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02/12/1981 - City Council Special SPECIAL CITY COUNCIL MEETING FEBRUARY 121 1981 7:00 P.M. EAGAN CITY HALL I . ROLL CALL II. CATV MEETING III. EAGANDALE LIQUOR LICENSE IV. REVIEW OF FIREFIGHTERS ' PENSION PLAN PROPOSED V. OTHER VI . ADJOURNMENT MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: FEBRUARY 6, 1981 SUBJECT: INFORMATION RELATING TO THE CONVERSION OF THE DEFINED BENEFIT PLAN TO A DEFINED CONTRIBUTION PLAN FOR THE FIRE MEN'S RELIEF PENSION FUND AND ALSO STATUS OF THE EAGANDALE CLUB LIQUOR LICENSE Attached is a copy of a memorandum, exhibits illustrating a com- parison between the Defined Benefit and Defined Contribution Plans and also the most recent exhibit prepared by Hewitt Associates that illustrates a $42,000 contribution based on 83 firefighters . I prepared this information with the thought that a complete copy could be distributed to each firefighter, either prior to the February 24 general assembly meeting or at the meeting by the Relief Association Committee. Because the Relief Association is apparently confused as to how the program actually works , this information might provide additional clarification to be used in their presenta- tion. Please regard this information as a draft and make any com- ments , corrections or revisions that you feel would be helpful in explaining the change from a Defined Benefit to a Defined Contri- bution Plan for the reader ( firefighter) . It is suggested that we review this information after the Cable TV Committee meeting on February 12 , 1981 . If there are revisions to be made to the information as a result of our meeting, the changes can be made by this office within two or three days . It has been suggested that, during the week of February 17 through 20, a subcommittee of the City Council or the entire City Council could meet with a subcommittee of the Relief Association or entire Relief Associa- tion to further discuss the proposal and hand out information. Once a final draft is prepared, the information could then be dis- tributed to each firefighter after the Monday night meeting of February 23 or the General Assembly meeting of February 24. Enclosed is a copy of a letter I wrote on behalf of the City Council to the Eagandale Club informing them of the City Council ' s action to temporarily suspend the license. This letter was delivered to the Eagandale Club by a police officer on Wednesday, February 4, 1981 . The license certificate was removed and the bar was locked up as a result of the suspension. A new on-sale liquor license application has been delivered to this office and will be available for review at the special City Council meeting on February 12, 1981 . Since the Eagandale Club had four (4) special parties planned for the 6th, 7th, 8th and 12th, it was the opinion of the City Attorney and City Administrator that persons attending the party could supply their own liquor and mix as long as there were no sales by the Eagandale Club that would require either a liquor license or bottle club license. There was also a hold harmless agreement assured by the Eagandale Club to the City for any lia- bility exposure as a result of liquor consumption at any of the four parties . Enclosed is a copy of the letter from the president of e Eagan ale ub regarding this matter. City ministrator MEMO TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS FROM: CITY ADMINISTRATOR HEDGES DATE: FEBRUARY 11 1981 SUBJECT: SPECIAL CITY COUNCIL MEETING Enclosed is a copy of a liquor license application as submitted by Mr. William Hickey for the Eagandale Club. The necessary surety bonds and all other documents have been received and are in order for consideration. A records check was made by the Police Depart- ment, and, in a memorandum prepared by Chief of Police DesLauriers, it was stated that there are no reasons to deny the application. Also enclosed is a copy of a letter the City has received from the Minnesota Housing Finance Agency regarding the notification of fund availability for Eagan' s designation in the Section 8 Housing Assistance Program. There is no action required by the City Council at this time. The City Planner and City Administrator have received a number of inquiries from developers who have an interest in submitting program proposals with the Minnesota Housing Finance Agency. The City staff has been very explicit in informing all developers that have made inquiries that the City strongly supports the scattered site housing program and is not in favor of any concentrated subsidized housing or 100% subsidized housing projects . Any proposal that is approved by the MHFA has to go through the Planning Commission for platting and other potential applications before the City Council would receive the request. C\V, City ministrator THi._Ma. .... ,. La,E,ati CITY OF EAGAy A�•CE b`_.c C T»EOCJE AAC»%4 3795 PILOT KNOB ROAD EAGAN. MINNESOTA 55122 PHONE 454-0100 February 4, 1981 MR GRAHAM CURR 3345 GLEN OAKS WHITE BEAR LAKE MN 55110 C/O EAGANDALE CLUB 3330 PILOT KNOB ROAD EAGAN MN 55122 Re: On-Sale Liquor License Dear Mr. Gurr: In official action that was taken by the Eagan City Council at a regular meeting held on February 3 , 1981 , the on-sale liquor license for the Eagandale Club was temporarily suspended. The City of Eagan was notified on Monday, -February 2 , 1981 , by Maxine Coty, the former manager and liquor license holder for the Eagandale Club, that she was no longer an active employee of your organization. The City of Eagan cannot assume responsibility for any potential liability exposure that may be incurred as a result of the sale of liquor in an establishment where there is not a responsible person acting as the liquor licensee. The Eagan City Council has a special City Council meeting set for Thursday, February 12 , 1981 , and its next regular meeting is February 17, 1981 . If the on-sale liquor license application and