12/09/1980 - City Council Special
00306
MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
DECEMBER 9, 1980
A special meeting of the Eagan City Council was held on December
9, 1980 at 7:00 p.m. in the City Council chambers. Those present were Mayor
Blomquist, City Councilmembers Egan, Smith, Wachter and Parranto. Also present
were City Administrator and Director of Finance VanOverbeke.
VOLUNTEER FIREFIGHTER'S RETIREMENT PLAN
Members of the Pension Committee of the Volunteer Fire Department
appeared to discuss the proposed pension plan change from a defined benefit
to a defined contribution plan. Parranto reviewed a report prepared by Hewitt
Associates in detail, reviewing all the exhibits and how each plan would affect
the Volunteer Firefighter's pension plan under the proposed defined contribution
program. Several questions were raised at the meeting including the following:
1. Are exhibits one and two of the report prepared by Hewitt Associates
the only plans available to the City if a defined contribution plan
is approved, because statute indicates that interest can only be
annually shown at 5%?
2. Is every member of the Volunteer Fire Department required to agree
to a defined contribution plan if a change is to occur?
3. Can a guarantee be written into the Relief Association Bylaws assuring
the Volunteer Firemen that they will receive at least the current
benefits guaranteed by statute if they agree to a change from the
defined benefit to a defined contribution plan?
4. Is there any difference in the posture of the IRS regarding taxation
of each Volunteer Fire Fighter whether they choose the lump sum payment
under the defined benefit plan or a lump sum payment under the annuity
schedule defined as the contribution plan?
5. Can contractual language be written that will guarantee the Volunteer
Firefighter assurance of a certain level of contribuiton annually
by future City Councils?
After a lengthly discussion of all the questions which were raised by both mem-
bers of the Pension Committee and the City Council, the City Administrator was
directed to review these questions with the City Attorney and provide answers
to those questions at a meeting scheduled for December 23, 1980 at which time
further discussion regarding a proposed change in the pension plan from defined
benefit to defined contribution plan would be considered.
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City Council Minutes
December 9, 1980
Page Two
VACANCY/POSITION OF CITY CLERK-TREASURER
City Administrator Hedges stated that he has concluded a study and
review regarding the position vacancy of City Clerk-Treasurer as created by
Alyce Bolke who is retiring effective December 31, 1980. He stated that three
(3) alternatives were examined in considering a replacement for that position.
The first alternative is to combine the position with that of Director of Finance
and hire an accountant who would handle the day to day accounting operations.
The second alternative is to combine the position with that of City Administrator
and hire an Administrative Assistant to handle many of the day to day clerical
functions. The third alternative, as explained by the City Administrator, would
be to hire a City Clerk to perform the Clerk's duties only. He recommended
that the first alternative be considered; however, under any circumstances,
the position of Treasurer should be combined with that of Director of Finance.
The City Council discussed the proposals as they were presented by the City
Administrator and it was their determination that the most logical and efficient
alternative would be to combine the position of City Clerk-Treasurer with that
of Director of Finance and hire a City Accountant who would report directly
to the Director of Finance some time in 1981. There was no action taken; how-
ever, the appointment of Gene VanOverbeke, who currently holds the position
of Director of Finance, would be officially recognized and appointed at the
first meeting in January of 1981.
ADJOURNMENT
Upon motion duly made and seconded, the meeting was adjourned at
approximately 9:30 p.m.
Dated: December 9, 1980 TLH
City Clerk