Budget Worksession and City Council Meeting Notes

Budget Worksession

A full City Council participated in the Budget workshop. With the anticipation of cuts to Local Government Aid (LGA) in the amount of $50K for 2009 and $100K in 2010, City Staff prepared budget amendment options for Council review. Some budget amendments have already been implemented, others are being considered by the Council for immediate implementation, others will need more study, and a few may be rejected outright. Budget management and cuts will be on the Agenda at the May 27 City Council Meeting.

City Council Meeting

Open Forum

Jeff Cerniak shared his views about the potential Noise Ordinance in Grand Marais requesting that it be lenient toward musicians playing in downtown establishments. He also suggests Rec Park guests signing a waiver acknowledging that there is noise in the City of Grand Marais and that they accept City Ordinances and Policies.

Bob Glirbas expressed several safety concerns in the City including the need for stop signs in residential locations, crosswalks conflicting with parking, kids riding ATVs. He also questions why the City plows the snowmobile trail in front of the Post Office but not City sidewalks.

Variance(s) Granted

Mike Raymond was granted a variance from the shoreline setback of Lake Superior to expand his existing building on the north side. The intended use of this expansion is vacation rental. Raymond has agreed that any trees and shrubs removed during construction will be replaced.

Bruce Block and Mike Raymond were granted a variance from the shoreline setback of Lake Superior to allow an addition to the Sydney's Custard Shop for indoor dining space and restrooms. Conditions for fencing, handling of trash/recycling and replacement of any trees and shrubs removed during construction are part of the variance.

Fire District Boundary Changes

Council unanimously approved Fire Chief Ben Silence's request to expand the boundaries of the Grand Marais Fire Department Service Area from 21.33 acres to 83.38 acres to include the unorganized territories mostly along the Pike Lake Road. Official expansion of the response area will make it easier for dispatching calls. It will also help in getting grants. Property taxes will be affected for persons being added to the response area.

Noise Ordinance

Council agreed there is a need for revision to the current Grand Marais Noise Ordinance. Discussion was held around the importance of indoor and outdoor music for downtown businesses, festival sponsors, North House Folk School, local residents and tourists. It was also noted that some Grand Marais residents and guests are disturbed by the music, particularly late at night. Council agreed that the newly revised Noise Ordinance should be kept as simple as possible and that time constraints on when music is allowed are likely. Mike Roth will provide a draft for review at the next City Council Meeting. Before any new ordinance is passed, a public hearing will be held.

Personnel

Council unanimously approved the Library Board's recommendation to hire Ann Ward in the position of Library Clerk.

Council unanimously approved the Personnel Committee's recommendation to hire a new full-time Supervisor in the Property Maintenance Department and to retain Tom Stockman as a full-time property maintenance worker. Council regrets that the (2) part-time positions in this department will be eliminated once the Supervisor position is filled.

Creechville Annexation

The second reading of Ordinance 2009-01 passed 4-1 with Bill Lenz voting against it. This Ordinance will be in full force and effect and final upon the date it is approved by the State Office of Administrative Hearings.

Council & Staff Reports

Tim Kennedy reported that the City/County are still waiting for legislative approval of the 1% Sales Tax. Kennedy also reported that the PUC is exploring the possibilities of biomass technology.

Jan Sivertson reported that the EDA is proposing an 80% reduction in hours/salary/benefits for EDA Director Matt Geretschlaeger, as well as the elimination of the part-time EDA administrative support position.

Bill Lenz reported that the finger piers have arrived and should be installed by the end of next week. He also reported that the Army Corp of Engineers is in the Grand Marais Harbor working to reinforce the outer breakwater.

Sue Hakes reported that the Harbor Friends have raised concerns about the wetland area near the PUC garage in the Rec Park. Molly Hoffman called Hakes last week to make her aware of:

a) concern about snowplowing into/near the wetland area,

b) a piece of plywood debris in the wetland area, and

c) PUC spools and other materials being stored too close to the wetland.

