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 Notes

Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's City Council Meeting. Also present were Mike Roth, Kim Dunsmoor, Fire Chief Ben Silence and Attorney Chris Hood (via telephone).

Open Forum
Ron Lund presented a letter to the Council expressing his opposition to the Conditional Use Permit to operate a personal fitness training studio as a home based business requested by Kirsten van den Berg and Greg Nichols. Lund believes that although the business is worthy, it pushes the definition for home occupation and would create unwanted traffic in a residential neighborhood. Mr. Lund was invited by Council to stay for the meeting to hear the discussion on this matter.

Consent Agenda
Consent Agenda was approved with (2) additions to the Agenda: Dilapidated Buildings and Traffic Control on Highway 61.

Fire Chief Report
Fire Chief Ben Silence presented the Council with a proposed Firefighter Job Description and discussed the need for recruitment. Currently, there are 20 firefighters in the Grand Marais Volunteer Fire Department (GMVFD); the desired number is ~30. (6) First Responders will be joining the GMVFD. Silence would like to hire (5) more firefighters. Council approved the Job Description unamimously. Persons interested in becoming a volunteer firefighter are encouraged to contact Chief Silence or City Hall to fill out an application.

Planning Commission Report
Mayor Hakes recused herself from this discussion; she is the current landlord for Studio 61 owned by Greg Nichols and Kirsten van den Berg and has a vested interest in the outcome of the request. Council discussed Nichols and van den Berg's request for a Conditional Use Permit to operate a personal fitness training studio as a home based business at their property located in the R-1 District at 921 West First Street. This Planning Commission held a Public Hearing on May 5, 2010 on this matter and approved the request with conditions to limit signage and hours of operation. Council discussed this request at length, noting that a lot of public comment had been received, both pro and con, about this request. Ultimately, Council passed a motion to ask City Staff to prepare a Conditional Use Permit as requested but with the following Conditions: a) no outside employees, b) classes are limited to 3 hours/day, c) (3) off-street parking spaces must be available for clients, d) on-street parking is limited to (3), e) class size is limited to (8) students, f) classes are limited to between the hours of 6 AM and 7:30 PM, g) signage must conform to the Sign Ordinance and be no larger than 4 square feet in size. Council will consider the CUP at their next meeting on May 26.

Garden Club Request
Council unanimously approved the Garden Club's requst for $1000 for flowers and fertilizer. The Garden Club will plant the flowers in the street containers and ground beds downtown; the Park Department will water them.

Resolution of Participation in County Hazard Mitigation Planning
Council unanimously approved the resolution to formalize the City of Grand Marais' participation in the County Hazard mitigation plan. The City has been participating on the County Emergency Preparedness Committee.

Dilapidated Buildings
Mayor Hakes requested that this item be added to the agenda for discussion based on community feedback about Council's discussion regarding the former Theatre Building.

Hakes clarified that the Grand Marais Playhouse (GMPH) will be celebrating their 40th Anniversary this summer. As part of that celebration, GMATA Director Diane Brostrom suggested several months ago to GMPH Director Sue Hennessy that the Playhouse use the window space at the former Theatre Building to advertise creatively in their window. The idea was received positively by Hennessy and the property owner, making it a real win/win/win. The connection between the historic old Theatre and the current Playhouse could be meaningful and the location for advertising is perfect.

The issue of dilapidated buildings in Grand Marais is quite a separate issue. Council agreed that Public Safety is always an issue. Mike Roth and Attorney Chris Hood will discuss proper steps and options around this matter. Council also agreed it is important to treat property owners with respect.

Traffic Control on Highway 61
Mike Roth will order the "YOUR SPEED IS" sign to be placed next to the Speed Limit sign near the bottom of the hill on Highway 61 West. This sign, in combination with "Event Congestion Ahead" signs will be used this summer to slow traffic down during the busy summer months. These actions are part of an overall plan by the Council to improve pedestrian safety. In 2009 a crosswalk was added near the Dairy Queen and Pumphouse. Additional crosswalks are in the initial planning stages. And, Roth and Hakes will continue to work directly with Rob Ege of MN Dot to do some traffic/speed monitoring on Highway 61 to determine if changes to the Speed Limit are needed.

Council & Staff Reports
Mike Roth updated the Council on possible IRRB funding to do some preliminary design work on the Marina/Safe Harbor. Council voted unanimously to submit a request for $20K. Roth is also working with Dick Grabko to learn more about the potential for funding from the Great Lakes Initiative to do more in-depth design and engineering work for the Marina and Safe Harbor.

Kim Dunsmoor reported that the City's Annual Audit was completed today.

Bill Lenz reported that Community Garden has been dug and plans for planting are underway. He also reported that the Park Board has combined the various Camp Site waiting lists into (1) master list.

Jan Sivertson said she attended the North Shore Management Board meeting. The Board voted to sponsor a St. Paul based company in creating a plan for the North Shore that puts the environment first and will be used as a tool for planning and development.

