Range Association of Municipalities and S Chools

Range Association of Municipalities and Schools

Board Meeting Minutes

Thursday, January 28, 2016 – 6:00 P.M.

Northeast Service Cooperative Building

Call to order:

President Carlene Perfetto called the meeting to order at 6:00 P.M.

Roll Call:

Present:President Carlene Perfetto (City of Silver Bay); Vice President Jim Fisher (McDavitt Township); Secretary Dave Worshek (City of Aurora); Charlie Baribeau (City of Virginia); John Berklich (ISD 701 Hibbing); Terry Soderberg (Morse Township-Alternate); Ben DeNucci (City of Nashwauk); Mark Forte (ISD 2154-Eveleth/Gilbert); Pat Garrity (City of Hibbing); Walt Hautala (ISD 2711-Mesabi East); Michael Jugovich (City of Chisholm); Paul Kess (City of Ely); Bob Larson (ISD 2142-St Louis County); Ray Marsnik (ISD 696-Ely); Stu Lehman (City of Buhl-Alternate); Ben Hawkins (ISD 318-Grand Rapids, Alternate); Herb Sellars (Great Scott Township); David Zins (City of Hoyt Lakes-Alternate); Al Stanaway (City of Mt. Iron); Greg Allen (Superintendent’s Association-Alternate); Stacy Sundquist (ISD 706-Alternate); Warren Stolp (Nashwauk Township); Ed Zabinski (City of Grand Rapids)

Absent:Superintendent’s Association

Guests:Jeff Polcher, Ron Dicklich, Representative Jason Metsa

President Perfetto suspended the regular order of business to allow Representative Jason Metsa to provide a legislative update.

Representative Metsa reviewed the proposed legislation that affects cities, townships and school districts, which include the taconite aid formula, extension of unemployment benefits, renewable energy initiatives, fiscal disparities and broadband service. Representative Metsa is looking at a proposal that would allow grants to be awarded to companies that only offer unlimited broadband service. Minnesota Power is considering a rate adjustment. Anyone interested in testifying on this bill is welcome to do so. Representative Metsa is submitting a Paid Family Leave Bill, which would allow workers to take paid time off to be with elderly parents, grandparents or spouse for up to 12 weeks.

Representative Jason Metsa encouraged all entities to submit their requests for the bonding bill. Projects already on the list include the joint AEOA/Range Mental Health Facility in Virginia and gap funding for the Highway 53/utility relocation for the City of Virginia. Representative Metsa is also pushing for bonding investment for school districts, which would include all districts. St Louis County and Mesabi East School Districts were written into legislation for previous consolidation projects.

Representative Metsa stated he is looking for direction and ideas from the RAMS members on a 5-7 cent gas tax and ways to assist smaller cities in maintaining infrastructure.

President Perfetto reconvened the regular meeting at 6:35 P.M.

Review and Approve Agenda:

Moved by Zabinski and supported by Baribeau to approve agenda, as presented. Motion carried.

Approve Meeting Minutes:

Moved by Berklich and supported by Hautala to approve the minutes from the Regular Meeting held on December 3, 2015, and Annual Meeting held on January 7, 2016. Motion carried.

Executive Director Report:

 120 people attended the RAMs Annual Meeting on January 7, 2016. An evaluation form was distributed for the board members to complete.

 Met with IRRRB Commissioner Mark Phillips and Duke Skorich, Zenith Research, to review their plans to hold a series of three economic forums to “Recharge the Range”.

The first forum will be held on Monday, February 1st, at the Discovery Center and will be attended by leaders from eight business sectors. Director Giorgi will attend the meeting and provide a summary to the RAMS board.
A second forum will be held on February 29th and will be hosted by the IRRRB and RAMS. Two representatives from each RAMS member group will be invited to participate in the forum.
The third segment will be community forums. No dates or locations have been determined at this time, but they are anticipated to be held in June.

 Attended a meeting of the East Range Community Advisory Panel, with the main topic being the sulfide standards. There is a need to form partnerships and coalitions to inform the citizenry of this issue.

 Attended a meeting in December with President Obama’s Chief of Staff Denis McDonough to discuss the impact of foreign steel imports.

 Attended a Biwabik City Council meeting and reported they have voted to rejoin RAMS.

 The City of Two Harbors has also rejoined RAMS.

 The City of Eveleth is taking a year off from RAMS and will monitor RAMS activity in 2016. RAMS will continue to provide the City of Eveleth with monthly updates.

 A new financial report has been developed to show the annual budgeted amounts compared to the year to date actual expenditures.

 Attended a meeting of the Superintendents’ Association, where discussion was held on the frustration on how to access the $15 million in funding allocated from taconite taxes for use in cooperative ventures by Range schools. The IRRRB is developing guidelines for these funds. The Superintendents’ Association will provide their concept plan on how these funds should be allocated.

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Nominations and Election of Executive Officers:

Executive Director Giorgi stated nominations are open for one year terms for the President, Vice President and Secretary Treasurer. Terms are limited to two consecutive years.

