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01/15/1973 - 00016911�� CITY COUNCIL PUBLIC HEARING MEETING OF_JANUARY 15, 1973 The Public Hearing meeting of January 15, 1973, of the Fridley City council was called to order at 7:42 p.m , by Mayor Liebl. PLEDGE OF ALLEGIANCE: Mayor Liebl led the Council and the audience m saying the Pledge of Allegiance to the Flag ROLL CALL: MEMBERS PRESENT MEMBERS ABSENT: ADOPTION OF AGENDA. LIEBL, UTTER, NEE, STARWALT. BREIDER. MOTION by Councilman Nee to adopt the agenda as presented. Seconded 6y Councilman Utter, Upon a voice vote, all voting aye, Mayor Liebl declared ihe motion carried unanimously. PRESENTATION: PRESENTATION BY DR, FRANKLIN SMITH, STENNES 5 ASSOCIATES, RELATING TO FUNDING OF FRIDLEY POLICE PENSION ASSOCIATION RETIREMENT FUND Mayor Liebl called on the C rty Manager, Gerald Davis, to introduce Dr. Smith The City Manager said the purpose of Dr. Smith's presentation was to explain the Hewitt Plan and the Guidlines Act as they relate to the Fridley Police Pension Association Retirement Fund. He m troduced Dr Smith of Stennes & Associates, Actuary for the Legislative Retirement Study Commission Dr. Srnith said he had read the minutes of the special meeting on the pulice Pension Fund mg Plan that had been sent him by Mr Davis and he said these minutes seem to imply that the Police and Fire Guidlines Act of 1969 Was the first law that had any provisions relative to financing of Police and Fire Pension funds He said these provisions were not new He stated in the interim of 1955 to 1957 the State Legislature conducted an actuarial' evaluation of first, the State wide funding and secondly the local funding of- Police and Fire Pension funds. At this time the Legislature found the state retirement funds were in tern ble shape. He said Yhat eight out of nine plans were unable to meet pension obligations at that time He said the result of the actuanal evaluation was the adoption of certain principles to be applied to the funding of the State plan, which established a method to he used to determine the liability of these funds, or the establishraent of the factor and term referre� to as the unfunded accrued liability or deficit. This figure ran into several million dollars for the State Plans. The Leyislature set a goal of forty years to retire the large dificit of the State wide funds At that time the state appropriated money to retire the deficit and recommended that municipalities do the same thing. He said the Legislature recommended the PERA fund, as rt had the same problem, follow the same principle, and reduce the deficit hy the same date or by 1997 � r--� 1 � � �� PUBLIC HEARING MEETfNG Page 2 JANUARY 15, 1973 � He said he was not engaged in pension funding acv vity at Yhat time, but said apparently the municipalities did not pay attention to these requirements, � ac�d when the ner.t actuarial evalution was made, it was found that the d�fiut had grown by a considerable amount. He sa�d the requirements set after the first bulk evalution of the plan had not been carried out, so the Legislature decided to relent somewhat and extended the guidelines from 1997 to 2007. During the succeeding interim, the same story repeats itself, and the pro- visions of the legislation were noe commited to the municipalities The deficits continued to grow prior to the session of 1969 At that time, the Police and Fire Su6committee Study Commission of the Legislati�ie Retireinent Study Commission said they would try to rect+fy the situation by lowering the funding requirements and the result of this was the Police and Fire Guidlines Act of 1969. Under the act, said Dr, Smith, the requirement was eased off and a ten year goal was substituted for getting these funds on a basis where at the end of ten years, the def-icit would be maintained from tnat point forward on the amount it had increased, or the deficit reached after ten years would be maintained at that level. He added, from thal- point forward, the current cost of the plans would be pa�d and the acivarial �fic rt would be maintained at that level by paying only the interest on the deficit He said this concluded his explanation of the history of how the Legislature arrived at the Police and Fire Guidlines Act of 1969. He added, for the {irst time, mun�cipalities began to pay stn ct attention