Sue Hakes reported that she traveled to Two Harbors to attend the Northeast Service Cooperative (NESC) Informational Meeting to discuss their successfully funded broadband infrastructure project. The $43.5M Northeast Middle Mile Project will deploy a 915 mile fiber optic network to expand broadband services throughout Northeast MN, including Cook County. Funded 50/50 by grant and loan, the Middle Mile Project will connect critical services including health care, education, libraries, and county, state and emergency services in northeast Minnesota. NESC is also working with the Cook County Board and has submitted a proposal to provide fiber based broadband to ~6000 households in Cook County. If successful in winning this grant, the County Board may opt to cost-share with One Percent Sales Tax funds.

Mark Your Calendars
Wednesday, May 26 at 3:30 pm, City Council Budget Worksession II
Wednesday, May 26 at 4:30 pm, City Council Meeting
Thursday, May 27 at 4:00 pm, Joint City/County/School/Tribal Council Meeting in Grand Portage
Wednesday, June 9 at 4:30 pm, City Council Meeting
Wednesday, June 30 at 4:30 pm, City Council Meeting

A Visit from Senator Franken's Staff

I had the distinct pleasure of meeting with (2) members of Senator Al Franken's staff this afternoon. About a week ago I had a call from Daniel Fanning (Northeast Field Representative based in Duluth) asking if he could meet with me; of course I responded with an enthusiastic yes! So today, both Fanning and Marc Kimball (Minnesota Commmunications Coordinator based in St. Paul) paid a visit to me after stopping in at the Java Moose Coffee Shop.

Meeting with the Staff of a US Senator is an honor and an opportunity not to be wasted. Both Fanning and Kimball were eager to hear about our local issues, and I appreciated being able to share some of my biggest concerns with them:

- I expressed the frustration I feel and hear from the citizens of Grand Marais and Cook County about the amount of Stimulus Money that is being spent on projects that aren't truly useful to this community. Better communication with local city and county government is necessary to ensure that precious federal funding dollars are spent more wisely in Cook County.

- We talked about how Rural Areas differ from Urban Areas in Minnesota. In Cook County we always struggle with too few year-round living wage jobs and lack of affordable housing. In addition, our Local Government Aid for the City, as well as funding for both the County and ISD 166 are being slashed to painful low levels. We have a small tax base and few other resources to tap into.

- We discussed the economic and cultural benefits of having a Safe Harbor and Marina in the Grand Marais harbor. I gave them an extremely brief history on the work we are doing with the DNR and the Army Corp of Engineers. They were encouraging and asked me to keep them in the loop on this project.

- We discussed the Cedar Grove Business Park and the challenges the EDA, City and County are facing with respect to selling lots and paying the recently re-financed General Obligation bond burdening the City of Grand Marais.

Not surprisingly, Kimball and Fanning shared that they hear similar concerns in other Northern Minnesota communities. At the end of our meeting, we agreed that better communication is critical for Senator Franken to understand the needs of the Grand Marais/Cook County community so that he can represent us to the best of his ability.

Today's meeting was a first step in building a better and more productive relationship between elected officials to meet the needs of those we serve.

Thank you Marc Kimball and Daniel Fanning for taking the time to visit Grand Marais today. Enjoy your trip to the Boundary Waters Canoe Area this summer!

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

City Council Meeting

Mayor Hakes and Councilors Costello, Lenz and Sivertson were all present for today's City Council Meeting. Also in attendance were Mike Roth, Kim Dunsmoor and Attorney Chris Hood (via telephone). Councilor Tim Kennedy was absent.

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

Consent Agenda
The Consent Agenda was approved.

Planning Commission
On March 3, 2010, the Planning Commission held a public hearing to consider an amendment regarding roof signs. No members of the public were present at the public hearing. After that hearing, the Planning Commission discussed and approved 4-0 the proposed amendment to modify the existing zoning ordinance to a) reduce the height a sign is allowed to project above the height of a building, b) limit the sign width, and c) restrict the location of the bottom of the sign. Roof Signs are currently allowed in the downtown districts by Conditional Use Permit.

Councilors Costello and Sivertson heard some concerns about Roof Signs in general. No feedback was received at City Hall.

Council voted 4-0 to support the First Reading of this Sign Ordinance Amendment.

Fund Transfers
Council approved a fund transfer of $35,000 to the Gunflint Hills Golf Course from the General Fund. Kim Dunsmoor noted that the Gunflint Hills Golf Course lost just $1500 in 2009, a marked improvement over 2008. Councilor Lenz raised the issue about whether or not the Gunflint Hills Golf Course should continue to be an Enterprise Fund; Council will revisit this during budget discussions later in 2010.

Council also approved a transfer of $56,206.31 from the 2008 Improvement Project to the General Fund. The 2008 Improvement Project came in under budget by this amount.

Council & Staff Reports

Mayor Hakes reported on several things:

1) Steve Schug of the Forest Service contacted Hakes to let the City of Grand Marais know that the USDA Forest Service and Superior National Forest will be host to the Boy Scouts of America's Order of the Arrow in June 2011. An estimated 500-600 scouts are scheduled to participate in this event. Hakes and the Council were excited to learn about this very positive coming event.

