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 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 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

City Council Meeting & Other Notes

Sue Hakes, Kay Costello, Tim Kennedy, Bill Lenz and Jan Sivertson were all present for today's City Council Meeting. Also present were Mike Roth, Kim Dunsmoor, Attorney Chris Hood, Dave Tersteeg, Amber Rude.

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

Violence Prevention Center Request
October is Domestic Violence Awareness Month. Jodi Yuhasey of the Violence Prevention Center requested permission to put up a 6-7 foot tree in the grassy triangle space at the intersection of Highway 61 and Wisconsin Avenue (near Java Moose). The tree will be decorated with small purple lights and will be lit from dusk to dawn. The purpose of the tree is to raise awareness about the problem of domestic violence and to let everyone who is a survivor of violence know that they are not alone.

Council approved the request 5-0.

Park Master Plan
Park Manager Dave Tersteeg presented to Council the Goals & Policies and Master Plan Map that was approved unanimously by the 7-Member Park Board. The Master Plan is the result of a 13-month/$20k effort led by the Park Board and made possible by a 2008 Lake Superior Coastal Program Grant. The Park Board made their recommendation based on significant public input received from October 2008 through July 2009 through a series of Listening Sessions, Public Forums and Park Board Meetings. Key features in the Park Plan include an improved Park Entrance in the extreme NE corner, new/improved trails along the water's edge featuring the natural shoreline and wetland area, new and improved playground area, reserved space for motorized trail under the power line, improved public space in the SW corner (point) including year-round Events Pavilion. Approximately 30 campsites are planned to be moved from the NE corner to allow more open space and accomodate a future new Park/Marina Office. New, replacement campsites are planned for the area currently being used as a softball field. It is anticipated that both the Pool and Softball Diamond will become part of the Community Center/Recreation Area being planned for near the existing Community Center. The plan also calls for the PUC Garages to be re-located outside of the Rec Park. The recommended plan is consistent with and supports the Goals of the City Council as established in early 2009.

Council approved the recommended Master Plan 3-2. Mayor Hakes thanked the Park Board for their hard work in this effort and for delivering a Master Plan that met the goals & objectives established.

EDA Business Park and Bond Repayment
Council discussed the current state of the Economic Development Authority (EDA) as it relates to the EDA's inability to repay the $1.6M G.O. Bond due in January 2010. Council expressed frustration that the EDA has not been pro-active in the development of an overall strategy and marketing plan to sell lots in the Cedar Grove Business Park. Mayor Hakes will draft a letter to the EDA asking for specific action to be taken regarding business development lot sales.

Council & Staff Reports
Tim Kennedy reported on the progress being made by the PUC in restoring electricity to customers after the Monday 9/28 storm event. All City Departments have been involved in this work and are to be commended for team play. A particular note of gratitude was given to the Electrical Department. Kennedy also reported that the Biomass Committee continues to work on their cash flow analysis to determine project viability.
Jan Sivertson gave an update on efforts being made by the One Percent Committee to educate the public about the opportunity before us. Volunteers are needed; contact Jan Sivertson if interested in helping out.

Mark Your Calendars
Wed October 14 at 3:30 PM City Council Worksession
Wed October 14 at 4:30 PM City Council Meeting
Wed October 28 at 4:30 PM City Council Meeting

TUESDAY November 10 at 3:30 PM City Council Worksession
TUESDAY November 10 at 4:30 PM City Council Meeting
Wed November 19 4:00 PM Joint CCST Meeting at the Courthouse
TUESDAY November 24 4:30 PM City Council Meeting

Note the change from Wed to Tuesday for both City Council Meetings in November.

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 and City Council Meeting

Mayor Hakes and City Councilors Tim Kennedy, Bill Lenz, and Jan Sivertson were in attendance at today's City Budget and City Council meetings. Councilor Kay Costello was absent. Also in attendance were Mike Roth and Kim Dunsmoor. Together they welcomed newly hired City Attorney Christopher Hood of Flaherty & Hood who participated in the regular City Council Meeting via telecommunication.

Budget Worksession

City Department heads are currently preparing their 2010 budget requests; departments supported by the General Levy will will appear before the Council to present their budgets at the end of August. The preliminary levy will be set in early September.

Significant considerations to the budget include wages, Local Government Aid cuts, the potential impact of State of Minnesota budget deficits (~$7 Billion), capital planning, and funding for the advancement of 2009/2010 priorities including a new maintenance facility, marina/safe harbor and Rec Park Master Planning.

Council also spent a significant time discussing the Pool finances; the Pool lost approximately $219,000 in 2008 with a similar loss anticipated annually. This loss is supported by the City with Rec Park profits and levy dollars. Last April, County Board representatives Bob Fenwick and Bruce Martinson expressed willingness to cost-share the Pool losses with the City and agreed to ask the County Board to increase their participation in the pool funding. The City has submitted a letter requesting additional funding as part of the County's 2010 budget process.

City Council Meeting

Open Forum
Nobody from the public opted to address the Council at today's meeting.

Planning Commission Report
The Cook County Tennis Association was granted a variance from the side yard setback to construct a wall for a tennis practice court near the existing tennis courts. The Planning Commission supported this request 4-0. The City Council approved this variance 4-0.

David Mills and Beth Ferry were granted a variance from the front yard setback to construct a deck and (3) dormers on their building in the R-1 district. The Planning Commission supported this request 4-0. The City Council approved this variance 4-0.

Tim Kennedy informed the Council that the Planning Commission will be reviewing Roof Signs and making a recommendation to the Council.

IRR Community Business Partnership Grant
Council voted to accept the Community Business Partnership grant from Iron Resources Board for $25,000. Combined with a $12,500 (2 for 1) match from the storefront loan program, there is a total of $37,500 to create a grant/loan program for business rehabilitation projects.

