Range Association of Municipalities and Schools
Board Meeting Minutes
Thursday, April 27, 2017 – 6:00 P.M.
Northeast Service Cooperative Building
Call to Order:
President Paul Kess called the meeting to order at 6:00 P.M.
Roll Call:
Present:Paul Kess (City of Ely); Jim Fisher (McDavitt Township); Pat Medure (ISD 318-Grand Rapids); Gregg Allen (Supts Assn); Glenn Anderson (City of Babbitt); Charlie Baribeau (City of Virginia); Bob Berrini (Morse Township); Ben DeNucci (City of Nashwauk); Stuart Lehman (City of Buhl); Milan Luzaich (Great Scott Township); Ray Marsnik (ISD 696-Ely); Kim McLaughlin (ISD 701-Hibbing); David Pace (Superintendents Assn); Carlene Perfetto (City of Silver Bay); Mona Putzel (ISD 2154-Eveleth/Gilbert); Todd Scaia (City of Chisholm); Mark Skelton (City of Hoyt Lakes); Warren Stolp (Nashwauk Township); Stacey Sundquist (ISD 706-Virginia)
Absent:ISD 2711-Mesabi East; City of Hibbing; City of Mt. Iron; ISD 695-Chisholm; City of Aurora
Also Present:Steve Giorgi, Executive Director; Lois Roskoski, Administrative Assistant; Lana Fralich;Barb Kalmi; Jennifer Sterbenz; Dale Christy`
Review and Approve Agenda:
Moved by Scaia and supported by Baribeau to approve the agenda, as presented. Motion carried.
Approve Meeting Minutes:
Moved by Fisher and supported by Lehman to approve the minutes from the meeting held on February 23, 2017. Motion carried.
Appearance:
Amanda Miller, Communities Coordinator, was present to provide information on Kennecott Exploration Company’s Tamarack Project in the Aitkin area. Kennecott Exploration Company is owned by Rio Tinto. The Tamarack Project is a green field nickel copper exploration project. Ms. Miller provide a timeline for the project that began 17 years ago:
State mineral leases were acquired in 2000.
Drilling began in 2002.
Drilled high grades of nickel and copper in 2008.
In 2014, Talon Metals signed an agreement be a partner on the project.
They are currently in the evaluation stage.
Order of magnitude would be their next step oncegeotechnical drilling is done to determine how much of a resource they have.
The mining phase is still ten to twenty years out.
Economic impact has benefitted the local schools, cities and townships with taxes and purchase of local goods and services.
The Tamarack Project is currently defining boundaries, which is 12 miles long by 2 miles wide, and analyzing results to prepare for the future.
Director’s Report:
Director Giorgi provided an update on his activities for the months of March and April:
Met with the Iron Range legislators in late February to discuss the RAMS initiatives. It was concluded that the legislators will focus on the tax and bonding bills during the session. The IRRRB reorganization will be put on hold this session and a proposal drafted during the off season.
Traveled to Washington, DC, in March to meet with legislators, US Forest Service and Bureau of Land Management on the withdrawal of Federal lands and minerals from future mining exploration.
Traveled to St. Paul on April 25th to meet with legislators and attend the Iron Ranger Party and to testify at a committee to request $1.7 M in emergency financial assistance for the collapse of the sewer main in Coleraine, Bovey and Taconite.
Hosted a meeting of the Iron Range Mayors on April 27th. Mayor Chris Coleman attended the meeting and expressed the importance of local government aid and recognizes the State has a natural resource based economy.
ERP Iron Ore (former Magnetation) won the auction for the former Essar site. ERP Iron Ore is the largest private mineral lease holder in the United States.
Participated on a panel with Senator Klobuchar in Duluth in April to discuss infrastructure needs.
Met with the Iron Range delegation on April 26thin St. Paul to discuss the wild rice sulfate standards. RAMS and the Iron Mining Association will be co-hosting a forum on June 7th to provide new information to communities.
Attended the Iron Range Tourism Conference in April. They are working hard to expand tourism in the region.
Visited with the Hibbing and Aitkin School Boards to provide information on RAMS.
New Business:
- Appointment to vacant board seat created by resignation of Mona Putzel – term ending 12/31/18.
