Budget Worksession and City Council Meeting

Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's Budget Worksession and City Council Meeting. Also in attendance were Finance Director Kim Dunsmoor and Attorney Chris Hood (via telephone). City Administrator Mike Roth was absent.

Budget Worksession

Kim Dunsmoor provided the Council with an overview of Governor Pawlenty's supplemental budget bill which was signed into law on April 1, 2010. The State of MN has an immediate $1 Billion deficit which the State Legislature plans to address with $700 Million in cuts to Health & Human Services and K-12 Education. The Legislature also anticipates $400 Million increase in Federal funding for Medicaid. If these plans do not materialize as anticipated, further cuts to local governments could be made.

The impact of the State's Budget problems have already resulted in a $73,647 cut to the City of Grand Marais' Local Government Aid (LGA) funding for 2010. This month, the City learned that an additional unallotment has been made in the amount of $33,352, this time from the Market Value Homestead Credit (MVHC). The State Legislature has not finalized the entire $1 Billion Supplemental Budget Plan, so the exact amount of the City's unallotment won't be known until June 2010, but the situation certainly isn't likely to improve.

Council, led by Dunsmoor, reviewed the 2010 planned projects, equipment needs, expenditures, and fixed assets depreciation. It became clear very quickly that Council is not in position to approve new spending without a clear understanding of what will be given up to do it.

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 no changes.

Sheriff's Fire Order
Council voted unanimously to approve Resolution Approving Fire Ban (Resolution 2010-02) as recommended by City Attorney Chris Hood and Cook County Sheriff Mark Falk. On April 22, 2010 Falk issued an Order prohibiting all campfires and recreational fires within Cook County, MN. Because Sheriff Falk's Order was more restrictive than the DNR Commissioner's and Superior National Forest Supervisor's Order, Hood recommended that the Council adopt this Resolution to be 100% consistent with the County. Hood said he believes the Sheriff has the authority to issue fire permits for businesses and organizations on a case by case basis.

North House Folks School Building Permit
Council approved a building permit for North House Folk School to move and expand their Blacksmith Shop. The proposed building complies with City zoning requirements. Council approval is required to approve this permit as a condition of the lease between NHFS and the City of Grand Marais. Greg Wright has met with the Park Board about the project. Council approved this building permit by a vote of 4 - 0. Councilor Kay Costello recused herself from this vote as she is employed by North House.

Personnel
Council unanimously approved hiring Lee Hall as a part time liquor store clerk to replace Buffy Butz who has resigned her position.

Council & Staff Reports
Jan Sivertson reported that several downtown business owners have expressed safety concerns about the old Theatre Building on Wisconsin Avenue. Council will review current Ordinances regarding dilapidated buildings and consider options for this building and others.

Sue Hakes publicly thanked Grand Marais resident and business owner Jim Shinners for coordinating the downtown clean up in celebration of the 40th Annual Earth Day. Shinners reported that over 75 people participated in the clean-up activities (see photo above). Supporting the project were the Cook County News Herald and WTIP Community Radio, US Border Patrol, Forest Service, Church Groups, Girl Scouts, Chamber of Commerce, North House Folk School, Harbor Friends, the Grand Marais Business Council and motivated individuals!

Hakes reported that Commissioner Bob Fenwick asked her to confirm with the Council that they still support including the Pool and Softball Field in the proposed Community/Rec Center. Council confirmed.

Mark Your Calendars
Wednesday, May 12 at 4:30 pm, City Council Meeting
Wednesday, May 26 at 3:30 pm, Budget Meeting
Wednesday, May 26 at 4:30 pm, City Council Meeting
Thursday, May 27 at 4:00 pm, Joint City/County/School/Tribal Council Meeting at Location TBD

County-wide Fire Restrictions

Effective: April 23, 12:01 am

Cook County Sheriff Mark Falk has issued the following order:

All CAMPFIRES and RECREATIONAL FIRES are PROHIBITED within Cook County, Minnesota.

