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

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

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

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

Worksession and City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's Council Worksession and regularly scheduled City Council Meeting. Also present were Mike Roth and Kim Dunsmoor. Ben Silence and Mike Flack were present for a portion of the Council Meeting and Dave Tersteeg attended the Worksession.

Council Worksession

Grant Awards Made
Council was delighted to hear that (2) proposals that were submitted to the Energy Efficiency and Conservation Block Program (EECBG) by the City and the Cook County Energy Project (CCLEP) were awarded. Mayor Hakes thanked CCLEP on behalf of the Council for their work in bringing these opportunities to the City and for their contribution in winning these awards.

The first project funded is for $10,000 (plus ~$10K cost-share) to retrofit existing lighting in City-owned buildings (City Hall, Park Office, bath houses, water and wastewater treatment plants).

The second project awarded is for the City and County to fund a consultant to work with the City and County to identify and prioritize energy efficiency goals for residential, commercial and government buildings. The City and County had applied individually for $30K each. The award will be made to the City and County jointly for $50,000. The City's portion of the matching funds will be provided through City Staff support and CCLEP volunteer time.

Setting Priorities
As agreed to at the February 24, 2010 Council Meeting, the Council held a Worksession to begin to prioritize the City's energy efficiency goals and projects, as well as identify energy efficiency goals shared with CCLEP. The City and CCLEP intend to jointly pursue grant funding to move shared energy efficiency goals forward. Several members of the CCLEP organization were present to participate in the discussion.

The Council clearly agrees that improving energy efficiency for the City overall is important, and agreed unanimously to create and accept a Value Statement reflecting this. Hakes and Roth will prepare a statement for Council review at the next Council Meeting.

The City uses a lot of energy for street lights, water treatment, sewage treatment and buildings. Improving energy efficiency in these areas would be beneficial to the City; projects that can show a financial payback and reduction in energy usage would be of priority interest to the Council. Council would like to focus grant applications in these areas above others.

Biomass Energy
George Wilkes reported that CCLEP is regrouping around Biomass Energy and the CCLEP Biomass team intends to collaborate with MNTCSI and the University of Minnesota to submit a proposal to the LCCMR to fund a feasbility study for using Biomass Energy in Cook County.

City Council Meeting

Open Forum
On behalf of the Lions Club, Mark Sandbo reported that there have been (3) meetings held to discuss the need for additional public restrooms in downtown Grand Marais. Consideration by the Committee is being given to expanding the existing public restrooms, building new bathrooms in conjunction with the potential Library Expansion, building an entirely new facility, or renovating a portion of the building behind Threads. A request for funding will be forthcoming to the Council. Council will consider the need for additional public restrooms in their Capital Improvement Planning and Prioritization.

Grand Marais Fire Chief Ben Silence and Assistant Fire Chief Mike Flack informed the Council that the Grand Marais Volunteer Fire Department (GMVFD) and Mesabi Range Community College will be conducting a house burn training at 406 First Avenue East on April 10, 2010. Flack will be giving notice to neighbors on the block and neighboring blocks. This will be an all day event. Questions should be directed to City Hall at 387-1848.

Senior Center Director Bev Green expressed concerns regarding the difficulty in getting the Arrowhead Transit bus in and out of the City Parking Lot. Green and Roth will work to find a solution for parking the bus and consider the benefits of creating a bus only parking space on Broadway in front of the Senior Center.

Consent Agenda
The Consent Agenda was approved with no changes.

Peddler Permit
Council unanimously approved a Peddler Permit for Dan Anderson, Scenic Airplane Rides, to give scenic airplane rides fom the Grand Marais Harbor and East Bay for the months of June-October.

Farmer's Market Expansion
Council unanimously approved the request from the Cook County Farm and Craft Market to expand the Farmer's Market space into the City Parking Lot. The Farmer's Market is held during the Summer on Saturday mornings from about 7:30 am to 1 pm.

CCLEP
Cook County Local Energy Project (CCLEP) requested Council support and cost-share for the submission of an Iron Range Resources (IRR) Renewable Energy Grant. The deadline for this grant is tomorrow April 1, 2010. The proposed project is for installation of a 10.56 kw pole mounted photovoltaic system at Gunflint Hills Golf course or other suitable location on City-owned property. The basic idea of this project is to convert light into electricity to be fed back into the power grid.

The total cost of the project is estimated to be $107,000 with cost share from the City of $8,000 cash and $5,000 site preparation. The City would also be responsible for any maintenance or repair of the system which has a projected useful life of 20-30 years. The anticipated energy cost savings for this project is $1600/year for the City of Grand Marais.