2) Hakes and Roth both attended this week's County Board meeting to learn more about the Broadband Project. It was confirmed that the County was not successful in their bid for a Federal Grant to bring Broadband to Cook County; the County was given general feedback that their business plan was lacking. The County will not be submitting an application for Phase II of the Federal Grant process. However, Arrowhead Electric Cooperative, in conjunction with Pulse Broadband, is working to apply for a grant from the Rural Utilities service. A new technology patented by Pulse Broadband uses fiber optic cable but enables the fiber infrastructure to be constructed for significantly less than what was proposed in the County's grant application. The County Board discussed supporting this effort at a level similar to what they intended to support their original project. It is unclear whether or not the County is able or willing to commit One Percent Sales Tax funds to this effort.

3) Hakes reported on her conversation this week with Stan Linnell of the DNR regarding the Joint Powers Agreement that the DNR and the City hope to enter into. A meeting of the DNR and the City is tentatively scheduled for May in Grand Marais to review the Park Master Plan, Boat Landing Project, and process for going forward. Certainly, funding for a Safe Harbor and Marina project is difficult at best.

4) Hakes updated the Council on the (2) EDA Workshop meetings attended by the City (Hakes, Kennedy, Roth), the County (Fenwick, Martinson) and the EDA (Litfin, Hall, Geretschlaeger). Much of the effort in these meetings has been spent trying to get clear about the finances of the EDA and Superior National Golf Course. It is clear that there is an immediate cash flow crisis, as well as mid-term problems (MPCA issues) and lack of a long term vision. Clearly neither the City or the County is willing to continue supporting the EDA in the long term without significant change, clear direction and accountability. All options for resolving the EDAs problems are being considered.

Bill Lenz reported that the Park Board continues to work on setting Capital Improvement priorities and a potential Community Garden.

Mark Your Calendar
Wednesday March 31 at 3:30 pm Worksession on Energy Efficiency Priorities/CCLEP
Wednesday March 31 at 4:30 pm City Council Meeting
Wednesday April 14 at 4:30 pm City Council Meeting
Wednesday April 28 at 3:30 pm Budget Worksession
Wednesday April 28 at 4:30 City Council Meeting

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

Another Budget Worksession and City Council Meeting

Mayor Hakes and Councilors Costello, Lenz, Kennedy and Sivertson were all present for the Budget Worksession and City Council Meeting held Monday, November 9. Also present were Mike Roth, Kim Dunsmoor and Attorney Chris Hood. Present for the Worksession were Pat Hennessy, Mike Kunshier and Dave Tersteeg.

Budget Worksession

Pat Hennessy, Liquor Store Manager, gave an overview of Liquor Store Revenues and Expenses to date and the 2010 Budget. Liquor Store sales are up 3.8% through October. The Liquor Store is an important enterprise fund for the City of Grand Marais.

Mike Kunshier, Manager of Gunflint Hills Golf Courses, gave an overview of Revenues and Expenses to date and the 2010 Golf Course Budget. Also discussed were options for 2010 Course Rates. The Golf Course is an important asset to the City of Grand Marais drawing customers to the Rec Park Campground, as well as locals and tourists. Due to a nationwide decline over the past few years in golfing, the Golf Course has struggled and has shown losses. There was some discussion about whether to account for the Golf Course as an Enterprise Fund or change it to the General Fund.

City Council Meeting

Open Forum
Eric Humphrey and Jane Shinners, representing the Grand Marais Area Tourism Association (GMATA), reported several items of interest to the Council including 1) A major effort is underway to consolidate tourism marketing efforts throughout Cook County. GMATA, Gunflint Trail Association, Lutsen-Tofte Tourism Association, Grand Portage and the Cook County Events and Visitors Bureau are working together to form a 501(c)(3) umbrella organization. There will be (1) Director for the newly formed organization. GMATA will remain in its current location. The Chamber of Commerce will remain an independent entity. 2) A special Customer Service Training will be offered through Cook County Higher Ed on 12/16 or 12/17. 3) Local business owners raised nearly $6K for the North Shore Holiday downtown decorations. This will be matched with $5K from the City of Grand Marais.

Planning Commission Report
The Council unanimously approved Dale Speck's request for a variance from the requirement of a lot to have frontage on a public street. Council supported the Planning Commission's unanimous recommendation.

Liability Insurance Renewal
Paul Coe updated Council on the City's Liability Insurance renewal.

One Percent Sales Tax Recap and Next Steps
Grand Marais residents voted heavily in favor of the One Percent Sales Tax Referendum. GM East voted 61.8% YES and GM West voted 70% YES for an overall 66% in favor within the City of Grand Marais.

The Council acknowledged its pleasure in the success of the Referendum, which they had identified as its most important priority for 2009. Together and individually, the Council worked diligently with community members to pass this important tax. Jan Sivertson led the Committee to Pass the Referendum (thanks Jan!); Sue Hakes was also a member of that Committee. Councilors Costello and Kennedy were on the One Percent Committee that worked for nearly a year to to identify potential projects for Sales Tax Funding. All (5) City Councilors advocated for the Referendum publicly and particpated in the public process held throughout 2009.

Also in March 2009, Council identified building a swimming pool within the proposed Cook Community Center as a top priority. Council is ready to begin work in earnest to make this long-awaited dream become a reality. It is important to remember that a Community Center garnered the most support from residents of Cook County during the Public Process Phase of the Referendum Project. Hakes volunteered to participate as a member of the Community Center Committee which will meet this month.

