burn pile. Written comments from the public were also received. Overwhelmingly, the general public comments were received from individual users of the burn pile that see great benefit in this service.

After approximately 60 minutes, the meeting was closed to further public input. At this time, Council discussed the problem further and concluded the following:

1) Better signage at the site is necessary so that prohibitive materials and penalties for illegal dumping is made very clear. The City will make the change in signage.
2) Smoke from the burn pile is causing unacceptable health hazards at the hospital and school. This, combined with the fact that the burn pile area is shared with the runaway truck ramp, makes the current site for the burn pile unsuitable. Council agreed to explore relocating the burn pile in another location. Recognizing the value of the burn pile to the public, the City hopes that it could be re-located within a reasonable distance from Grand Marais. Because there is no obvious acceptable site within the City of Grand Marais, the Council will ask the County for suggested alternate sites. Mike Roth will draft a letter to the County Board which will be presented by the City at a future County Board meeting.

Mark Your Calendars
Wed, October 13 at 4:30 pm, City Council Meeting
Wed, October 27 at 4:30 pm, City Council Meeting

Setting the Preliminary Levy and City Council Meeting

Present for today's Budget and City Council Meetings were Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson. Also present were Mike Roth, Kim Dunsmoor and Attorney Chris Hood (via telephone).

Budget Meeting
Council discussed the 2011 Budget for the City of Grand Marais and set the preliminary levy at 3%. The preliminary levy is a not-to-exeed; the final levy will be set in December. Setting the budget was difficult due to the uncertainty of Local Government Aid. The State has notified the City that we will receive $155,000 in LGA and $49,000 in Market Value Homestead Credit, but it is extremely unlikely that Grand Marais will received those amounts and could receive zero. The City will also be negotiating their union contract this Fall.

Council Meeting

Open Forum
No member of the Public opted to address the Council at the Open Forum.

Consent Agenda
The Consent Agenda was approved.

Planning Commission Report
Tim Kennedy and Mike Roth gave an overview of (2) issues discussed at the 9/1/2010 Planning Commission Meeting:

1) Stanley Poole and Nadine Maki are requesting a zoning amendment to change Lots 3-17 Block 26 in the Harbor Addition from C/I (Commercial Industrial) to MU (Commercial/Residential Mixed Use). Approximately 15 residents attended the public hearing regarding this request, many with questions and comments. The Planning Commission is considering expanding the area for potential rezoning and will hold a new public hearing on October 6.

2) The Planning Commission considered several options to address the recent MN Supreme Court decision regarding variances : a) creating a new setback standards for property line setbacks, b) create an expansion permit similar to the previous variance process, and c) work with the League of MN Cities to seek legislative change. Creating new setback standards is a lengthy process with unintended consequences. Attorney Chris Hood informed Council that using an expansion permit is not consistent with the new State Law. So, the Planning Commission is leaning toward Option C to seek legislative change; the downside of this option is that it will take months or longer. Council instructed Mike Roth to write a letter to the League of MN Cities.

2010 Liquor Permit Renewals
Council approved the Liquor License renewals pending receipt of fee payment, Insurance Certificates, successful background checks, and no delinquences in local taxes or service payments. Once this is confirmed, the renewal forms will be sent to the State of MN.

Resolution 2010-12 Preliminary Levy
Council approved Resolution 2010-12 to set the prelininary levy which must be done prior to September 15 annually. This prelininary levy number is reported to the State and used by the County Auditor to prepare parcel specific tax notices. The City may not adopt a final levy greater than the prelininary levy. The final levy will be decided in December.

EECBG Lighting Retrofit Contract Approval
Council approved the grant agreement with the State for our Lighting Retrofit Project. Lighting fixtures will be replaced in City Hall, the Water Treatment Plant, the Waste Water Treatment Plant and the Park Building to increase lighting efficiency.

Burn Pile
Council discussed the agenda for the Public Meeting on September 29 at 5:00 pm on the Burn Pile. This Public Meeting will be posted next week. The Public is encouraged to attend and participate.

Council & Staff Reports
Kay Costello reported that the proposed Library expansion project is moving forward. The Library Board is reviewing proposals from several architectural firms and will be presenting their findings and suggestions to the City and the County Board.
Bill Lenz reported on the Rec Park income through August. The Campground is up $22k, while the pool and marina are each down ~$1300. Lenz also reminded the Council that WTIP Radio Waves is scheduled for this weekend in the Rec Park and promises to be a lot of fun.
Tim Kennedy reported that the Biomass Grant for a feasibility study continues to move forward with the LCCMR; Cook County is working with Ely on this $150k effort. Additional funding is being sought from the County Board for ~$113,000. Kennedy reported that the County is considering possible sources for this funding to be 1% Sales Tax funds and Forest Resource funds.
Jan Sivertson reported that the North Shore Management Board will be holding its annual meeting in Grand Marais on 9/30/2010.
Mike Roth reported that the new crosswalk over Highway 61 at the base of the Old Gunflint Trail (5th Avenue) is complete. Roth also reported that Southern Minnesota Municipal Power Agency will be at City Hall tomorrow (Thursday 9/9/2010) for its annual meeting. Mayor Hakes will welcome SMMPA members.
Sue Hakes reported receiving a letter from the Mayor and Planning Commission Chair from Two Harbors requesting support in amending regulations prohibiting new off-premise advertising signs along the North Shore Scenic Drive.

Mark Your Calendars
Thurs, September 9 from 9-Noon, Joint County/City/EDA at Courthouse
Wed, September 29 at 4:30 pm, City Council Meeting
Wed, September 29 at 5:00 pm, Burn Pile Public Meeting
Wed, October 13 at 4:30 pm, City Council Meeting
Wed, October 27 at 4;30 pm, City Council Meeting

Cities Matter

Cities Matter is a project sponsored by the League of Minnesota Cities. If you are interested in learning more about how cities work, how they are funded and the challenges they face, go to: http://www.citiesmatter.org/ . The information is easy to understand and includes information for teachers and students as well.

As always, your ideas, concerns and suggestions are welcomed by me and at City Hall. Don't be shy!

Budget Worksession and City Council Meeting

Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's Budget Worksession and Council Meeting. Also present were Mike Roth and Kim Dunsmoor. City Attorney Chris Hood was present (via telephone) for the Council Meeting. Park Manager Dave Tersteeg, Assistant Manager Amber Clay and Fire Chief Ben Silence presented budget overviews to the Council.

