Last City Council Meeting

Today's City Council Meeting was attended by Mayor Sue Hakes and Councilors Costello, Kennedy, Lenz and Sivertson.  Also present was Finance Director Kim Dunsmoor.  City Administrator Mike Roth and City Attorney Chris Hood were absent.

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

Consent Agenda
The Consent Agenda was approved with no changes.

2011 Legal Fees
Council unanimously approved a $5/hour increase in the hourly fees to be paid to Flaherty & Hood, the legal firm representing the City of Grand Marais.  This increase was to occur for the year 2010, but Flaherty & Hood postponed the fee increase until 2011 because of the significant cuts to the City's LGA (Local Government Aid).

2011 Mileage Reimbursement Rate
Council voted unanimously to accept the Internal Revenue Service 2011 Standard Mileage Rates to calculate the costs of operating an automobile for City Business.  The rate was increased by $.01 to $.51.

Council & Staff Reports
Kay Costello reported that she will attend the next (2) Library Board Meetings on her own behalf.  Kay's term as a City Councilor expires this term, but she is committed to making a seamless transition from her position on the Library Board to the new City appointee.
Bill Lenz reported that the roof on the Municipal Pool is complete.  The Pool will re-open Monday, January 3 for use in the hot tub, sauna and kiddie pool.  The main pool will take some time to warm up, but is anticipated to be ready to use mid-January. 

Mark Your Calendars
Wednesday, January 12 at 4:30 pm, City Council Meeting

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's City Council Meeting.  Also in attendance were Park Manager Dave Tersteeg, Tina Hanson and Attorney Robert Scott filling in for Christopher Hood.  Absent were Mike Roth and Kim Dunsmoor.

Open Forum
(3) members of the Harbor Park Committee--Bette MacDonald, Jim Shinners and Richard Olson--addressed the Council during the Open Forum to ask the Council to consider the creation of a Public Arts Commission.  The purpose of such a commission would be to approve and site public art on city property.  Council agreed to discuss the idea of a Public Arts Commission at a future Council meeting.  The Harbor Park Committee went on record in opposition of the recently proposed memorial flag pole for Harbor Park.  Mayor Hakes reported that Park Johnson withdrew the request for a flag pole in memory of Dick Joynes at Harbor Park.

Christmas Parade Street Permit
Council unanimously approved the Chamber of Commerce permit request for their annual Christmas Parade to be held on November 23 from 5:30-6:30 pm.  The City is decorating downtown Grand Marais with decorations and lights.  Anybody interested in volunteering to decorate Harbor Park may meet at Harbor Park this Friday, November 12, at 9 AM to help.

Pool Repairs 
The Municipal Pool building sustained damage to the roof and walls during the wind and rainstorm on 10/27 and is closed until further notice.  The League of MN Cities insurance adjuster has been on site to assess the damage and authorize temporary repairs to prevent further damage.  The insurance adjuster, city staff and contractors met on Friday, 10/29; bids were solicited for replacement of the entire rubber roofing system and additional carpentry work on damaged walls.  Tersteeg presented bids for this work to Council for consideration.

After a lengthy discussion, Council agreed unanimously to repair the storm damage to the roof and walls.  The City's deductible is $10,000 and the repairs wll take approximately 1 month to complete.  Mayor Hakes and Park Board Member Robin DuChien both received several phone calls from the public in support of repairing the pool.

Council agreed to recess today's Council meeting and reconvene Friday, November 12, at 1 PM to select a contractor to do the repair work.

Rezone Request
Council supported the unanimous recommendation of the Planning Commission with a 1st reading of the Ordinance to rezone Lots 3-17, Block 26 Harbor Addition from C/I Commercial Industrial to MU Commercial-Residential Mixed Use zoning.  Among other findings, it was determined that the C/I zoning was not appropriate for this area, and the MU zoning will allow the current single family uses as well as low impact commercial uses.

Council & Staff Reports 
Bill Lenz reported that the Park Board is in the process of reviewing their rates for 2011.  He also reported that both Park and Golf revenues are up.  The 10/27 storm caused damage to the boat ramp at the City Marina, as well as damage in Boulder Park.
Kay Costello reported that the Library has selected DSGW Architectural firm for the Library expansion project.
Jan Sivertson reported that the EDA has created a board to manage the Superior National Golf Course.  She also noted that the EDA has paid back their loan to the County.  Sivertson solicited feedback from the Council about the direction they believe the EDA should take.
Tim Kennedy reported that he met with Safe Routes to School (SRTS) to discuss the drop off area at Great Expectations School.  He also worked with Kim Dunsmoor to intervivew candidates to lead the City/County Energy Plan.  And, Kennedy is part of the committee interviewing for a local coordinator to work on the biofuels project with Dovetail Partners. 
Sue Hakes shared that the 7th grade class from GES will be coming to City Hall next Monday for a tour and presentation on City government to be given by Hakes.  She also reported that the Community Center Steering Committee is making steady progress with ORB Management with a schedule to complete the Community Center by the end of 2012. 

Mark Your Calendars
Thursday, November 18 at 4:00 pm, Joint CCST Meeting at ISD 166
Tuesday, November 30 at 4:30 pm, City Council Meeting (note deviation from regular schedule)
Wednesday, December 8 at 4:30 pm, City Council Meeting
Thursday, December 8 at 6:00 pm, Budget Comment Meeting
Wednesday, December 29 at 4:30, City Council Meeting

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy and Lenz were present for today's City Council Meeting. Councilor Jan Sivertson was absent. Also in attendance were Mike Roth and Kim Dunsmoor.

Open Forum
Maggie Barnard, Events Director of the Cook County Visitors Bureau (CCVB), informed the Council about the CCVB efforts to fund raise for maintenance and expansion of the downtown holiday lights and decorations. Council supported the CCVB efforts to raise funds to provide greenery for the City window boxes and planters, add outlets to the lamp posts on the Harbor Walk between Java Moose and the Angry Trout, add lights to the centerpiece tree in Harbor Park, replace light strings as necessary. Council expressed gratitude to the CCVB for heading this effort and acknowledged the success of the 2009 combined effort between the City of Grand Marais, CCVB and downtown businesses to decorate for the holidays.