Council discussed the next steps in working with the County to discuss the funding process and when funds will be available for the Community Center/Recreation Area and Library projects. Mayor Hakes drafted a letter to be presented by the full Council to the County Board asking for specific Community Center/Recreation Area funding. Councilor Costello requested the Library Project also be included in this request. Hakes will redraft the letter to include the Library.

Business Park Financing Update
Council voted to move forward in selling General Obligation bonds as planned to pay off the $1.6M debt incurred 3 years ago (January 2007) to pay for Business Park Infrastructure. If the EDA is successful in receiving any grant assistance fro the IRR as requested from Senator Tom Bakk, that money will be used to make the first bond payment.

Council & Staff Reports
Tim Kennedy reported that the Biomass Project proposal submitted in partnership with Ely did not receive Department of Energy grant funding.
Jan Sivertson gave a recap on the One Percent Sales Tax committee.
Bill Lenz prefers the Golf Course not be continued as an Enterprise Fund.
Sue Hakes reported that the DNR and City Staff are working together to find a resolution to the problems with City's Burn Pile. Hakes also reported that the DNR has renewed their effort to provide the City with a draft Joint Powers Agreement to be used as a roadmap for a Grand Marais Safe Harbor/Marina.

Mark Your Calendars
Wednesday Nov 18 at 4:30 PM City Council Meeting
Wednesday Nov 18 at 5:00 PM Noise Ordinance Public Hearing
Thursday Nov 19 a 4:00 PM Joint CCST Meeting at Courthouse
Wednesday Dec 9 3:30 PM Budget Worksession
Wednesday Dec 9 at 4:30 City Council Meeting
Wednesday Dec 30 4:30 City Council Meeting

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.

Budget Worksession, City Council Meeting & Setting the Preliminary Tax Levy for 2010

The Mayor and all City Councilors, Mike Roth, Kim Dunsmoor and Chris Hood were present for both the Budget Worksession and City Council Meeting. Assistant Park Manager Amber Clay was also present for the Budget Worksession.

Budget Worksession

Amber Clay presented the revised Recreation Park Budget for 2010 to the City Council. The most significant change in this Budget was a reduction in the projected loss for the Pool. Projected 2010 Pool Expenses are $290,847. The projected Pool Revenues are $61,200 leaving a projected loss of $229,647 before the County's $75,000 contribution. Heating fuel and salaries make up most of the costs for running the Pool. Pool hours have reluctantly been reduced to help meet the budget. Great care was taken by Park Management and the Park Board to reduce hours when the pool is least used.

Council reviewed the 2010 Budget and City of Grand Marais spending history since 2005. Council also re-visited the projected revenues and expenses for each City Department to determine a general levy amount of $601,802.

City Council Meeting & Setting the Preliminary 2010 Tax Levy

Open Forum
Nobody from the public opted to speak at the Open Forum.

Consent Agenda
Two items were added to the agenda: Revolving Store Front Loan Application, Library Rain Garden Project. Meeting Minutes and Payment of Bills were approved.

Revolving Store Front Loan
Council approved a $15,000 Store Front Loan for Rob Svadlanka to make improvements to his Subway Store.

Library Rain Garden
Tristan Beaster of Cook County Soil & Water Conservation District (SWCD) reported that original cost estimates for the Library Rain Garden project went from $7859 to $13,159 after actual bids for the project were received. As a result, the Cook County SWCD requested an increase of $1324.69 in the City's contribution to the Library Rain Garden project. Council approved the increase. Council approved contracting with low bidder Crawford Excavating for the project. The City may contribute with funding or in-kind. This project is part of a US Coastal Grant and supported by the City, County and State.

Liquor License Renewals
Council approved 14 liquor license renewals for 2009-10. All applicants are required to have completed the appropriate paperwork, including proof of insurance, and paid the necessary fee. All renewals are contingent on a successful background check by the Sheriff.

2010 Budget Considerations
Council approved Resolution 2009-10 approving the preliminary 2009 tax levy, collectible in 2010 for a total of $802,657 including a general levy of $601,802. This preliminary levy will be used by the County Auditor to prepare parcel specific tax notifications. The preliminary levy may not be exceeded without specific emergency reasons. Council will continue to review the budget for ways to reduce the levy.

In spite of a significant reduction in Local Government Aid for 2010, the Council has set the preliminary levy at an increase of 3% or approximately $24,000. In anticipation of the LGA cuts, Council began work to manage the budget early in 2009. Huge credit goes to the City Department Heads and City Staff for working hard to reduce spending and/or increase revenues without reducing City services.

One Percent Local Option Sales Tax
Jan Sivertson, Chair of the 1% Sales Tax Committee, updated Council on community efforts being made to pass the November 3 Referendum. Earlier in 2009, Council identified passing the 1% Sales Tax as a priority as a way to fund a Community Center/Pool/Recreation Area.

(Note: I encourage every Cook County voter to educate themselves about the One Percent Local Option Sales Tax and the opportunity it presents for the residents of Cook County.)