all support information is provided to the City prior to February 9, 1981 , this matter can be brought before the City Council at the February 12 , 1981 special meeting. Assuming approval of the on-sale liquor license transfer, you could then resume your on- sale liquor sales on Friday, February 13, 1981 . As a reminder, Ordinance #42 does state that if the applicant is a partnership it is a requirement that a managing partner or partners be designated as the liquor licensee. A manager or responsible person who can assume responsibility for the Eagandale Club could also be named the licensee, however, preferably a managing partner. If you have any questions concerning the procedure for the liquor license transfer, please feel free to contact this office or the City Clerk, Mr. Gene VanOverbeke , at any time. SiryCerely, Tho1as L. Hedges , City Administrator THE LONE OAK TREE ... THE SYMBOL OF STRENGTH AND GROWTH IN OUR GOMMUNiTY- February 5, 1981 Mr. Thomas Hedges City Administrator CITY OF EAGAN 3795 Pilot Knob Road Eagan, MN 55122 RE: EAGANDALE RACQUET CLUB Dear Mr. Hedges: It is our understanding that the Eagan City Council terminated the on-sale liquor license of the Eagandale Racquet Club at the Council meeting on Feb- ruary 3rd due to the fact that Maxine Coty, the licensee for the Club, is no longer employed by the Club. We are preparing a new application for an on-sale liquor license, which hopefully will be heard by the Eagan City Council on Thursday, February 12th, for renewal of the license. We had scheduled some private parties that include the sale of liquor at the Club, which dates are outlined below, and I am requesting permission from the City to sell liquor only to the persons attending these private parties. I realize that the Club does not have a "bottle club license", but would request permission to permit the guests to bring bottles on the premises with the mix only to be sold by the Club on those dates. In consideration for this permit, I hereby state as a partner of the Eagan Tennis Partners, Inc. , that the Club has all insurance required for an on sale liquor license in effect, including liquor liability. In addition, this letter constitutes notice that the owners and managers of the Eagan Club will hold the City of Eagan, its officers and employees, harmless from any claims or causes of action, including payment of all necessary attorneys fees that may be caused as a result of any claim, suit, or causes of action arising from the sale, use or dispensing of liquor on the Eagan Club premises prior to the issuance of a new on-sale liquor license. I will personally be the responsible person for the private parties being held at the Club and should be contacted if there are any questions on behalf of the Eagan City Council or its agents. Very truly yours, EAGAN TENNIS PARTNERS, INC. Graham Gurr, Partner Scheduled parties at Eagandale Club: February 6, 7, 8 and 12, 1981 (Eagan police Department Martin DesLauriers y v 3830 Pilot Knob Road Chief of Police, = Eagan, Minnesota 55122 Jay M. Berthe Assistant Chief of Police 10 February 1981 TO: - Thomas L. Hedges , City Administrator FROM: Chief of Police SUBJECT: Eagandale Club Liquor License We have checked William Edward Hickey who has applied for a liquor license. We find no reason to deny this application. �in Des uriers MD/vk THF LOW OAK TRFF - THF RV1fRnt nF .VTRF:vr.TU ,B rP"WTH IV WID rnM)L1r/V/TV CITY OF EAGAN_ 3795 Pilot Kncb Road Eagan , Minnesota 55122 NE4 RENL',IED LICENSE .:O APPLICATION FOR SUNDAY LIQUOR SALE LICE':SF. Prepare in Duplicate I, �t�ri/.� /�«�� , as (Name of person making application) &„tee,,, / el-- , for and in tehalf of Individual owner, officer or partner) (Mysel , names ot partners, name of corporation or association) hereby submit this application for a special Sunday Liquor Sale License to run coextensive with the license year of our on-sale liquor license no. for the period from through /,1-J/-9/ in support of this application the information contained in our on-sale liquor license application is hereby adopted. /6:' ->.. (Sign urE o.. person ;.laking arpl ca:.io- ) FOR (myself, names of partners, name of corporation or association) 3795 2ilrt : ncb Road NPw Eagan Minnesota 55122 Renewal L?.c. Nz. A.'^?�iC.'�TI„7 FJ3 OV-•SALE - I1710 ICATIidG LIQUOR LICENSE GLDII14%NCE NO. 42 Part I - G:^cral Information Direct-ion. : phis form :gust be filled c::t in duplicante with typer.•:riter, o= by prin'--5-; in Li+. If the application is by a natural person, by such ps soa; if by ro_rcrario.3, by an officer, thereof; if Ly a partnership, by one cf t'-Ie rartn�:c; if by an u-Incorporated essor.ia-ion, by the man.--er or managing offic;?r therecc. (re:sonal infcr:cticn forms trust be filled out .and attached for each irdividusl whose ravre•: appear on this applicatic•n) 1. of applicant (name of individual, partnership, corporation or association; : F /)� C �ecr 2, 'rime under which applicant will be doir_- buslaess (Name of restaurant or hotel) bcsiness aedress and telephone number Full name 22.,- F,qa /-7r7 Business a.'.dress Jj�c lof / no 1 R� 4cc Phone 4S4 IF BUSI:1rSS IS TO BE CCNDUCTED MZZER A DESIGNXTION, K,%-`IE OR STiIZ OT:1' Z • 1' W"I rULL INDIVIDT?aL NAME OF THE APPLICANT ATTACH A COPY Or THE CERTIFICATE, AS REQUIRED 3Y C,:NPTMIR 333, MINNESOTA STATUTES, CERTIFIED BY TEE CLE-7,111 Or THE D 31:ICT COtr'i,T. 3. Type of applicant: X Individual Corporation Partnership Association or other 4. (P) If applicant is an individual, state full name, residence and business addref:s and telephone numbers. Full Fame tc);#i i,.-, E�w�•�� f1�C�e-�/ Phone .4 - 31i3 Residence 1.darea ”, p �c�. /Qo ,�,f� T' Phone " Puss:lesq c?duress3e. f"rlcf rfrje� . cc Phone Tre fill came, residenca address and telen:;one number of the manager, ::rcr ct : or other agent _n .charge cf the indLvidual owner's premises to be F-11.1 Fir—a Residence Adcress S-Yr Sc, 4'o J., fPhone 3A/3 I.: applicant is a partnership, state full name, residence and business address, telsphona uumbers, and interest of each member of the partnership. 