Council approved submitting the proposal 4-1 with Mayor Hakes voting against. Hakes opposed the project based on a) the lack of payback (30 years x $1600 = $48,000), b) the lack of time for Mike Roth and Kim Dunsmoor to examine and validate the project costs, and c) the deviation from the agreement by the City and CCLEP to identify priorities and submit proposals based on those priorities. Hakes also expressed concern that City's discretionary funds will be limited or eliminated in 2010 due to further cuts to Local Government Aid.

Lake and Cook County Joint Housing Initiative 2009 Annual Report
Housing Coordinator Nancy Grabko presented the 2009 Annual Report for the Lake/Cook County Joint Housing Initiative for EDA. Highlights of the report showed that total funds awarded in 2009 were $671,576 with (9) households in Cook County and (13) households in Lake County benefitting from rehabilitation projects. Seven households in the Creechville benefitted from Water/Sewer Assessment Abatement.

$130,067 in funding has been secured for (4) household rehabilitation projects in Cook County for 2010. The focus will be on households outide of the City.

Planning Commission Report
The Second Reading of Ordinance 2010-01 Roof Signs was read.

Earth Day Anniversary
Mayor Hakes reported that Jim Shinners is leading an effort to celebrate the 40th Anniversary of Earth Day on April 22, 2010. In recognition of this birthday, several local organizations are participating in an Earth Day Harbor Clean-Up: City of Grand Marais, US Border Patrol, WTIP Community Radio, North House Folk School, Harbor Friends, Grand Marais Chamber of Commerce, US Forest Service, Cook County News Herald, Grand Marais Business Council. Local schools, churches and other groups are encouraged to participate and will be contacted.

Our theme for Earth Day this year will be "What are you doing for Earth Day"? Goals for Earth Day include a) recognizing and honoring Earth Day, b) cleaning up the Grand Marais Harbor area, and 3) demonstrating that various organizations can come together cooperatively to achieve worthwhile goals.

To learn more about how you can participate, please contact Jim Shinners at 387-1191 at the Harbor Inn.

Council & Staff Reports
Bill Lenz reported that County Commissioner Bob Fenwick attended the most recent Community Center meeting. The Community Center Working Group has completed a User's Matrix based on information provided by various users of the proposed Community Center.
Tim Kennedy reported that the EDA closed on a lot sale to Pete Greszyk and the City of Grand Marais has been paid $60,000 for the assessment due.
Jan Sivertson shared that she has had difficulty attending North Shore Management Board Meetings and encouraged interested Councilors to consider supporting this board.
Sue Hakes acknowledged the MPCA recognition of the Wastewater/Water Treatment for outstanding operation, maintenance and management of the Grand Marais Wastewater Treatment System. Council expressed appreciation for the consistent excellent work by Tom Nelson and his crew.

And, saving the best for last, Mike Roth reported that David Dill worked on behalf of the City of Grand Marais to get $100,000 in State funding for water/sewer infrastructure improvement; the bill has been signed by the Governor. This money will likely be used to upgrade 4" water mains and/or replace fire hydrants.

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

City Council Meeting and Open Meeting Law Review

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 City Attorney Chris Hood (via telephone).

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

Consent Agenda
The Consent Agenda was approved with no changes.

Planning Commission Report
The Planning Commission has been discussing the regulations for roof signs. After exploring various factors in the design of roof signs, the Planning Commission has created draft ordinance amendment language for consideration. The Planning Commission will hold a public hearing to consider these amendments at their next meeting, March 3. The public is encouraged to attend.

Librarian I Job Description Review
City Staff and the Personnel Committee have completed a pay equity job review for the Librarian I position. Council unanimously approved the adjustment to the pay equity score.

Open Meeting Law Refresher
Supported by City Attorney Chris Hood, Mike Roth refreshed the City Council on the Open Meeting Law and how it applies. This training will be given to all City committees, boards, and other public bodies that must comply. In general, any time a public body meets, it must give advance notice and allow the public to attend. The Open Meeting Law protects the right of the public to be informed, allows the public to detect improper influence and gives the public a chance to provide input.

Council & Staff Reports

Bill Lenz reported that the Park Board has purchased (2) vacated moorings in the Grand Marais Harbor for $6K. He also reported that the Park Board is discussing repairs to the road in the Rec Park along 8th Avenue to the Sliding Hill. The Pool will be closed 3/1 thru 3/5 for annual cleaning & maintenance. And, Lenz happily announced that anybody over age 100 can use the Pool for free!!