Consent Agenda
Consent Agenda was approved with no changes.

Park Board Application
Crystal Clemons has applied for the open position on the Park Board and was available to the Council for introductions and questions. Council unanimously approved the appointment of Crystal Clemons to the Park Board and thanked her for her willingness to serve.

Council & Staff Reports
Tim Kennedy reported that the PUC replaced water lines in (2) areas of Grand Marais last week. This work was funded in part through a $100,000 IRRB grant and included the replacement of 3-4 fire hydrants. Kennedy also reported that the Planning Commission will be addressing the request for rezoning a portion of Grand Marais at their next meeting to be held at 4 PM on Wednesday, November 3.
Kay Costello reported that the Library Board Executive Committee met with their architectural firm to discuss the library expansion project. She also reported that $60,000 of 1% Sales Tax funding has been approved by the County Board for this work. The estimated project cost will be $800,000.
Bill Lenz reported that the roof blew off of the Pool Building during last night's storm. Mike Roth added that the Insurance Company adjuster was on site today to assess the damage. Lenz also reported that the Community Center Steering Committee had a productive meeting with Construction Manager ORB.

Mark Your Calendars
Wednesday, Nov 10 at 4:30 pm, City Council Meeting
Thursday, November 18 at 4:00 pm, Joint CCST Meeting, Location TBD
Wednesday, November 30 at 4:30 pm, City Council Meeting (NOTE THIS CHANGE IN DATE!!)
Wednesday, December 8 at 4:30 pm, City Council Meeting
Thursday, December 8 at 6:00 pm, Budget Comment Meeting

City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's regularly scheduled City Council Meeting. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor and Park Manager Dave Tersteeg. City Attorney Christopher Hood was in attendance via telephone.

Open Forum
Steve Schug of the US Forest Service gave the Council an overview of the coming Boy Scout's Order of the Arrow project. In June 2011, approximately 500-700 Boys Scouts and their leadership will be coming to Grand Marais to voluntarily work several projects including improvements to the Superior Hiking Trail, building a single track bike trail in the Pincushion and Tofte areas and improving campsites in the area of the Vegetable Lakes chain. This project is about mentoring young men and women in leadership and providing community service. Council agreed this will be a great event for Grand Marais and Cook County.

Consent Agenda
Council approved Consent Agenda with no changes.

Planning Commission Report
Council unanimously approved a request from Crystal Nelson for a conditional use permit to operate a quilting class as a home based business at her property located in the R-1 district.

Pool Boiler
Council considered the request from the Park Board to authorize funds for the replacement of the pool boiler at an estimated cost of between $15,000 and $20,000. The LPG central boiler that heats the pool building, domestic hot water, big pool and hot tub has developed cracks in 2 of 7 heat exchangers. Council tabled the issue until more information is provided regarding the cost of a used boiler, resale value and payback period.

IRR Renewable Energy Grant Agreement
The City of Grand Marais has been awarded a renewable Energy Grant from the Iron Range Resources Board to install a solar photovoltaic electrical system at the Gunflint Hills Golf Course.

Council & Staff Reports
Tim Kennedy reported that the Planning Commission is still considering the request to rezone the southern portions of 7th and 8th Avenues West in Grand Marais from C/I to Mixed Use or R1.
Jan Sivertson reported that the EDA unanimously voted to create a 7-member Superior National Management Board. Details are to be worked out. Sivertson also reported on the North Shore Management Board where an overview of the Silver Bay Eco Business Park was given.
Kay Costell0 reported that the Library Board has selected an Architectural Firm to recommend to the County Board for the Library expansion.
Sue Hakes reported that the Garden Club called her to say they do not endorse the installation of a memorial Flag Pole in Harbor Park. Mike Roth reported that he received a phone call from the DNR in response to his inquiry about whether or not a flag pole could be installed. The DNR informed Roth that more details are required.

Mark Your Calendars
Wednesday, October 27 at 4:30 pm, City Council Meeting
Wednesday, November 10 at 4:30 pm, City Council Meeting
Thursday, November 18 at 4:00 pm, Joint City/County/School/Tribe Meeting
Wednesday, November 24 at 4:30, City Council Meeting (day before Thanksgiving)

City Council Meeting with Burn Pile Public Meeting

Mayor Hakes, Councilors Costello, Kennedy, and Sivertson were all present for today's Council Meeting with Burn Pile Public Meeting. Councilor Lenz was absent. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor and Street Department Head Len Bloomquist.

City Council Meeting

Consent Agenda
The Consent Agenda was approved with a minor change.

Insurance Renewal
Paul Coe, Security State Insurance, presented the City's League of MN Cities Insurance Trust (LMCIT) renewal policy which includes the Liquor Liability renewal. Coe answered several questions after which the Council unanimously (4-0) approved this renewal premium at a cost of $67,105.

Park Board Application
Council received an application for the open seat on the Grand Marais Park Board. Council asked Mike Roth to invite the candidate to the next City Council meeting so they could meet her. The Park Board is currently a (7) member board, but has had some difficulty filling the open positions. Council anticipates further openings on this board effective January 1, 2011.

Council discussed briefly, the overall process for recruiting board members and asked Mike Roth to enhance the current application form to enable candidates to provide more detailed information to the Council.

Council & Staff Reports
Kay Costello reported that the Library Board was reviewing proposals from several architects for the Library addition and preparing to make a recommendation to the County Board.
Sue Hakes reported that the County Board agreed to begin negotiation with ORB Management for the job of Construction Manager on the Community Center project. ORB Management was recommended to the County by the Community Center Steering Committee; the County will lead these negotations.
Mike Roth shared good news that several Grand Marais businesses have made application for a Small Cities Grant effort to be led by Lake County. This funding is to be used for rehabilitation purposes.

Burn Pile Public Meeting
In recognition of both the negative effects and the popularity of the City's burn pile, the City Council invited the public to share their views and listen to those who have been affected positively or negatively by the burn pile as part of today's regularly scheduled Council Meeting. As noted in the City's September 8, 2010 press release:

The burn pile has been a topic of discussion for the Council and City staff since last October (2009). Smoke from the burning debris of a very full burn pile caused problems for both the Hospital and School. In response to the smoke complaints, the City has limited the size of the pile to what can burn in a single day. This has meant burning more often, including approximately seven times in 2010.