 Paul Kess was nominated for the President position. No other members were nominated. By unanimous affirmation, Paul Kess was declared President.

 Jim Fisher was nominated for the Vice President position. No other members were nominated. By unanimous affirmation, Jim Fisher was declared Vice President.

 Pat Medure was nominated for the Secretary/Treasurer position. No others members were nominated. By unanimous affirmation, Pat Medure was declared Secretary/Treasurer. Director Giorgi will obtain confirmation from Pat Medure on his acceptance of the position, as he was absent.

Legislative Priorities:

Director Giorgi reviewed the House DFL 2016 legislative priorities:

$100 million to expand high speed broadband internet access to rural parts of the State.
$50 million in agriculture property tax credits.
$45.5 million in additional Local Government Aid to municipalities.
$40 million in County Program Aid.

Director Giorgi reviewed the 2016 legislative priorities for the communities of Hoyt Lakes, Aurora, Town of White and Biwabik (East Range):

Restoration of full funding for Local Government Aid. (Modify this to allow exceedance of $45.5 million).
Authorization of street maintenance and improvement districts.
Transportation funding/reform.
Bonding for East Range Joint Water Treatment Facility.

Ron Dicklich, Lobbyist, suggested that a short list of items that affect the Iron Range communities be prepared prior to the legislative session that begins on March 8th. RAMS could add to the list, if necessary. He suggested redistributing the taconite tax reserves, due to the losses in taconite aid.

Director Giorgi reviewed a draft list of legislative priorities for RAMS

Broadband initiative.
LGA. Reinstate to 2003 levels.
Relocation of highways due to mining. Modify current statute to get help.
Taconite tax funding formula.
Funding of school counselors to increase ratio of counselors to students.
Ability to fund transportation and technology for schools without a levy.

Charlie Baribeau reviewed the current process where the State requires work records in order to issue State bond funds. The City of Virginia had to borrow money to pay invoices for the relocation of Highway 53, prior to receiving a reimbursement from the State bond funding. Director Giorgi asked that he and Ron Dicklich be allowed to frame this issue.

Regarding the school open enrollment issue, Representative Metsa stated the school districts need be more prudent and responsible with transportation issues.

The following modifications were discussed to amend the draft list of RAMS legislative priorities:

# 2Modify language to focus on all entities adversely affected, rather than focusing on entities under 3,000 population.

# 4:

Distribute taconite tax funds, based on a formula, rather than the agency choosing the projects. With the agency approving the projects, timelines are thrown off for communities.
Broaden language to include school districts.
Review language to avoid penalizing communities that have reserves.

# 5 Rephrase language to “reach the average”, rather than being in bottom 10.

Director Giorgi stated he will revise the list by utilizing the suggested modifications. A revised list will be emailed to the RAMS Board. He will also attend the League of Minnesota Cities Legislative Conference, along with Ron Dicklich.

Moved by DeNucci and supported by Fisher to approve the list of legislative priorities for RAMS, with the understanding that Director Giorgi will modify them, based on the discussion. Motion carried.

Update on Annual Audit:

Director Giorgi stated a representative from Fort and Company will attend the February RAMS meeting and present the 2014 financial audit. He has been assured by Fort and Company that the 2015 financial audit will be done in a timely manner.

Membership Update:

RAMS currently has 44 members. This includes the addition of Two Harbors and Biwabik, and the removal of Eveleth. Corporate membership increased by the addition of Springsted, Inc., and the Costin Group.

Communication from Congressman Nolan:

A letter was received from Representative Nolan thanking Director Giorgi for attending the meeting with White House Chief of Staff Denis McDonough. Chief of Staff McDonough has been told how important the way of life is in northern Minnesota and how strategically important the mining operations are to the entire nation. Representative Nolan will continue to work to make sure that the message is heard in Washington, DC and across the United States.

Recognition of Outgoing Board Members:

Director Giorgi recognized outgoing RAMS Board Members Mark Adams, John Tuorila and Ray Svatos and stated they will be given a certificate and $25 gift card.

Approval of Bills and Expenditures:

Director Giorgi reviewed the following financial reports:

 Reconciliation Reports, months of December, 2015, and January, 2016.

General Checking Account
Grant Special Checking Account

 Budget vs. Actual Expenditures, January, 2016

 Transaction List by Vendor, January, 2016

Moved by Stolp and supported by Baribeau to approve the financial reports, as presented. Motion carried.

Other Items:

 Director Giorgi will distribute a copy of the Federal Program Initiatives for Small Cities to the membership.

 Mining Tax Guide will be updated on the RAMS website.

 Discussion was held on the DRI (Direct Reduced Iron) pellets. Previous RAMS minutes predicted fifty percent of iron ore pellets would be DRI pellets by the year 2000. The latest Mining Tax Guide includes a graph on World Direct Reduced Iron Production.

Next Meeting Date:

The next RAMs board meeting will be held at 6:00 P.M., Thursday, February 25, 2016.

Adjournment:

Moved by Stolp and supported by Zabinski to adjourn at 8:25 P.M. Motion carried.