Lake Superior Coastal Program Grant for North House Folk School
Contracts and paperwork were received by the City for a previously awarded project from the MN DNR's Lake Superior Coastal Program. This $90K award will be used at North House Folk School to make improvements to the outdoor common space including planting trees & shrubs and replacing old asphalt with pervious surfaces. The work will also include relocation of parking, managing storm water runoff and improving the driveway entrance. The project is being matched with $151K of North House funds for a total of $241,300 to do this work.

Council & Staff Reports

Tim Kennedy updated the Council on several issues.

1% Sales Tax--The County Board has scheduled a Public Meeting on Monday August 24 at 7 PM to give the Public a very brief overview of the projects currently under consideration for funding through the 1% Sales Tax. The City Council unanimously supports the inclusion of a Community Center--including a swimming pool--on the referendum ballot. The Council would like to see the cost of the Community Center reduced to approximately $6M, assuming development of a sound business plan.

Biomass District Heating Project --The Biomass Project Working Group meets weekly and is making its way through the many issues surrounding this project.

A long-term affordable and reliable supply of biomass is critical to success. Patty Johnson is scheduling a meeting with potential suppliers of biomass to begin addressing this need. Seeking a commitment from the Superior National Forest (USDA), Fish and Wildlife (USDI), and the MN DNR that biomass will be available for life of the facility was also discussed. The Forest Service is also conducting a technical review of the technical aspects of the proposed project. Buck Benson is working to identify major commercial end users for the heat produced from the project; Mike Roth will talk with SMMPA. Ehlers & Associates--the City's Bond Counsel--is scheduled to meet with the City Council on August 28 at 1:00 PM to discuss the feasibility of selling bonds to support the proposed biomass facility. Ways to raise public awareness and understanding about the project were also discussed.

County-wide Broad Band Service--The County is pursuing federal stimulus funds, as well as 1% funding for County-wide broad band services. The total project cost is estimated to be $51M with $32M funded through a federal grant, $9M requested to be funded with 1% sales tax monies, and $10M funded through bonding.

Sue Hakes reported that she followed up with DNR personnel (Stan Linnell, Les Ollila, Larry Killien, Cheryl Erickson) by thanking them for their participation in the July Meeting in Grand Marais. Killien updated Hakes on the progress being made on the Joint Powers Agreement to be drafted by the DNR; other priorities have taken precedence, but the draft document is anticipated to be completed soon. Hakes will also explore the status of the Water Resources Development Act as a possible funding source with Jackie Morris of Congressman Oberstar's office.

Mark Your Calendars
Mon Aug 24 7:00 PM 1% Sales Tax Public Meeting at Courthouse
Wed Aug 26 4:30 PM City Council Meeting
Fri Aug 28 Morning Time TBD Budget Meetings w/Department Heads
Fri August 28 1:00 PM Ehlers & Associates Bond Counsel Meeting
Wed Sept 9 3:30 PM Worksession Topic TBD
Wed Sept 9 4:30 PM City Council Meeting
Wed Sept 30 4:40 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

Budget Worksession and City Council Meeting Notes

Budget Worksession

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

City Council Meeting

Open Forum

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

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

Variance(s) Granted

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

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

Fire District Boundary Changes

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

Noise Ordinance

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

Personnel

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

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

Creechville Annexation

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

Council & Staff Reports

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

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

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

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

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

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

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

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

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

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

Mark Your Calendars

Wed May 27 at 3:30 Capital Improvement Plan Worksession

Wed May 27 at 4:30 City Council Meeting

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

More Getting Up to Speed

PUC Garage and Power Plant

I asked Mike Taylor, Public Utilities Electric Department Head, for the nickel tour of the PUC Garage this afternoon. He graciously took the time to show me around the PUC Garage & Grounds (Rec Park), Power Plant & Substation (west edge of town) and the east end of PUC electric service at Croftville. Seeing these facilities and some of our infrastructure first hand was extremely useful in growing my understanding of the services our PUC Electric Department provides and challenges they face. In addition to Taylor, Matt Bronikowski and Jeff Eliasen work full time in this Department.

Rec Park

Last week, Dave Tersteeg, Rec Park Manager, gave me a tour of the Rec Park Office and Operations. We also had the opportunity to discuss the current layout of the Park, amenities & services offered, infrastructure concerns and the Master Plan effort currently underway. Clearly, the Rec Park and its future is of significant importance to many. In addition to Dave, the Park Office is staffed by Amber Clay and Sam Williams.

To learn more about the Rec Park Master Plan Planning Process go to:

http://www.grandmaraisrvparkandcampground.com/plan.html

Public input is encouraged and welcome. Check Rec Park website for meeting dates.

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.

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

Happy New Year!

Mark your January calendars!

January 12 6:30 PM at the Courthouse
PARK BOARD PUBLIC INPUT MEETING on Rec Park Vision

January 14 4:30 PM at City Hall
CITY COUNCIL MEETING

January 28 4:30 PM at City Hall
CITY COUNCIL MEETING

Check City Hall (387-1848) for further information or schedule changes about these and other public meetings.

Attention City Residents!

There are several openings on City Boards. You are encouraged to apply for a position on the Park Board, Economic Development Authority, Planning & Zoning, and Public Utilities Commission!

Happy New Year!

2009 promises to be filled with challenge and reward for Grand Marais. By working together we can face any challenge and share together in the rewards. I look forward to serving as your Mayor.

Board Openings

City Residents--There are several current and future openings on City Boards. Please consider applying for a position on the Park Board, Planning & Zoning Board, Economic Development Authority (EDA) or Public Utilities Commission. Applications are available at City Hall (387-1848).