Kay Costello reported that the Library Board met.

Tim Kennedy reported that the Planning Commission is looking at how development occurs within the City of Grand Marais on un-sewered lots to determine if any changes are needed.

Jan Sivertson reported on the EDA. Currently the EDA is struggling with cash flow and has asked the County for $100K. She also noted that there is a $40K deficit from 2009. There is not enough money to pay Director Matt Geretschlager at this time. The EDA Golf Course Committee has also gone before the County Board to request $25K for capital improvements to Superior National Golf Course.

Sue Hakes reported that she attended and enjoyed the Grand Marais Fire Department Annual Meeting and Dinner last week. Hakes asked Roth for an update on the Shoreline Motel sign repair/replacement. Roth reported that Mark Sandbo (General Manager of the Shoreline Motel) has hired a contractor to tear off the loose sheet metal from the sign. This work will be done this Friday or Monday of next week.

Mark Your Calendars
Wednesday, February 24 at 4:30 City Council Meeting at City Hall
Thursday, February 25 at 4:00 Joint City/County/School/Tribal Council Meeting at Courthouse
Wednesday, March 3, PUC Public Hearing on roof signs.
Wednesday, March 10 at 4:30 City Council Meeting at City Hall
Wednesday, March 31 at 4:30 City Council Meeting at City Hall

2010 City Budget, Temporary Bond Refinancing (EDA) and District Energy System Bonding Options

2010 City Budget Department Budget Meetings

Mayor Hakes, Councilors Kennedy and Sivertson, Mike Roth and Kim Dunsmoor met all of Friday morning on August 28 with City Department Heads to discuss 2010 Budget Requests.

• Lenny Bloomquist presented the Buildings, Streets & Roads proposed budget. The need for capital planning to eventually replace the Street Sweeper and Mini Dump Truck was discussed.


• Benny Silence presented the proposed budget for the Fire and Medical Services Departments. The need for capital planning to replace the Tanker was discussed.


• Dave Tersteeg presented the proposed budget for the Rec Park including the Recreation General Fund, Swimming Pool and Boat Harbor. A second meeting with Tersteeg to discuss both Expenditures and Revenues will be scheduled. The increasing cost to operate the Swimming Pool continues to be of serious concern.

The Council will set the preliminary levy for the City on September 9.

City Council and County Board Meet with Ehlers & Associates

The City Council, County Board, City Staff, EDA Director Matt Geretschlaeger and EDA Board Chair Mike Litfin met the afternoon of August 28 to discuss refinancing what has come to be known as the EDA Bond and also discuss options for financing a Biomass Facility.

Refinancing General Obligation Temporary Improvement Bonds

Just about 3 years ago (January 2007) the City of Grand Marais issued $1,630,000 General Obligation (G.O.) Temporary Improvements Bonds to provide financing for the Sewer, Water & Street infrastructure improvements in the EDA Business Park. The plan at that time was for the EDA to sell lots in the Business Park and repay the City $60,000 for each lot sold until the debt was repaid. Lot sales have not occurred as planned and the EDA is unable to repay the City.

This 3-year G.O. Temporary Improvement Bond is now due in January 2010 and the City is responsible for this payment. Ehlers & Associates has provided the City with options for refinancing this Temporary Bond including a 2nd G.O. Temporary Improvement Bond or a 15 or 20-year G.O. Improvement Bond. Although further information needs to be gathered before any final decision is made, the City is leaning toward the 20-year G.O. Improvement Bond which means an average annual debt service cost to the City of $125,000.

The City has again requested that the EDA establish a comprehensive plan for the Business Park focusing on lots sales. They have also asked the EDA to explore other options to repay the debt. In the meantime, the City is on the hook for repayment.

District Energy System Bonding Options

The City also requested that Ehlers & Associates provide information on bonding authority for a District Energy System, aka Biomass Facility. (See Mayor Minutes July 8 entry for a brief history of this project. )

Ehlers & Associates first noted that State Law gives the City primary authority for a District Energy System, but that the County may also operate a District Energy system within the City. They also clarified that financing options for the Biomass Facility assumed that no 1% Local Options Sales Tax funding would be available for this project.