Budget Worksession

Council reviewed Expenditures and Revenues for several departments in the General Fund including Council, City Clerk, Elections, Financial Administration, City Attorney, Planning & Zoning, Government Buildings, Law Enforcement, Fire, Medical Services, Animal Control, Highways Streets & Roads, Recreation, Swimming Pool, Boat Harbor, and City Parks.

Council must set the maximum levy for the City before September 14 and will do so at their next regularly scheduled Council Meeting on September 8, 2010. A final budget work session will be held just prior to that meeting. Setting the budget for 2011 is particularly challenging this year due to the uncertainty of Local Government Aid to cities and the pending contract negotiations with city employees.

City Council Meeting

Open Forum
No member of the public opted to address the Council during the Open Forum.

Consent Agenda
The Consent Agenda, including Meeting Minutes from both 7/28 and 8/11, was approved with no changes.

Harbor Park Flagpole Request
Gene Erickson addressed the Council with an offer to pay for a memorial flag pole in Harbor Park. This idea was born out of a group of friends exploring ways to remember their friend and local business owner, Dick Joynes. Erickson and friends have collected $1300 for a flag pole and memorial plaque to include the name of Joynes; the plaque would be large enough to memorialize others as a way to raise funds for the Park.

Because Harbor Park is part of a Conservation Easement and was funded in part by a DNR Natural Scenic Grant it is unknown whether or not a flagpole would be allowed. Council unanimously passed a motion for Mike Roth to contact the DNR to see if such a memorial would be allowed. Councilor Sivertson reminded the Council that there was an extensive public process that went into the design of Harbor Park that would also need to be considered carefully.

Mayor Hakes suggested (2) possible alternatives to Erickson for the memorial flagpole including Compass Park and the Coast Guard Station. Erickson ruled out the Coast Guard Station, but said Compass Park might be an acceptable alternative to Harbor Park.

All-Hazard Mitigation Plan Resolution of Adoption
Council adopted the 2010 Update of the Cook County All Hazard Mitigation Plan. Jim Wiinanen was present to answer questions. Wiinanen notified Council that there will be Workshop in November 2010 for elected officials to understand their roles in emergency situations.

EECBG Project Committee
Council passed a motion for Tim Kennedy and Mike Roth to represent the City and work with Cook County Local Energy Project, the County and other community stakeholders in working to develop an energy efficiency and renewable energy plan for Cook County and the City of Grand Marais. George Wilkes of CCLEP was present to answer questions about the grant and also to introduce Don Grant as the Energy Plan Coordinator.

Quick Variance Resolution
Council voted unanimously to deny the request for a variance to reduce the side yard setback from 10 to 5 feet for an addition to property owned by Dan and Linda Quick. Council findings were based on the recent MN Supreme Court ruling in the case of Krummenacher v. City of Minnetonka which tightly restricts the reasonable use of the "undue hardship" legal standard for granting or denying variance requests. Landowners seeking a variance must now show that the property cannot be put to any reasonable use without the variance. Council expressed their regrets in not being able to grant the variance.

MMUA 2010-11 Safety Management Program Contract
Council voted unanimously to renew the Safety Management Program contract with Minnesota Municipal Utilities Association (MMUA). The City and MMUA have been successful in working together to develop a safety program that is both effective and affordable.

Economic Development Authority/Superior National Golf Course
Council discussed the Economic Development Authority's (EDA) recent recommendations regarding Superior National Golf Course to the County Board. The EDA's proposal includes management change at Superior National from the EDA to a non-profit organization, ownership change from the EDA to the County, $1,569,000 in One Percent Sales Tax funding, bond payment of $467,000 by the County and an additional $100,000/year to the County General Fund.

Hakes and Roth reported that at the August 24 County Budget Hearings, the EDA requested a supplementary levy of $119,470 from the County to enable the EDA to pay the general obligation bond debt incurred for the development of Cedar Grove Business Park.

(Background: Hakes and Roth attended the July 13 EDA Board Meeting to communicate the City's position to the EDA Board regarding the $1.6 million bond debt on the Cedar Grove Business Park. Representing the City of Grand Marais, Hakes expressed grave concern over the Cedar Grove Business Park debt and requested that the EDA Board include the bond payment in their budget and consider it in their levy request. Hakes requested the EDA resolve their existing debt obligation before creating any new obligations or debt.)

Council & Staff Reports
Kay Costell0 reported that the Library is in the process of reviewing architectural drawings for a proposed library expansion to be paid for with One Percent Sales Tax funds.
Bill Lenz requested Council review the existing lease agreement with East Bay Suites for (5) parking spaces for consistency with the terms of other leases, including Stone Harbor Wilderness. Council agreed lease agreements should be fair and equitable and authorized Mike Roth to discuss with EBS Manager Andrew Warren.
Mike Roth reported on the Coalition of Greater MN Cities Conference in Winona MN. Highlights of the conference included Candidate Forums for Governor and State Auditor.
Sue Hakes updated the Council on the progress being made by the Community Center Steering Committee. The Committee is interviewing potential Construction Managers for the proposed project to be funded by One Percent Sales Tax funding.

Mark Your Calendars
Thurs, August 26 at 4 pm, Joint City/County/School/Tribal Council Meeting at City hall
Wed, September 8 at 3:30 pm, Budget Worksession
Wed, September 8 at 4:30 pm, City Council Meeting
Wed, September 29 at 4:30 pm, City Council Meeting

Budget Worksession and City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for both today's Budget Worksession and City Council Meeting. Also present for both were Mike Roth, Kim Dunsmoor and Chris Hood (via telephone). Lenny Bloomquist was present for the Council Meeting.

Budget Worksession
The Council continues to work on the 2011 Budget. Department Heads are working on individual budgets and will present to Council on August 25. Council reviewed (3) scenarios for the 2011 Budget with difference being the amount of State Aid received in the form of LGA and MVHC. Council assumes that State Aid will be reduced as the Governor and State Legislators work to resolve the $5-6 Billion State Deficit. The City and the City Workers Union will be negotiating a new contract this Fall. The Council will set its maximum levy on September 8, 2010.

City Council Meeting

Open Forum
No member of the Public opted to address the Council during Open Forum.

Approve Consent Agenda
Council approved Consent Agenda without Meeting Minutes. The July 28 Meeting Minutes were accidentally omitted from the Packet and will be reviewed for approval at the next Council Meeting.

