City Council Meeting 12/19/18

The City Council met on the 19th to finish out the responsibilities of the year in a very brief meeting.

The meeting was called to order at 5:00pm right on the dot with ALL 5 COUNCILORS PRESENT! Thank you again to Craig Schulte for stepping up and taking the vacant position on the Council!

There were no members of the public present, so the open forum (public comment) was opened and then closed for the night.

The Consent Agenda was populated by the usual three things (Approval of the meeting agenda, approval of the previous meeting minutes, and approval of payment of bills), was moved for approval and was approved unanimously.

There were two other items on the agenda, all being logistical necessities for the year-end.

The first was a resolution setting the cost of living adjustment (COLA) pay adjustments to the City's non-union workers. This past year the City renegotiated a two year contract with the City employee Union (AFSCME) that set the COLA increase for 2019 at 3%. Since supervisors are not union employees, there needs to be another action taken to extend the same treatment to them. This resolution takes care of that. It was motioned, seconded, and passed unanimously.

The final item on the agenda was the last logistical requirement of the Council for the year. This is the setting of the Final City Tax Levy collectible in 2019. As reported in the Budget/Levy Hearing at the previous meeting, the Council and Administration were able to reduce the Preliminary Levy from a 5.99% increase to the Final Levy of 2.72% or $959,021.32. This was brought to the community at the hearing last meeting and there was no public comment so the motion was made tonight to approve the final levy, it was seconded, and passed unanimously.

Following that the Council chose to delay Council and Staff Reports due to the fact that there was only one week between meetings and the meeting was adjourned.

As always, please let me know if you have any questions.

City Council Meeting and Budget/Levy Hearing 12/12/18

Tonight the City Council met for its regularly scheduled meeting at 6:30pm at the City Council Chambers. The online stream can be found here.

Tonight's meeting had a few special considerations though, things that will effect the operations of the Council for the upcoming years and things that we don't do all of the time...

To keep you in suspense about those things, I will start at the beginning and head through the meeting!

The meeting was called to order at 6:30pm with all sworn-in Councilors present (considering we still had a vacancy at the beginning of the meeting there were 4 Councilors present).

Right off the bat the Open Forum (Public Comment) was opened to allow for the public to bring comments directly to the Council. Since no one rose to speak, the Open Forum was closed and the next item was brought up.

The Consent Agenda was composed of the typical 3 items, Approving the Meeting Agenda, Approving the Minutes of the previous meeting, and Approving the payment of bills. The Council has the opportunity to pull an item for conversation or to approve them all in a single motion. The motion was made and seconded and passed unanimously.

The next item on the agenda was one of the special considerations that I mentioned above: the appointment of a Councilor to the position vacated by Carl "Pete" Gresczyk.
The Council received two (2) letters indicating interest and intention to serve on the Council. One from Craig Schulte, who previously ran in the last election, and Anna Hamilton, long time community member and business owner. The Council had a brief conversation about how each of the candidates would definitely be able to perform the duties required of them as a Councilmember well, brought up some concerns about the fact that the City buys fleet fuels from SuperAmerica, the business that Schulte owns, and ultimately made the motion to appoint Craig Schulte to the vacated position. Administrator Roth will work with Councilor Schulte to make sure that the proper procedures are followed. Since Schulte does not have a contract with the City for fuels the process is a little more straightforward, but is a necessary safeguard for both Mr. Schulte and for the City. The fact that Schulte showed the investment to run in the previous election weighed heavily on the motion and it passed unanimously. Congratulation to Craig and thank you for being willing to serve on the Council!

It definitely goes without saying as well that the Council thanks Jonathan Steckelberg for his service in the past year plus that he served. His voice and perspective were valued contributions to the Council.