Bonding options for a Biomass Facility include, but are not limited to:

1. Utility Revenue Bonds--Ehlers & Associates have not sold Utility Revenue Bonds for a Biomass Facility, nor are they aware of any that have been sold for this purpose. However, they believe that with a strong enough business plan it is possible. They also noted that a more favorable interest rate could be achieved by backing the bond with the local electric utility revenues. A $6,000,000 bond at 6% over 20 years would result in an annual principal and interest payment of ~$523,100.
2. General Obligation Improvement Bond--Ehlers & Associates did not recommend this type of bond, but noted that it could be used in combination with other types of funding.

A brief discussion of the Biomass Facility project ensued. Mayor Hakes was clear that a detailed and credible Business Plan--including a financial & cash flow analysis, debt repayment, risk analysis and technical analysis--must be done before she will support the creation of this new utility for the City.

Budget Worksession, City Council Meeting & Special Assessment Public Hearing

It was a busy afternoon at City Hall with a Budget Worksession, City Council Meeting and Special Assessment Public Hearing. Present for these meetings were Mayor Sue Hakes, Councilors Kay Costello, Tim Kennedy and Jan Sivertson. Councilor Bill Lenz was absent. Also present were Mike Roth, Kim Dunsmoor. Attorney Brandon Fitzsimmons of Flaherty & Hood participated in both the City Council Meeting and Special Assessment Public Hearing.

Budget Worksession

Council met to continue its work on the 2010 Budget by reviewing the City Hall General Fund Expenditures, Cable TV Fund and the Debt Service Fund. City department heads continue to prepare their 2010 budget requests and will meet with the Council Friday August 28 at 9 AM. The Preliminary Levy for the City will be set on September 9.

City Council Meeting

Open Forum
Nobody from the public spoke at the Open Forum.

Payments Approved
Council reviewed the Grand Marais Fire Relief Association's Lump Sum Pension Plan Report for Year 2009. Relief Association investments have gone down approximately 20% requiring the City of Grand Marais to make a contribution of $8529 in 2010.

Redstone Construction Pay Estimate #6 and (2) Minor Extra Work Orders were approved by the Council for the 2008 City of Grand Marais Street and Utility Project.

The Safety Management Program contract with Minnesota Municipal Utilities Association and the annual payment terms of $12,400 were approved.

One-Percent Local Option Sales Tax
Council discussed the current status of the 1% Local Option Sales Tax. Jan Sivertson reported that she has assembled a preliminary team to begin the work of educating the public about the Sales Tax. The team will include an advocate of each of the (7) proposed projects: Danna MacKenzie, Buck Benson, Diane Booth, Mark Sandbo, D.C. Olsen, Linda Chappell. The voter referendum is scheduled for November 3, 2009.

Council & Staff Reports
Councilors Jan Sivertson and Tim Kennedy reported on the EDA regarding the Cedar Grove Business Park. Currently the EDA is struggling to determine asking prices for the individual lots, recognizing that lots are different sizes with different topography and visibility and should be priced accordingly. The pressure is on to sell lots to repay the $1.63M bond due in January 2010. The EDA and the City are meeting with their bond counsel Friday to discuss options.

Mike Roth gave an update on the Rec Park Master Plan. The graphic designer is incorporating the wetland delineation into the Park Map. The Master Plan recommended by the Park Board will be delivered to the City Council in September. Mike Roth also acknowledged the new city entrance signs provided by the Scenic Byways organization.

Special Assessment Public Hearing at 5:00 PM

The Council held a Public Hearing for the Special Assessments for the improvements done on 1st, 2nd, 3rd, and 6th Avenues, as well as 4th Avenue between the Gunflint Trail and 11th Street. Approximately (10) residents expressed concerns, asked clarifying questions and offered constructive or positive feedback. The assessments for the 1-2-3-6 Avenue projects were adjusted downward due the subtraction of the cost for sidewalks on 1st Avenue. City Staff will be available to answer specific questions about individual property owner payments and possible deferment options for those who qualify. Council voted 4-0 to pass a resolution to adopt the proposed/adjusted assessment.

Mark Your Calendars
Thur August 27 4:00 PM Joint City/County/School/Tribe Meeting At City Hall
Fri August 28 9:30 AM City Budget Worksession
Fri August 28 1:00 PM Ehlers Bond Counsel Meeting (EDA and City)
Wed September 9 3:30 PM Worksession--Preliminary Levy
Wed Septmeber 9 4:30 PM City Council Meeting
Wed September 30 4:30 PM City Council Meeting

Grand Marais Volunteer Fire Department Training

The Grand Marais Volunteer Fire Department (GMVFD) conducted an all-day training exercise on Saturday July 11, 2009. About a dozen firefighters in the GMVFD and (4) trained instructors participated in a planned and controlled burn of a Grand Marais home. The exercise provided an excellent opportunity for firefighters to create a reasonably safe environment to observe how fire behaves in an actual burning house. It also gave them additional experience in extinguishing the home once fully engulfed in flames. The exercise was well-planned and safely executed. The Firefighters were supported by the local Emergency Management Team.