Many residents and contractors who use the pile have noticed the more frequent closing of the site as the City waits for optimal weather for burning. City staff consider moisture levels, current weather and forecast wind speed and direction before lighting the fire. "Even with the precautions we have taken, there is no guarantee that smoke will not cause problems with a burn pile this close to town," says City Administration Mike Roth".

Input was received from Cook County Hospital (Rory Smith) ISD 166 (Beth Schwarz) , Cook County (Fritz Sobanja and Jim Johnson), FireWise (Paul Nelson, Dick Parker) and the Forest Service (Patty Johnson). Written comments were also received from Hospital Administrator Diane Pearson, DNR Aaron Mielke and Mary Manning and an ISD 166 teacher. These groups (along with others) were specifically invited to give input at today's meeting, along with the general public.

The major problem identified from the school and hospital group was health related. Smoke from the burn pile has caused hazardous air quality conditions in both the hospital and the school causing illness to both patients and employees. The air handlers at the hospital cannot handle the smoke and it's extremely difficult to get rid of once it has infiltrated. This condition is unacceptable to both the hospital and school.

Both Aaron Mielke and Mary Manning, in their written responses, identified the problem of prohibitive materials dropped off in the burn pile. City Staff and others confirmed this as a difficult problem to police and manage. Burning prohibitive materials could result in the loss of the burn permit.

Approximately 12 members of the general public shared their views on the burn pile. Written comments from the public were also received. Overwhelmingly, the general public comments were received from individual users of the burn pile that see great benefit in this service.

After approximately 60 minutes, the meeting was closed to further public input. At this time, Council discussed the problem further and concluded the following:

1) Better signage at the site is necessary so that prohibitive materials and penalties for illegal dumping is made very clear. The City will make the change in signage.
2) Smoke from the burn pile is causing unacceptable health hazards at the hospital and school. This, combined with the fact that the burn pile area is shared with the runaway truck ramp, makes the current site for the burn pile unsuitable. Council agreed to explore relocating the burn pile in another location. Recognizing the value of the burn pile to the public, the City hopes that it could be re-located within a reasonable distance from Grand Marais. Because there is no obvious acceptable site within the City of Grand Marais, the Council will ask the County for suggested alternate sites. Mike Roth will draft a letter to the County Board which will be presented by the City at a future County Board meeting.

Mark Your Calendars
Wed, October 13 at 4:30 pm, City Council Meeting
Wed, October 27 at 4:30 pm, City Council Meeting

Setting the Preliminary Levy and City Council Meeting

Present for today's Budget and City Council Meetings were Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson. Also present were Mike Roth, Kim Dunsmoor and Attorney Chris Hood (via telephone).

Budget Meeting
Council discussed the 2011 Budget for the City of Grand Marais and set the preliminary levy at 3%. The preliminary levy is a not-to-exeed; the final levy will be set in December. Setting the budget was difficult due to the uncertainty of Local Government Aid. The State has notified the City that we will receive $155,000 in LGA and $49,000 in Market Value Homestead Credit, but it is extremely unlikely that Grand Marais will received those amounts and could receive zero. The City will also be negotiating their union contract this Fall.

Council Meeting

Open Forum
No member of the Public opted to address the Council at the Open Forum.

Consent Agenda
The Consent Agenda was approved.

Planning Commission Report
Tim Kennedy and Mike Roth gave an overview of (2) issues discussed at the 9/1/2010 Planning Commission Meeting:

1) Stanley Poole and Nadine Maki are requesting a zoning amendment to change Lots 3-17 Block 26 in the Harbor Addition from C/I (Commercial Industrial) to MU (Commercial/Residential Mixed Use). Approximately 15 residents attended the public hearing regarding this request, many with questions and comments. The Planning Commission is considering expanding the area for potential rezoning and will hold a new public hearing on October 6.

2) The Planning Commission considered several options to address the recent MN Supreme Court decision regarding variances : a) creating a new setback standards for property line setbacks, b) create an expansion permit similar to the previous variance process, and c) work with the League of MN Cities to seek legislative change. Creating new setback standards is a lengthy process with unintended consequences. Attorney Chris Hood informed Council that using an expansion permit is not consistent with the new State Law. So, the Planning Commission is leaning toward Option C to seek legislative change; the downside of this option is that it will take months or longer. Council instructed Mike Roth to write a letter to the League of MN Cities.

2010 Liquor Permit Renewals
Council approved the Liquor License renewals pending receipt of fee payment, Insurance Certificates, successful background checks, and no delinquences in local taxes or service payments. Once this is confirmed, the renewal forms will be sent to the State of MN.

Resolution 2010-12 Preliminary Levy
Council approved Resolution 2010-12 to set the prelininary levy which must be done prior to September 15 annually. This prelininary levy number is reported to the State and used by the County Auditor to prepare parcel specific tax notices. The City may not adopt a final levy greater than the prelininary levy. The final levy will be decided in December.

EECBG Lighting Retrofit Contract Approval
Council approved the grant agreement with the State for our Lighting Retrofit Project. Lighting fixtures will be replaced in City Hall, the Water Treatment Plant, the Waste Water Treatment Plant and the Park Building to increase lighting efficiency.

Burn Pile
Council discussed the agenda for the Public Meeting on September 29 at 5:00 pm on the Burn Pile. This Public Meeting will be posted next week. The Public is encouraged to attend and participate.