Having that business taken care of, the Council then moved on to another one of the special considerations, our hearing on the City Budget and Levy, also known as the Truth in Taxation Hearing. City Administrator Roth went through the City's five year plan that shows the past two years' levy numbers, the current expected levy for 2019, and a projection of the next two years' levies based on multipliers for escalating expenses and planned projects. There are a lot of moving pieces in these budgets, but the Council is taking a relatively conservative look at revenues and a less conservative look at expenses so that the budgets can be created more realistically, or at least assuming more of a "worst case scenario."

After this budget summary (you can take a look at my previous blog post on the last budget worksession that summarizes this information in more detail), the floor was opened for public comment on the budget and levy. No one from the public came forward to speak, so the hearing was closed and the Council moved on to the next item on the agenda.

Next on the agenda was a conversation on two aspects of the Highway 61 Redesign Project. The first was a memo from the Creative Economy Collaborative, a group of leaders in the local art/craft/creative economy who the City asked to vet and review the design elements of the Highway 61 project. The second was a first draft of the expense budget for the project with working numbers of the City's participation.

The memo summarized and affirmed many of the elements of the project as they already stood in the plan, but there were also other suggestions made by the CEC. An overall design concept was proposed for contemporary Scandinavian elements that emphasize durability, beauty, simplicity, minimalism, functionality, and natural forms. *Many of these things are subjective and there will be many more conversations at the Council and community levels before anything is decided about these elements.

Here is the text of the memo for your consideration. Please remember that this is meant to be a recommendation and thus a working document:

Introduction 
On May 30, 2018, the Grand Marais City Council unanimously approved a motion “to accept the assistance of the Creative Economy Collaborative in matters of art and enable communication between the CEC and City to flow in both ways.” In this capacity, the City has asked the CEC and CJ Fernandez, Aune Fernandez Landscape Architects, to meet and work on plans and designs for amenity improvements within Grand Marais relative to the Highway 61 reconstruction project scheduled for 2019-2020. This memo is the summary of CEC lessons learned, priorities and recommendations of action strategies. Our work is based on the scope and deliverables in CJ’s contract with MNDOT, focused on the Highway 61 corridor between 8th Avenue West and the Gunflint Trail. The CEC will have additional input in the future for locations along the highway to the east and west of this segment, as well as other areas in the City of Grand Marais. The CEC agrees: Overall approval of CJ’s design plan and layout of amenities along the redesign corridor. CJ’s design plan and layout of amenities have been informed by several years of community input sessions, Hwy 61 Steering Committee meetings with MNDOT and most recently, engagement of the CEC. The CEC has an over-arching question: What funding, if any, is available through MNDOT or the TAP grant for public art and other amenities?
Overall Design Concept 
The CEC recommends a blend of traditional and contemporary Scandinavian design elements for all amenities. Conceptually, this design honors the rich history and culture of Grand Marais while embracing a progressive and contemporary demographic also being future-oriented. Design concepts emphasized include durability, beauty, simplicity, minimalism, functionality and natural forms.
Street Lighting 
We acknowledge that lighting must meet MNDOT standards. We will soon gain understanding of their level of financial participation with the City of Grand Marais on this component of the project. CEC members liked the designs that CJ shared with us, specifically those that are reminiscent of our nautical heritage and others that are I-beam and wood with exposed hardware. Lighting should fade away and recede from view. It should be engineered at a pedestrian scale for height and intensity. Lighting should not take visual precedence and overwhelm public art. It should remain in the functional category. It should be dark-sky-friendly and warm.
Trees and Plants 
Trees (77) are a priority. MNDOT can provide a list of salt-tolerant trees that are appropriate for our climate. CEC approved the species that CJ shared with us. Shrubs and perennials should be included in planters and in the small gathering areas, specifically at the three identified gathering spaces: 3rd Street/3rd Avenue, the Library and the Community Connection between the Recreation Area and North House.
Benches 
Based on CEC design input, CJ will include two designs for 10 or 11 benches. 4-5 additional benches should be reserved as juried public art projects.
Raised Platforms (Planters, seating)
Board form concrete should be used wherever concrete is used, including in raised platforms and benches. Wood should be sustainable and local when possible, with consideration for maintenance costs and durability.
Bike Racks 
The CEC affirms CJ’s recommendation of 12 bike racks.
Affirmation of Enhanced Intersections 
The CEC favors unique design opportunities for crosswalks. Two-dimensional patterns of George Morrison’s signature totem forms are of particular interest, contingent upon discussions with and approval of the Morrison family.
Public Art (**These suggestions were made to have the availability for these locations to house public art, not that public art will immediately or ever be placed in these locations. That will be up to the community.)
The CEC affirms the ten designated public art locations. MNDOT should prep these sites appropriately with platforms(**This was revised to not have platforms), electric hook-ups, etc., according to the landscape architect’s plans and specifications.
The locations are:
1. Entrance to the Grand Marais Recreation Area
2. Community Connection at Recreation Area and North House
3. 5 th Ave W near Dockside
4. 3 rd Ave W near Voyageur Brewing
5. At the intersection with the Library and Visit Cook County
6. 1 st Ave W near the Pharmacy
7. At the intersection with Broadway
8. In front of the Post Office
9. 3 rd Ave E near the Dentist Office
10. At the intersection with the Gunflint Trail
The CEC will take the lead on both developing and overseeing the juried RFP and artist selection process. There could be temporary installations to learn what the community desires and appreciates, along with permanent pieces. CEC will engage local artists in the design, fabrication and installation of the public art opportunities whenever possible. CEC recommends that the city adopt a Public Art Policy, which has yet to be developed. The city should engage and collaborate with the CEC to identify that policy. The policy will guide the development and implementation of public art opportunities with a master plan throughout the entire community. The CEC’s focus in developing this plan will be community education, involvement and consensus building, to ensure all voices are heard and included. This policy would require a graphic plan that covers the entire community as well as written policy that guides the location, development, selection, maintenance, funding, phasing and all other aspects of public art to be determined through the policy process. CEC is willing to develop a policy based on input from the City Council, CJ’s advice and examples from others. The CEC will also consult with professionals in public art policy to devise best practices, for example, Forecast Public Art. The CEC recommends that a maintenance policy be established within the plan for public art and suggests a diversified approach, perhaps beginning with a set of temporary public art projects that could be used as test cases and means of acquiring community input and buy-in. Gathering Spaces 