1. ruil varve Interest % Res'_den:e Address Phone Eu;;1ness Address Phone 2. Full Name Interest 9. da. ce Address Shore Bisi_zicss Address Phone 3. Full Name — Interest 7. Residence Address Phone. Business Address Phoze (b) The managing partner will be: (c) Tie Cult name, residence address and telephone number of the manager proprie- to-• or v6z:=z agent in charge of the pertnership's premises to be licensed. Rs. iderce A61- reps Phone 1_•_!,ICATION I3 FCP. A PARTN-FaSHIP, ATTACH A TRUE COPY OF THE AGRMCENT AND A COi": OF THE CERTIFICATE OF TRADE NAME U*IDER 2ROVISIGNS OF CF_1kPTEK 333, MIMNESOT,% STATUTES , CERTIFIED BY TI C ERK O? DISTRICT COURT. (2) I� the applicaut is a corporation or association, give name of corporation o': arscciation, address and phone number and state of incorporation.State of Inc. or Assoc. Name Phone t+dd.eas ._ (b) T%e fug: uame, residence address and telephone numbers of all oflli,'ers of said cc_poration or association. rresidenL Re3?dence Address Phone Vice President Res .dance Address Phone.______ 'Secretary rea.dnnce Address Phone Addre3s Phone _- -%a full names, residence aderess and telephone number of all perscns who s'-,Sly or tcgether with their spou3e a-ad, his or her parents, brothers, sts`e"rs ur c:iaC:en, ouni or control an interest in paid corporation. or associati.or. in E:-_ass of 5 ;.. Interest Full.1?. Va-^e Residence Address Phone _ Interest � • 2. Fula I.,:�^e """"_._•--• Rers+lerce Addres a Phone_ 3. h:11 T;aSf-e Interest_._ % Phone _ -2- 4. Full Fame _ Interest % Reside-ice Address Phone (d) :_ie full name, residence address and telephone number of the mznager, proprie- tor or cher agent in charge of the corporation's premises to be licensed. Tull Nine 'tet+.dkir c c .?address Phone IF iT11S APPLICATION IS FOR A CO11POILMON OR ASSOCIATIGN AT-.' (.1: A ^11010 COPY OF TRS ARTICLES Cr, INCOR2011ATION OR ASSOCIATION A CI:,L *ENT AND BY-TAWS 7. °tr%t .*1z% ..cact legal description_ of the premises to be licensed. Applicant IMIzz ^I ., suhtsit a plat plan of the area showing dimensions, location of buildings, st_e?t aecees, parking facilities, and the locations of and distances to the near- est church building and public school grounds. S. How are the premises classified under the EaSau zoning ordinance: 9, State f•.:11 rame, residence and business address and telephone numbers of owner or o••n!ers of the buildiu— wherein the 'Licensed business will be located, if owner is other 0en the Fu,.i i:w� ^� Residence Adu:ess !� r Phone Business Add.es 9 13 3'n Pte� �n o 6 ��. Phone g-a - 7�-- 10. w': ere building is owned by other than applicant, state in sumary conditirn= of legse agreezent - term of years, monthly rental, etc. (A true copy of the leave shall be attached) 11 . If buildin- is owned by individual applicart, partnership, corporation or a3so- c+,T.'.Crl. sta.e: W, Date -utc'-Ased (b) Name and address of person purchased Z~fir'• ._�?��i ne 1 C�� - (c) orcha e price $ —; (d) Am)unt of down payment $ +;f) Mto currently holds mortgage? L'� n4llea yz j2ep (p' &-mount of Contract for reed (h) Wbo currently holds Contra_: kcr l:eed? (i) Term of Mortgage (j) Tern o;: Contract for. Deed (k) Rate of interest on Mortdsge or Contract 10ir Deed (1) State the rate at 4%ich Murt- ggge n,,5/c,- Co-^ra_t for Deed is being liquidated _ rh, payame-2ta on 14crtgage and/dr Ccntract for Deed up to 4aLc? c�_— 12. St2te the ;-ns,s smount of the investment that the application has 'la tha busi- .t:c:uding fixtures, furniture, stock in trade, etc. 13. Give full rata;., aldresa, telephone number ani the nature of the sntereat,dmounc -3- therccf, terms of payment or other rci:2ju_sement, of all persona; other than the applicant, who have any fiasncial i.:t2rest in the business, build4_rgs, premises, fist::.e30 furnitu:;e, or stock in trade. (This shall include, but not be limit-ld to, any lessees, lessors, mortgagees, m3rtgagors; lendors, lien holders, trustees, t�::3_179 and perscns who have co-sign-_-d notes or otherwise loaned, pledged, or e::`etuded aecurity for any indebtedness of the applicant.) P-A.NS SHALL BE DEVELOPED AND SUBMITTED. 14. '.iic: Floor number, street number, general area, and the rooms where iato,;- icati;, liiuor is to be sold and consumed. (Applicant shall attach a V.00r plan of the dinln?,; ;oc7s showing dimensions and indicating number of persuas intended to be served i.n the dinin; rooms, and indicating and identifying 811 other rooms and ether ureas where intoxicating liquor 13 to be sold and consumed.) 15. Waat perm'.ts required by the Federal goverrment by the Laws of the United Si-Gres have been applied for or issued for the premises? In what name were th:ae or issued end what is the Lature of the permit? 16. r.ut permits ur licensea required by the State government by the Statutes have been applied for or issued for the premises? Ir. what name were these applied for or issued and what is the nature of the permit or license? 17. Are any real estate taxes, personal property taxes, special assee6meats, other finnnciai clairza of the Village of Eagan delinquent or unpaid for the nremi_es; to be licensed? 11c. If '.es, give details, including the years for t,hich s%-h ta:cea or aFsessmente are unpaid. 18. Yani�, residence address, business address and telephone numbers of three persons, re-i4ents of Dakota County, of good moral character, not related to the applicant. or fira"ciully interested in the premises or business, who may be referred to as to '.:i_ z;plicant's character. ' r n.nsl Bence Address Zwe 2-1 - Phone 3usi.Lej3 Ad?resa r;:>�,�• <C� / .: ✓�!J i e /J i Phone =S_C ri/OY� flaria i esidence Address __P Gl 1 � Dov �'i_�.oc.+ �l Phone %s" � -�//7 �- :,us ins ss Address Y�'/ �l �o �._ �,�� ✓ .�-�/z / Phone q .. -- . Name Res::tence .lddres3 /. Phonc y3 - Oji Business Address �.