Council & Staff Reports
Kay Costello reported that the Library has begun the process of strategic planning with other members of the Arrowhead Regional Library Association.
Jan Sivertson reported on the serious EDA budget concerns, Business Park re-zoning considerations and Superior National Golf Course revenues. She also shared the good news that 10 Cook County homes will be undergoing rehabilitation projects under the Small Cities Grant for income qualified home owners. Most of these homes are located within the City of Grand Marais.
Tim Kennedy reported on the Biomass Project noting that the committee continues to work on a Business Plan to determine the economic viability of the proposed project.
Kim Dunsmoor reported a tolerable increase of 5% in health insurance costs while other municipalities are suffering with increases between 11-27%.
Sue Hakes reported that she had the opportunity to welcome and visit with Bonnie Dahl--author of Superior Way--while she stayed in the Grand Marais Harbor September 1-3. Ms. Dahl reported to the Great Lakes Cruising Club the details of the new docks, recent dredging and plans being considered to enlarge the marina.

Mark Your Calendars
Wed September 30 at 4:30 PM City Council Meeting
Tues October 13 Time TBD Community Forum on 1% Sales Tax (Sponsored by WTIP, Cook County News Herald and Community Ed)
Wed October 14 at 3:30 PM Council Worksession
Wed October 14 at 4:30 PM City Council Meeting
Wed October 28 at 4:30 PM City Council Meeting
Tues November 3---Referendum Mail-In Ballots due at Cook County Courthouse
Wed December 9 at 6:00 PM Budget & Levy Hearing (formerly known as Truth in Taxation Hearing)

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

City Hosts Department of Natural Resources

City of Grand Marais and DNR Safe Harbor and Marina Meeting

The City of Grand Marais hosted the DNR last week to do the following:

A) Re-establish trust between the City of Grand Marais and the DNR
B) Discuss City of Grand Marais, DNR, and Army Corp of Engineers requirements for building a Safe Harbor and Marina in the Grand Marais Harbor.
C) Identify next steps in the process

DNR Attendees: Stan Linnell, Les Ollila, Larry Killien, Cheryl Erickson
City Attendees: Sue Hakes, Mike Roth, Dave Tersteeg, Kim Dunsmoor

Key topics discussed included:

1) Meeting City Resolution No. 2007-5 parameters
2) Satisfying the Army Corp of Engineers requirements including a Cost Benefit Ratio Analysis
3) DNR requirements for Safe Harbor and Land Side Uses & Easements

Points of Particular Interest:
a. Riparian Rights---Public funding may not be used to enhanced private property. In other words, a new or improved break wall cannot benefit private land owners.
b. Basin Size---Our City Resolution identifies the new basin size to be of about 6 acres
c. Land Ownership---DNR agrees that the City may retain land ownership and provide lease or easement. (The City has a current example of a successful lease arrangement with North House Folk School.)
d. Marina Size--may be built incrementally with limited number of slips.

The DNR agreed to discuss the results of this meeting with Commissioner Mark Holsten and Sue Hakes will report to the City Council. The DNR offered to draft an agreement outlining how the DNR and City of Grand Marais might work together. Safe Harbor and Marina are on the City's Top Priority List as established in early 2009.

Biomass Proposal Worksession and City Council Meeting

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

Worksesssion on Biomass District Heating Grant Opportunity

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

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

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

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

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

City Council Meeting

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Budget Worksession and City Council Meeting Notes

Mayor Hakes and Councilors Kennedy, Lenz and Sivertson were present for today's Budget Worksession and City Council Meeting. Councilor Costello was absent. Park Manager Dave Tersteeg, City Administrator Mike Roth, Finance Director Kim Dunsmoor and City Attorney Don Davison were also present at one or both meetings.

Budget Worksession

The Council continues to work hard on the budget to prepare for proposed Local Government Aid (LGA) cuts, increased expenses, and spending in accordance with Council priorities.

Dave Tersteeg has already implemented cost saving measures resulting from labor savings, minor reduction in pool hours, storage & marina revenues and resale of some novelty items in the Park Office.

Librarian Linda Chappell has also identified and implemented cost savings measures for the Library including the decision to not hire a Library Page.

Council examined the allocation of space and rent payments by tenants at City Hall (City, PUC, Liquor Store, Visitor Center, City Attorney, EDA) Adjustments to rents paid will be made as appropriate resulting in a more accurate understanding of costs.

City Council Meeting

Open Forum

Grand Marais resident Jan Nosker carefully articulated his concerns about loud music in Grand Marais and asked the Council to consider noise abatement and EPA Guidelines in the revised Noise Ordinance. He also expressed his concern about amplified music being played at night and causing sleeping problems for residents.

Agenda Items

Vendor Permit
Council granted a vendor permit to Jack Stone of Fall River Trading to demonstrate and sell Langford canoes in the Grand Marais Harbor.

Chamber of Commerce/Grand Marais Area Tourism Association (GMATA) Update
Mark Sandbo reported on the progress being made on the proposed merger of the Chamber of Commerce, GMATA and Grand Marais Business Council. Inclusion of the Cook County Events and Visitors Bureau is also under consideration and discussion.

Noise Ordinance
An amendment to the existing noise ordinance to allow live musical performances was discussed. Council is proposing the allowance of amplified live music from Noon until Midnight on Fridays, Saturdays and Holidays and from Noon until 10:00 PM Sunday through Thursday. These changes will be incorporated into the existing noise ordinance. A PUBLIC HEARING on the proposed noise ordinance has been scheduled for 5:00 PM on Wednesday June 24, 2009. The public is strongly encouraged to attend and voice their preferences and concerns.