Director Giorgi stated Mona Putzel resigned from RAMS Board of Directors and the Eveleth/Gilbert School District will lose their board seat. The vacancy is filled by the RAMS Board of Directors. An official nomination form was sent to the entire RAMS membership. According to the RAMS by-laws, primary consideration shall be given to member units who have not been represented on the RAMS board during the past 12 months. Three nominations were received, as follows:
Cook County School District– Jeanne Anderson
Nashwauk/Keewatin School District– Barb Kalmi
City of Grand Rapids – Dale Christy
Moved by Medure and supported by Marsnik to nominate Dale Christy to fill the vacated board seat of Mona Putzel for the unexpired term ending December 31, 2018.
Roll call:
Ayes:Jim Fisher, Pat Medure, Gregg Allen, Bob Berrini, Ray Marsnik, David Pace, Carlene Perfetto, Mark Skelton, Stacey Sundquist – 9
Nays:Paul Kess, Glenn Anderson, Charlie Baribeau, Ben DeNucci, Stuart Lehman, Kim McLaughlin, Todd Scaia, Warren Stolp - 8
Abstained:Milan Luzaich – 1
Motion carried.
Kim McLaughlin requested that the following language in Section 5 of the RAMS By-Laws be reviewed and clarified: “To fill a vacancy on the Board of Directors that occurs after the annual meeting, unless elected to the Presidency, Vice-Presidency or Secretary/Treasurer, primary consideration for vacancy replacement shall be given to Association member units who have not been represented on the board during the past 12 months.”
Director Giorgi stated the language will be placed on a future agenda. Any change to the By-Laws would be considered at the RAMS Annual Meeting.
b.Committee updates:
1.IRRRB Committee
Director Giorgi noted the discussion on the IRRRB legislation will be delayed until after the legislative session. A proposal will be developed for a future session.
2.Organizing Committee
Director Giorgi asked that board members interested in serving on an Organizing Committee contact him. This committee would assist the Director in expanding the membership with RAMS.
c.Mechanism to allow RAMS Executive Officers to take a position on legislative issues during the session.
Director Giorgi stated situations arise when we need to take a stance when the legislature is in session.
After a lengthy discussion, President Kess requested that language be drafted to present at the next Annual Meeting to allow the RAMS Executive Board to work with the RAMS Director on issues that arise during the legislative session, with the issues to be fully communicated to the RAMS Board of Directors and the RAMS membership.
d.Jobs Up North – lawsuit against Governor
President Kess stated discussion was held with Gerald Tyler, Jobs Up North, on the withdrawal of Federal lands in Northeastern Minnesota from mineral leases from future exploration and potential development. Jobs Up North’s lawsuit against Governor Dayton on the issue has been dismissed. RAMS previously adopted a Resolution requesting the Trump administration to immediately rescind the proposal from the Bureau of Land Management and US Forest Service to withdraw these lands from future exploration. It was the consensus to communicate to Gerald Tyler that the RAMS Board has enough information on the mineral leases and no additional presentations are necessary at this time.
e.Legislative Report – Gary Cerkvenik
Director Giorgi reviewed the legislative update from Gary Cerkvenik:
IRRRB Structure/Reform
There is work on a compromise bill. Representative Layman has several concerns, but is likely a bill will be passed this session.
Taconite Economic Development Fund
Currently law dedicates $.254 per ton in grants to mining companies each year if production is above 30 million tons to reinvest in equipment. The mining companies submitted an amendment to the bill that changes the language from “shall” to “may” and gives the IRRRB Commissioner the discretion if they don’t produce 30 million tons. RAMS continues to oppose the mining companies amendment and feels the tax relief should come from the General Fund, rather than the IRRRB Doug Johnson Fund.
Taconite Municipal Aid
Worked with legislative research to develop an escalator clause, or inflationary clause. This provision made it into the House Tax Bill and is currently in Conference Committee.
Capital Bonding
The Senate has passed a $1 billion bonding bill. The House has not released a bonding proposal. Most observers do not believe there will be a bonding bill this year.
Taxes
The Senate Republicans propose to spend $902 million out of the $1.65 billion surplus on tax relief. The House Republicans proposed $1.32 billion in tax cuts. The Governor is calling for $191.7 million of tax cuts.