Grand Marais Business Wins Award

Dockside Fish Market Wins Joel Labovitz Award

Congratulations to Grand Marais entrepreneurs Shele and Harley Toftey for winning the prestigious Joel Labovitz Entreprenurial Success Award during a lavish ceremony at the Duluth Events and Convention Center (DECC). Award recipients are chosen by a panel selected by the UMD Center for Economic Development. Criteria used to evaluate each nominee included--competition in the industry, personal and financial risks taken, impact to the local and regional economy, and ability of the business to adapt to change.

Laurie Spry, Dick Powell and I all had the pleasure of watching Shele accept this award before a crowd of approximately 350 that included Arrowhead Region business leaders, fellow entrepreneurs, IRRB and SBA representatives, the Duluth News Tribune, and Duluth Mayor Don Ness. The Northland News Center's News Manager Barbara Reyelts was the Master of Ceremonies.

Thank you, Shele and Harley, for all that you do for the City of Grand Marais and Cook County!

A Visit from Senator Franken's Staff

I had the distinct pleasure of meeting with (2) members of Senator Al Franken's staff this afternoon. About a week ago I had a call from Daniel Fanning (Northeast Field Representative based in Duluth) asking if he could meet with me; of course I responded with an enthusiastic yes! So today, both Fanning and Marc Kimball (Minnesota Commmunications Coordinator based in St. Paul) paid a visit to me after stopping in at the Java Moose Coffee Shop.

Meeting with the Staff of a US Senator is an honor and an opportunity not to be wasted. Both Fanning and Kimball were eager to hear about our local issues, and I appreciated being able to share some of my biggest concerns with them:

- I expressed the frustration I feel and hear from the citizens of Grand Marais and Cook County about the amount of Stimulus Money that is being spent on projects that aren't truly useful to this community. Better communication with local city and county government is necessary to ensure that precious federal funding dollars are spent more wisely in Cook County.

- We talked about how Rural Areas differ from Urban Areas in Minnesota. In Cook County we always struggle with too few year-round living wage jobs and lack of affordable housing. In addition, our Local Government Aid for the City, as well as funding for both the County and ISD 166 are being slashed to painful low levels. We have a small tax base and few other resources to tap into.

- We discussed the economic and cultural benefits of having a Safe Harbor and Marina in the Grand Marais harbor. I gave them an extremely brief history on the work we are doing with the DNR and the Army Corp of Engineers. They were encouraging and asked me to keep them in the loop on this project.

- We discussed the Cedar Grove Business Park and the challenges the EDA, City and County are facing with respect to selling lots and paying the recently re-financed General Obligation bond burdening the City of Grand Marais.

Not surprisingly, Kimball and Fanning shared that they hear similar concerns in other Northern Minnesota communities. At the end of our meeting, we agreed that better communication is critical for Senator Franken to understand the needs of the Grand Marais/Cook County community so that he can represent us to the best of his ability.

Today's meeting was a first step in building a better and more productive relationship between elected officials to meet the needs of those we serve.

Thank you Marc Kimball and Daniel Fanning for taking the time to visit Grand Marais today. Enjoy your trip to the Boundary Waters Canoe Area this summer!

City Council Meeting

After a quick tour of City Hall, Mayor Hakes was pleased to introduce her father, Herb Hakes, to the City Council, City Staff and members of the Public in attendance.

Mayor Hakes then called the regularly scheduled Council Meeting to order. In attendance were Hakes, Councilors Costello, Kennedy, Lenz and Sivertson, City Administrator Mike Roth, Finance Director Kim Dunsmoor and City Attorney Chris Hood (via telephone).

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

Consent Agenda
The Consent Agenda was approved with minor corrections.