MN DOT Traffic Control Proposal
At the request of District Traffic Engineer Rob Ege, the St. Paul MN DOT Traffic Department has considered our request to change the speed limit from 40 mph to 30 mph on Highway 61 at the top of the hill west of town. MN DOT is not convinced that this action would achieve the speed compliance we are seeking. Instead they are proposing that MN DOT install a 48" black/yellow "REDUCED SPEED AHEAD" sign in the same location the City is intending to place a permanent "YOUR SPEED IS" sign. MN DOT is also planning to do a before/after study to determine effectivness of these actions. Sue Hakes will request a written summary of MN DOTs proposal for review. Mike Roth will obtain pricing for the "YOUR SPEED IS" sign. It is anticipated that Council will approve purchase and installation of this sign at their next meeting.

City Attorney Work and Request for Proposals
City Attorney Don Davison resigned his position as Grand Marais City Attorney effective July 15, 2009. The City Council will meet Wednesday June 17 at 5:00 to discuss an RFP and solication of proposals to replace Davison.

Council & Staff Reports

Councilor Kennedy reported that the 1% Sales Tax Committee will be meeting Monday June 15 at 7:00 pm at the Courthouse. He also noted the public is invited to a 1% Sales Tax meeting on Tuesday June 16 at 7:00 pm at the Courthouse to address the expanded community center as part of the 1% sales tax. Kennedy also gave a progress report on the Cook County Local Energy Project.

Councilor Sivertson reported on the Economic Development Authority (EDA) including their progress on marketing/selling the Business Park Lots, Small Cities Development Grant projects, and the Benefits Analysis the EDA is preparing for the County Board.

Mayor Hakes reported that she is working to re-schedule a telecon with Larry Killian to discuss further the DNR requirements for a Safe Harbor and Marina in the Grand Marais Harbor, and how this might blend with Resolution 2007-05 passed under Mayor Evelyn Larsen.

Mark Your Calendars

Mon June 15 7:00 pm 1% Sales Tax Committee Meeting at the Courthouse
Tues June 16 7:00 pm Community Center as part of 1% Sales Tax at Courthouse
Wed June 17 5:00 pm City Council Meeting on Attorney RFP
Tues June 23 3:30 Park Board Master Plan Worksession at City Hall
Wed June 24 4:30 pm City Council Meeting
Wed June 24 5:00 pm PUBLIC HEARING on Noise Ordinance
Wed July 8 3:30 pm Worksession on Capital Improvements
Wed July 8 4:30 pm City Council Meeting
Wed July 29 4:30 City Council Meeting

City Council Meeting

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

City Council Meeting

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

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

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

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

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

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

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

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

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

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

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

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

Mark Your Calendars

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

Small Craft Harbor/Marina Worksession

The City Council hosted the Department of Natural Resources for 3 hours on March 17 to discuss how we might work together for a Safe Harbor and Marina in the Grand Marais Harbor.

City Council Attendees: Mayor Sue Hakes, Bill Lenz, Jan Sivertson, Tim Kennedy
City Employees: Mike Roth, Dave Tersteeg, Kim Dunsmoor
DNR Attendees: Larry Killian (Harbors Program) and Tom Peterson (Operations & Maintenance Program)

Abbreviated Meeting Notes:

Sue Hakes welcomed the DNR and self-introductions were made. Hakes then made a few brief remarks about the hard work that has been done in Grand Marais to come to the general agreement for the Safe Harbor Marina project outlined in Resolution 2007-05 which passed under Mayor Larsen. Hakes acknowledged that much Public Input has been given and has been heard and it is now the responsibility of this City Council to take action in moving that resolution forward.

Larry Killian gave an overview of the following:

- North Shore Harbors Program
- Community Project Development Process
- Other Projects in Process (Two Harbors)

Killian also gave a Funding Overview and potential partnerships:

- The Army Corp of Engineers (Federal) requires a 50/50 cost-share for Boating & Safety projects. A project for our Safe Harbor & Marina could fall under the Water Resources Development Act (WRDA). The City hopes to work with Congressman Oberstar for inclusion in that bill.

- The MN Department of Natural Resources (State) has a wealth of experience in working with the Army Corp on Harbor and Marina projects. The DNR brings design and development expertise--typically funded through the State Bonding Bill--and can be the 50% cost-share for projects with the Army Corp.

- A partnership for the design, development and construction of a Harbor & Marina in Grand Marais could be structured with the City of Grand Marais, DNR & Army Corp of Engineers.

- New Marina Operation and Management could be done by the City of Grand Marais, the DNR, or a 3rd Party.

Sue Hakes gave an overview of Resolution 2007-05 noting specifically that it must be located in the NW corner of the harbor with a basin size of about 6 acres. Hakes also noted that community support has been demonstrated by the joint letter presented to the City Council on March 7, 2008 from the Grand Marais Business Council and the Harbor Friends which supports Resolution 2007-05.

At this point, a discussion was held on several issues, with (3) being the most significant at this time:

Private Property Owners
The rights of private property owners within a Safe Harbor must be considered with respect to liability. Also, any advantage created for private property owners by development of a Harbor or Marina must be addressed. These private property issues must be resolved prior to any funding.