Mike Roth contacted Cook County Soil & Water Conservation Technician Tristen Beaster. After reviewing the site, Beaster acknowledged that some snowplowing debris (gravel) had entered the wetland area. Beaster recommended no action to remove this debris. Beaster did recommend adding more fencing where the snow was piled last winter to clearly define the wetland area.

The source of the plywood is unknown, but if anybody sees debris in the wetland or other park areas, they are encouraged to remove it or ask to have it be removed.

The boundary of the wetland is marked with rope and the PUC spool and other materials are not infringing on the wetland area.

Mark Your Calendars

Wed May 27 at 3:30 Capital Improvement Plan Worksession

Wed May 27 at 4:30 City Council Meeting

Thurs May 28 at 4:00 Joint City/County/School/Tribal Council at Grand Portage

City Council Meeting

A full Council was present for today's City Council Meeting. Also in attendance were Mike Roth, Kim Dunsmoor and Don Davison.

City Council Meeting

Although several members of the public were in attendance at today's Council Meeting, nobody spoke at the Open Forum.

ATVs on City Streets
Betsy Perry, representing the Cook County ATV Club, asked if a legal determination about jurisdiction had been made regarding County State Aid Roads within the City of Grand Marais. Don Davison advised that he and Tim Scannell had communicated and reached the conclusion that the County Board has authority over County State Aid roads even within Grand Marais. Council agreed unanimously to encourage the County Board to leave County State Aid Roads within the city limits open to ATV riders. Mayor Hakes will draft a letter of support to the County Board stating this position.

Summer Festivals
Council unanimously approved the Grand Marais Art Colony's Application for Street & Sidewalk use to host their 19th Annual Grand Marais Arts Festival July 11-12, 2009. Just one change was made from last year's festival; vendors will be responsible for removal of their own garbage.

Council unanimously approved Como Oil & Propane's request for Customer Appreciation Day to be held on July 8 at the City Parking Lot from 9 AM to 2 PM. Como will be responsible for garbage removal during and after this event.

Personnel
(3) part-time lifeguards and (1) seasonal maintenance worker have been hired in the Park Department. Kyle Oberg and Kirk Oberg were approved as Volunteer Fire Fighters in Grand Marais.

DEED Grant Application
Council authorized Dick Grabko of SEH to apply for funding to help pay for additional repairs needed in the Cedar Grove Business Park resulting from the storm last June 6. A request for $104,800 is being submitted to cover costs not previously covered by FEMA.

Creechville Annexation
After discussion, Council approved (4-1) the First Reading of Ordinance No. 2009-01 to annex land located in the Blackwell Addition in Creechville. A Second Reading will occur at the next City Council Meeting on May 13. Council acknowledged the difficulty in this annexation and that some affected residents are opposed. However, Council determined that it is in the best interest of the public to move forward with this annexation for the following reasons: planning for growth, fairness in taxation, public health, urban character of the area. It was also noted that some residents in this area are in favor of the annexation.

The City hosted a public hearing to consider this annexation by ordinance on April 8, 2009. At this hearing an estimate of taxes before and after annexation was requested. This tax information, along with estimated assessments for those four property owners affected by the water and sewer project, is available at City Hall.

Other Notes
Sue Hakes contacted MN DOT Traffic Engineer, Rob Ege, regarding traffic problems, safety concerns, lack of crosswalks, and pedestrian friendliness in Grand Marais. Tim Kennedy, Kay Costello, Mike Roth and Hakes will host Ege to discuss these problems and work to identify short and long term solutions.

Sue Hakes reported that the DNR Legal Council has notified us that the DNR will not do any harbor breakwall work that enhances or improves private property. Having this information is important in taking the next steps for design of a Grand Marais Safe Harbor & Marina as outlined in Resolution No. 2007-05.

Several cities in Northern MN have been funded with stimulus money. Council has agreed to a Work Session to identify shovel ready projects for Grand Marais that might qualify for future funding. Projects to explore include replacement of fire hydrants and the Creechville sewer project.