to the Legislation that had been passed, and they were all appalled by the level of number of dollars required at the end of ten years to reach a point where the current costs would 6e paid � and the deficit ma mtained at the level it had reached by 1981 He said this is � the reason there has heen so much discussion during the past iew years about Police and Fire Pension funding, for the first time municipalities had become aware of the substantial cost of ineeting the requirement passed by legislation in 196g ' Dr. Smith said he had gone through the history of the action to counteract the impression that suddenly in 1969, something �vas sprung on the communities and the substantial cost of these programs was not in existance prior to this time, He said he did not believe it was necessary to go through the a�ternative pro- posal that has 6een developed by the firm, Hew�tt and Associates which has been sponsored by the individual Police and Fire funds. He said funding requirements under the legislation that they propose are substantially less than under the Police and Fire Guidlines Act of ig69 He said the question does come up, will the lower level of funding maintain sound financing oF the plans, he added, this depends on the basis from which one argues. He said after the proposed new method of funding was made, he was asked to make an analysis and write a memo- randum stating the results. He said if one makes the assumption that the yovern- mental units are going to be with us into perpetuity and that the retirement plan that is in existance at the moment will continue into perpituity, and that the Police Department is going to be maintained into perp rtuity, the proposed � �� i �� PUBLIC HEARING MEETING Page 3 JANUARY 15, 1973 � method would be maintained on a basis whereby there will always be money � available to pay for pansion when the need arises In contrast to that proposal, he said, the method the State Legislature had worked with the State funds is that by 1997 those funds will reach a point where, from that point forward when an employee comes up to retirenent, the contributions will have completely funded the cost of this benefits With the Guidlines and the Hewitt proposal, one never reaches that point. He said, under the Guidlines Act, the einployees who are hired in the {uture, their benefits will be fully paid for if you regard them as a separate group, but the deficiencies of the past are never paid up. He continued, under the Hewitt Plan the financing is eve� lower, and he said he thought the financing at any given point should at least involve the pensions being pa�d during the given year. Also promised, in addition, he said, over fifty years there w�ll be a somewhat larger sum contributed each year and the fund will reach the point where there will be a back log of funds on hand at ]east equal to the esiimated pension requirements ot the next ten years. He adued a further thought relative to the history by stating, it was implied by the minutes of the Special Meeting that there are no funds in Minnesota or public funds maintained on a level at least as good as required by the Guidlines Act He said that stateinentvould be correct if implied exclusively to Police and Fire pension Funds, he added, there are no Police and �ire Pension funds that he knew of that are funded adequately in accordance with the Police and Fire Guidlines Act He reminded those present that all the State wide funds, the State system, the public system, the highway patrol and teachers are main- tained at a level higher than the Police and Fire Guidlines Act, in that it is � provided that the actuarial deficit will be retired by the year 1997 and from that point forward, each employees be�efits will be paid for during his active � working lifetime I i � He referred to the memorandum he had drawn up for the Commission saying he wauld like to c�te some ways the actuanal deficits may grow, He said he had carried his figures out for roughly fifty years and under the set of pro�ections the accrued defic rt could grow three times its original level {ie added, in regard to the percentages of payroli, the figures were based on the assumption that the economy will grow over this fifty year period Dr. Smith said in spite of this growth in econorny the size of accrual deficit wiil grow several times