Be sure to thank the individuals on the local fire departments and emergency response teams next time you see them around. They work hard, take risks, and give up a lot of personal time to keep our community safe.

Biomass Proposal Worksession and City Council Meeting

All City Council Members were present at both the City Council Worksession on the Biomass District Heating Grant Opportunity and the regularly scheduled City Council Meeting.

Worksesssion on Biomass District Heating Grant Opportunity

Chuck Hartley, Director of Energy Management Services for LHB Corporation and Buck Benson of Cook County Local Energy Project (CCLEP) gave an overview of their proposed project entitled "Boundary Waters Renewable District Heat and Combined Heat & Power" to be submitted to the Department of Energy for funding.

To summarize, Grand Marais will join with the City of Ely to submit a proposal for a ~$20 million District Heating project. Ely and Grand Marais would each build a Centralized District Heating Plant; in Grand Marais the plant would generate electricity and provide heat to the School, Hospital, County Courthouse, the proposed Cook County Community Center and 100-300 homes. Benefits of such a plant are believed to be job creation, energy savings, reduction in fuel oil and propane, fossil fuel displacement, energy independence and reduction of CO2 emissions.

There is a 50/50 cost-share so if the proposal is successful, Grand Marais will receive $5.646 million and provide cost-share of $5.646 million, most likely by selling bonds. The proposal is due Tuesday 7/14 with awards to be announced in October 2009.

Council discussed the many unanswered questions in this proposal, and voted 4-1 to take a "leap of faith" and submit the proposal, using the 3 months between now and October to determine project feasibility both technically and financially.

Mayor Hakes cast the dissenting vote stating that while she supports the overall objectives and exploration of Centralized District Heating with Biomass, she feels it is irresponsible to move forward with so many unanswered questions and critical unknowns about the technical and financial viability of the project and whether it is a good use of public funds.

City Council Meeting

Open Forum
Bradley Peterson of the Coalition of Greater MN Cities gave an overview of the services provided by the Coalition. The Grand Marais membership in the Coalition expires at the end of 2009.

Permits Granted
Council granted several permits including The American Legion's Fisherman's Picnic Bingo Permit and Temporary ON-Sale Liquor Permit and Beer Tent, the NSFCU Street Permit for Customer Appreciation Days, the Dragon Boat Festival Permit, the Fisherman's Picnic Permit, and the Sawtooth Challenge Bike Race Street Permit.

Planning Commission Report
Council unanimously supported the the Planning Commission's approval for a Conditional Use Permit to allow (2) roof signs at the Cook County Whole Foods Coop.

Council voted unanimously to officially deny a request to rezone a lot in the EDA Business Park to R-1 to accomodate an affordable housing development. Funding used for the construction of the Business Park would not allow this rezone. Both the Planning Commission and Council expressed their disapointment in the EDA for moving this proposal forward in the first place.

Grand Marais Area Tourism Association (GMATA)
GMATA Director Diane Brostrom gave an overview of the 2009 GMATA Budget and County Lodging Tax. The Budget is on plan. The Lodging Tax Report through May 2009 shows a 16.5% reduction in tax for the Lutsen-Tofte Area, a 5.0% reduction for Grand Marais, and 11.4% reduction for the Gunflint Trail. There is optimistic that this downturn will change during the last half of 2009.

Noise Ordinance 2009-02 Second Reading
A second reading of Ordinance No. 2009-02 aka the Noise Ordinance was read and approved by Council 4-1. Councilor Bill Lenz cast the dissenting vote stating he wasn't convinced that we needed any change to the existing ordinance. He also expressed concern about no noise limits during the exception periods. Council appreciated the value of Public input in this matter and agreed to hold a Public Hearing in the Fall to solicit public input about the effectiveness of the amended ordinance.

County Prosecution Services
Council unanimously approved the Agreement for Prosecution Services provided by County Attorney Tim Scannell. In the agreement, the County agrees to provide the City of Grand Marais prosecution services for petty misdemeanors, misdemeanor, and gross misdemeanor violation of state law or city ordinance that occur within the city limits of Grand Marais. A quarterly fee of $3125 will be paid to the County. This agreement will now move to the County Board for approval.