Council & Staff Reports
Kay Costello reported that the proposed Library expansion project is moving forward. The Library Board is reviewing proposals from several architectural firms and will be presenting their findings and suggestions to the City and the County Board.
Bill Lenz reported on the Rec Park income through August. The Campground is up $22k, while the pool and marina are each down ~$1300. Lenz also reminded the Council that WTIP Radio Waves is scheduled for this weekend in the Rec Park and promises to be a lot of fun.
Tim Kennedy reported that the Biomass Grant for a feasibility study continues to move forward with the LCCMR; Cook County is working with Ely on this $150k effort. Additional funding is being sought from the County Board for ~$113,000. Kennedy reported that the County is considering possible sources for this funding to be 1% Sales Tax funds and Forest Resource funds.
Jan Sivertson reported that the North Shore Management Board will be holding its annual meeting in Grand Marais on 9/30/2010.
Mike Roth reported that the new crosswalk over Highway 61 at the base of the Old Gunflint Trail (5th Avenue) is complete. Roth also reported that Southern Minnesota Municipal Power Agency will be at City Hall tomorrow (Thursday 9/9/2010) for its annual meeting. Mayor Hakes will welcome SMMPA members.
Sue Hakes reported receiving a letter from the Mayor and Planning Commission Chair from Two Harbors requesting support in amending regulations prohibiting new off-premise advertising signs along the North Shore Scenic Drive.

Mark Your Calendars
Thurs, September 9 from 9-Noon, Joint County/City/EDA at Courthouse
Wed, September 29 at 4:30 pm, City Council Meeting
Wed, September 29 at 5:00 pm, Burn Pile Public Meeting
Wed, October 13 at 4:30 pm, City Council Meeting
Wed, October 27 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

Worksession and City Council Meeting

Mayor Hakes and Councilors Costello, Kennedy, Lenz and Sivertson along with City Attorney Chris Hood (via phone), Mike Roth, and Kim Dunsmoor were all present for today's Worksession and Council Meeting. Also present for portions of the the Council Meeting were Tom Nelson and Linda Chappelle. EDA Board Member Mark Sandbo was present for the Worksession.

Council Worksession on Economic Development Authority (EDA)

Yesterday, a small group of West End Business Owners, as well as members of the EDA Golf Course Subcommittee, gave a presentation to the full EDA Board at their regularly scheduled meeting. This is a very similar presentation to the one given to Hakes and Roth a couple of weeks ago. The purpose of today's worksession was for the full City Council to get updated on the state of the EDA, in particular Superior National Golf Course (SN)

Jan Sivertson and Mike Roth summarized for the Council, the presentation that was given to the EDA. The basic premise is that SN is losing money due to declining golf rounds caused by too little marketing and ~$1.5M in deferred capital improvements. The West End Business Community proposes a solution to the problem that includes stabilizing the SN financial needs, providing long-term management, and fulfilling the original purpose of the Golf Course to bring tourists to Cook County. The group is proposing resolving the SN financial problems through use of Payment In Lieu of Taxes (PILT) funds, One Percent Sales tax Funds and increasing the EDA Levy. They are also proposing that SN be managed by and leased to a to-be-created Non-Profit Corporation. Sivertson reported that the EDA voted at their June 8 Meeting to support these concepts.

Council had a healthy discussion about the EDA, the proposed concepts and what role or influence the City Council has in resolving the financial problems of SN. Mayor Hakes opened the discussion with comments that the EDA is a joint City and County effort with (2) struggling assets--Superior National Golf Course and the Cedar Grove Business Park. Council acknowledged the problems at Superior National and discussed the pros and cons of the proposed solution. Hakes also requested that in addition to resolving the problems at Superior National that the EDA give attention to the problems at the Business Development Park. The Council supports working with the County to resolve the problems at both the Golf Course and the Business Park. Council also expressed concerns that increasing funding to the EDA without addressing the management issues will not solve SN problems.

The EDA, supported by the West End Business Community, will make its presentation to the County Board on June 22.

City Council Meeting

Open Forum
Librarian Linda Chappelle reported that the Library Board sent a Request for Proposals (RFP) to 10 architectural firms for the Library Expansion Project. A Pre-proposal Conference is scheduled for June 18th at the Library for interested architects.

Consent Agenda
The Consent Agenda was approved with (1) minor correction.

Sawtooth Challenge Mountain Bike Race
Council unanimously approved the Street Permit for the Sawtooth Challenge Mountain Bike Race requested by the Superior Cycling Association. This event is scheduled for April 28, 2010 downtown Grand Marais.

Water Emergency and Conservation Plan
Council unanimously voted to adopt the Water Emergency and Conservation Plan for the City of Grand Marais as presented by Tom Nelson. The plan has already been approved by the MN DNR. Council noted points of interest within the plan. Water usage has actually decreased over the past 20 years although population has increased; this is likely due to community conservation efforts. The amount of water unaccounted for peaked in 2004 and has gone down fairly significantly over the past 3 years. The largest user of water by volume is the Water Treatment plant; the Grand Marais Pool is ranked as the 8th largest user.

Stormwater Projects Cost-Share Grant
Tristan Beaster, Cook County Soil and Water, asked Council to approve a Cost-Share Grant Agreement for ~$16,670 ($12,497 grant plus $4,165 cost-share) to be applied toward any of (3) projects to repair streets damaged in the June 6, 2008 storm. Projects that may benefit from these projects include 10th Avenue and 11th Avenue between First and Second Streets and Humphrey Circle; all streets are gravel. Property owners will also be asked to participate, perhaps by paying for new larger driveway culverts. Projects need to be completed by June 3, 2012 with construction anticipated in 2011. Council approved the request unanimously.

IRR Community Business Partnership Grant Annual Report
Council reviewed the Annual Report submitted to Iron Range Resources as required by our agreement with the State of Minnesota acting by and through its Office of the Commissioner of Iron Range Resources and Rehabilitation.

Other Items as Necessary
Mike Roth asked the Council to consider how to resolve overgrown lawns in the residential or commercial areas of Grand Marais. Council authorized Mike Roth to write a letter to the property owner in these instances and ask them to mow the grass.

Council & Staff Reports

Bill Lenz reported that year-to-date revenues are up at the Rec Park, Pool and Golf Course. He also reported that the Park Board has eliminated the $25 fee to apply for a Special Events permit and that the Park Board will absorb the ~$400 cost to move buoys for the Dragon Boat Festival. Lenz also noted that Grand Marais will be host to a 50' boat within the month.

Kay Costello reported on the Library Board Meeting. She also asked Bill Lenz for an update on the Joint City/County/School/Tribal Council meeting held last month.

Tim Kennedy reported that the Planning Commission is considering a request for a Home Occupation Conditional Use Permit from Ron Lund to have an Art Studio in his home. The Planning Commission requested further information from Lund.

