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8-12-2024 Council Conference Meeting August 12, 2024 5:30 PM Fridley City Hall, 7071 University Avenue N.E. Agenda Agenda 1.Updating the City of Fridley Seal 2.Discussion of the Fridley Firefighters Relief Association consideration of joining the Public Employee Retirement Association (PERA) Statewide Volunteer Fire Plan (SVF) 3.Proposed Investment Policy Revisions and Safekeeping/Custodial Depository Change 4.Public Arts Commission Recommendation for Art at Moore Lake Park Accessibility Notice: If you need free interpretation or translation assistance, please contact City staff. Si necesita ayuda de interpretación o traducción gratis, comuníquese con el personal de la ciudad. Yog tias koj xav tau kev pab txhais lus los sis txhais ntaub ntawv dawb, ces thov tiv tauj rau Lub Nroog cov neeg ua hauj lwm. Haddii aad u baahan tahay tarjumaad bilaash ah ama kaalmo tarjumaad, fadlan la xiriir shaqaalaha Magaalada. Upon request, accommodation will be provided to allow individuals with disabilities to participate in any City of Fridley services, programs or activities. Hearing impaired persons who need an interpreter or other persons who require auxiliary aids should contact CityClerk@FridleyMN.govor (763) 572-3450. 1 Jufn!2/ AGENDA REPORT Meeting Date:August 12, 2024 Meeting Type:City CouncilConference Submitted By:Melissa Moore, City Clerk/Communications Manager Danielle Herrick, City Manager Intern Title Updating the City of FridleySeal Background On May 11, 2024, Minnesota officially adopted a new Great Seal and State Flag, replacing the previous emblems. Pursuant to Section 1.04 of the Fridley City Charter, the City of Fridley (City)may the City Council the authority to alter the City Sealwhen deemed appropriate. The current City Seal mimicsthe oldState Seal, featuring the City of Fridley and Anoka County names along its edge. In response to the State updating theStateSeal, staff researched if the City should update theCity Sealand if other cities were considering this action. Cities are not required to update their seals. However, some are choosing todo so tocontinue alignment of local and State tools. In keeping with the City's historical practice of aligning with State symbols, staff proposea revisedCity Seal. Old State SealCurrent StateSealCurrent CitySealProposed City Seal Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 2 Jufn!3/ AGENDA REPORT Meeting Date:August 12, 2024 Meeting Type:City CouncilConference Meeting Submitted By:Maddison Zikmund, Fire Chief Title Discussion of the Fridley Firefighters Relief Association consideration of joining the Public Employee Retirement Association (PERA)Statewide Volunteer Fire Plan (SVF) Background The Fridley Fire Divisionhas long held a pension fund for members under the Fridley Firefighters Relief Association (Relief Association) a separate but partnered not-for-profit entity of the City. The Relief Association has a board of directors made up of elected firefighter members and ex-officio members including the Fire Chief, Finance Director, and Mayor. The ReliefAssociationis responsible for the management of assets within a Special Fund (pension assets) and a General Fund (dues, fundraising, event assets). Of the nearly 800 Fire Departments in the State, approximately 500 of them operate a pension fund in this same manner. Pension plan types generically include two types: Defined-Benefit (DB) and Defined-Contribution(DC). DB plans guarantee a set dollar amount per year of service. DC plans provide equal assets to members during an active year of service. Each requires an annual audit, different actuarial evaluations, and considerations. Arguments can be made that either plan type is more attractive than the other. The Fridley Relief Association operates a Defined-Contribution plan type which allocates 100% of special fund revenue to plan members in a given year. Therefore, the plan is always 100% funded as the assets must equal liabilities. In recent years, PERAhas administered a SVF. The goal was/is to relieve the burden both financially and administratively from Relief Associations. There are over 200 Fire Departments/cities that have joined the SVF since its inception. During the most recent legislativesession, the PERA SVF plan will now permit Defined-Contribution plan types into the program. The current Relief Association Board of Directors has had discussions about this option for the past several months and engaging with all members for their feedback. Thus far, there has been strong and consistent support to join the PERA SVF pending approval by the membership body and the City Council. By joining the PERA SVF the Relief Association relinquishes all special fund assets to PERA for administration. PERA would then move forward in communicating with the City and Fire Chief for administration of the assets. The Relief Association may still exist as a fraternal organization and manage its General Fund assets which become completely separate from Citybusiness or transactions. The existing Fire State Aid which must pass through the City and onto the Relief Association would henceforth be paid directly to PERA and into the Fridley SVF plan. Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 3 Jufn!3/ Financial Impact This proposal has no financial impact to the City. Currently, the City does not provide funding to the Fridley Firefighters Relief Association other than a pass-through of Fire State Aid which must be done according to statute. The financial impact of this proposal is to benefit the Fridley Firefighters Relief Association which currently spends approximately 25% of its revenue on administrative expenses. Furthermore, the state legislature has allocated one-time incentive funding for those plans who join PERA SVF on a first-come, first-served basis. If approved, that incentive payment would be made directly to the PERA SVF assets upon joining. Beyond financial impact, this also relieves burden on Firefighters who must become educated and liable as fiduciaries in managing the pension assets. By transitioning this process to PERA, it significantly reduces liabilities to the City, Relief Association, and individual members. Attachments and Other Resources Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 4 Jufn!4/ AGENDA REPORT Meeting Date:August 12, 2024 Meeting Type:City Council Conference Meeting Submitted By:Joe Starks, Finance Director/City Treasurer Korrie Johnson, Assistant Finance Director Title Proposed Investment Policy Revisions and Safekeeping/Custodial Depository Change Background They are being proposed for include: Maximum Maturities clarified language to note that to the extent possible, the City will match maturities to cash flow needs and that the maturities will be staggered (laddering) and the ds invested in maturities of 5 years or less and no more than 50% invested from 5 years to 10 years. Custodial Risk added language to include broker/dealers as eligible institutions for safekeeping. o Assets are held in the name of the City, and not the broker/dealer. o- o Allowed to purchase from any broker/dealer. o Robust reporting provided. Staff are also proposing a change to the safekeeping/custodial depository. The City currently uses US Bank and is proposing to switch to UBS. The City has had a working relationship with UBSfor investment management overthe last two years and they have demonstrated their diligent stewardship of the Ci resources and one that can be trusted. Staff reached out to 3 cities who use UBS in a similar fashion, and all spoke very highly. A side benefit is that by utilizing them as a safekeeping/custodial depository, there should be cost savings to the City of approximately $11,000 annually. Focus on Fridley Strategic Alignment Vibrant Neighborhoods &PlacesCommunity Identity &Relationship Building X Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship X Organizational Excellence Attachments and Other Resources Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 5 Jufn!4/ Investment Policy Revisions Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 6 Jufn!4/ 7 Jufn!4/ 8 Jufn!4/ 9 Jufn!4/ 10 Jufn!4/ 11 Jufn!4/ 12 Jufn!4/ 13 Jufn!4/ 14 Jufn!5/ AGENDA REPORT Meeting Date:August 12, 2024 Meeting Type:City CouncilConference Meeting Submitted By:Scott Hickok, Community Development Director Title Public Arts Commission Recommendation for Art at Moore Lake Park Background The City of Fridley has been given the opportunity to install art in the newly reimagined Moore Lake Park. Contributions of $6,000 from the Rice Creek Watershed District and $10,000 from Mary T, (owner of Crooners) have made this art possible. The Public Arts Commission met on Wednesday evening and reviewed each of three art concepts submitted by Artist Jessica Turtle. Ms. Turtle, a long-time artist and Water Stewardship Program graduate, researched and made certain each concept presented emphasized the importance of the environment and water quality. Chose the Northern Leopard Frog (Concept #3). The sculpture will be in the water, in the pond and will appear as if it is on a floating lily pad. Financial Impact Absorbed staff time, plus donated funds Recommendation Staff will bring this item to the City Council for formal resolution approval on August 20, 2024 Focus on Fridley Strategic Alignment X Vibrant Neighborhoods &Places X Community Identity &Relationship Building Financial Stability & Commercial ProsperityPublic Safety & Environmental Stewardship Organizational Excellence Attachments and Other Resources Artist Concepts 1-3 Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 15 Jufn!5/ Vision Statement We believe Fridley will be a safe, vibrant, friendly and stable home for families and businesses. 16 7 / 1 5 ! n f u J 8 / 1 5 ! n f u J 9 / 1 5 ! n f u J 0 / 2 5 ! n f u J 1 / 2 5 ! n f u J 2 / 2 5 ! n f u J 3 / 2 5 ! n f u J 4 / 2 5 ! n f u J 5 / 2 5 ! n f u J 6 / 2 5 ! n f u J 7 / 2 5 ! n f u J 8 / 2 5 ! n f u J 9 / 2 5 ! n f u J 0 / 3 5 ! n f u J 1 / 3 5 ! n f u J