Three important gathering spaces need special attention: Library/old Gunflint entrance/Visit Cook County Community Connection between the Recreation Area and North House The space at 3rd and 3rd (in front of dentist office) These sites allow for increased gathering space that could include public art, space for movement and engagement, potential playful elements (ex – swing or jungle gym). These sites would be part of a juried RFP process for artist design.
Entrance to Recreation Area 
Amenity plans include a new sign at the entrance to the Recreation Area. CEC will defer to the Park Board, as this is a project of the Park Board. It appears there is general agreement to CJ’s concept for a boxed sign. Message on the sign could be Grand Marais Recreation Area. No final decision has been made by the Park Board regarding design details.
ADA Access at North Shore Pharmacy 
The CEC affirms the ADA access at the Pharmacy at 1st Avenue West.
Kiosks - Wayfinding and Interpretive Signs, Branding 
The CEC observes that now that the City has completed its comprehensive planning process, a good next step and recommendation is for the city to undertake a planning process for consistent aesthetic and graphic standards. The process would include vehicular and pedestrian wayfinding signage that might not fit into the MNDOT timeline regarding amenities but should be considered and implemented by the city in a second phase. The city should also create a plan for interpretive signage. The CEC recommends that the city hire a professional(s) to develop a community interpretive plan and wayfinding plan. The process would include vehicular wayfinding, pedestrian wayfinding, interpretive installations to be included with wayfinding or as stand-alone projects and incorporate public art considerations to the degree the city’s public art policy and directives are developed and ready for consideration. The CEC would suggest that the consultant be required to initiate a community process (maybe led by the CEC) to develop and determine the interpretative and wayfinding plans as well as the development of aesthetic standards. The CEC recommends that the completion of the work is the city’s adoption of the interpretive and wayfinding plans. The highway corridor will need wayfinding signs with bold, drive-by directions for vehicles and more detailed, pedestrian-oriented structures with interpretive panels. The CEC considers this important enough to recommend hiring a consultant. It is essential that the wayfinding and interpretation share common, consistent materials, graphic standards, text font, etc. The visual significance and impact of these elements can create a lasting first impression for visitors to Grand Marais. A professional in city and graphic design could highlight our eclectic lake/north woods environment and fishing history in a way that is clear to our visitors. We intend to look for outside sources of funding, but since time is short, we hope that the city can help with funding.
Why all the above - planning and implementing amenities projects and future public art policy, wayfinding, interpretation are important 
With this Highway 61 reconstruction coming through the center of the city, we have opportunities. We can: -Help guide the implementation of the project. It has been communicated by CJ, MNDOT and others that Cook County’s approach to this project is unique and should be documented, as it exhibits an engaged and empowered citizenry who have stepped up to ensure the project is backed by community input and resolve. -Demonstrate our community identity -Demonstrate our community values as outlined in the Cultural Plan -Preserve our history, culture and way of life and educate others about them -Prepare for consistent maintenance -Positively impact safety for pedestrians and vehicular traffic through the city by creating more clear gathering spaces, places to sit and rest, better lighting and eventually, clear wayfinding signage -Create additional gathering spaces for the community -Create a consistent visual focus for residents and visitors -Attract short-term visitors -Attract long-term businesses to diversify the economy. Public art is a means of improving quality of life and demonstrating community pride. These are of major importance when entrepreneurs and others are seeking to expand or relocate their businesses, jobs, employees, and families. -Generate good will by good design, which is the physical reflection of Cook County’s spirited and sophisticated pride and sense of place
Conclusion
The CEC and CJ have met multiple times. The CEC has facilitated working discussions to arrive at design concepts. The CEC has come to consensus on the above matters. Thank you to the City Council for accepting our assistance and for your thoughtful consideration of the above. Those who have been actively engaged in creating the recommendations and preparing this memo are: Ruth Pszwaro Grand Marais Art Colony Jay Arrowsmith DeCoux Art House B&B, Fireweed Bike Co-op Gerry Grant Grand Marais Playhouse Greg Wright North House Folk School Betsy Bowen Betsy Bowen Gallery, Art Around Town, artist Jim Boyd Cook County Chamber of Commerce Richard Olson Certified Interior Design, Hovland Jan Sivertson Sivertson Gallery, County Commissioner Linda Jurek Visit Cook County Barbara Backlund Cook County Historical Society Carrie McHugh Cook County Historical Society Pat Campanaro Small Business Development Center Matthew Brown WTIP Community Radio Greg Mueller Mueller Studio, Lutsen Ron Piercy Yellow Bird Gallery Frankie Jarchow Grand Marais Garden Club Mary Somnis Cook County/Grand Marais EDA and staff support to the CEC