��i - /�� .%oo C .,,�-c Phone ;yz -r-1 being first duly sworn, .upon Isis* oath de- y SSS:end a=; -her as is the person who has executed the above app?:c;zioand !: wit . e br_St.:Z;ar.,..6 W-sda therein are true of his own knowledge and be-lief. St+bac;:bed and :,-.n rt to be_`ere me Signed this S da; of - 1.9 Notary pblic, air. i ent) ,. srr beta My comm gcion expi Vis}* . ��^,v 19 �4 \p 23, ';i 3TC_ { I Y .cI^ or • ' •E�s `'' ;3795 Pilot Knob Road Eagan, Minnesota 55122 APPLICATION FOR ON-SALE MOXICATING LIQUOR LICENSE Part II - Personal Inforw•ition Dtrecticrs: This form must be filled out in duplicate with typewriter or by printing in ink by the sole owner, by eachparL`ner, by epch manager, proprietor .or other aoont in charge of the pr?wises, by each person Who by combined o-.Mc r- ship or control ha3 an interest in a corporation pr association in excess of 5%. • :r • Date: True h:.We: (last, first, middle) 2. Residenea Address: (Number, Street, City, State) 3. Phone No: 4. Zusincss Aodress: (Number, Street, City, State) 5. Phone No: 6. Place of Birth: (City, County, State) 7. Date of Birth (14.o. Day S. U.S. Citizen? Yes No Naturalized? Yes_ No_ If yes, give date a-v place: S. if you have ever ured or been knoum by a name or names other than the true . na•m_ eiven in 01 a:)ove, list such name(s) and information concercing dates and • places c:bs.., usec:. P131--e Dates, Places and Circumstances ' 1C).- Zla:itat. Status: Single _ Marrieds Widowed_ Divorced Sep zsted_ 11. L_ :harried, true name, place and date of birth.and residence address of s2cuie: True name: ',jam_/ _ • Place and date of birth: Recidence Address: �,, `' <a�,t �% y%-�1 >,.� ✓ 12. Are ycu a registered voter b if so, where? Yes No 13 your arouse a registered voter & if so, where? Yeah tlo_ 13. Adrre!3e(_s) at vh!ch you have lived during preceding ten years. (Degan PC-cC_+t or jest r4dzebs and work back) No. hnd St:eet n City and State Dates ///) f r • 14• Address(es) at which your spouse has lived during preceding ten years. (Begin with present or last nd ztss and wc•r% back) and Street Cit : ar. State L'stes '7 !Kir.!, vs-e -s3 locition of everA; bl:c:nss or cccupatic:: yos ::^ 'e been e-�-n�ed il! OQrit; ;:'e �+I_.�3i^E, tea years. (Resin with present cr Lurt ai.4=ess .'.'l°+ :...- k . L -s.ion: Street Add., Ia:.u-t o� :u:• -ass 2y State_ o1 B. •in-ss OT ucctmat{0�1 / Cit A • .ref•� i L C �— and locatiou of every business or occupation your spouse )'as bee,: engveed in dc_iug the preceding ten years. (Begin with present or last^{re Location: Street Add., future of . r-. ss fir:t errs work Sack) nr c+cc�^nt i:��: r,s_iness or crc.:pation City b State 17. Names and zddrescea of yCcr employers and partners, if any, for t;•-- ?-ccc- d!:tg ten y z!ti_3. (Begin Bach or tt.si first r;.4 j—k bzr%) Z�''-a'$�'�"l�L:.��•�,:-.�_ or ni rtni":a r 2':'�P.$:i�i tv 3_:11�J`��^ p mid�t/7jY./ /�//✓ '��// ./ i /'^�.fs �i�/Q �ad�%� �� ;7J le. i:.=.ces ari addr.escas of your spouse's employers and partneri, is say, t.r t':n ;_.cEdiry ten yearn. (3eg n with present or last one first and a-crk 53:.L? Nni-cs; or pa'tn^_rs Addresses: City end State ---•'-- your a;:ncse, or child of either or you, ever hP.qr, ccr•.,i-;. of c.im_ or r-iolrtion o.` any ordinance., ot'_:_r 0,in triffic? Yc3-- - Ss.fcrm3ti.os kit as to the time, place and of for :{.uh con, is t� :3 were had: __ ---- 20. Have you, your sp--,i�a, or a•parent, brother, sister or child of either of ycu, ever been engaged as an employee or in operating a e 4ocn, hotel, restaurant, cafe, tavern or cther business of a similar nature? Yea No I:' Ye:,, a :z`'ormatiea as to th-, time, place an length of t :cc. 21 . Have you beer ::n military service? Yes No if Yea, was discharge(3) ever other than honorable? Yes Yo ('UF--1 request, you may be required to exhibit all discharges.) 22. N�me3. residence address, b,:ainess adires's., and telephcne nirtbers of each pers.n Mho �iiig3ge% in '•Iinnesota i.n the tus:ness of selling, manufacturing, or e-:3tr ibutin- 4-nto.:ieat:rrg l q or and who is nearar of kin to you or your spouce tn?n second eeuzi: wi:et::-r o ,e whole of half blood, computed by the rules of civil law, or rico is a brc•thir-tip-law or who is a sister-in-law of you or your spouse. rola Na-n= Relationship • PeCidence Addres3 Phone Ex.:iress Address Phcne ?•..� 2. Full Name Relationship Resieerce Ad-•ese Phone 23. Are you a manufacturer or wholesaler of intoxicating liquor or inter^:,ted directly or indirectly in the ownership or operation of any such buSineV�: Yes IJo 24. Are you directly or indirectly interested in other establis=,ent9 in t}-? of ratan to which a license of the sane kind has been issued? Yes 111I" 25. A,-•a you the spouse cf a person who would be ineligible for F licen3 " Yes No 26; 'rlhat is the count or it v2cymert that you will hare in tae bucinb is, bui?ding, premises, fixtureot ft.aruit-.:re, stock in trade, etc. , and what wa:, t:-,s ci si:O ..ane;'? 2 7 h:;: any interest in any previous intoxicating liquor l i i.nc, t rit w2— s--.?pea.:ed er no•'%O- renewed? Yes _ No� if Yes, explain in detail. 23. Have yc-i ever individually, or with others, made application in any =-Iici- pulity for an intoxicating liquor license and had such application denied? Yes No ?� It so, where and what were conditions of denial? Sri ss. COi,2+TY CF 'z L-ZZ7 .