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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. 0C' 307 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