After going through that memo, the Council spent a considerable amount of time discussing the overall budget for the project and the City's participation in it.

In brief, the City will be expected to participate in the overall project to the tune of roughly $2.3 million. This sounds like an astounding amount of money (and it is), but let me break down the parts as shown in the table to the right:

Of that $2.3 million, the City will be using $240,000 in Stormwater Grant monies received to help accomplish the City's stormwater goals as laid out in the Stormwater Management Plan. Also, the City is likely to receive a $50,000 grant from IRRRB to assist with lighting costs. The funding that kickstarted the project, the TAP funding, will provide $600,000 for lighting and other elements of the corridor behind the curb, meaning elements that assist in the pedestrian use of the corridor. Likewise, MN DOT will be providing $91,500 in matching funds, some for lighting and some for behind curb amenities in the right of way.

That already totals up to $981,500 of the $2.3 million, leaving $1,318,500 remaining to come from other City Departments.

The Rec Park is looking to include around $300,000 to the project to rebuild the welcome sign to the campground and to develop a community space between the North House campus and the campground itself. (This number will likely go down depending on the designs of both of these elements). The Rec Park has reserved monies for this project and will be using cash to complete these projects.

The Public Utilities have been planning on repairing the infrastructure under the road as a part of this project and have budgeted accordingly so as to not have to borrow for this project either. This looks like $841,156 of utility work.

The remaining amount comes to $187,430, which would be the amount that would come out of the City General Fund. This amount has been budgeted for as well and is currently being held in cash, so it will not effect the tax levy at all.

As one of his first comments on the Council, Councilor Schulte reminded the City that any significant building up here needs to have about 10% built in for overages and even if these were engineer numbers, they are still prone to go up when the project goes to bid. A good perspective to keep in mind.

Councilor Swearingen agreed and added that she was very glad to see these numbers, but that they really don't mean anything until we see the design that shows what/where all of the trees, benches, bike racks, etc actually are and then we can really look at what we need and don't need.

There were questions about what the process looks like from this point on, at which Administrator Roth mentioned that MN DOT feels like the conversation is more or less over. The Council will be bringing this item back in January in conjunction with design ideas and thus the conversation will NOT be over until the Council gets to a point where the City has had an opportunity to involve the community. It was stated that these numbers would better serve the Council to be seen as a sort of "Preliminary Budget" for the City's participation in the project and thus it gives parameters to work within in regards to these design features. The Council agreed to study the numbers and to bring them back to the next conversation about design so that the Council can be more informed about potential costs.

In Council and Staff Reports:

Councilor Moody reported on the EDA meeting he attended: The first unit of workforce housing in Lutsen is up and they are working on interior finishing. The Grand Marais "Nordic Star" homes sales have been closing and there are people on a waiting list for the remaining 4 homes. Superior National finished the year up from their budgeted 12,000 rounds at just under 12,200 and thus have revenues that have gone up as well. He also asked about our schedule for Strategic Planning exercises, which will be planned for January.

Councilor Kennedy reported on the work that the County is doing in regards to vacation rental activity in the County. The classification of properties used for vacation rental will be changed to residential non-homestead, which will, it seems, keep more of that property tax money in the county. There was uncertainty about the efficacy of that technique, but it seems that is the way the County is choosing to move forward. The County will also be putting together a license with fee to gather information on properties being used as vacation rental. These are potential steps that the City could adopt if it is seen necessary. Kennedy also reported that the PUC voted to keep both water and electric utilities at the same rate (0% increase) and to increase the sewer utility by 2% to accommodate some upcoming projects associated with the wastewater system.

Councilor Swearingen asked about what the process was when there was a person operating a vacation rental illegally in the City. The answer is that the City sends them a letter. If they do not stop operating, they get a cease and desist letter. If they continue in light of these, then the City prosecutes through the County Attorney. Councilor Swearingen had nothing further.

Due to me being ill for a week and the quietude of the holidays, I, in a rare moment, did not have anything to report!

We adjourned at 8:22 or so.

**THE NEXT COUNCIL MEETING IS ON THE 19th, NOT THE 26th! This will be a short one where bills and the final levy will be set.

As always, if you have questions or comments, please do not hesitate to reach out to me!

Council Worksession on Budget: 12/6/18

The Council and City Administration spends the better part of each year gathering information, looking at trends,  and trying to predict the future by setting priorities for the upcoming years. This includes a number of public worksessions throughout the course of the year.

The City Council had the final of those worksessions today (Thursday) in preparation for the December 12th Truth in Taxation Hearing at 6:30pm, just prior to the regular City Council meeting.

At this session Councilors looked at the (more or less) final numbers for the past year so the Council could choose a revised number to bring forward at the Truth in Taxation meeting this coming Wednesday.