its present size, related tu the payroll at that point and would not decrease its present level Stating an impertect analogy would be if one had a mortgage on their home, and with the growth m economy, one could get an add rtional amount on this mortgage next year, fifty years from now this mortgage may be several t�mes its present size He said, the amount of the mortgage related to the increased value of the property at that time enables the ratio to recline. Relating this analogy to the accrual deficii, Dr. Smith added, it will grow severai times under the expanding economy, but related to the increased payroll at that time the ratio might have gone down. He said, whether one feals they can live complacently with th�s sort of situation or not is somewhat a personal react�on. � � �^ PUBLIC HEARING MEETING Page 4 JANUARY 15, 1973 � The City Manager said the City is currently paying 21% of the payroll while the employees pay 6'/ He asked Dr. Smith for alternatives to get the City's share down to a reasona6le rate. �r. Sm�th said the program currently calls for an escalation clause allowing the retired employee benefits up to 50% of the most current salary ot those still working. The e1imination �t this escalation provision would 6e a good reduction of cost, Dr Smith said. Another method would be to change the age of retirement from age 50 Co 55, and stipulate 20 years of service at age 55. Another alternative measure to cost reduction as suggested by Dr. Smith, would be to reduce the payment froin 50% of salary afYer retireinent to 40% and exclude escalation after retirement. He stated in order to cut the cost, some benefrts had to be reducad, � � Mayor Liebl thanked Dr. Smith for his presentation of the history of the past twenCy years. He briefly summarized the history as presen�ed by Dr. Smith. The City Manager said that according to the Guidlines Act the City's contribu- tion would go up annually. The Mayor asked Dr. Smith if there was a siabili- zation point of 4S%, and pr. Smith said there is. Thz City Manager said that in 1971 the fund was $15,000 behind what it should have been und�°r the Guid- lines Act He addzd if the Council continues to allow the City's contribuYion to be only the 21°fo of the payroll, the deficit w�ll grow to a� enormous sum. Dr. Smith stated that under the Hewitt plan the level of fundinq would be dropped, but this wuuld not solve the problem of the c�ntinuing growth of- the deficit. The City Manager said in his opinion it is an important factor to make the fund effective into perpetuity as there are facts we are -�ot aware of at this time. He continued by saying, the City does not go away. The City does not have any quarantee that the Police Department will not be absorbed by someone else. In this instance, the o6ligation to the men does not go away, The City Manager said there �s an actuanal d�ficit 6ecause of the years o4 service prior to 1g67 which the pension plan is required to pay for. � Mayor Liebl said the City must be practical and also think of the taxpayer when it determines the percentage of the payroll to be put in the pension fund. He said if at any time the Police Department is absorued, the obligation of financing the pension fund should also be absorbed. Dr. Sm rth said he did not think this would necessarily follow as there are example; where the obliyation for funding has heen reneged on, He listed several retirem�nt plans stating their goals for funding. Tom Kennedy 6857 7th SY. N E., Fridley, police Pension Association, stated he did not believe the City would �e suzd if the fund ran out of money, the affected parties �NOUId sue the Fension As ociation. Mayor Lie61 a,ked Che C rty Attorney if this was correct. Thz CiLy Attorney said iie did not wish to say, and added if a man were to retire and found tne fund was not able to pay the amount d.�e him, he did assume the man would inake an effort to do something. 