Council & Staff Reports
Jan Sivertson reported on CCLEP Windpower, Tourism Meeting and EDA. Bill Lenz announced that the Park Board has pared the proposed park plans to (2). Kay Costello reported on the 1% Sales Tax effort and Joint Powers Rec Board.

Mark Your Calendars

Wed May 13 at 3:30 Worksession on City Budget
Wed May 13 at 4:30 City Council Meeting
Tues May 19 at 7:00 PM Park Master Planning at Community Center--Public Input Needed
Wed May 28 at 3:30 Stimulus Funding Worksession
Wed May 28 at 4:30 City Council Meeting
Wed June 10 at 4:30 City Council Meeting
Wed June 24 at 4:40 City Council Meeting

Budget Worksession and City Council Meeting Notes

Budget Worksession

The Council is continuing to work with City Staff and Department Heads to amend the 2009 Budget as a result of the 40% reduction in the 2nd Local Government Aid (LGA) payment in December 2008. In addition, the Council is preparing for the proposed Local Government Aid budget cuts for 2009 and 2010. Budget goals include identifying a $50K budget adjustment in 2009 and $100K adjustment in 2010. In addition, it was agreed that the amended budget needs to a) reflect Council priorities, b) avoid layoffs, and c) avoid significant tax increases. In May, the Department Heads will propose specific cuts and the associated negative consequences for consideration by the Council.

The Council expressed written concern to both Senator Tom Bakk and Representative Dave Dill over Governor Pawlenty's proposed cuts to LGA. Council asked them to support the current House proposal which would have a less negative impact on jobs, services and property taxes for cities.

City Council Meeting

A full Council was present for today's City Council Meeting. Others in attendance were Mike Roth, Don Davison, Kim Dunsmoor and Dave Tersteeg.

ATV Use in Grand Marais
Grand Marais residents Rhonda Silence (Secretary) and Betsy Perry (Member) of the Cook County ATV Club requested clarification of ATV use on Grand Marais City Streets. Currently, in the absence of an ordinance prohibiting ATV operation on city streets, ATVs are allowed to drive on the streets of Grand Marais. To date this has not been a problem; there have been no accidents or tickets issued in the city to date.

However, there are (7) streets within the city that are considered state-aid roads: County Road 7, Broadway Avenue, Wisconsin Street, 8th Avenue West, 5th Avenue West (old Gunflint Trail), Creechville Road (4th Ave West) above CR 7, and Ninth Street. Because of their state-aid designation, jurisdiction of these roads is unclear. A legal opinion is necessary to determine whether these roads fall under County or City rule. Don Davison will contact Tim Scannell to make this determination and will advise at the April 29 Council Meeting.

The Council agreed that consistent allowance of ATV usage within the City is clearly a desired goal and that ATV usage on these state-aid roads would not be prohibited by the Council.

Angry Trout Variance
A variance from the shoreline setbacks allowing an addition to the restaurant dining room and an addition to the outside deck area was approved as recommended by the Planning Commission. The variance is subject to all DNR approvals and rules and retaining the existing parking/open space. This site has been used for commercial purposes for at least 75 years; the Angry Trout has operated successfully in this location since 1987.

Congestion, parking and pedestrian friendliness are issues needing attention along Highway 61, particularly at the intersection of Highway 61 and the Old Gunflint Trail near the Angry Trout. Councilor Kennedy expressed specific concerns about safety. Sue Hakes will contact MN DOT to invite them to Grand Marais to observe and discuss potential solutions.

Annexation Hearing
A public hearing to consider the Annexation by Ordinance of the remaining Blackwell Addition that is currently surrounded by City Limits was held starting at 5 PM. Although an earlier public hearing was held to consider this annexation, the State advised another hearing because one of the properties changed ownership.

Input from approximately 6 residents was heard with nobody present speaking in support of the annexation being considered. The Council will take the public input into consideration. A First and Second Reading of the Ordinance will take place at the next two City Council meetings. The Council will work with County Auditor/Treasurer Braidy Powers to provide information regarding property tax increases and when they will go into effect if the Annexation is approved.

