The city’s union employees have a new contract.
Grand Marais City Council approved the terms of a two-year deal at their April 9 meeting. Union members approved the contract the following morning.
Mayor Larry Carlson, who participated in the negotiation process, said he was confident the union would approve the tentative agreement councilors reviewed at their meeting. “We ultimately agreed to what they asked for at the last meeting,” he said.
City Administrator Mike Roth said he, too, expected union approval. “I don’t know why there would be problems,” he said.
The new contract is retroactive to the beginning of 2014 and remains in effect through the end of 2015. It grants the approximately 20 members of AFSCME Local 66 a 1.5 percent pay increase each year and spells out some minor changes in layoff and bumping procedures; accumulation of vacation time; use of sick leave and definition of “immediate family”; and use of the allowance for safety shoes.
Also, as in past years, council voted to award supervisors the same wage increase as that given to union members, but will have to approve the 1.5 percent increase separately for each year of the contract. The increase for 2014 was approved, retroactive to the beginning of the year.
District heating project shelved
In other news, George Wilkes and Paul Nelson of the district heating project task force gave an update on the project and recommended that the city not proceed at this time. It’s unfortunate, they said, but with the current fuel market and high construction bids, the project would pose too much of a risk to the city’s taxpayers.
The recommendation upholds the promise of those working out the details of the district heating project, who have stated time and again that if the financial risk was found to be too great, they would advise against moving forward.
However, there was some good news.
Nelson said the task force would come back with a complete pro forma, construction design and a set of RFPs (requests for proposals), which should not change over time and could be used in the future when the time is right. “You can put this on hold for the time being, and it may be worth it to take it off the shelf as the excavation costs and construction market settle,” Nelson said.
The findings and recommendations were the result of about two years of studying and researching the proposed $10 million project. The biomass district heating proposal hit a snag earlier this year when it was learned that it would not be included on the governor’s bonding list; subsequently the city’s bond counsel advised city council that without state aid or some type of grant money, the undertaking would not be feasible.
Nelson said last week that the task force’s study found that based on propane and fuel oil costs and use over the last 10 years, there is a “very good possibility” that the district heating facility could save users between $25 million and $35 million. It’s an amazing thing, he added, but due to the high propane costs this winter and the fact that propane supply disruption is expected to continue along with increases in transportation costs, it just doesn’t make sense to pursue the project now.
Councilor Tim Kennedy, who was also involved in the project’s research and planning, lauded the volunteers for their efforts and noted that the work may not be for naught, after all. “We need to be vigilant of market changes to see when this has merit, and consider it again at the right time,” Kennedy said.
Wilkes agreed. “Hopefully, it will become more viable in the future,” he said.
Also on council’s agenda:
. On the recommendation of Maintenance Supervisor Len Bloomquist, council approved the purchase of a new line striper to paint streets and curbs. The unit – a 5900 Line Lazer 2 – will be purchased from Diamond Vogel at a cost of $6,185, the lower of two bids received. When asked what will be done with the old painting equipment, Bloomquist said it is in such bad condition that it will likely go “in the Dumpster.”
. Council approved the issuance of a beer and wine license to Bruce Block of Sydney’s Frozen Custard. The city approved the permit over a year ago, but the building did not meet state standards for seating and restroom availability. Block has since made the needed improvements to the building and re-applied for the permit, which will be issued upon completion of a required background check.
. Council backed Mark Sandbo’s request for reappointment to the board of The Governor’s Council on Minnesota’s Lake Superior Coastal Program, and will send a letter stating their support to the secretary of state’s office.
. Roth announced that longtime liquor store manager Pat Hennessy will retire at the end of May, and the position is being advertised with a deadline of May 2. Roth also said Travis Wickwire is leaving his position with the Parks Department, and City Hall has already been contacted by persons interested in the job. The application deadline was April 18.
• Steve Harsin was approved unanimously as the new library director. He will leave his post as director of the Cook Public Library to come to Grand Marais. Harsin replaces Linda Chappell, who retired this week after serving as library director for 23 years.
. At the request of the Cook County/Grand Marais Economic Development Authority (EDA), council voted to lend the agency $10,000 in order to make a payment that was due March 1 as part of a $30,000 legal settlement to SEH engineering. The city also loaned the EDA $10,000 last year for the first payment. EDA Treasurer Scott Harrison said in a letter that the EDA will repay the city “at least the initial $10,000” when it receives its levy in June.
In a related matter, council voted to forgive $5,040 in interest the EDA still owes the city from a $100,000 loan made several years ago. City Finance Director Kim Dunsmoor said the interest has remained on the books all this time, and asked that council either forgive it or ask that it be paid. It was also noted that the EDA did repay the interest it owed to the county on a loan of the same amount at the same time. The vote to forgive the interest payment was 4-1; Mayor Carlson cast the “no” vote.
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