Jan Sivertson reported that the Universiy of Minnesota Crookston met with the EDA Board regarding the marketing of the Cedar Grove Business Park. U of M Crookston noted that our Business Park faces unique challenges including small population for workforce and limited airport facilities.

Mike Roth reported that KGM is working on the road at the Business Park.

Sue Hakes reported that she had a very productive conversation with Bruce Leng, owner of the former Theatre Building downtown. Leng understands the potential for a safety issue at the building and will consider doing some work to the front side. Hakes agreed to provide Leng with information regarding the Store Front Loan program and possibility of receiving a grant if/when building is ever demolished. Hakes reported that Stan Linnell and Peter Hark of the DNR will be in Grand Marais to meet with the Council regarding the Safe Harbor and Marina on June 29. A possible tour of the waterfront will be included in the meeting. Hakes asked Roth if the YOUR SPEED IS SIGN had been ordered; Roth reported that it has been ordered and it should arrive soon. Lastly, Hakes requested that Council consider using orange Crosswalk Flags at (1) intersection as a beta test to see if they help pedestrians cross more safely by letting motorists know of their intentions. Hakes proposes that Council authorize her to work with Roth and Lenny Bloomquist of the Streets Department to provide flags and monitor their use. Council had questions about how the Public would be informed of the project. Hakes has a call in to the Transportation Planner at Salt Lake City Utah to see how their city built this program in 2000.

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

City Council Meeting

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

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

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

Consent Agenda
The Consent Agenda was approved with minor corrections.

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

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

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

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

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

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

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

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

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

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

City Council Meeting and Budget Public Hearing

Mayor Hakes and City Councilors Costello, Kennedy, Lenz and Sivertson were all present at today's City Council Meeting and Budget Public Hearing. Also present were City Administrator Mike Roth, Finance Director Kim Dunsmoor, and City Attorney Chris Hood (via phone).

City Council Meeting

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

Consent Agenda
The Consent Agenda was approved with the addition of an agenda item to discuss the upgrading of Librarian I Job Description.

2010 Budget Discussion and Budget Public Hearing
Council discussed the 2010 City Budget prior to the Public Hearing and approved it after the 6:00 PM Public Hearing. No members of the Public were present at the Public Hearing (except WTIP and Cook County News Herald reporters).

Council unanimously adopted Resolution 2009-15 to set the final levy, collectible in 2010 upon the taxable property in the City of Grand Marais for a total of $802,657.38. Council set the same amount as the preliminary levy set at the September 9, 2009 Council Meeting. This amount represents an increase in the total levy of 3% ($23,000).

Council, City Staff and Department Heads have worked throughout all of 2009 to spend wisely and set a budget that is responsible. Final budget adjustments were made, resulting in ~$50,000 of unallocated funds.

The State has announced a $1.2 billion deficit that will require significant remedial action by the 2010 legislature. Governor Pawlenty has stressed that 2010 Local Government Aid (LGA) could be reduced to address this deficit. This means that the 2010 LGA allocation of $96,422 for Grand Marais is in jeopardy.

Council agreed the remaining ~$50,000 should be allocated for spending on the Council Priorities adopted in 2009 including PUC Maintenance Facility, Safe Harbor/Marina, Capital Improvement Planning, and the Municipal Building. However, this money will also be marked as a Contingency Fund should the State unallot all or part of the the $96,422 LGA for 2010. Council could have opted to decrease the levy, but felt it was too risky with the uncertainty surrounding LGA for 2010.

2010 Supervisor Salaries
Council approved a 2.5% wage increase for supervisors in 2010. This is consistent with the 2.5% wage increase negotiated with AFSCME for union employees in 2009-2010.

2010 Board Openings
There are several board openings beginning in 2010. Serving on a City Board is a rewarding way to contribute meaningfully to the Community. Anybody interested in applying is encouraged to do so at City Hall. Open positions will be advertised in the local newspaper. Open spots include (2) on the Library Board, (2) on the Park Board, and (1) on the Public Utilities Commission.

Librarian I Position Description
Council approved the modifications recommended by the Personnel Committee to the Librarian I Position Description. These changes were made to more accurately reflect the responsibilities and qualifications required for this job.

Council & Staff Reports
Tim Kennedy reported that Pete Grescyk is exploring the purchase of a lot in the Cedar Grove Business Park for septage pre-processing. A Public Hearing is set for December 14 at City Hall. (Contact 387-1848 to confirm time.) Kennedy also reported that the Biomass Committee explored the possibility of submitting a proposal for another Federal Grant. However, due to the 20/80 split the Committee decided not to submit.
Bill Lenz updated the Council on modest increase to the 2010 Fees at the Campground and Marina.
Kay Costell0 participated in the 2nd Strategic Planning for the Library this week. She also recommended the Friends of the Boundary Waters sponsored movie, "Precious Waters' about the environmental impact resulting from Sulfide Mining on the Iron Range.
Jan Sivertson reported that the EDA continues to work on the Cedar Grove Business Park Marketing Plan. The EDA listed the Business Park lots with Tim Kennedy, Owner/Broker of Gunflint Realty. The EDA is working closely with Kennedy to establish new pricing and determine special assessments. The EDA needs to create a plan to repay the City the $1.6 million debt plus interest for the General Obligation bonds sold by the City this month. Sivertson also reported that the EDA has not repaid the $100,000 loan to the City, but still intends to do so.
Sue Hakes shared that she has heard some public concern about Tim Kennedy being hired by the EDA to sell lots. Council discusssed this briefly noting that a legal opinion was obtained and it was determined that there is no conflict of interest for Kennedy to work with the EDA as their real estate broker. It was also noted that the Council does not have authority over the EDA or Kennedy in this matter. Hakes also reported that US Border Patrol representative Richard Fortunato invited Hakes and any member of the Council to meet to discuss issues of mutual concern. Hakes and Mike Roth will meet with Fortunato at the Border Patrol office on Thursday, December 17, at 10 AM. And lastly, Hakes reported that she presented the Council's letter to the County Board stating the Council's desire to be a part of the process to design and build a Community Center/Rec Area and build an addition on the existing Library. No specific feedback was given to Hakes from the County Board. The City Council will continue to advocate for a new Community Center in Grand Marais.