Land Control
The State must have control of the land within a Safe Harbor. This does not necessarily mean State ownership. Options for control include ownership, lease, or easement. The City of Grand Marais has an example of how a lease arrangement can work successfully in their lease agreement with North House Folk School.

DNR Harbor Criteria
The DNR has guidelines for state harbors and marinas. Further discussion and understanding is required to determine how both the DNR and City of Grand Marais criteria may be met through this project.

Also discussed..
Dave Tersteeg (City Park Manager) has been working for over a year with the Tom Peterson to improve the existing ramp in the SW Corner of the Harbor. New docks have been ordered for installation this summer. Further improvement to this ramp is under consideration.

Actions
1. Larry Killian will meet with DNR Acquisition & Development Management in St. Paul (Stan Linnell and Kent Skaar) to determine private property owner rights issues and DNR requirements.
2. Sue Hakes and Jan Sivertson will create a short informational pamphlet regarding the Safe Harbor and Marina project in Grand Marais. This pamphlet will be used on a temporary basis to begin raising awareness with our State Legislators Tom Bakk and David Dill, and possibly Congressman Oberstar, Senator Klobuchar. This pamphlet will be used until a more technical proposal with some design concepts and costs can be developed.

Summary
This meeting was a good first step toward meeting our mutual goals.

Council Meeting Notes

The full Council attended today's regularly scheduled City Council Meeting.

Open Forum

John McClure spoke at the Open Forum expressing concerns about the City's Ordinance 2004-01 regarding attendance at City Board Meetings (i.e., Planning Commission, Park Board, etc.). He asked specifically about the date in which a board position becomes abandoned due to absenteeism and how that might impact previous recommendations made by that Board.

John McClure also suggested the City Council examine its contract with Law Enforcement as a possible cost savings for the City.

Agenda Items

A permit approving use of street and sidewalks was approved for the Violence Prevention Center's "Take Back the Night" March to be held as part of Sexual Assault Awareness Month. Scheduled for 7:30 - 9:00 PM on April, 2, the March will begin at Harbor Park and end at the Courthouse.

Harley and Shele Toftey requested a variance from the shoreline setback of Lake Superior to construct a new fish processing facility. The new facility will be 20' from the shoreline, replacing an older building that was just 10' from the shoreline. The Planning Commission recommended approval of this request at their last meeting. The City Council voted unanimously to approve the variance.

City Staff prepared and presented a 2008 attendance report for all City appointed board members still in their positions. Overall, board attendance is good. The Council discussed Ordinance 2004-01 and the need to clarify when a board position is officially abandoned. Don Davison will research this issue and advise the Council.

Craig Schulte and Jim Shinners were both unanimously appointed to the Planning Commission; these appointments fill the last (2) vacancies on this Board. Other members of the Planning Commission are Tim Kennedy, Sherri Carlson, and Carol Backlund.

Council unanimously approved hiring Bob Mattson on a part-time basis in the Property Maintenance Department. The City was fortunate to receive (7) qualified applicants for this position; Bob was awarded the job due to his extensive experience in the Property Maintenance Department.

Council discussed the proposed Worksession Agenda for Tuesday's meeting with the DNR on the Safe Harbor & Marina. This worksession is scheduled for March 17 from 9:00 AM to Noon in Council Chambers. The public is invited.

Councilor Lenz expressed concern about City and County support for a new animal shelter, particularly in light of pending budget cuts. Lenz will continue to work on establishing a cost estimate for this facility. And, although this project wasn't identified as a top City priority, it will remain on the list of possible joint City and County projects.

Councilors Bill Lenz and Jan Sivertson were appointed to the City/County Work Group to formalize the City/County agreement to partner in supporting the Pool.


Mark Your Calendars

Mar 17 9:00 AM Safe Harbor/Marina Meeting w/DNR
Mar 25 3:30 PM City Council Worksession--EDA Priorities
Mar 25 4:30 PM City Council Meeting

Apr 8 3:30 PM City Council Worksession--Budget
Apr 8 4:30 PM City Council Meeting
Apr 8 5:00 PM Annexation Hearing
Apr 29 4:30 City Council Meeting

Reminder--the Park Board is in the midst of their Master Planning Process. To learn more about this important work and how to participate go to: http://www.grandmaraisrvparkandcampground.com/plan.html

Small Craft Harbor & Marina Workshop

Meeting Notice

The Grand Marais City Council has invited the Minnesota Department of Natural Resources to a Planning Worksession for a Small Craft Harbor and Marina in Grand Marais. This meeting will be held on Tuesday March 17 from 9:00 AM to Noon in the City Council Chambers. The Public is welcome.

A Brief Recap of Recent History

In 2003, the City of Grand Marais initiated a planning process for a Safe Harbor and Marina development in the Grand Marais Harbor. A Harbor Advisory Committee was appointed to conduct a public planning effort. The Harbor Advisory Committee labored for nearly two years, and ultimately reached consensus on a location. All members of this Committee were willing to accept the existing marina location in the northwest corner of the harbor as the location for the improved and expanded Safe Harbor and Marina.