•v - , being first duly sworn upon his/her oath, ePocses an'i ys that he eha is the person who has executed the above Personal Information f .ra an(I that the utatc^ents made therein are true of his/her own knowladgs and bslir:i. Susc:.bed and sworn to bef:-•- _ me this --::�-day of _ Cc Notary Public, ocr�ty 39S). NrL L i2 A NGf• - i5plA 1 `23, .987 [:] MINNESOTA 1-iOUSING FINANCE AGENCY February 10, 1981 The Honorable Bea Blomquist Mayor of Eagan 3795 Pilot Knob Road St. Paul , Minnesota 55122 Dear Mayor Blomquist: The Minnesota Housing Finance Agency on February 3, 1981 issued a Notification of Fund Availability (NOFA) based on an allocation of Fiscal Year 1981 Section 8 rental assistance funds from the U. S. Department of Housing and Urban Develop- ment (HUD). The NOFA requests proposals for family housing developments in designated areas throughout the state. A copy of the NOFA is attached which has been published in the legal notices of the official newspaper of each community specified and in major newspapers throughout the state. Your community was designated based on need, market and consistency with HUD's fair share allocation plan and local Housing Assistance Plans. The Agency encourages community participation in the packaging of a development proposal and throughout the process in the form of financial assistance or continued support and will take such expressed support into consideration at the time of selection. However, due to the limited amount of funds available this year, not every community identified will have a development approved for mortgage financing. If more thanoneproposed site is submitted from your community, the Agency will determine which site is most appropriate. In general , Agency site selection criteria for family housing favors sites which are in proximity to schools, essential services (e.g. , grocery store, drug store) , and utilities (sewer, water, natural gas, etc. ) , with environmental and physical characteristics desirable for families. The Agency will make every effort to keep you informed as to the status of development proposals submitted for funding. We will be forwarding a list of all proposals submitted from your community requesting your comments. If you have any questions contact Kevin Filter at 296-9827, the Housing Development Officer for Eagan. Since mes J. olem Ex tive ect JJS:mo cc: Thomas L. Hedges, City Administrator Mrs. Alyce Bolke, City Clerk Dale Runkle, Planner 333 Sibley Street, St. Paul, Minnesota 55101 (612) 296.7608 Equal Opportunity Housing and Equal Opportunity Employment MINNESOTA HOUSING FINANCE [:] AGENCY MHFA NOTIFICATION OF FUND AVAILABILITY FOR 1981 SECTION 8 HOUSING PROGRAM The Minnesota Housing Finance Agency (MHFA) is requesting proposals for the new construction or substantial rehabilitation of multi-family housing developments under the Section 8 Housing Assistance Payments Program. Based on approximately $1 .68 million in Section 8 funds from the U. S. Department of Housing and Urban Development (HUD) , the MHFA will consider proposals exclusively for family housing and only from the counties and/or cities listed below: Metro (Estimated Units: 150) Maximum # of Region Count City(1) Section 8 Units(2) 7W Benton St. Cloud 7W Sherburne Elk River 36 St. Cloud 7W Stearns 7W Wright 10 Olmsted Rochester 40 11 Anoka 11 Carver 11 Dakota Eagan 30 11 Hennepin 11 Ramsey 11 Scott 11 Washington Non-Metro (Estimated Units: 100) Maximum # of Region Count C;ty(1 ) Section 8 Units(2) 1 Pennington Thief River Falls* 30 4 Douglas Alexandria 24 5 Crow Wing Brainerd 24 5 Todd Staples 24 6W Yellow Medicine Granite Falls 24 . g Lyon Tracy 24 8 Murray Slayton 24 8 Nobles Worthington 30 9 Nicollet North Mankato 30 9 Waseca Waseca 20 10 Goodhue Red Wing 30 10 Winona Winona 36 10 Houston LaCrescent. 24 333 Sibley Street, St. Paul, Minnesota 55101 (612) 296.7608 - 2 - (1 )In counties where a city is designated, proposals will only be accepted for the designated city. In counties where no city is designated, proposals will be accepted for any community, subject to a review of appropriateness for the market in the proposed community. (2)In counties or communities for which no maximum number of units is specified, the maximum number will be determined on the basis of market for the community proposed and the general availability of funds. *In Thief River Falls the Agency is soliciting applications only for an alternate list because a development proposal is currently being processed-within this community. These funds are available with 30 year Section 8 contract authority and a 30 year mortgage term. The Agency strongly encourages applications from minority and female developers/ sponsors as well as developers who have not previously participated in the program. In addition,the Agency encourages substantive minority involvement within the development team entity. Approximately 60 additional units are available for Neighborhood Strategy Areas (NSA) in Minneapolis and St. Paul . These units are only for substantial rehabilitation Any developer who has previously submitted an application to MHFA for one of the specified counties or cities must indicate in writing between February 6 and March 20 that -he wishes the application to be reconsidered. Additional data to be provided at this time include evidence of current site control , any changes in program, or any changes which might strengthen the proposal (e.g. , updated market material , letters of support from the community, indications of improved site or utility conditions). All applications should be consistent with all local and county HAP goals. All applications, including those mailed to the Agency, must be received by the MHFA no later than 3 p.m. March 20, 1981 . Applications received after that time will not be considered. All applications mailed to the Agency shall be by certified mail (return receipt requested) . Anyone delivering an application to the Agency must request a receipt. A Developer's Packet containing application materials and selection procedures may be obtained from the Minnesota Housing Finance Agency, Suite 200, 333 Sibley Street, St. Paul , Minnesota, 55101 , or by calling (612) 297-3294. MINNESOTA HOUSING FINANCE AGENCY 4' . •!vr/i�}�� t''• •:�J1AnNi1791 a: .TM .fab. P N E NI NGT n 0 g . X. ;aiuu ::::: . •.S b...........•.•:.•....... '•1• LOUR::•...•;,:,:..•..:• . RIAK•: :#AN llfi.... diiwii�:• ....... 