Girl Scout Tree Planting Request
Council unanimously approved the request from the Girl Scouts of Cook County to plant a tree for the Detrick and Palmer families in memory of Dean Detrick. The Girl Scouts were represented by Arvis Thompson, Girl Scouts Northern Light Services Unit Chairperson. The tree will be planted in front of the Detrick Building.

Street Permits
Council unanimously approved Street Permits for both the Art Festival (July 10-11) and the Dragon Boat Festival (July 29 - August 1). Art Colony Director Amy Demmer made the request on behalf of the Art Colony for the Art Festival.

In an effort to better support Special Events being held in our City Parks, festivals and events will now be required to get a permit from the Park Board to use City Park property or resources. The City Council will continue to approve street use requests.

Cook County Soil & Water Stormwater Design Presentation
Tristan Beaster, Cook County Soil and Water, gave a very informational presentation on storm water design. Beaster overviewed the Planning and Design project that will be conducted during 2010 as part of a $36,000 Lake Superior Coastal Program Grant. Goals of the project are to direct storm water runoff, improve water quality and enhance streetscape landscaping.

North House Folk School (NHFS) Update
Greg Wright, Director of North House Folk School, made his Annual Report on NHFS to the Council. Wright was pleased to report that after a difficult financial year in 2009, enrollment for 2010 is up significantly over the past 2 years. Wright credits this early promise of a successful 2010 to improved marketing and dedicated staff.

Wright updated the Council on plans for building the new Blacksmith Shed. NHFS will be providing Council with a site plan and applying for a Building Permit requiring Council approval. Council required that NHFS continue to coordinate with the Park Board on their shared border, particularly regarding storm water runoff and pedestrian walkways.

Council unanimously approved formal request for extending the deadline for completion of the "North House Harbor-Side Commons Revitalization" project from Minnesota's Lake Superior Coastal Program Project Grant #306A-01-11. The City will request the new deadline for completion of the project to be May 31, 2012. Wright is very comfortable that this deadline will be achieved.

Council & Staff Reports
Jan Sivertson reported that in a highly unusual move, the MN Department of Employment and Economic Development (DEED) reinstated Cook County in the joint Lake/Cook County Small Cities Development Program grant for housing rehabilitation funds. The Council expressed their sincere gratitude to both Reed Erickson (State Program Administrative Director for DEED) and Nancy Grabko (EDA Housing Coordinator). This restored funding will enable Cook County to fund 10 home rehabilitation projects in the next 15 months.
Bill Lenz reported that the Park Board approved the Community Garden project and their Capital Improvement Plan. Priority Capital Improvement Projects include 1) paving the road running west from 8th Avenue West, 2) upgrading 10-20 sites to full hook-up, 3) improving the community's connection to the Park, 4) installing the solar hot water heater in the bath house funded by a grant, 5) Safe Harbor planning, 6) new Park Office. The Park officially opens May 1.
Kay Costell0 reported that the Library Board and Library Staff are working to solicit interested architects for the Library's proposed expansion project.

Mark Your Calendars
Wednesday 4/28 at 3:30 pm, Budget Worksession at City Hall
Wednesday 4/28 at 4:30 pm, City Council Meeting
Wednesday, 5/12 at 4:30 pm, City Council Meeting
Wednesday, 5/26 at 4:30 pm, City Council Meeting
Thursday, 5/27 at 4:00 pm Joint City/County/School/Tribal Council Meeting at location TBD

April is Sexual Assault Awareness Month

April is Sexual Assault Awareness Month. If you, or someone you know, is affected by domestic violence or sexual assault, please contact the Violence Prevention Center in Cook County at 218 387 1262.

Services provided by the Violence Prevention Center are free and confidential.

Read-A-Thon Project is Impressive and Win/Win!

Congratulations to the Third Graders at Sawtooth Mountain Elementary and Heather Kemp on their thoughtful and worthy Read-A-Thon project. What a great idea for raising money for the Senior Center and enjoying the pleasure of reading! Everybody wins!