Planning Commission Report

Variance Standards
The Minnesota Supreme Court recently issued a decision that changed the longstanding interpretation of the statutory standard for granting zoning variances. This Court ruling holds cities to a much stricter standard which considerably limits variance opportunities. Basically, the Supreme Court concluded that city authority to issue a variance is limited to those very rare cases where the property cannot be put to "a reasonable use" without the variance. And the Court stated that "unless and until the Legislature takes action to provide a more flexible variance standard for municipalities, we are constrained by the language of the statute to hold that a municipality does not have the authority to grant a variance unless the applicant can show that her property cannot be put to a reasonable use without the variance."

The Council voted unaninously to refer this change in the legal standard to the Planning Commission. Among other things, the Planning Commission will work to incorporate these changes into our City Code Section 19.20. Council also asked the Planning Commission to find a way for our City Code to allow the City greater flexibility in allowing "variance-like" approvals under the zoning code.

Quick Variance
Dan and Linda Quick requested a variance to construct a two-story addition to their existing single-family home located 5' within the required 10' side yard setback on their property zoned R-1. The City Council voted unanimously to deny this request based on their finding that the request did not pass the new legal standard (see above) as interpreted by the Supreme Court in Krummenacher v. City of Minnetonka, 2010 WL 2517702 (Minn. 2010). Council expressed their sincere regrets in having to make this decision.

Harbor Park Flagpole Request
Gene Erickson was on the agenda to discuss possible locations for a flagpole in memory Dick Joynes, but Gene did not attend today's meeting. Mayor Hakes discussed (2) sites to be considered for the memorial flag pole: Coast Guard Station and Compass Park. Hakes contacted Richard Fortunato of the USBP to see if replacing the current flag at the Coast Guard Station was feasible. Fortunato was receptive to the idea stating he would need to talk with Chief Hernandez, the Coast Guard and the Historical Society.

Stone Harbor Lease
Council discussed and modified a lease agreement for use of public property by Stone Harbor, LLC to locate a temporary rack for storage of kayaks between May 1 and November 1. The property to be leased is adjacent to property owned by Jack Stone of Stone Harbor Wilderness Supply Co located on the East Bay. Mayor Hakes noted that she received negative feedback about the proposed lease from (1) Grand Marais resident. She also referenced a call she received from Cathi Williams, co-owner of Bear Track Outfitter. Williams said that she also had an interest in leasing land for storing Bear Track Outfitter kayaks on the Harbor. Mayor Hakes expressed the importance of supporting local businesses, fairness, and the possibility of establishing a policy for leasing city owned property. After some discussion, Council voted unaninously to approve the lease and that other requests should be considered on a case by case basis.

Street Truck Purchase
Council unanimously approved the purchase of a much needed street truck including dump box, plow and sander. The City collects $18,000 annually to buy capital for the Street Department; the replacement schedule budgets $60,000 for the replacement of this truck. The quote for the new truck is $62,392.34. Delivery is anticipated in ~4 months.

Burn Pile Update
Council has received several complaints about poor air quality caused by the City's burn pile. Council is considering all options including closing the burn pile. A Public Hearing is being scheduled for September 29 to hear ideas, pros and cons from the Public before any decision is made.

Fire Department Grant
The Fire Department has received a grant for $1800 to offset the cost of 5 handheld radios totalling $3750. Council unanimously approved the grant agreement. Mike Roth acknowledged the initiative of volunteer fire department member Aaron Mielke in receiving this grant.

ECFE Request for Road Closing
Council approved a request from the ECFE to close the city street between the Community Center and the Fire Hall to accomodate a large equipment display on Saturday 8/21 of the County Fair.

Council & Staff Reports
Bill Lenz reported that both Golf Course and Rec Park revenues are up through July while Pool revenues are down and the Marina is even when compared to 2009. He also noted that WTIP will host their annual Radio Waves concert at the Sliding Hill September 9-10.

Sue Hakes forwarded a request from School Superintendent Beth Schwarz to present an overview of the School Referendum. Council will be present at the next Joint ISD166/City/County/Tribal Council meeting on August 26 to hear the presentation. Hakes also said Bruce Leng told Hakes he would like to meet with her and Mike Roth to discuss options for his Theatre Building in downtown Grand Marais.

Mark Your Calendars
Wed, August 25 at 4:30, City Council Meeting
Thur, August 26 at 4:00, Joint ISD166/City/County/Tribal Council Meeting at City Hall
Wed, September 8 at 3:30, Worksession on Budget
Wed, September 8 at 4:40, City Council Meeting
Wed, September 29 at 4:30, City Council Meeting
Wed, September 29 at 5:00, Tentative Public Hearing on City Burn Pile

Fisherman's Picnic

A personal note..

Fisherman's Picnic 2010 was really fun. It was my first year as a Lion so I had the opportunity to really plug into the event, which made it even better. I had the pleasure of working in the Fishburger Stand, the Information Booth, selling raffle tickets and being the MC of the Loon Calling Contest. I played BINGO at the American Legion and won for the first time in my life!!! I walked the Parade, listened to lots of local musicians and witnessed log rolling, kids playing games and the oh-so-yucky Fish Toss competition! Best of all, I shared time with friends and neighbors.

Thanks to everyone who contributed to the success of this year's Picnic. We really live in a wonderful town.

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy and Sivertson, along with Mike Roth, Kim Dunsmoor and Chris Hood (via telephone) were all present for today's City Council Meeting. Also present was Grand Marais Volunteer Fire Chief Ben Silence. Councilor Bill Lenz was absent.

City Council Meeting

Open Forum
Jack Stone, Owner of Stone Harbor Wilderness Supply Company, asked Council to approve his request for seasonal kayak storage on the City-owned grassy area between the holding pond and stone beach east of his store. The kayaks would be stored on a rack specifically designed for this purpose and would be secured and insured by Stone Harbor Wilderness Supply. Council discussion of this request included zoning, approximate size of storage rack, location, specific use, liability, months of use, and termination of the request. No decision was made, but Council authorized Mike Roth and Chris Hood to draft a proposed lease for Council review at their next Council Meeting.

Consent Agenda
Consent agenda was approved with addition of Library Budget to today's Council Meeting.

Burbach Aquatics
(In 2005, the City of Grand Marais entered into an agreement with Burbach Aquatics for architectural services regarding repair, renovation or replacement of the Grand Marais Pool.) Council passed a motion to direct Mike Roth to contact the Cook County Board to request that the County use Burbach for the architectural services, including design and construction administration, related to the pool portion of the Community Center project, if the Comunity Center is to include a pool. Council also passed a motion authorizing Mike Roth and/or legal counsel to take all actions necessary to communicate with Burbach and/or other appropriate entities regarding the City's actions related to Cook County's proposed Community Center project.

