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09/09/1981 - City Council Special MINUTES OF A SPECIAL MEETING OF THE EAGAN CITY COUNCIL EAGAN, MINNESOTA SEPTEMBER 9, 1981 A special meeting of the Eagan City Council was held on September 9, 1981 at 6:30 p.m. at the Eagan City Hall. Those members present were Mayor Blomquist, City Councilmembers Egan, Parranto, Smith and Wachter. Also present was City Administrator Hedges. VOLUNTEER FIRE DEPARTMENT RELIEF ASSOCIATION-PENSION PLAN Representatives of the Volunteer Fire Department including Fire Chief Bob Childers, relief association president John Flood, members of the relief association, Darrell Haines and Jerry Adam, were present to request con- sideration for an increase in the monthly pension for each volunteer fire fighter. John Flood, president of the association, made a brief presentation stating the reasons why an increase is being requested in the pension plan. City Councilmember Wachter proposed an increase in the present defined benefit pension program from $160 to $190 per month. Mr. Flood indicated that the $280 being requested by the relief association is realistic due to no increase by the City in the past three (3) years. Fire Chief Childers stated that there are questions as to whether the City Council option of a defined contribution is a viable plan. City Councilmember. Smith stated that, to his knowledge, the City Council had not changed their opinion regarding a defined contribution plan and if accepted by the Fire Department the various questions can be resolved following that acceptance. After further discussion and in a motion by Wachter, seconded by Mayor Blomquist, a monthly pension increase from $160 to $200 per month or a lump sum benefit increase from $24,000 to $30,000 was recommended. Mayor Blomquist stated that she had several questions regarding the impact of the proposal on the proposed 1982 budget and would like additional research by the City Administrator. John Flood stated that an amount of $35,000 to $36,000 is required by the City in 1982 to provide the necessary appropriation for the Firemen's Relief Association. Mayor Blomquist suggested a plan to pay off the unfunded liability so the City is aware of the status of the defined benefit program. Further discussion regarding the use of the $56,000 budgeted for 1981 was reviewed. City Councilmember Parranto reemphasized the objectives and value of the defined contribution plan. City Councilmember Smith stated that approxi- mately $30,000 of the $56,000 budgeted for 1981 was appropriated if the City and volunteer fire department agreed to proceed with a defined contribution program in 1981. City Councilmember Parranto indicated that, since the defined contribution program was not approved in 1981, the use of the additional monies budgeted for this program will be determined later this fall. Relief association member Darrell Haines stated that many firefighters are not happy with the plan proposed by the City Council and would like for the City Council to reevaluate the defined benefit plan increase as recommended by the relief association. After further discussion, City Councilmember Wachter suggested that the question of whether the City proceed with the defined contribution plan as recommended by the City Council or a defined benefit plan as requested by the volunteer fire department be decided. Wachter therefore withdrew his motion suggesting a pension increase to $200 per month or a lump sum of $30,000 which was granted by the seconder, Mayor Blomquist. Wachter introduced a motion, seconded by Mayor Blomquist that the City provide a defined benefit retirement program as 06 209 City Council Minutes September 9, 1981 Page Two the method of providing a pension plan for the volunteer fire department. Those voting aye: Mayor Blomquist and City Councilmember Wachter; those voting nay: City Councilmembers Egan, Parranto and Smith. The motion was denied. City Councilmember Egan suggested that an independent committee review both the defined benefit and defined contribution plans and present their findings to the City Council and volunteer fire fighters for evaluation. After a brief discussion and in a motion by Egan, seconded by Smith, with all members voting in favor, no further action will be taken regarding change to the pension plan in existence with the volunteer fire department until an extensive report is performed by the City, fire department and outside experts to analyze the feasi- bility of a defined contribution plan as it compares to the defined benefit plan and further that this study be presented for evaluation within forty-five (45) days. 1982 BUDGET SESSION #4 City Councilmember Parranto suggested that the revised budget amount of $60,000 be increased to a $65,000 allocation for 1982 which is higher than the normal level of inflation. He further stated that this would allow more money to be available for the fire fighters if future City Council action increases the pension plan or the volunteer fire department. City Councilmember Smith recommended that the mill rate be increased by approximately .3 of a mill to allow for additional cash flow if required in 1982 due to the anticipated intergovernmental aid cut back. Chief of Police DesLauriers appeared and asked that the City Council consider two (2) lieutenant positions in 1982. City Councilmember Smith stated the lieutenant positions are premature this year as a budgetary consideration. Assistant Chief of Police Berthe presented a report that illustrates the mileage and cost of operation and maintenance of all police vehicles, suggesting that eight (8) new police patrol cars be pur- chased in 1982. The City Administrator stated that budgetary considerations made by the City Council are considering five (5) new vehicles in 1982. After further consideration, the City Council agreed to appropriate money for six (6) new police patrol cars in 1982 and further that, as a result of data provided by the Police Chief and Assistant Police Chief regarding diesel vs. regular gasoline, unleaded gasoline powered engines were approved for the police patrol cars. City Councilmember Parranto stated that specifications should be written to utilize a small or V-6 engine, and in any event no large cubic inch displace- ment such as 400 cubic inch are to be used in any police patrol cars. After further discussion on the proposed budget, the City Administrator was asked to prepare the final budget based on the previous considerations and present the same at the budget hearing on September. 15 at the regular City Council meeting. Mayor Blomquist indicated that, if questions are raised at the public hearing concerning the proposed 1982 budget, additional special budget meetings would be held; otherwise, there are no meetings to be scheduled until considera- tion is given to the public enterprise account. ADJOURNMENT There being no further business, the meeting was adjourned at 10:30 p.m. TLH DATED: September 9, 1981 _~P_A-4 City Clerk