Transportation
A major transportation bill is in Conference Committee. In the past, transportation was funded primarily by the gas tax, which has been frozen for several years. The Republications are proposing to take $450 million from the General Fund to pay for road and bridge projects. The Governor objects to the proposal and would rather see a gas tax increase, however, it appears he is likely to sign the bill.
Education
Education funding is in Conference Committee. The House proposal would increase the General Education Basic Formula by 1.25%, which is an increase of $205 million. The Senate would increase the formula by 1.5%, which is a $298.6 million increase. The Governor is advocating a 2% Increase.
Fiscal Disparities
Representative Layman’s bill to change the Iron Range Fiscal Disparities Law has failed to advance. RAMS opposed this legislation.
ATV
There is $150,000 for the Voyageur Country ATV trail and $50,000 for the Quad Cities ATV trail in the Environment Finance Conference.
Miscellaneous
RAMS supported the LEA biomass legislation that evolved to include a potential buy out of the biomass agreement, resulting in a large pay out to the LEA and its owners, the municipal public utilities in Virginia and Hibbing. Progress continues in this negotiation.
The LCCMR bill has advanced, which includes money for the Mesabi Trail, Crane Lake and the Tower Marina.
The Legacy bill is in conference and is critical for millions of dollars for the Public Facilities Authority and PCA for water quality and Point Source Implementation Grant.
The Hibbing and Biwabik LGA bill failed to make it to the Tax Conference.
f.Blandin Paper Company – timberlands settlement with counties of Aitkin, St. Louis, Koochiching, Itasca.
Director Giorgi reviewed a draft letter to the Senate and House Tax Committee Chairs to encourage the resolution of the lawsuit between the Blandin Paper Company and counties of Aitkin, St. Louis, Koochiching and Itasca. S.F. 1679 and H.F. 2059 provide the framework for a settlement in the long running dispute that requires State involvement.
Moved by Medure and supported by Fisher to sendaletter to Senator Chamberlain, Senate Tax Committee Chair, and Representative Davids, House Tax Committee Chair, to encourage settlement of the timberlands dispute between the Blandin Paper Company and counties of Aitkin, St. Louis, Koochiching and Itasca in the final Tax Bill. Motion carried.
Board Member Updates:
David Pace, Superintendent, Greenway School, provided an update on their School District, as follows:
Many spring events are currently in progress.
Reviewingchanges in their administrative structure. They are considering having the Curriculum Director work with the Learning Science Institute and teachers, rather than the principals.
Watching the legislative session, especially the potential defunding of the voluntary Pre-K program, compensatory aids and additional funding for free and reduced lunches.
Bovey/Coleraine received the Blandin Leadership Grant this year.
Enrollment of 1,000 students for the 2016-2017 school year, Kindergarten through 12th Grade.
Carlene Perfetto, City of Silver Bay, stated Lana Fralich, City Administrator, was present to provide an update:
Upgraded tertiary clarifiers at their wastewater treatment facility. They are working with the MPCA on test results, which could still require the City to install a filtering system at a cost of $4 million. Also considering installing domes to eliminate rain water, which impacts mercury standards.
Many street reconstruction projects are scheduled this year, focusing on the areas around the schools.
Submitting a bonding request for Black Beach Recreational Park campground area, which would provide a new destination along the north shore. Negotiated a co-lease with the DNR, along with the mining company, to provide an access to the lake.
Former Spur gas station was recently purchased and will be demolished. The North Shore Adventure Center will be constructed, which will provide several activities.
Finance Committee Report:
Pat Medure reviewed the financial reports for the months of March and April, 2017:
a. Expenditures:
- February 23 - March 22, 2017–Total $12,432.88
- March 23 - April 26, 2017–Total $20,543.36
Moved by Medure and supported by Fisher to approve the expenditures, as submitted. Motion carried.
b. Profit & Loss Budget vs Actual – January 1, 2017 to April
c.Balance Sheet
Other
Bob Berrini recommended that a thankyou letter be sent to our four County Commissioners for their outstanding participation at the Twin Metals hearing that was held in Duluth.
It was suggested that discussion be held on the various funding sources that are available from the taconite taxes through the IRRRB.
Adjournment
Meeting adjourned at 8:45 P.M.
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