Personnel Items
Council approved hiring James Daniel Ford as a new Paid-on-Call Firefighter. Council also approved hiring (2) part-time lifeguards.

Relief Association State Pension Cost Estimate
Council reviewed the Cost Analysis to estimate the on-going cost of joining the statewide volunteer firefighter retirement plan administered by PERA. Joining the statewide retirement plan was requested by the Grand Marais Volunteer Fire Department. After review of the costs, Council approved a resolution opting to join the voluntary statewide lump-sum volunteer firefighter retirement plan at the $1250 benefit level per year of service.

Library Budget
Council approved a .98% increase to the Library Budget which does not include any wage increases. The City will enter into contract negotiations in Fall 2010.

Council & Staff Reports
Jan Sivertson reported that the EDA received its Cost Benefit Analysis last week. Written reports are not yet available but have been requested.

Mark Your Calendars
Wednesday, August 11 at 3:30 pm, Budget Worksession
Wednesday, August 11 at 4:30 pm, City Council Meeting
Wednesday, August 25 at 4:30 pm, City Council Meeting

Happy 40th Birthday Grand Marais Playhouse!

The Grand Marais Playhouse is celebrating its 40th Season with a Birthday Bash in the backyard of the Arrowhead Center for the Arts.

Free lemonade, birthday cake and dance music by "The Cavern Beat!" Join the fun!

Fishing, Neighbors Working Together, Good Food

Check out this wonderful Lake Superior Fish video featuring Harley Tofte, Tyler Smith, Dockside Market, Barb LaVigne & George Wilkes, the Angry Trout and herring!

Worksession and City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's Worksession and City Council Meeting. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor and Attorney Chris Hood (via telephone). Tom Nelson was present for a portion of the Council Meeting.

Budget Worksession
Linda Chapelle and Carole Miller presented the Library's proposed Operating Budget for 2011 to the City Council for review. The proposed budget shows an approximate 1% budget increase and does not allow for any wage or salary increases. Salary increases for the City are unknown; contract negotiations will occur in the Fall of 2010. Council asked for more information regarding the Arrowhead Library System services and will review again at the July 28 meeting. (The County and City support the library 50/50.)

City Administrator Mike Roth, supported by Finance Director Kim Dunsmoor, presented the Council with a high-level overview of the 2011 City Budget Considerations. Council discussed a) Salary and wages for City employees are to be determined. The AFSCME contract expires at the end of 2010; negotiations will occur this Fall. b) Local Government Aid (LGA) has decreased from $184,209 in 2008 to $96,422 in 2010. With the State facing a $5-9 billion deficit we should anticipate further cuts to State Aid. c) No major infrastructure or capital expenditures are planned. d) Council Priority projects currently underway will require funding to move forward.

Department Heads will soon be preparing their 2011 budget request and appear before the Council to present.

City Council Meeting

Open Forum
No member of the public opted to speak at the Open Forum.

Consent Agenda
Council approved the consent agenda with a minor change to the July 6 Worksession Minutes.

Grand Marais Fire Relief Association Request
The Grand Marais Volunteer Fire Department (GMVFD) is considering participating in the Statewide Volunteer Firefighter Retirement Plan. Council unanimously approved GMVFD request to contact PERA for a cost analysis of the plan. The request was made by Tom Nelson on behalf of the GMVFD.

Propane Bids
Competitive bids were solicited for supplying the City of Grand Marais with propane. The award was made to Como Oil & Propane based on low bid.

Lion's Club Fisherman's Picnic Permit
Council approved Lion's Club request for Use of Street and Sidewalks Permit for 2010 Fisherman's Picnic. The request was made by Lion's Club members Andrew Smith and Al Taenzer.

Planning Commission Requests/Report
Council unanimously approved Robert and Delores Spry's request for a variance from the side yard setback to construct an addition to their existing building. This addition will connect to their existing second story residence.

Council unanimously approved Jane Ranum's request for a variance from the front yard setback to build a covered porch on the north side of her existing home.

Council approved 3-2 Ron Lund's request for a conditional use permit to operate an art classroom and studio as a home based business at his property located in the R-1 district. Hakes and Costello voted against the request.

Mayor Hakes suggested that Council request the Planning Commission visit the current Grand Marais Zoning Ordinance regarding Home Occupations and consider adding some guidelines for more consistency.

Economic Development Authority Discussion
Hakes and Roth reported on the July 13 EDA Board meeting. Hakes and Roth attended that meeting to communicate the City's position to the EDA Board regarding the $1.6 million bond debt on the Cedar Grove Business Park. Representing the City of Grand Marais, Hakes expressed grave concern over the Cedar Grove Business Park debt and requested that the EDA Board include the bond payment in their budget and consider it in their levy request. Hakes requested the EDA resolve their existing debt obligation before creating any new obligations or debt. The EDA Board made a motion and voted to "not incur any more bonded indebtedness until the Cedar Grove Business Park is stabilized". There is some confusion with Hakes and Roth about this motion which will need to be clarified.

Hakes and Roth reported that a private developer is working with the EDA and hoping to build several rental homes on his property in Grand Marais. The developer and EDA are exploring IRRB grant funding to offset infrastructure costs. There will likely be a presentation to the Council on July 28.

Mike Roth reported that EDA Director Matt Geretschlaeger verbally indicated to the EDA Board that he would be resigning from the EDA effective January 1, 2011 if his position was only funded for 1/2 time.

Burn Pile Discussion
Hakes reported that Diane Pearson, Cook County Hospital Administrator, called her with a concern about the smoke from the City's burn pile and its negative affect on patients in the ER and hospital. Pearson said the problem seems to be worst when the pile is smoldering. Council acknowledged that air quality at the hospital and school are sometimes affected by the burn pile. After discussions about the pros and cons of having a City burn pile, Council directed Roth to talk with the DNR, County and Forest Service about possible solutions which most likely means alternative locations. Council also discussed the possibility of a Public Meeting for citizens to express their concerns about the Burn Pile both pro and con.

New Hire at the Library
Council unanimously approved the hiring of Patsy Ingebretson in the Library I position replacing Anne Prinsen.

Council & Staff Reports
Bill Lenz reported that Golf and Park revenues are up year-to-date; bookings are also up. Lenz reported that the Charter School painted a lovely mural at the Pool on one of the doors. Lenz was pleased to announce the Pool passed their surprise pool inspection "with flying colors". And, Lenz shared with the Council that friends of Dick Joynes would like to donate a flag pole and flag in memory of their dear friend Dick and will talk with the Park Board about an appropriate location.

