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