Resolution 2009-05 Declaring Costs to be Assessed and Ordering Preparation of Proposed Assessment for 2008 Improvements Project
Council voted unanimously to pass this resolution authorizing Mike Roth to prepare the Assessment Role for the 2008 Improvements Project.

MN DOT Pedestrian Safey Project
Council and Mike Roth continue to work with Rob Ege of MN DOT to slow traffic along Highway 61 through Grand Marais. Of most significance, a new crosswalk has been added between the Dairy Queen and the Pumphouse. "EVENT CONGESTION AHEAD" signs have been ordered. And, MN DOT has provided the specifications for a "YOUR SPEED IS" sign to be placed along with a REDUCED SPEED AHEAD sign at approximately MM 108.593. MN DOT will also monitor traffic before/after these signs are placed to determine effectiveness.

Council Reports
Tim Kennedy reported on the Broadband Project noting that the Committee continues to work on Grant Funding for this County-wide project. Arrowhead Electric Coop is the proposed vendor for this service. Broadband is also a candidate for the 1% sales tax opportunity.

Bill Lenz reported that the Park Board has agreed upon a final recommendation for the Park Master Plan. Lenz reported that the Board was in agreement about the Plan to be presented to the Public on July 28 at 7 PM. The recommended Master Plan will be forwarded to the City Council for consideration and approval.

Mike Roth said (2) bids for wetland delineation in the Rec Park are being solicited.

Mayor Hakes updated the Council on her conversations with the DNR regarding the Safe Harbor/Marina project. The DNR suggested a face-to-face meeting with the City to discuss both DNR and City requirements for a Safe Harbor/Marina. The City will use Resolution 2007-05 as passed under Mayor Larsen as its basis for requirements.

Hakes also reported that the Grand Marais Volunteer Fire Department is working on a grant proposal to expand the current Fire Station in Grand Marais. The grant will be submitted to FEMA this week.

Mark Your Calendars
Tues July 28 at 7 PM Park Board Presentation of Master Plan at location TBD
Wed July 29 at 3:30 PM Capital Improvement Worksession
Wed July 29 at 4:30 PM City Council Meeting
Wed Aug 12 at 3:30 PM Budget Worksession
Wed Aug 12 at 4:30 PM City Council Meeting

Worksession, Council Meeting and Noise Ordinance Public Hearing

It was a very busy day at City Hall. There was a full Council present for the City Auditor Report, the regularly scheduled City Council Meeting and the Public Hearing on the Noise Ordinance. Also in attendance at today's meetings were Mike Roth, Kim Dunsmoor, Don Davison and Sheriff Mark Falk.

City Auditor Report Worksession

Gary Giroux of the CPA firm Walker, Giroux & Hahn presented the Independent Auditor's Report for the City of Grand Marais. The findings of this annual audit were presented in a 51 page report entitled "Financial Statements and Supplementary Information for Year Ended December 31, 2008." The report states that the City of Grand Marais' practices for the Year 2008 conform with accepted accounting principles.

City Council Meeting

Law Enforcement
Sheriff Mark Falk and the Council discussed several City Law Enforcement matters including a Hell's Angels rally planned this summer in Carlton, the Noise Ordinance, Highway 61 traffic issues, downtown parking, and summer law enforcement staffing. Sheriff Falk also attended the Public Hearing for the Noise Ordinance.

MN DOT Update
Rob Ege from MN DOT has been out of the office, but will prepare a written summary of the MN DOT proposal to use additional signage and monitoring on the west end of town to slow traffic down as it enters on Highway 61. (Refer to City Council Meetings Minutes from June 10, 2009.) Ege will provide this written summary for the next Council Meeting.

Shawn Perich of the Hovland Fire Department contacted Sue Hakes with an idea for Hovland and Grand Marais to work together in the pursuit of grant funding for an EVENT CONGESTION AHEAD sign that would be shared. Council decided that the need for signage in Grand Marais immediate and moved to authorize Mike Roth to purchase (2) EVENT CONGESTION AHEAD signs for $1000; there was also concern about both Hovland and Grand Marais needing the sign on the same dates. The Council appreciated the offer from HVFD to partner.

Shawn Perich also made Hakes aware of the STOP program established by Keck Melby for the Hovland Volunteer Fire Department to provide traffic control/safety on scenes. Mike Roth will follow up with Shawn to see if the City might benefit from such a program.