Kay Costello reported her attendance at the last Library Board Meeting and that they've been working diligently on their 2011 budget.

Tim Kennedy reported that the PUC is discussing how the City should manage and oversee sewage treatment systems within the City of Grand Marais.

Jan Sivertson announced to the Council that she is getting married in October 2010 and may be absent for 2-4 months beginning January 2011. She is considering resigning her position on the Council.

Sue Hakes reported that the orange flags to be used as a pedestrian aid in the crosswalks have arrived; the street department will be placing them as soon the signage arrives.

Mark Your Calendars
Wed, July 28 at 4:30 pm, City Council Meeting
Wed, August 11 at 4:30 pm, City Council Meeting
Wed, August 25 at 4:30 pm, City Council Meeting

20th Annual Grand Marais Arts Festival 2010

The Grand Marais Art Colony is celebrating its 20th Annual Arts Festival in downtown Grand Marais. I spent a wonderful morning yesterday wandering from booth to booth enjoying the many works displayed in over 60 booths by local and visiting artists.

The temperatures are cool and there is virtually no wind; I think I'll go catch the 2nd day of this event! Hope to see you there!

Lieutenant Governor Candidate Visits Grand Marais

John Gunyou, Candidate for Lieutenant Governor of Minnesota, paid a visit to City Hall last week. Gunyou is running with DFL-endorsed gubanatorial candidate Margaret Anderson Kelliher. Gunyou's staffers called last week to request this meeting.

During our meeting I had a chance to express concerns about the budget and the uncertainties in Local Government Aid to cities. We also discussed the wide gap between city government and the Governor's office causing difficulties in serving the Public. Gunyou explained that closing that gap was one of the main purposes of his visit. Gunyou is currently serving as the City Manager for Minnetonka, so he understands the issues facing cities.

After our meeting, I had the distinct pleasure of introducing Gunyou and his Campaign Staff to Grand Marais. We took a walk through town stopping at the Beaver House, World's Best Donuts, Sivertson's Gallery, the Trading Post and Stone Harbor Wilderness Supply Company. Gunyou enjoyed a plain donut (his choice) from Staci and Dee, as well as a tour of the newly expanded kitchen at the World's Best Donuts (see photo taken by Rhonda Silence). We also had a few minutes to enjoy Harbor Park and discuss our long-term efforts to work with the DNR and Corp of Engineers to build a Safe Harbor and Marina in Grand Marais.

Upon his departure, Gunyou promised to return to Grand Marais and enjoy a stay at the Rec Park!

City Council Work Session on Economic Development Authority (EDA)

The purpose of today's City Council Work Session was to formulate a Council position to give to the EDA to resolve the financial problems at both Superior National and the Cedar Grove Business Park. In attendance at today's work session were Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson, City Administrator Mike Roth and City Finance Director Kim Dunmoor. Also in attendance were the City's representatives on the EDA Board, Hal Greenwood and Mark Sandbo.

(Reminder: The EDA, along with members of the West End Business Community, presented an idea for long term stewardship of the Golf Course which included: 1) The County will payoff the remaining Superior National bonds of $440,000, 2) The County will invest $1.2 million dollars of 1% Sales Tax monies for equipment, irrigation and course improvements, and 3) The County will increase the levy by $140,000 annually to fund future golf course capital needs.)

Mayor Hakes opened the meeting with some general remarks framing the problem from her perspective which are summarized below:

The purpose of today's meeting is to formulate the City Council's position for the EDA regarding the financial struggles at Superior National Golf Course and the Cedar Grove Business Park. At the risk of speaking for others, it seems quite apparent that we all agree that Superior National is a valuable and important asset to the County, is in need of capital improvements and is in need of financing and marketing to restore the course and increase rounds. We also agree that our County economy is driven by Tourism.

But, as the Mayor, I believe it is important to frame the EDA's problem from the City's point of view. The City of Grand Marais faces serious financial challenges both today and in the future. The State of MN predicts a $5-8 billion deficit in 2011. As a result, the City can basically be assured of further reductions in State Aid (LGA and MVHC). Much of the City's financial worries are in large part due to the EDA's Business Park debt of $1.6 million (well over $2 million with interest) and an annual payment of approximately $130,000 over 20 years that is paid entirely by City taxpayers.

I feel strongly that before we consider any increased spending/debt at Superior National, we need to address the $2 million problem we have at the Business Park. We (the Council) represent the people of Grand Marais and it is unfair for them to absorb this enormous debt without County assistance. The EDA is a joint effort between the City and the County. The EDA needs to work as diligently on the Business Park problem as they do on Superior National. I fear that if the County accepts the solution currently recommended by the EDA that our opportunity to get financial support from the County for the Business Park will be lost forever. As Mayor of Grand Marais, I'm not willing to let that happen.

What ensued after these remarks was an impassioned conversation between the Mayor, the Council and the City's representatives on the EDA Board (Sandbo & Greenwood). I will not attempt to speak for the others, only myself. I openly admit that I was very intense in my arguments because I am zealous in my commitment to represent the taxpayers of Grand Marais, as well as the taxpayers of the County, to the best of my ability.

I firmly believe the following:

1. The Cedar Grove Business Park debt is the responsibility of the EDA. If the EDA is unable to pay this debt, it should be the joint responsibility of the City and the County.
2. The EDA should resolve the financial debt at the Business Park before supporting any further spending.

In the end, the Council unanimously passed a motion to ask the EDA to include the Bond Payment for the Business Park in their budget and levy request.

Happy Fourth of July!

Happy Fourth of July Weekend everybody! Don't forget to enjoy the Parade and Fireworks on Sunday evening in downtown Grand Marais!

The regularly scheduled City Council Meeting was held today at 4:30 pm. I won't be updatomg my blog to reflect this meeting as I'm headed out of town in just a few minutes to be with family! Please don't ever hesitate to call or email me if you are interested in what business occurred. You may also get a copy of the meeting minutes from Kim Dunsmoor at City Hall.

Be safe this weekend and enjoy!

Meeting with Northeast Entrepreneur Fund

Dawn Johnson, Women's Business Network Program Director for the Northeast Entrepreneur Fund (NEF), was gracious enough to schedule a meeting with me to meet the NEFs newly hired Business Developer, Tom Furman. Johnson, Furman and I met at City Hall to discuss the programs available at NEF and how residents of Grand Marais and Cook County might take advantage of their classes, consulting and loans offered.