Mark Your Calendars
Mon December 14 at 10:00 AM Public Hearing for EDA Lot Sale (call City Hall at 387 1848 to confirm date and time)
Wed December 30 at 4:30 PM City Council Meeting
Wed January 13 at 4:30 PM City Council Meeting
Wed January 27 at 4:30 PM City Council Meeting

City Council Meeting and Grand Marais Noise Ordinance Public Review

Mayor Hakes and Councilors Kay Costello, Bill Lenz and Jan Sivertson were all present for the November 18, 2009 City Council Meeting and Noise Ordinance Public Review. Councilor Tim Kennedy was absent. Also present were Mike Roth, Kim Dunsmoor, City Attorney Chris Hood and Librarian Linda Chapelle.

City Council Meeting

Open Forum
No member of the public spoke at the Open Forum.

Consent Agenda
Two items were added to the agenda: 1) Council Letter to the County Board and 2) Store Front Loan Application. No other changes were made to the Consent Agenda.

Council Letter to the County Board
Council reviewed the letter rewritten by Hakes to be presented to the County Board by the Council for specific One Percent Sales Tax funding to build a Community Center/Rec Area and the Grand Marais Library expansion. Council is eager to support both efforts by participating on the Community Center Committee and the Library Board to bring these projects to fruition. Both Hakes and Bill Lenz attended the Community Center Board Meeting on November 17 and asked to be a part of the process. Kay Costello continues to work with the Library Board.

Library Improvement Project
Librarian Linda Chapelle and Library Board Members David Quick and Carol Miller reviewed with the Council their concept drawing for a proposed 3000 square foot addition. They also asked the Council for their support in proceeding with the project. The Library Board will also be talking with the County Commissioners about obtaining One Percent Sales Tax funding for the expansion. Council, Chapelle, Quick and Miller all agreed that the current location of the Library was the best location.

Store Front Loan Application
Bev Wolke presented the Store Front Loan Application letter from the Shoreline Inn Motel for $12,500. Council unanimously approved the loan to repair and replace the Shoreline Inn and Cobblestone Cove sign at the corner of Highway 61 and Broadway.

Business Park Financing
Carolyn Drude of Ehlers & Associates presented the results of the bond sale to pay off the Temporary General Obligation Bond sold 3 years ago (January 2007) for EDA Cedar Grove Business Park infrastructure . Due to the lack of lot sales, the EDA has been unable to repay this debt of $1,630,000. The low bid for the sale of $1,675,000 General Obligation Bonds was presented as 20 years at a true interest rate of 4.2419%. Council unanimously passed the resolution providing for the issuance and sale of these General Obigation Improvement Refunding Bonds.

In a positive note, Standard & Poor's Rating Services assigned the "A" long-term rating to the City of Grand Marais noting "the stable outlook reflects our expectations that the city will maintain its very strong financial position and balanced operations in future years".

SMMPA Contract Extension
Mike Roth reviewed the Southern Minnesota Municipal Power Agency (SMMPA) presentation given to the Public Utilities Commission regarding the extension of the power sales contract from 2030 to 2050. Council supported the PUC decision to make this extension to the contract, obligating SMMPA to provide Grand Marais with electricity.

Grand Marais Noise Ordinance Public Review
No members of the public were present for this review of the Noise Ordinance adopted earlier this year. Mayor Hakes and Councilors present remarked that they received no noise complaints after the Noise Ordinance was enacted. Sheriff Mark Falk reported to Mike Roth that there were no music related noise complaints after the Ordinance was enacted. Sue Hakes received positive input from one city resident prior to the meeting; this resident had no noise complaints. Council agreed that the Noise Ordinance was a successful process.

Council & Staff Reports
No individual reports were given.

Mark Your Calendars
Wednesday Nov 19 at 4:00 PM Joint CCST at High School
Wednesday Dec 9 at 4:30 PM City Council Meeting
Wednesday Dec 30 at 4:30 PM City Council Meeting

Bonding Worksession and City Council Meeting

Sue Hakes and all City Councilors were present for today's Worksession and City Council Meeting. Also in attendance were Mike Roth, Kim Dunsmoor and Carolyn Drude, Senior Financial Advisor/Executive VP of Ehlers & Associates.

Worksession to Re-finance EDA Infrastructure Debt
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 this debt. This 3-year G.O. Temporary Improvement Bond is now due in January 2010 and the City is responsible for this payment.

The City Council once again met with Ehlers & Associates to discuss options for refinancing this Temporary Bond including the sale of 10, 15 or 20-year G.O. Improvement Bonds . Carolyn Drude of Ehers & Associates also offered for consideration a 20-year Build America Bond which the Council is considering. In general, Build America Bonds bear a higher interest rate, but the Federal government will pay 35% of the interest payment through an annual rebate reducing the cost to the City. Council requested time to consider more fully the Build America Bond and will meet again at 12:00 Noon on Friday to decide.

City Council Meeting

Open Forum
Nobody from the Public opted to address the Council at the Open Forum.

Variance Request
Council unanimously approved the request from Alyssa and Jonathan Hedstrom for a variance from the setback from residentially zoned property to construct an addition to the South and West side of their commercial building located in the H61 District.

EDA Business Park Discussion
Even though Council is working to refinance the $1.63M debt owed by the EDA on the Cedar Grove Business Park, they will continue to hold the EDA accountable for repayment. As agreed by the Council previously, Mayor Hakes wrote to the EDA on behalf of the City asking them to explore all options for this debt repayment. The City has also asked for a comprehensive marketing plan to sell lots in the Business Park. Jan Sivertson reported that the EDA has published a Request for Proposals soliciting bids from licensed real estate brokers to list, sell and market 31 lots in the Business Development Park.

Cairn Signs Maintenance Agreement
The City has agreed to provide the maintenance for the Cairn signs at the entrance to the City of Grand Marais and the Gunflint Trail. Details are being worked out between the City and the Arrowhead Regional Development Commission.