City Attorney Request for Proposal
Council approved the Request for Proposals for Attorney Services. This RFP will be available on the City's website, the Cook County News Herald, the League of MN Cities classifieds. It will also be sent to several firms along the North Shore. Current City Attorney Don Davison has resigned his position effective July 15, 2009. Individuals or firms interested in learning more about submitting a proposal may contact Mike Roth at City Hall at 218 387 1848. Proposals are due July 17, 2009.

Street Project Payment
Pay estimate #4 for the Reconstruction and Creechville Improvements project was approved for payment.

Personnel
Lenny Bloomquist will be the new Street Department Supervisor for the City.

Council Reports
Tim Kennedy expressed his concerns about the growing urgency for decisions to be made about the 1% Sales Tax. The effort is being led by the County Board; the City is eager to move forward in an effort to pass the needed referendum.

Bill Lenz stated that the Park Board will have a Master Plan Recommendation for the City Council that will be presented to the Public on July 28 at 3:30 at City Hall.

Sue Hakes reported that Aaron Mielke of the Grand Marais Fire Department talked with Steve DuChien about the costs and needs to upgrade fire hydrants in the City. Mielke reported that to replace a hydrant will cost an estimated $3-4,000; approximately 20 hydrants will need to be upgraded or replaced over time.

Public Hearing for Amendment to Ordinance No. 2009-02

The first reading of An Ordinance Amending Grand Marais Code, Chapter 46, by Creating an Exception fo Noise Nuisances within the City for Live Musical Performances (aka the Noise Ordinance) was held at 5:00 PM at City Hall. Approximately 20 members of the public were in attendance at this hearing.

Members of the Public speaking at this hearing included: Jan Nosker, Andy Brostrom, Mary St. John, Bob St. John, Nancy Nosker, Jeff Gecas, Jane Shinners, Jeff Cerniak, Todd Miller, Michelle G., Joan Farnum, Rhonda Silence, John Gorski. Public feedback on the matter was delivered in a positive manner with great respect shown to persons with differing opinions on this matter. A spirit of cooperation was evident with several attendees expressing a desire to compromise.

Sheriff Mark Falk was asked to discuss the enforcement issues around the Noise Ordinance. Sheriff Falk expressed his concerns about use of a noise meter, stating that controlling noise by established times is easier to enforce.

After a lengthy discussion, the Council moved to amend further the existing Ordinance by changing the distance stated in Section (d) to 100 feet (from 50 feet) and by including the 4th of July in the exceptions. Here is the newly proposed wording for Section (d) Amplified Sound. Changes made today are in bold:

It shall be a violation of this section to play, operate or permit the playing, use or operation of any radio, tape player, disc player, loud speaker or other electronic device used for the amplification of sound, unless otherwise permitted by law, located inside or outside, the sound of which carries to points of habitation or adjacent properties, and is audible above the level of conversational speech at a distance of 100 feet or more from the point of origin of the amplified sound. This section shall not apply to live musical performances:

1) between the hours of 12:00 o'clock noon and 10:00 o'clock p.m. Sundays through Thursdays; and
2) between the hours of 12:00 o'clock noon and 12:00 o'clock midnight on Friday and Saturdays;
3) between the hours of 12:00 o'clock noon and 12:00 o'clock midnight on the 4th of July, the Sunday before Labor Day and the Sunday before Memorial Day.
4) The City Council may permit other exceptions to the foregoing restrictions in connection with the application for a festival or street and sidewalk use permit.

The wording is confusing in the Ordinance. An attempt to simplify follows:
It is okay to play amplified music either inside or outside as long as the sound being made cannot be heard above the level of conversational speech beyond 100 feet from the place the music is originating. It's okay to play or make music above this level during the exception times stated above. In most cases, music played indoors will not pose a problem. This amendment basically makes it possible for music to be played outdoors until 10 pm Sun-Thursday and until 12 midnight on Fri-Saturday, 4th of July, the Sundays before Memorial Day and Labor Day, or by permit during city festivals.

It is important to note that the (2) Grand Marais establishments that play the most amplified music are eager to be considerate to the community and have made strides to reduce the volume level including reconfiguring their stage, moving speakers, installing air conditioning, etc.

The 2nd Reading of this Ordinance will be conducted at the City Council Meeting scheduled for July 8, 2009 at 4:30 in City Hall. The Public is encouraged to attend.