According to their website...

The Northeast Entrepreneur Fund helps people start and grow successful, locally owned small businesses. Its mission is to promote the entrepreneurial spirit and create economic wealth and diversity. NEF provides training, consulting and financing to emerging and small businesses in northeast Minnesota and northwest Wisconsin.

If you are a busines owner, or wish to start a business, please consider the services of the Northeast Entrepreneur Fund. They may be able to give you just the advantage you need.

Contact Info:

Dawn Johnson dawnj@entrepreneurfund.org
Tom Furman tomf@entrepreneurfund.org

Also, be sure to watch for the monthly Women's Business Network Lunches in Grand Marais. These events are co-sponsored with Cook County Higher Ed and will resume this Fall. They are great events for broadening ones knowledge and support base in owning and operating a small business.

Grand Marais Named in Outdoor Life's Best Towns for 2010

Outdoor Life Magazine has ranked Grand Marais as America's 14th best town for hunters and fishermen.

Great Summer Weekend at North House Folk School

This weekend is one of the summer's best at North House Folk School. Come on down for the Wooden Boat Show, Boots to Tools Auction and the Summer Solstice Puppet Pageant! Great food and fun for all ages all day long!

Worksession and City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson along with City Attorney Chris Hood (via phone), Mike Roth, and Kim Dunsmoor were all present for today's Worksession and Council Meeting. Also present for portions of the the Council Meeting were Tom Nelson and Linda Chappelle. EDA Board Member Mark Sandbo was present for the Worksession.

Council Worksession on Economic Development Authority (EDA)

Yesterday, a small group of West End Business Owners, as well as members of the EDA Golf Course Subcommittee, gave a presentation to the full EDA Board at their regularly scheduled meeting. This is a very similar presentation to the one given to Hakes and Roth a couple of weeks ago. The purpose of today's worksession was for the full City Council to get updated on the state of the EDA, in particular Superior National Golf Course (SN)

Jan Sivertson and Mike Roth summarized for the Council, the presentation that was given to the EDA. The basic premise is that SN is losing money due to declining golf rounds caused by too little marketing and ~$1.5M in deferred capital improvements. The West End Business Community proposes a solution to the problem that includes stabilizing the SN financial needs, providing long-term management, and fulfilling the original purpose of the Golf Course to bring tourists to Cook County. The group is proposing resolving the SN financial problems through use of Payment In Lieu of Taxes (PILT) funds, One Percent Sales tax Funds and increasing the EDA Levy. They are also proposing that SN be managed by and leased to a to-be-created Non-Profit Corporation. Sivertson reported that the EDA voted at their June 8 Meeting to support these concepts.

Council had a healthy discussion about the EDA, the proposed concepts and what role or influence the City Council has in resolving the financial problems of SN. Mayor Hakes opened the discussion with comments that the EDA is a joint City and County effort with (2) struggling assets--Superior National Golf Course and the Cedar Grove Business Park. Council acknowledged the problems at Superior National and discussed the pros and cons of the proposed solution. Hakes also requested that in addition to resolving the problems at Superior National that the EDA give attention to the problems at the Business Development Park. The Council supports working with the County to resolve the problems at both the Golf Course and the Business Park. Council also expressed concerns that increasing funding to the EDA without addressing the management issues will not solve SN problems.

The EDA, supported by the West End Business Community, will make its presentation to the County Board on June 22.

City Council Meeting

Open Forum
Librarian Linda Chappelle reported that the Library Board sent a Request for Proposals (RFP) to 10 architectural firms for the Library Expansion Project. A Pre-proposal Conference is scheduled for June 18th at the Library for interested architects.

Consent Agenda
The Consent Agenda was approved with (1) minor correction.

Sawtooth Challenge Mountain Bike Race
Council unanimously approved the Street Permit for the Sawtooth Challenge Mountain Bike Race requested by the Superior Cycling Association. This event is scheduled for April 28, 2010 downtown Grand Marais.

Water Emergency and Conservation Plan
Council unanimously voted to adopt the Water Emergency and Conservation Plan for the City of Grand Marais as presented by Tom Nelson. The plan has already been approved by the MN DNR. Council noted points of interest within the plan. Water usage has actually decreased over the past 20 years although population has increased; this is likely due to community conservation efforts. The amount of water unaccounted for peaked in 2004 and has gone down fairly significantly over the past 3 years. The largest user of water by volume is the Water Treatment plant; the Grand Marais Pool is ranked as the 8th largest user.

Stormwater Projects Cost-Share Grant
Tristan Beaster, Cook County Soil and Water, asked Council to approve a Cost-Share Grant Agreement for ~$16,670 ($12,497 grant plus $4,165 cost-share) to be applied toward any of (3) projects to repair streets damaged in the June 6, 2008 storm. Projects that may benefit from these projects include 10th Avenue and 11th Avenue between First and Second Streets and Humphrey Circle; all streets are gravel. Property owners will also be asked to participate, perhaps by paying for new larger driveway culverts. Projects need to be completed by June 3, 2012 with construction anticipated in 2011. Council approved the request unanimously.

IRR Community Business Partnership Grant Annual Report
Council reviewed the Annual Report submitted to Iron Range Resources as required by our agreement with the State of Minnesota acting by and through its Office of the Commissioner of Iron Range Resources and Rehabilitation.

Other Items as Necessary
Mike Roth asked the Council to consider how to resolve overgrown lawns in the residential or commercial areas of Grand Marais. Council authorized Mike Roth to write a letter to the property owner in these instances and ask them to mow the grass.

Council & Staff Reports

Bill Lenz reported that year-to-date revenues are up at the Rec Park, Pool and Golf Course. He also reported that the Park Board has eliminated the $25 fee to apply for a Special Events permit and that the Park Board will absorb the ~$400 cost to move buoys for the Dragon Boat Festival. Lenz also noted that Grand Marais will be host to a 50' boat within the month.

Kay Costello reported on the Library Board Meeting. She also asked Bill Lenz for an update on the Joint City/County/School/Tribal Council meeting held last month.

Tim Kennedy reported that the Planning Commission is considering a request for a Home Occupation Conditional Use Permit from Ron Lund to have an Art Studio in his home. The Planning Commission requested further information from Lund.

Jan Sivertson reported that the Universiy of Minnesota Crookston met with the EDA Board regarding the marketing of the Cedar Grove Business Park. U of M Crookston noted that our Business Park faces unique challenges including small population for workforce and limited airport facilities.