A few things to know about the process:

1. The City has a "Long Term Priority" list. This includes projects that we do not have on any calendar, but that we know will have to be done at some point. An example for this list would be street reconstruction based on a roughly 30-40 year rotation.

2. The City has a "Five Year Project" list that includes all of the major projects that the City has put on the schedule and calculated into its future debt load. These projects are, in no particular order:
-1st St. Reconstruction from Library to the west side of town. This project will include needed utility work under the street as well as resurfacing/subsurface work.
-5th Ave. W Reconstruction, which is a county road, but it has City infrastructure under it, so we need to budget for replacing that infrastructure when the road is redone by the county.
-Hwy 61 Reconstruction. The vast majority of the project cost will be footed by MN DOT and through grant funds that the City has been able to secure, but the City PUC will be putting in significant resources to replace all of the aging infrastructure under the highway and the City will be putting in funds to make sure that the street lighting and general function of the roadway is what we want it to be.
-MN DNR Boat Launch Project. This project has been approved and funded by the MN DNR and the City is a partner with it. It will effectively move the MN DNR lake access from Artist's Point (Coast Guard Point) to the west end of the Harbor by the existing rubble wall. The City will likely participate in certain amenities that will benefit the Rec. Park and the overall usability of the space, but this is a DNR project and is funded through their budget.
-City Hall/Liquor Store. This item made its way onto the list last year and has picked up steam with conversation in the City starting about where a new City Hall/Liquor Store should be, should they be in the same place, how much office space is necessary, etc. No decisions nor formal conversations have been had about this topic, only the assessment of the current facility's value is roughly equivalent to the cost of getting it to meet our needs. That tied to the feedback from the Liquor Store Manager that the current facility does not meet their needs makes a case.
-Digger derrick truck for City PUC. This is a piece of equipment used in setting poles, digging holes, bucket lifting, and much more. This item has been on the plan for quite a while and has been budgeted for by the PUC.

3. The City has a rolling "Three Year Analysis" of the City budget. This includes two years behind present and two years ahead of present. This year the City looked at the budget (revenue, debt, levy, etc) for 2017 and 2018 to inform our budget for 2019, but also to look ahead to what we expect to need to operate for 2020 and 2021. This is a very helpful tool and the City has been able to follow this analysis pretty closely during my time as mayor, which leads me to believe that it is pretty true to reality.

Ok, so that's the information the Council is armed with going into these conversations. Another few pieces of information so that we are all on the same page:

*In September the Council set the Preliminary Levy at a 5.99% increase over last year's. That means that the City cannot increase it any more than that. 5.99% more than 2018 would be the absolute maximum the City can collect. This is a conservative number that assumes most, if not all of the worst things we can expect would happen.

*There are moving pieces in this year's budget: Revenues for 2018 were set at a high level for the 2018 budget and did not quite make that number, so that is brings revenues down and is reflected in the 2019 budget. This is largely due to the campground operating at near capacity during its operating season and without any way to increase beyond that season, the numbers are starting to flatten out. It is important to note that this is not a problem at all. The campground is still providing a great deal of property tax relief and will continue to do so.

*Another moving part has been employee health benefits, which the City successfully renegotiated this year to provide similar if not the same amount of coverage for employees for significantly less cost. This also will be saving the City money and thus lowering the cost of the City's share of employee benefits.

Due to these changes, which have been formalized since the September meeting, the Council was able to reduce the levy increase to 4.32% before the worksession. Through the scrutiny of the worksession, the Council was able to remove another $15,000 from the budget to get the levy increase down to roughly 2.76%, which is what will be presented at the Truth in Taxation meeting, barring new information that would cause a change.

It is the job of the City Council to be responsible with public money and the current members of the Council take that job very seriously. This post is meant as a snapshot and basic information. More information will be available at the Truth in Taxation Hearing this coming Wednesday. Please feel free to come and listen/give your two cents.

As always, if you would like to ask any questions, just let me know. I am around until the 22nd, when I head out for family Christmases.