Noise Ordinance Public Hearing
A Public Hearing was promised and has been scheduled to allow the Public to check in with the Council regarding the Noise Ordinance that was established in 2009. The Public is encouraged to attend this Public Hearing at 5:00 on Wednesday November 18.

Council & Staff Reports
Mike Roth asked for Council to approve replacement of the Liquor Store awning that blew down in the storm. Council approved the purchase.
Tim Kennedy reported that the PUC has agreed to extend their contract with SMMPA through 2050. A presentation will be provided to Council for review and support. Kennedy also raised the issue of the Shoreline sign and the danger it caused during the recent windstorm. Council agreed that the City should send correspondence to the owner asking that the sign be removed or restored to a safe condition.
Jan Sivertson gave an update of the on-going efforts to pass the One Percent Sales Tax. Ballots will be mailed to all registered voters in the County on Friday October 16. Jan also asked each member of the Council if they supported the One Percent Tax. Each member of the Council shared their support for this proposed tax without hesitation. Sivertson also raised the need for more public restrooms downtown. And, Sivertson shared the CCEVB plans to make Cook County a December holiday destination. Council agreed to explore ways to support this effort including the possibilities of providing a large holiday tree in Harbor Park, lights and electricity.
Bill Lenz reported on the revenues for the Park Department including an increase in Pool, Campground and Marina revenues and a decrease in Golf Course Revenues, mostly due to weather. Lenz also reported that the Park Board voted to de-ice the docks at the Marina by moving water around them as opposed to removing the docks in the Fall and putting them back in the Spring. De-icing is less expensive than taking the docks in and out.
Kay Costello reported that the Library has begun their strategic planning and has (2) full day sessions planned.
Sue Hakes reported that she has also heard requests from both the Lions Club and GMATA for more public restrooms downtown. Hakes has encouraged these groups to come before the Council with their requests; Mike Roth confirmed they have asked to be on the agenda for October 28. Hakes also shared that several community members have asked for Community Garden Space and Council discussed various possibilities including the Business Park.

Meeting was recessed and will resume at Noon on Friday October 16, 2009.

Mark Your Calendars
Please note that there are several changes to the usual meeting schedule:

FRI October 16 at Noon City Council will resume Council Meeting to discuss Bonding options
WED October 28 at 4:30 City Council Meeting
MON November 9 at 3:30 Council Worksession to discuss Liquor Store & Golf Course Budgets
MON November 9 at 4:30 City Council Meeting
WED November 18 at 4:30 City Council Meeting (will authorize Bond Sale)
WED November 18 at 5:00 Noise Ordinance Public Hearing
THUR November 19 4:00 Joint City/County/School/Tribal Council Meeting at Courthouse

One Percent Local Sales Tax Opportunity!

Vote YES!

There is a lot of energy surrounding the Referendum to pass the One Percent (1%) Sales Tax in Cook County; there is also some confusion. Following is an attempt to clarify.

A Special Election is being held in Cook County for voters to decide whether or not to impose a sales tax of one percent (1%) on all taxable transactions within Cook County. Election Day is November 3, 2009. Beginning October 16, a ballot will be mailed to every registered voter in Cook County, including the City of Grand Marais. Your ballot must be received in the Cook County Auditor's Office by 8 PM on November 3, 2009, either by mail or hand delivery.

The money collected through this sales tax will be used to pay for all or a portion of the following projects and associated financing costs: (i) construction and improvement of a countywide high-speed communications infrastructure network; (ii) construction, improvements and additions to community centers and public recreations areas, including public parking areas, located in Grand Marais, Tofte, and Lutsen; (iii) construction of and improvements to the Grand Marais Public Library; and (iv) construction and improvement of a district energy plant for public facilities in Grand Marais.

For the past year or so, the Community has worked to identify specific projects for potential funding using this 1% Sales Tax. And, a One Percent Sales Tax Committee was formed. This Committee, based on Public input, identified (7) projects for possible funding:

Expanded Cook County Community Center
Cook County Community Center Outdoor Rec Area
Birch Grove Outdoor Rec Area
Public Library Addition
County-wide Broadband
District Energy Facility
Improvements to Superior National Golf Course

It is important to understand that the County Board has the discretion to decide which project(s) to fund in part, in full, or not at all. It is equally important to understand that it is up to each of us to advocate to the County Board (and within the Community) for the projects we believe in and want to see realized. We have the right and the responsibility to let our County Board know how we want this money spent.

Before us is the unique chance to collect $20 million to spend on projects that we could not otherwise afford in this small community. Before us is an opportunity to participate fully and directly in the political process that determines where to spend this money. It is important that we let our County Commissioners know what we want.

Bottom Line: Let's pass the Referendum to get the $20 million into the County. Then, let's work together with the County Board to spend it responsibly and on the projects we want.

The One Percent Sales Tax and how it will be spent is complex. If you have questions, take the time to find answers.

For further information:

WTIP is sponsoring a public forum at the Arrowhead Center for the Arts with the Cook County News Herald and Community Education from 6:30-8:30 p.m. on Oct. 13. Childcare will be provided in the community gym for attendees of the forum by the Cooperation Station. Questions, concerns and comments on any issue related to the 1 percent sales tax will be taken from the public at the forum, which will also be broadcast live on WTIP at 90.7 FM in Grand Marais and 91.7 FM on the Gunflint Trail

Cook County Conversations
WTIP North Shore Community Radio, Boreal Access and the Cook County News Herald, in partnership with e-democracy.org and the Blandin Foundation have launched Cook County Conversations, an on-line forum for sharing insights and perspective on issues that affect our community. This new forum is a safe, civil and informative platform for residents and visitors of Cook County to discuss issues that affect them.

http://boreal.org/drupal/onepercent

Vote YES!
for the One Percent Local Sales Tax

The Liquor Store and the Library

The Liquor Store

Earlier in the week, Pat Hennessy, Liquor Store Manager, showed me around the Grand Marais Liquor Store, an extremely important City Asset. The Liquor Store shares the City Hall Municipal Building with City Offices, the Tourist Information Center and the EDA. The building is certainly large enough for each of these entities, but because the building is a former jail and former fire hall, much of the space just doesn't work. The Liquor Store could use more storage and work space. In addition, the Municipal Building has serious maintenance issues including electrical & HVAC systems, roof and plumbing. Solutions to the immediate storage needs for the Liquor Store are being explored.