1MYAwir'• No Nnmq _-_ Gid•: ti yyt(��lyryy�� X. :Di1M�.;:;:: . •:{•:fit C3ZAC ..' CAOM WAC .I./i... ;+ ::::• Sta le P DOUGLAS r+JGINF}:' • :{�kOiElSE '':{gEvfia:; :}::: ;9£Nft�lj:;: ': >af •>': M•GH STEARNS 7W• sNERlURNE ....!! r funding �^� :.::;:.+Mi!n!:;ti TIY R 'IMV{+f)' BVI i n dNORA :�:•. �7 Si!ff3:•:•: }:• }R>tMOe1ONi :::gf{j A:: • 4only :'!rir!:':' :TJOPPF}q::{: : ". �:•}';'; ' •{ {::' WASHINGTON le or f ;f :}'rI{. :::::::: ' •'aPwr:. ;{vTarr}}: WRIGNF MENNEPlN RAMSEY funding �'rJ t. Le county 1i Ele fair funding CARVER a d� YELLOW VE01CINE }},... :;:;;;,'.:.;.; :a1♦ {r;.,.. SCOTT DAKOTA • Trac ire:ir• �•' INwoo aiT�fACM LYON fdtrd0o nICOLLET �;:;. " :-H1CL;.;; COOO�NlE N.►.h i•:{: N 0. Lf SUNM :• RRo a ........... P1PfSTcm MURRAY 8 : :raa. Ate... er+Ticr' ijrrir�;: •sem , QRA>Q00 ' WINONA !i Y ElllTiF: +iWd+k .;ate: :NATDN9YlM: WASECA 'STEEl1;. N •..r OLMSTED t!.ocx•:: Noe lES ::ti'-a:�l�:.;{. • ::J)AiCei4wr;c'' ..i!;:jiPtjJj•.::. : HOUSTON �: ::.: LaCres ent 1 '1981 SECTION 8 ALLOCATION NOTIFICATION OF FUND AVAILABILITY t MEMO TO: FIRE CHIEF CHILDERS, FIREFIGHTERS' RELIEF ASSOCIATION & ALL VOLUNTEER FIREFIGHTERS FROM: MAYOR BLOMQUIST & MEMBERS OF THE CITY COUNCIL DATE: FEBRUARY 17 , 1981 SUBJECT: PROPOSED CONVERSION FROM A DEFINED BENEFIT TO A DEFINED CONTRIBUTION PLAN/VOLUNTEER FIREFIGHTERS ' PENSION FUND For the past several months, the Finance Committee, consisting of two City Councilmembers, as well as the remainder of the City Council have been working on a new proposal that would change the Defined Benefit Plan to a Defined Contribution Plan. Our Finance Committee, City Councilmembers Parranto and Smith, were asked to fully review a concept that appeared in the "September issue of the League of Minnesota Cities Magazine entitled, "Fire Relief Associations". The concept described in this article is a "share the pot" type plan. The Finance Committee spent several months researching the "share the pot" concept which is now referred to as a Defined Contribution Plan. This plan was also reviewed by the City Council , and joint meetings with the Relief Association have been held during the past several months to discuss the pro- posed plan. A plan to increase the current Defined Benefit as proposed by the Relief Association was reviewed by the City Council , however, turned down at a recent meeting due to the huge increase in unfunded liability in the proposal. It was our decision to offer the Defined Contribution Plan as the pension increase for the firefighters to consider. The following information is offered definition of a Defined Contribution Plan, reasons why the City Council is considering the plan and, most importantly, how it affects each firefighter. WHAT IS. THE DEFINED CONTRIBUTION PLAN? Under the Defined Contribution Plan each relief association member is given an individual account which is credited each year with his or her pro rata share of contributions and will be available to pay the portion of his or her eventual pension earned by service that year. The credit consists of : ( 1 ) 2% state aid received by the Relief Association; (2 ) municipal contribution from taxes once the unfunded liability is paid off; ( 3 ) assets of the fund attributable to any former member who left without meeting minimum service requirements for a pension and has not returned to active Fire Department service for at least five years ; and (4) assets of the fund credited to a member who retired without obtaining a full non-forfeitable interest in the amount credited to his or her individual account. A firefighter' s pro rata share of the annual investment income is also credited to his or her account. Each � 1 Proposed Conversion Page Two firefighter who retires after at least ten years of service is entitled to the assets in his or her account. This is opposed to the Defined Benefit Plan where only a portion of the fire- fighter' s benefits are made available upon retirement with less than twenty years . Many computer runs were made by a consultant specializing in actuaries , Heweitt Associates, to determine what Defined Contribu- tion Plan would be the most feasible for the firefighters. A plan was chosen by the City Council that provides a minimum lump sum value of $273,000 per firefighter upon completing 20 years of ser- vice. The present funding source is the entire 2% insurance contri- bution and accumulation of additional assets as a result of elimina- ting the unfunded liability. Once the unfunded liability is paid off by the City, a municipal contribution from local taxes could be appropriated in addition to the 2% insurance on an annual basis . Please refer to the attached exhibit and comparison of _plans for additional information. CITY COUNCIL POSITION The City Council is of the opinion that a Defined Contribution Plan will provide a more impartial benefit structure, since each is entitled to a definite portion of the fund assets . Therefore, the firefighters and City Council can spend more time and effort on maximizing return on investments and less time on benefit formula adjustments . The City and Fire Department are no longer restricted by the uncertainties of an unfunded liability whenever pension increases are discussed. Also, future generations of tax payers , City Councils and firefighters are protected from unexpected pay- ments for services rendered during previous years as well as current actuarial surveying and reporting requirements are greatly simpli- fied. The Defined Contribution Plan is a budget tool for both the firefighters and the City Council . BENEFITS TO THE FIREFIGHTER Each firefighter will control his or her pension account while serving active duty with the Fire Department. With a Defined Con- tribution Plan, no member needs to be concerned about any manipula- tion of the benefit structure, since each firefighter is entitled to a definite portion of the fund assets . All interest accumulation is a direct benefit to the pension fund. As City Councils change and firefighters retire, the plan is simple and manageable by all who are associated with decisions concerning the benefits . The plan is an advantage to attracting new firefighters in the future . 