Council & Staff Reports
Councilor Lenz reported that the Harbor Friends would like to gift their Outdoor Classsroom Program to the City; this is being discussed by the Park Board.

Councilor Costello will contact Michael Fischer for an update on the 1% Sales Tax effort and advise.

Mike Roth noted that the huge pile of snow in front of the Trading Post is blocking 2 parking spots and making parking difficult in front of the store and causing concern for the property owner. Because of the time of year, the City had intended to let this (and other) snow piles melt away. Instead, the Council voted 3-2 to offer to split the cost of this snow removal with the property owner.

National Volunteer Week
Mayor Hakes proclaimed April 19-25, 2009 to be National Volunteer Week in Grand Marais in conjunction with a Presidential proclamation for the same. Please use this time to honor all the volunteers who tirelessly share their time and talent with those in need.

Mark Your Calendars
Tues, April 21 at 3:30 PM, Special Park Board Worksession at City Hall
Wed, April 29 at 4:30 PM, City Council Meeting
Wed, May 13 at 4:30 PM, City Council Meeting
Wed, May 27 at 4:30 PM, City Council Meeting
Thur, May 28 at 4:00 PM, Joint County/City School/Tribal Council Meeting at Grand Portage

Call City Hall at 387-1848 to confirm meeting times and locations.

Budget Worksession and Council Meeting Notes

Budget Worksession

The State has un-allotted $37,949 of the 2008 LGA (Local Government Aid) and has reduced the amount of LGA to be paid in 2009 by $49,700. LGA reductions for 2010 are currently estimated to be $103,783 and could increase.

Mike Roth gave a high level overview of recent spending history and the City's 2009 Budget. By April, the Council and City Staff will prepare a list of possible budget cuts for Council's consideration.

Local Government Aid to the City of Grand Marais has been in a steady decline since 2001 when it was $365,199 to its current 2010 projection of $80,426.

City Council Meeting Notes

Open Forum

John McClure expressed concern about the fairness of his removal from the Planning Commission.

Jim Shinners stated the urgency and importance surrounding the 1% Sales Tax opportunity before Cook County. Shinners asked the Council for support in this effort.

Agenda Items

There are (2) applicants for the remaining opening on the Planning Commission: John McClure and Jim Shinners. John McClure is re-applying for the position he abandoned due to absenteeism. (City Ordinance No. 2004-01 ordains that a position is deemed abandoned if the person holding that position is absent from (3) consecutive meetings or is absent for more than 25% of meetings during a calendar year.) Council elected to table this appointment until further consideration could be given to the issue of absenteeism.

Greg Wright, Executive Director of North House Folk School, presented the October 2008 "Economic Impact of NHFS on the Cook County Community", as well as the results of the North House Alumni Survey. Wright also updated the Council on the North House Raise the Roof project, requesting that the City and North House begin working toward negotiating an agreement (previously supported in a Letter of Intent) allowing the construction of the "Green Building" on property leased from the City.

A Public Hearing for the Creechville Annexation has been scheduled for 5:00 PM on April 8 at City Hall. This proposed annexation includes property in the Blackwell addition not previously annexed and surrounded by City limits.

The agenda for the City of Grand Marais Prioritization Workshop was approved. This meeting will be held at North House Folk School on March 2 from 8-4:30. City Department Heads and the Council will participate in setting City priorities for the next 2 years.

Bill Lenz reported on the most recent Park Board Visioning meeting. He talked about the importance of public input to the process and will work with the Park Board and the Consultant on how to get that input. The next Park Board Visioning Worksession is scheduled for March 17 at 3:30. Further information and meetings are posted on the Grand Marais Rec Park and Campground website.

Mark Your Calendars

Feb 26 4:00 PM Joint CCST Meeting at Courthouse
Mar 2 8:00 AM City Planning Workshop at Eckel Fish House (NHFS)
Mar 11 4:30 PM City Council Meeting at City Hall
Mar 17 9-Noon Safe Harbor/Marina Meeting with DNR at location TBD
Mar 25 4:30 PM City Council Meeting at City Hall