Mike Roth reported that KGM is working on the road at the Business Park.

Sue Hakes reported that she had a very productive conversation with Bruce Leng, owner of the former Theatre Building downtown. Leng understands the potential for a safety issue at the building and will consider doing some work to the front side. Hakes agreed to provide Leng with information regarding the Store Front Loan program and possibility of receiving a grant if/when building is ever demolished. Hakes reported that Stan Linnell and Peter Hark of the DNR will be in Grand Marais to meet with the Council regarding the Safe Harbor and Marina on June 29. A possible tour of the waterfront will be included in the meeting. Hakes asked Roth if the YOUR SPEED IS SIGN had been ordered; Roth reported that it has been ordered and it should arrive soon. Lastly, Hakes requested that Council consider using orange Crosswalk Flags at (1) intersection as a beta test to see if they help pedestrians cross more safely by letting motorists know of their intentions. Hakes proposes that Council authorize her to work with Roth and Lenny Bloomquist of the Streets Department to provide flags and monitor their use. Council had questions about how the Public would be informed of the project. Hakes has a call in to the Transportation Planner at Salt Lake City Utah to see how their city built this program in 2000.

Mark Your Calendars
Wednesday, June 30 at 4:30 pm, City Council Meeting
Wednesday, July 14 at 3:30 pm, Worksession--Budget
Wednesday, July 14 at 4:30, City Council Meeting
Wednesday, July 28 at 4:30, City Council Meeting

Budget Worksession and City Council Meeting Notes

Note: This update is for meetings held May 26, 2010.

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for both the Budget Worksession and City Council Meetings. Also in attendance were Mike Roth, Kim Dunsmoor and Chris Hood (via telephone). Dave Teersteg was present for the Budget Meeting.

Budget Worksession
City Administrator Mike Roth gave an overview of recent activity regarding the State Budget and Year-To-Date Summary. Cuts to the City of Grand Marais 2010 Budget include a previous $73,647 reduction in Local Government Aid (LGA) and the recent $33,352 reduction in Market Value Homestead Credit (MVHC).

Council considered several options for addressing the $33,352 reduction in the City's budget and ultimately voted unanimously on the following: 1) Cut $9600 allocated for cable transfer, 2) Defer ~$20K of the $30K allocated for Rec Park Site upgrades, 3) Reduce $4000 reserved for Council Priorities.

City Council Meeting

Open Forum
No member of the Public opted to speak at the Open Forum.

Consent Agenda
The consent agenda was approved with minor corrections to the Meeting Minutes.

Chamber of Commerce
Permits were granted to the Chamber of Commerce for both the Annual Classic Car Show to be held June 12 and Fourth of July Parade on the evening of July 4.

Cook County Local Energy Project (CCLEP)
George Wilkes of CCLEP presented the modified Cook County/Grand Marais Energy Planning Program proposal to the City Council. Instead of separate County and City programs, the project has been submitted jointly at the request of the customer (MN Office of Energy Security EECBG) for a total of $50,000 of grant funding. If funded, the City and County will work with CCLEP to hire a contracted consultant to conduct a community-wide planning process to develop energy efficiency and renewable energy goals, policies, and implementation strategies. The City will cost-share with some labor.

Wilkes also requested a letter of support from the Council for their $262,160 proposal entitled "Supporting Community-Driven Sustainable Bioenergy Projects". The goals of this project are to develop and share information and tools that address key questions about the viability of community bioenergy systems. The Council voted 4-1 to provide the requested letter of support. Mayor Hakes voted against providing the letter stating she does not support asking for $262,160 for a project that has not been fully described or understood.

Planning Commission Report
Council approved Resolution to approve a Conditional Use Permit for Greg Nichols and Kirsten van den Berg to operate a fitness studio as a home occupation. Council voted 3-1 in favor of the Resolution with Costello opposed. Mayor Hakes abstained.

Hazardous Buildings
Prompted by public concerns brought forward about the condition of the former theatre building, Council asked Mike Roth and Attorney Chris Hood to present the various ways to address Nuisance/Hazardous Buildings within the City of Grand Marais. The range of options is wide and includes Local Ordinance City Code Chapter 22, State Law regarding Hazardous Buildings, Due Process, Improvement through Incentive, and Hazard By Repair Order. Public Safety was clearly the main concern of the Council. Mayor Hakes volunteered to contact the property owner to discuss the safety concern.

Grand Marais Playhouse Request (GMPH)
The GMPH requested $1500 in support of the Summer Internship program at the Playhouse. Due to budget constraints, Council regrets being unable to support this program.

Council & Staff Reports
Kim Dunsmoor reported that Fire Chief Ben Silence intends to hire (6) Firefighters.
Mike Roth reported that he and Mayor Hakes had been meeting with North House Folk School (NHFS) regarding plans to build the Green Building and any potential impact to the current lease. Just this week, NHFS informed Hakes and Roth that plans to move forward with the Green Building have been pushed out to 2011 or beyond.
Mayor Hakes reported that Jan Horak called with an idea improve pedestrian safety by providing orange crosswalk flags at busy intersections. Believing the idea has merit, Hakes is exploring the idea. Hakes also reported that she attended a Community Center Meeting with Bob Fenwick, Beth Schwarz, and Diane Booth. The majority of the meeting was spent determining who should be represented on the Community Center Steering Committee using the suggested members from the One Percent Committee for the C0mmunity Center as a guide. Hakes, along with Dave Teersteg and Bill Lenz will represent the City. Hakes reported that several business owners from the west end, along with (2) members of the EDA Golf Course Committee requested a meeting with Hakes and Roth to express their concerns about the condition of Superior National Golf Course. A Council Worksession will be scheduled to discuss ideas about resolving financial problems at both the Golf Course and the Business Park.

Mark Your Calendars
Wednesday, June 9 at 3:30 pm, Worksession to discuss EDA Golf Course/Business Park
Wednesday, June 9 at 4;30 pm, City Council Meeting
Wednesday, June 30, at 4:30 pm, City Council Meeting

Memorial Day Service

I was honored to be asked to participate in the Memorial Day Service on the Courthouse Lawn this morning. Thank you Commander Don Wilson and the local American Legion and Legion Auxiliary for sponsoring a meaningful morning and delicious lunch afterward.

The music at today's service was heartfelt and beautiful with Irene Thompson singing the "Star Spangled Banner", Richard Fortunato of the US Border Patrol playing "Amazing Grace" on his bagpipes, and Cook County High School musicians Shelby Arndt and Lars Scannell offering their haunting rendition of "Echo Taps".