1 � Proposed Conversion Page Three After reviewing the attached exhibit each firefighter can easily evaluate how the new plan affects his or her pension status . SUMMARY The City Council is very appreciative of the many dedicated hours spent by all members of the Volunteer Fire Department . Our many months and hours of reviewing, studying and meeting with your Relief Association Committee have been with two purposes in mind; ( 1 ) to improve the pension plan for each firefighter and (2 ) to insure financial control of the pension program for future years . The proposed change in the pension program will accommodate both of the above reasons. Please review the attached information, and if any of the data is unclear, please feel free to review the material with us at a joint meeting. i PROPOSED CONVERSION FROM A DEFINED BENEFIT TO A DEFINED CONTRIBUTION PLAN/ VOLUNTEER FIREFIGHTERS' PENSION FUND The following information is offered to help explain a proposal to change the pension fund from a Defined Benefit to a Defined . Contribution Plan for the volunteer firefighters . This information is shown in two separate parts. Part I is a summary of the existing benefits. Part II is the proposal outlining the new benefits . PART I EXISTING PROGRAM (DEFINED BENEFIT) A. BENEFITS — A pension upon retirement for each firefighter after 20 years and age 50 is $160 per month or a lump sum of $24,000. For each year beyond 20 years of service, an additional $8.00 per month/ per year to a maximum of $240 monthly or a lump sum of $36,000. The financial requirements of the Relief Association are based on the most recent actuarial valuation. When the association has an unfunded accrued liability per this valuation, the financial requirements are the total of the following: a. The normal level cost for the following year. b. The amortization contribution requirement to retire the current unfunded accrued liability by the established date for full funding. The letter from Hewitt Associates to Mr. John Flood, dated February 22, 1978, appears to be the currently accepted funding level and requires a normal cost payment of $40,500 and an amortization payment of $21,000 or $24,000 depending on the timing of the payment. These numbers are based on a December 31, 1975, actuarial report. The minimum obligation of the municipality with respect to the special fund shall be an amount equal to the total above reduced by the estimated amount of any fire state aid. The following table shows the breakdown of actual contributions budgeted for 1981 and transferred in 1979 and 1980: Premium Raised Total Pension Year Tax Locally Contribution 1981 $31,259 $56,000 $87,259 1980 28,326 26,902 55,228 1979 25,859 27,284 53,143 I' 1 Proposed Conversion Page Two B. VESTING - Retired members with 10-14 years of service shall receive 75% of the earned benefit if that firefighter had 10 years of service prior to the legislation. For those firefighters with less than 10 years prior to the legislation, the vesting plan is % at 10 years and then a % increase per year until 20 years is earned. A retired member with 15 or more years of . service prior to the legislation shall receive 100% of the earned benefit. A member must be at least 50 to collect. C. DEATH BENEFIT - A $1,000 death benefit is provided for all active fire- fighters. D. RATE OF INTEREST - The interest rate actuarial assumption for determining financial requirements is 5%. E. MORTALITY TABLE - The mortality rate actuarial assumption is the United States Life Table (1959-61). F. UNFUNDED LIABILITY - The unfunded accrued liability per the letter referred to in A. Above is $275,100. This number is subject to a significant change when a new actuarial survey is completed. G. FUND ASSETS - As of 12-31-80, the Special Fund of the Relief Association has total assets with a cost or bond value of $353,897, according to the Trust Department of the Marquette National Bank of Minneapolis. H. METHOD OF INVESTMENTS - Marquette National Bank of Minneapolis was. retained by the City of Eagan to handle the investment of funds and administer all retirement accounts. The interest return on the assets during 1980 was in the 12-15 % range. With maturities on these investments scheduled as they are, these rates will be relatively stable at least into 1982. r � Proposed Conversion Page Three PART II PROPOSED PROGRAM (DEFINED CONTRIBUTION A. BENEFITS - A pension upon meeting service and age requirements is the dollar amount available in any individual account. The plan is structured to provide a minimum of $27,000 in an individual account after 20 years of service. The plan is based on a 7% interest rate and any interest earnings above that rate will substantially increase the $27,000 base and related benefits. A retiring firefighter would retain basically the same options under. this plan as under the other plan for collecting his bene- fits, those being a lump sum payment or a monthly payment based on whatever kind of annuity plan his lump sum would buy. This plan would be funded first by a lump sum transfer of a dollar amount so that the special fund assets would be increased to the total of the required 1981 account balances. This amounts to an advance on paying off the unfunded accrued liability. This plan is funded secondly by the 2% insurance contribution. B. VESTING - Vesting would occur at ten years. Any firefighter retiring after ten years would receive whatever dollar amount was in his account. While inactive, no firefighter would receive any annual contribu- tions except he or she would retain yearly interest accruals on their base which was determined at retirement. No money can be withdrawn until age 50, which is consistent with the Defined Benefit Plan. C. DEATH BENEFIT - A firefighter