The Library

This morning, Librarian Linda Chappell gave me the full tour of the Library. Like the Liquor Store, the Library is squeezed into its space. Every nook and cranny has a purpose and something in it. The Library's role to provide free access to information in a variety of formats is ever changing as technology evolves. Our Library is in good condition; we need to maintain it to keep it in good repair. It's also in a wonderful central location that makes a statement about what we value in this Community.

City Priorities Workshop

Today was time very well spent. The City Council and Department Heads worked all day to figure out where to best spend our time and resources for the next two years. City Administrator Mike Roth, assisted by Finance Director Kim Dunsmoor, facilitated the meeting.

State of the City

A clear understanding of the current condition of City Assets and each Department was critical to the process of setting priorities for the City of Grand Marais. Department reviews were given by each Department Head, as well as the Economic Development Authority (EDA).

Library--Linda Chappell
EDA--Matt Geretschlaeger
Liquor Store--Pat Hennessy
PUC Electrical Department--Mike Taylor
Recreation Area--Dave Tersteeg
Property Maintenance--Tom Stockman
PUC Water & Sewer Department--Tom Nelson

These overviews were extremely useful in understanding the condition of assets, human resources, challenges, budget needs, goals and current/future projects for each Department.

The Process

Narrowing the City's Priority list to 4-6 was difficult as anticipated. We began by generating a list of all potential priorities, big and small. From that rather comprehensive list we bundled similar ideas together to create a list of 18. Paring this list down to a manageable size was quite challenging. The Council and each Department Head was asked to vote for and defend their Top Priorities. The resulting list, which was approved by the City Council, is as follows:

Priority List for 2009-2010

It was agreed at the beginning of this worksession that the Priority List would be a living document; we expect the list to evolve and change as we move forward. Here is the list, and with the exception of passing the 1% Sales Tax, there is no firm order of importance.

1% Sales Tax
Support is strong for working to pass this tax to be used toward Recreational Infrastructure in Cook County. This was a clear priority.

Swimming Pool
The City and County need an agreement regarding the Pool. Location and sharing Operation & Maintenance costs need to be figured out. The 1% Sales Tax is a possible funding source for the Pool as part of a broader Community Center/Recreation Area. (The City and County are meeting to discuss the Pool on Wednesday March 4 at 8 AM at the Courthouse.)

Maintenance Facility
The existing PUC Garage is inadequate and needs to be replaced. And, it does not belong in the Rec Park. The City is exploring the possibility of a joint facility with the County (and other agencies), funding options, and location.

Safe Harbor/Marina
Resolution No. 2007-05 for the Safe Harbor Marina Project was passed during Mayor Larsen's administration. It will be the basis for providing the requested project description and cost estimate to Congressman James Oberstar for submission to the Detroit Office of the Army Corp of Engineers for review and evaluation. (The Council and DNR are meeting Tuesday March 17 from 9 AM to Noon at City Hall.)

Municipal Building
The current City Hall Building--which is also home to the Liquor Store and the Tourism Information Center--is in really tough shape with respect to electrical and HVAC systems, roof, plumbing, storage, etc. A Muncipal Building Task Force will be appointed to look at this issue and make a recommendation to the Council.

Capital Improvements
We need a plan to improve/replace City Buildings and City Infrastructure (water, sewer, electric). The plan needs to set priorities and identify funding sources. The SEH Grant writer will be tasked with finding funds.

Rec Park Master Plan
A planning process is currently underway with the goal being development of a Master Plan for the Rec Park that will be adopted by the Council. Public input to the process and an implementation strategy are critical for success.

Core Values

Identification of our core values was not the goal of the day. However, as we worked through the issues, certain values appeared and re-appeared. Here's a start on what we believe to be our core values.

1. We must always do our best to communicate with the Public.
2. We must be responsible with public funds and manage the Budget.
3. We need to be environmentally responsible.

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)

First City Council Meeting of the New Year!

After the swearing in ceremony, the City Council got right down to business on the very full agenda.

Council and Citizen appointments to City Boards and Commissions were made. Here's the new line up for the City Council and the newly appointed Citizens:

Animal Advocates--Bill Lenz
Cable Board--Kay Costello
EDA--Jan Sivertson
Liason to North House Folk School--Jan Sivertson
Library Board--Kay Costello
ARDC--Bill Lenz
North Shore Management Board--Jan Sivertson
Joint Powers Recreation Board--Kay Costello
Park Board--Bill Lenz, Robin DuChien, Todd Miller, Paul Anderson
Personnel Committee--Sue Hakes and Bill Lenz
Planning Commission--Tim Kennedy, Sherri Carlson
Public Utilities Board--Kay Costello, Bill Lenz, Jan Sivertson
Public Utilities Commission--Tim Kennedy, Hal Greenwood
Safety Committee--Tim Kennedy
Broad Band Committee--Tim Kennedy
1% Sales Tax Committee--Kay Costello and Tim Kennedy

NOTE: There are still Citizen Openings on the Economic Development Authority, Park Board and Planning Commision. Applications are available at City Hall. Your participation and involvement is encouraged.

In other business--

The Council decided the Park Board will remain at (7) members. This decision was based on the fact that the Park Board is facing many important issues; there is a lot of work to do.

The Council approved the Park Board request for an additional $13,055 to purchase (4) 30' x 3' finger piers for the Municipal Marina. The new configuration of the finger piers allows an additional slip, room for larger boats, and small craft dockage--all of which will increase revenue potential.

Calendar Parking was discussed at length. The Council supports the County's goal for cost savings, but further work is needed on the snow removal parking plan.

A City Council Worksession has been scheduled for January 28 at 3:30 PM to discuss 2009 City Priorities. This worksession will be held at City Hall and is open to the public.

The Council approved Resolution 2009-01 to authorize the City to make application to the Iron Range Resources Community Business Partnership Grand Program for Grand Marais Downtown Redevelopment Program.

NEXT CITY COUNCIL MEETING: January 28, 2009 at 4:40 at City Hall