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