automatically receives his or her account balance in case of death at anytime while active as a member of the Fire Department. Assuming an annual contribution of $500 per firefighter, the equivalent of $1,000 for a death benefit is available after two (2) years of duty. D. RATE OF INTEREST - Since there is no . actuarial valuation required, the interest rate is only important as the plan is being set up. A conservative rate of 7% has been used and any increase in actual earnings above that figure accrues directly to the individual accounts of the firefighters. E. MORTALITY TABLE - Mortality rates are based on the 1971 Group Annuity Mortality Table. F. UNFUNDED LIABILITY - There is no unfunded liability in the relief association special fund under the Defined Contribution Program. The liability has been transfered to the City's books to be repaid from future budget appropriations. The Relief Association has this money available for investment from the date of transfer. { A Proposed Conversion Page Four G. FUND ASSET — As of 12-31-80, the Special Fund of the Relief Association would have asets totaling approximately. $663,158.00, due to the advance of the unfunded liability by the City. This amount is used for investment purposes instead of the amount presently being invested under the Defined Benefit Plan. The advance will be paid off by the City budgeting a certain dollar amount. H. METHOD OF INVESTMENTS — No change from the Defined Benefit Plan. -J.'v EXHIBIT A Employee Current Retirement Expected 1981 Annual Projected Projected Number Age Age , Benefit Account Contribution Account Benefit 41 40 53 $2,496.00 $7,341.62 $506 $27,883.34 $2,496.00 42 40 53 2,016.00 6,975.07 506 27,000-00 2,416.93 43 40 53 1,920.00 6,975.07 506 27,000.00 2,416.93 44 39 53 2,688.00 7,220.25 506 30,028.21 2,688.00 45 39 53 2,304.00 6,045.86 506 27,000.00 2,416.93 46 39 53 2,112.00 6,045.86 506 27,000.00 2,416.93 47 39 58 1,920.00 2,235.91 506 27,000.00 2,637.30 48 38 53 2,304.00 5,177.44 506 27,000.00 2,416.93 49 38 53 2,208.00 5,177.44 506 27,000.00 2,416.93 50 37 53 2,304.00 4,365.83 506 27,000.00 2,416.93 51 37 53 1,920.00 4,365.83 506 27,000.00 2,416.93 52 37 55 1,920.00 2,898.43 506 27,000.00 2,496.12 53 36 53 2,400.00 3,607.32 506 27,000.00 2,416.93 54 36 53 2,304.00 3,607..32 506 27,000.00 2,416.93 55 36 53 1,920.00 3,607.32 506 27,000.00 2,416.93 56 35 53 2,304.00 2,898.43 506 27,000.00 2,416.93 57 35 53 2,016.00 2,898.43 506 27,000.00 2,416.93 58 34 53 1,920.00 2,235.91 506 27,000.00 2,416.93 59 33 53 2,016.00 1,616.74 506 27,000.00 2,416.93 60 32 53 2,208.00 1,038.08 506 27,000.00 2,416.93 61 32 53 2,112.00 1,038.08 506 27,000.00 2,416.93 62 32 53 2,112.00 1,038.08 506 27,000.00 2,416.93 63 32 53 2,112.00 1,038.08 506 27,000.00 2,416.93 64 31 53 2,400.00 497.27 506 27,000.00 2,416.93 65 31 53 2,304.00 497.27 506 27,000.00 2,416.93 66 31 53 2,208.00 497.27 506 27,000.00 2,416.93 67 29 53 2,784.00 327.90 506 31,100.64 2,784.00 68 29 53 2,496.00 0 506 29,437.40 2,635.11 69 28 53 2,880.00 31.15 506 32,173.08 2,880.00 70 28 53 2,592.00 0 506 32,004.01 2,864.87 71 28 53 2,496.00 0 506 32,004.01 2,864.87 72 25 53 2,880.00 0 506 40,833.03 3,655.20 73 25 53 2,880.00 0 506 40,833.03 3,655.20 74 25 53 2,880.00 0 506 40,833.03 3,655.20 75 24 53 2,880.00 0 506 44,197.34 3,956.36 76 24 53 2,880.00 0 506 44,197.34 3,956.36 77 23 53 2,880.00 0 506 47,797.16 4,278.60 78 23 53 2,880.00 0 506 47,797.16 4,278.60 79 23 53 2,880.00 0 506 47,797.16 4,278.60 80 22 53 2,880.00 0 506 47,797.16 4,278.60 81 22 53 2,880.00 0 506 47,797. 16 4,278.60 82 22 53 2,880.00 0 506 47,797.16 4,278.60 83 19 53 2,880.00 0 506 64,898.94 5,809.48 To-xv�l k ('0o��l1S s y2�xo Assumptions 1. Mortality according to 1971 group annuity mortality table. 2. Interest of 7% annually. i CITY OF EAGAN EXHIBIT A Employee Current Retirement Expected 1981 Annual Projected Projected Number Age Age Benefit Account Contribution Account Benefit 1 56 58 $1,920.00 $22,667.99 $506 $27,000.00 $2,637.30 2 55 57 1,920.00 22,667.99 506 27,000.00 2,586.78 3 54 56 1,920.00 22,667.99 506 27,000.00 2,539.86 4 52 54 1,920.00 22,667.99 506 27,000.00 2,455.23 5 52 54 1,920.00 22,667.99 506 27,000.00 2,455.23 6 51 57 1,920.00 15,579.37 506 27,000.00 2,586.78 7 49 53 2,112.00 . 18,884.24 506 27,000.00 2,416.93 8 49 53 2,208.00 18,884.24 506 27,000.00 2,416.93 9 48 53 2,208.00 17,175.93 506 27,000.00 2,416.93 10 48 53 2,208.00 17,175.93 506 27,000.00 2,416.93 11 48 53 2,208.00 17,175.93 506 27,000.00 2,416.93 12 48 55 1,920.00 14,087.26 506 27,000.00 2,416.93 13 48 57 1,920.00 11,389.50 506 27,000.00 2,586.78 14 47 53 2,304.00 15,579.37 506 27,000.00 2,416.93 15 47 53 2,208.00 15,579.37 506 27,000.00 2,416.93 16 47 58 1,920.00 9,033.18 506 27,000.00 2,637.30 17 47 58 1,920.00 9,033.18 506 27,000.00 2,637.30 18 46 53 2,400.00 14,087.26 506 27,000.00 2,416.93 19 46 53 2,304.00 14,087.26 506 271000.00 2,416.93 20 46 53 1,920.00 14,087.26 506 27,000.00 2,416.93 21 46 56 1,920.00 10,171.50 506 27,000.00 2,539.86 22 46 56 1,920.00 10,171.50 506 27,000.00 2,539.86 23 46 57 1,920.00 9,033.18 506 27,000.00 2,586.78 24 46 53 2,496.00 14,637.36 506 27,883.34 2,496.00 25 45 53 2,016.00 12,692.77 506 27,000.00 2,416.93 26 44 53 2,592.00 12,453.31 506 28,955.77 2,592.00 27 44 53 2,400.00 11,389.50 506 27,000.00 2,416.93 28 44 53 2,112.00 11,389.50 506 27,000.00 2,416.93 29 44 53 2,016.00 11,389.50 506 27,000.00 2,416.93 30 43 53 2,208.00 10,171.50 506 27,000.00 2,416.93 31 43 53 2,112.00 10,171.50 506 27,000.00 2,416.93 32 43 60 1,920.00 3,607.32 506 27,000.00 2,750.20 33 42 53 2,304.00 9,033.18 506 27,000.00 2,416.93 34 42 53 2,016.00 9,033. 18 506 27,000.00 2,416.93 35 42 53 1,920.00 9,033.18 506 27,000.00 2,416.93 36 42 57 1,920.00 5,177.44 506 27,000.00 2,586.78 37 42 60 1,920.00 2,898.43 506 27,000.00 2,750.20 38 41 53 2,112.00 7,969.32 506 27,000.00 2,416.93 39 41 54 1,920.00 6,975.07 506 27,000.00 2,455.23 40 41 59 1,920.00 2,898.43 506 27,000.00 2,691.73