01/29/1981 - City Council Special
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MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL
EAGAN, MINNESOTA
JANUARY 29, 1981
A special meeting of the Eagan City Council was held on January
29, 1981 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 Hedges and Director of Finance VanOverbeke.
VOLUNTEER FIREFIGHTER'S RETIREMENT PLAN
Members of the Pension Committee of the Volunteer Fire Department
appeared to present a proposed defined benefit increase to their existing pension
fund. Mr. Darrel Haines, chairman of the Pension Committee, stated that the
proposed changes are an increase in the lump sum benefit from $24,000 to
$ 27,000. The monthly schedule would be increased $160 per month to $280 per
month. Members of the City Council presented the defined contribution plan,
stating that this retirement plan is more desirable and beneficial for the Fire-
fighters and the City of Eagan. Members of the Pension Committee representing
the Fire Department raised questions regarding the defined contribution plan
as to whether a lump sum benefit is taxable and whether a roll over in benefits
can be calculated as it relates to a monthly schedule. Darrel Haines asked
that the proposal which was originally presented in October of 1980 which calls
for an increase in the defined benefit program be voted on by the City Council.
After further discussion on both plans, City Councilmember Wachter suggested
that action be taken on the firemen's proposal and that further study continue
on consideration of the defined contribution plan. In a motion by Smith,
seconded by Parranto, with Blomquist, Parranto, Egan and Smith voting yes and
Wachter voting no, it was determined that the City would proceed with the defined
contribution plan as opposed to the defined benefit plan as the method of
financing the pension plan for the volunteer firefighters.
SEVERANCE PAY COMPENSATION FOR ALYCE BOLKE
City Administrator Hedges stated that he revised the proposed
severance payment to Alyce Bolke, former City Clerk-Treasurer, from $11,374.10
to an amount totalling $12,954. He stated that at the request of the City
Council the 1972 hourly rate of pay was used to determine the benefit amount
for unused vacation and sick leave from 1967 to 1972 when Mrs. Bolke was elected
to the office of City Clerk. The City Administrator further stated that the
1980 hourly rate in effect at the time Mrs. Bolke retired was used for deter-
mining severance pay for unused vacation and sick leave benefits between 1972
and 1980, the years she was appointed to the position of City Clerk. Members
of the City Council stated that this method of payment was reasonable and, in
a motion by Egan, seconded by Wachter, with all members voting in favor, the
original offer to Alyce Bolke, former City Clerk-Treasurer, in the amount of
$11, was increased to $12,954 to reflect a compensation for those years that
Alyce was elected to the position of City Clerk.
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Eagan City Council Minutes
January 29, 1981
Page Two
LAWCON PARK GRANT FOR ACQUISITION OF RAHN PARK
City Administrator Hedges stated that the Park and Recreation
Director has received the agreement with the State of Minnesota authorizing
the grant for the purchase of the Rahn Park expansion. In a motion by Smith,
seconded by Parranto, with all members voting in favor, the Mayor was authorized
to sign the project agreement with the State of Minnesota which entitles the
City of Eagan to receive partial funding for the acquisition of the Rahn Park
expansion. A 81-4
ADJOURNMENT
Upon a motion duly made and seconded, the meeting was adjourned
at 10:00 p.m.
DATED: January 29, 1981 TLH
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City Clerk