Giving most meaning to the day, however, was the presence of the men and women Veterans, their families, and the roll call of the Cook County Veterans that died this past year. Sharing time to honor them was the order of the day.

Grand Marais and North Shore Top Destinations

The annual Lake Superior Travel Guide has declared Grand Marais and the North Shore as the favorite destinations for 2010. Thank you Lake Superior Magazine!

Welcome tourists, family & friends!

City Council Meeting Notes

Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's City Council Meeting. Also present were Mike Roth, Kim Dunsmoor, Fire Chief Ben Silence and Attorney Chris Hood (via telephone).

Open Forum
Ron Lund presented a letter to the Council expressing his opposition to the Conditional Use Permit to operate a personal fitness training studio as a home based business requested by Kirsten van den Berg and Greg Nichols. Lund believes that although the business is worthy, it pushes the definition for home occupation and would create unwanted traffic in a residential neighborhood. Mr. Lund was invited by Council to stay for the meeting to hear the discussion on this matter.

Consent Agenda
Consent Agenda was approved with (2) additions to the Agenda: Dilapidated Buildings and Traffic Control on Highway 61.

Fire Chief Report
Fire Chief Ben Silence presented the Council with a proposed Firefighter Job Description and discussed the need for recruitment. Currently, there are 20 firefighters in the Grand Marais Volunteer Fire Department (GMVFD); the desired number is ~30. (6) First Responders will be joining the GMVFD. Silence would like to hire (5) more firefighters. Council approved the Job Description unamimously. Persons interested in becoming a volunteer firefighter are encouraged to contact Chief Silence or City Hall to fill out an application.

Planning Commission Report
Mayor Hakes recused herself from this discussion; she is the current landlord for Studio 61 owned by Greg Nichols and Kirsten van den Berg and has a vested interest in the outcome of the request. Council discussed Nichols and van den Berg's request for a Conditional Use Permit to operate a personal fitness training studio as a home based business at their property located in the R-1 District at 921 West First Street. This Planning Commission held a Public Hearing on May 5, 2010 on this matter and approved the request with conditions to limit signage and hours of operation. Council discussed this request at length, noting that a lot of public comment had been received, both pro and con, about this request. Ultimately, Council passed a motion to ask City Staff to prepare a Conditional Use Permit as requested but with the following Conditions: a) no outside employees, b) classes are limited to 3 hours/day, c) (3) off-street parking spaces must be available for clients, d) on-street parking is limited to (3), e) class size is limited to (8) students, f) classes are limited to between the hours of 6 AM and 7:30 PM, g) signage must conform to the Sign Ordinance and be no larger than 4 square feet in size. Council will consider the CUP at their next meeting on May 26.

Garden Club Request
Council unanimously approved the Garden Club's requst for $1000 for flowers and fertilizer. The Garden Club will plant the flowers in the street containers and ground beds downtown; the Park Department will water them.

Resolution of Participation in County Hazard Mitigation Planning
Council unanimously approved the resolution to formalize the City of Grand Marais' participation in the County Hazard mitigation plan. The City has been participating on the County Emergency Preparedness Committee.

Dilapidated Buildings
Mayor Hakes requested that this item be added to the agenda for discussion based on community feedback about Council's discussion regarding the former Theatre Building.

Hakes clarified that the Grand Marais Playhouse (GMPH) will be celebrating their 40th Anniversary this summer. As part of that celebration, GMATA Director Diane Brostrom suggested several months ago to GMPH Director Sue Hennessy that the Playhouse use the window space at the former Theatre Building to advertise creatively in their window. The idea was received positively by Hennessy and the property owner, making it a real win/win/win. The connection between the historic old Theatre and the current Playhouse could be meaningful and the location for advertising is perfect.

The issue of dilapidated buildings in Grand Marais is quite a separate issue. Council agreed that Public Safety is always an issue. Mike Roth and Attorney Chris Hood will discuss proper steps and options around this matter. Council also agreed it is important to treat property owners with respect.

Traffic Control on Highway 61
Mike Roth will order the "YOUR SPEED IS" sign to be placed next to the Speed Limit sign near the bottom of the hill on Highway 61 West. This sign, in combination with "Event Congestion Ahead" signs will be used this summer to slow traffic down during the busy summer months. These actions are part of an overall plan by the Council to improve pedestrian safety. In 2009 a crosswalk was added near the Dairy Queen and Pumphouse. Additional crosswalks are in the initial planning stages. And, Roth and Hakes will continue to work directly with Rob Ege of MN Dot to do some traffic/speed monitoring on Highway 61 to determine if changes to the Speed Limit are needed.

Council & Staff Reports
Mike Roth updated the Council on possible IRRB funding to do some preliminary design work on the Marina/Safe Harbor. Council voted unanimously to submit a request for $20K. Roth is also working with Dick Grabko to learn more about the potential for funding from the Great Lakes Initiative to do more in-depth design and engineering work for the Marina and Safe Harbor.

Kim Dunsmoor reported that the City's Annual Audit was completed today.

Bill Lenz reported that Community Garden has been dug and plans for planting are underway. He also reported that the Park Board has combined the various Camp Site waiting lists into (1) master list.

Jan Sivertson said she attended the North Shore Management Board meeting. The Board voted to sponsor a St. Paul based company in creating a plan for the North Shore that puts the environment first and will be used as a tool for planning and development.

Sue Hakes reported that she traveled to Two Harbors to attend the Northeast Service Cooperative (NESC) Informational Meeting to discuss their successfully funded broadband infrastructure project. The $43.5M Northeast Middle Mile Project will deploy a 915 mile fiber optic network to expand broadband services throughout Northeast MN, including Cook County. Funded 50/50 by grant and loan, the Middle Mile Project will connect critical services including health care, education, libraries, and county, state and emergency services in northeast Minnesota. NESC is also working with the Cook County Board and has submitted a proposal to provide fiber based broadband to ~6000 households in Cook County. If successful in winning this grant, the County Board may opt to cost-share with One Percent Sales Tax funds.

Mark Your Calendars
Wednesday, May 26 at 3:30 pm, City Council Budget Worksession II
Wednesday, May 26 at 4:30 pm, City Council Meeting
Thursday, May 27 at 4:00 pm, Joint City/County/School/Tribal Council Meeting in Grand Portage
Wednesday, June 9 at 4:30 pm, City Council Meeting
Wednesday, June 30 at 4:30 pm, City Council Meeting