Mark Your Calendars

Tues July 7 at 3:30 Regular Park Board Meeting

Wed July 8 at 3:30 pm Worksession on Capital Improvements
Wed July 8 at 4:30 pm City Council Meeting
Tues July 28 at 7:00 pm Park Board Master Planning Presentation w/Carduus Consulting
Wed July 29 4:30 pm City Council Meeting

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

Congratulations Grand Marais Firefighters

Six members of the Grand Marais Volunteer Fire Department have completed the training and demonstrated the proficiency required for Firefighter II Training. Congratulations go out to Randy Bockovich, Aaron Mielke, Jim Roy, Gideon Silence, Matt Ziller and Fire Chief Ben Silence on this significant accomplishment. Their committment and service, and the service of each member of the Grand Marais Volunteer Fire Department, is greatly appreciated. Tell 'em thanks next time you see them!

Getting Up to Speed

I was invited to and attended (2) very helpful meetings today.

Jim Wiinanen, Director of Cook County Emergency Management, gave me an excellent overview of the Emergency Management System for Cook County and the responsibilities of the Mayor and City Personnel. He also gave me a tour of the Law Enforcement Center where I was able to see the Dispatch Area, Emergency Operations Center, and Offices. It's an impressive facility and it was very helpful to see it first hand.

Grand Marais Fire Chief Ben Silence gave a great presentation to the After School Program students at the Grand Marais Fire Hall this afternoon. I was appreciative of being invited to share in that learning time. The students asked excellent questions about the operations of the Fire Hall and how the firefighters work. Again, it was helpful to see the Fire Hall and equipment first hand. And there's just something exciting about a big shiny red fire engine......

Thank you, Jim and Ben, for taking the time.

Council Meeting Notes & Setting 2009 Priorities

The Grand Marais City Council once again covered a lot of ground in both today's City Council Meeting and Work Session "2009 Grand Marais City Priorities".

City Council Meeting Notes

Although there were several members of the Public in the Council Chambers, nobody spoke at the OPEN FORUM. I would like to encourage the Public to use the OPEN FORUM to address the Council with ideas or concerns about City Business. The OPEN FORUM is scheduled at the start of every City Council meeting.

Grand Marais Fire Chief Ben Silence presented a summary of the Fire Department for 2008. He detailed the number and nature of the 2008 calls, staffing & training, equipment inventory and equipment needs. Kay Costello thanked Ben and the Fire Department for their work and commitment. Her appreciation was echoed by the full Council.

Walt Mianowski was unanimously approved for a 1-year term on the Park Board. This appointment fills out the Park Board at (7) members. There are still (2) openings on the Planning & Zoning Board, and (1) opening on the Economic Development Authority. Interested Grand Marais residents are encouraged to apply.

Librarian Linda Chapelle and Ann Possis of WTIP gave an overview and invited the City Council to participate in the community-wide program to read "Better Together: Restoring the American Community" by Robert D. Putnam and Lewis M. Feldstein (with Dan Cohen). This Great Community Book Read is co-sponsored by WTIP, the Grand Marais Public Library and Cook County Extension. The overall goal of the project includes building community through bonding within community groups and more importantly, building relationships between individual community groups. The entire community is encouraged to participate in the project. Copies of the book are available at WTIP and the Grand Marais Library.

Certificates of Appreciation were signed by the full City Council for both Evelyn Larsen and Ed Bolstad for their recent contributions to Grand Marais as Mayor and Councilor, respectively. Their public service is acknowledged and appreciated.

Sue Hakes and Mike Roth gave a general overview of Governor Pawlenty's proposed cuts to Local Government Aid (LGA) as announced Tuesday, January 27, 2009. The Council agreed to hold its next work session to discuss the City's Budget and plan ahead for the likely reduction in LGA. This Work Session is scheduled for 3:30 PM on Wednesday, February 25, 2009.

City Council Work Session "2009 Grand Marais City Priorities Discussion"

The Council held a Work Session to discuss and establish 2009 Grand Marais City Priorities. Among the issues discussed were (in no particular order): 1% Sales Tax, Economic Development/Jobs, City Buildings/Capital Planning, Affordable Housing, Budget, Safe Harbor/Marina, Rec Park Visioning, Pedestrian Friendliness, Communications with Public, Contract/Vendor Review Process, Noise Ordinance.

Limited discussion was begun on most of these issues, but it quickly became clear that more time and thought is needed to flesh out and establish priorities. A full day workshop (tentatively at North House Folk School) has been scheduled for Monday, March 2.

Upcoming Meeting Schedule

Wednesday, 02/11/09 at 4:30 PM City Council Meeting
Wednesday, 02/25/09 at 3:30 PM Worksession--Budget
Wednesday, 02/25/09 at 4:30 PM City Council Meeting
Monday, 03/02/09 All Day Worksession--2009 City Priorities
(exact time and location to be confirmed)