In April 2007, under Mayor Evelyn Larsen, the City Council adopted Resolution 2007-05. In that resolution, the City agreed to continue participation with the DNR and US Army Corp of Engineers in planning and design of a Safe Harbor and Marina. The City Council, under Mayor Larsen, set forth certain parameters including a location in the northwest corner of the harbor (existing marina location) and a new basin size of about 6-acres.

In March 2008, the Harbor Friends and the Grand Marais Business Council came together before the City Council to lend their joint support for Resolution 2007-05. In a letter to the City Council, they encouraged the City to move forward with an improved marina and basin development in the existing marina location and proposed the remedial action of shifting the existing breakwall to the south as a design starting point.

In March 2009, Mayor Sue Hakes and the current City Council agreed to support Resolution 2007-05 (passed under Mayor Larsen) and identified it as one of their top priorities.

Meeting Goals & Objectives

In response to an email from Mayor Sue Hakes regarding the Stimulus Bill, Congressman Jim Oberstar suggested the City of Grand Marais direct any efforts for a Safe Harbor & Marina project toward the Army Corp of Engineers. Mr. Oberstar requested that we forward a project description and cost estimate directly to him (Oberstar) to forward on to the Detroit Office of the Corp for review and evaluation. A plan for responding to Mr. Oberstar is the proposed goal for the March 17 meeting.

Community Coming Together

Public input has been given and has been heard. This community has worked hard to come to a general agreement on a location and size for a Safe Harbor and Marina in Grand Marais.

I will continue to support Resolution 2007-05 (as passed under Mayor Larsen) for planning and designing a Safe Harbor and Marina in the northwest corner of the harbor and with a new basin size of about 6 acres.---Sue Hakes

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.

City Council Meeting Notes

Once again the agenda was full for the Grand Marais City Council Meeting with (2) additional agenda items being added for consideration: Economic Development Authority Request (EDA) and Personnel Issues. Note: Councilor Tim Kennedy was absent from this meeting.

Below is a summary of the meeting:

Rod Wannebo of the Cook County Tennis Association announced that the CCTA was awarded a grant from the US Tennis Association in the amount of $44,700 for their tennis court reconstruction project. The project is still slated for completion by July 1, 2009. Tennis is one of the fastest growing sports in America and plays an important part in the economic growth of Cook County.

Best Western Superior Inn & Suites and East Bay Suites asked the City Council to endorse their request for special liquor legislation. This special legislation would permit the City of Grand Marais to issue liquor licenses to the Best Western and East Bay Suites to sell intoxicating liquor, beer and wine to their lodging guests and their invitees, and to persons attending meetings or other organized events at these lodging establishments. This request was discussed at length and ultimately supported by the Council 3-1. Sue Hakes cast the dissenting vote stating that before she can support it she needs a better understanding of the economic impact and fairness of the legislation.

Bill Lenz reported that the Friends of the Pool have raised $7000 toward the approximate $20,000 needed for purchase and installation of an Aquaclimb System at the Grand Marais Pool. This climbing wall is intended for fun & exercise, particularly for kids and young adults. The Council voted unanimously to write a grant to the Lloyd K. Johnson Foundation for an additional $5,000 for this project. The Friends of the Pool will also be requesting support from the County.

The Economic Development Authority requested a short term loan at 6% from the City in an amount not-to-exceed $200,000 to operate Superior National Golf Course for the 2009 season. In the past, the EDA has obtained a line of credit from a local lender; the State Auditor has denied their request to continue this type of borrowing. Again, the discussion about the pros and cons of this action were lengthy. In the end, the Council voted unanimously to make the loan subject to an acceptable risk assessment from the City's financial advisor Ehlers & Associates, approval from the Bond Council, approval from the State Auditor for this type of intergovernmental loan and an acceptable Note documenting the terms of the loan. The Council also required that the EDA seek half of this loan ($100K) from the County.

In response to an email from Sue Hakes regarding the Stimulus Bill, Congressman Jim Oberstar suggested the City of Grand Marais direct any efforts for a Safe Harbor & Marina project toward the Army Corp of Engineers. Mr. Oberstar requested that we forward a project description and cost estimate directly to him to forward on to the Detroit Office of the Corp for review and evaluation. The Council voted unanimously to host the DNR for a Worksession to respond to Mr. Oberstar's offer to help. This Worksession is being scheduled for March 17 from 9 AM to NOON. The public is encouraged to attend.

The Council voted unanimously to promote Tom Stockman to Property Maintenance Supervisor. Congratulations Tom!

Hal Greenwood applied for and was unanimously approved to fill the remaining open position on the Economic Development Authority. Carol Backlund applied for and was unanimously approved to fill (1) of (2) open positions on Planning & Zoning. Both Hal and Carol hold other City Board positions (PUC and Park Board respectively). Their extra commitment is appreciated.

Mark Your Calendars!

2/25 3:30PM Worksession--Budget
2/25 4:30PM City Council Meeting
3/2 8:00-4:00PM Full Day Worksession to set 2009 Priorities
(at North House Folk School)
3/11 4:30PM City Council Meeting
3/17 9:00-Noon Worksession with DNR on Safe Harbor & Marina
3/25 4:30PM City Council Meeting

Call City Hall at 387-1848 to confirm dates & times.