7he City Manager sta��ed Chat thzre were several members of the Police pension Association in attendance at the meeting, he contin�ed it was tiis understandi�g Yhai the� were in agreement that a so1ution would be worked ��ut as stated following the guidelines of their letter on File. Mr. Kennedy said L,�e Associa- tion �Nas willin3 to go along with the Hewitt Pian, bu± [he; did not like che idea of reducing tne pension benefits per se � � � � �� PUBLIC NE,4RliJG MEETIWG .lA�JUARY 15, 1`�73 P�ge 5 Ma;or Liebl said he balieved L'nere was stre��gth �n the City's pension plan as there was tiine to rea�h the req�aired a,nounL- and biaild in�eresfi because of the especially young force. Dr Smith ayreed, 3ruce Nawro�,ki, Ma�,�or, Colur�bia ,y�igh=s, said Columbia Neights is faring the sane pr�blem �4e �a;d Fie riad nor �ome to ge*_ i�ivol�r�d witri the City oF Fridle�, but had attended tiie �neeiing with the hupe oF gezting sone an;wer� We mentiuned the h u�ory and �ne astablishment of tne huge artuarial deFicit, and added '�ie �e�i���ed tiie >tat�tes and guide rnes estabti„�ed to reduce ihese defic rts are rathzr cruel, He add��d, thz sta�utes ga�e the i�divid�al retiremenL asso�iatio;i �_he au�'iority to set the pe�sion be�iefits escala�ion. He said a number of 85 ;O �! dL 1 Of15 r�.� I 0W Otl �3�1 au�i,aa � �)35 i i 37t� SB _�7B110f I;, SG�IE-'�U � P.S `yJF1011 the requiremenCs oF the p1an are not complied taitn, the p1an �s �n troab�e ,ye sa;d L'ne heneFit> Sho,ild be �<e;_�� cons„t3nt wiLh Li�e funding oF ti�e plan wfch maximum bene� it levels set He sa�d, it can not 6e Lake�i for grantied rliac ,oineona �io�aii the ;�e w:?I _eh� care ��� ���� �ro'��e�n ;�° adcled, �a�ider the Guideiin�s Act, the ior_a', unit �F governme��t wouid �ick up rhe cost, wiiatever che price may '>>. ,le 5�1� c�•.]�1"1�?_ Lill.:'3 df3 �10 E'-l'� dISW°I'i �J •_�1� �]I"O�)�01i1i �'1 Ij_ I{ t�l�l"F �Vi-r� an,� n-�sw��-s aC 3i1, he wu�l�i like to near them. Ma•;�r Liebl ,a�d Liie l'a>:��a•�e: shoiald be consi,�e�-�d ile did r,r �_�l iha ri�, >�ov�i!d ;�ay �a �;��,', amo�rt e�.'i /ear By i�34 t��° Ci�� ��:,�ild S7�ave to oay ,SD%> he ada� I ;is q,ae��ione�J loie feas�bilitq oi paying tl�e same amount as �'�e City is aa;i�g �iow He said'�� ��i���g1�L �his >�Uh�t ihe:lPwi°L "l�a�i sio�ald arr��np1ish Mo=e n� Ji= ;�c31 com�nunicie; �a,�u�d t�e La',�r �iP the n�ot: if they �ollowe� �he p 1 3a� iAa��or PJa,Nro�,'�:i, agreed establi,ning a ie,iel of payment IVJJICI he a d.=.sira��«; �ace��r. �,-I: aJi� I =ia�e ,> >o,i,; � i� _"» �f e,�,_i��_;� a� I�,� j;d noti bel�eve _' ;�I��i.� ��1�� �'iii�a,J ��iy-tnii� f�i h�s o;�inio�� it put tl�z ;�a;,m-;ies for ; a�efi `s de,,�ded apon t�da; , into tf�a fuYui-e �oi �,�ose coining after ils ta pa�,-. �-�0 [j�le3tIUi15 'wlil8i �NOJ��i ��i�.��] • I i F SOITI°J�„` �'1 L�I: fJYCe 5'lJ!1�C� �lA`!r, ,� jIi�7J� �lty� ���s,�-� ��is C3 ns, �m'� � ,���- '�> >a�� f,�r �lia ��° • 'ii � �ami ly� Nn �,fi:, i �, �r t� b� ,,, �"d.= , 1 i s Nf�o; �; `a� -�_ i �ne gro_ip „i ,��ople should �e Fai r wi e'� anotna� group, he said. '�lill the people �aho �ick up the garbage wan� Ji,: ,3m� herie� � .-, �; �,'ced Mayor L�ebl said they would have to negotiate with the police Pension Associa- tion and come to a deusion. He said it must be looked at from a tax stand- point, a Financial standpoint and a conservative standpoiht. The presenT plan under the Guidelines Act �s impossible and impractical, he added. Ne said rt is necessary to work something out that is financially feasible, Mr. Kennedy said everyone talks as if the world will go on forever when dis- cussing a pension plan, he added, even if the ivorld goes on torever and the City pays 21%, it will cut the benef rts in half. � l�l Mayor Liebl asked Dr. Smith if there were any private firms where the employer paid 21% Dr. Smith answered, the top range for private employers to pay into � a retirement fund is 10% 15% He added there are some reasons for this, the average age of retirement is age 65. However, the Pubiic Service employee � has a greater physical stress. The Policeman must be able to wrestle with �� PUBLIC HEARING MEETING Page 6 JANUARY 15, �973 , a young man and this takes a greater physical effort than sotting behind a desk He said he d�d not 6elieve a man should retire from the police depart- ment, receive pension payments and go out and yet a full time �ob with full salary. Dr. Sinith said there should be some provision to cut the pension until the man is fully retired, �I The City Manager asked the members of the Police Pension Association if ihey agreed with the letter that was se�t to him by the Association. He said he had hoped that they were in agreement to sit down and talk over possible solutions. Mr. Davis read the letter aloud (rom Mr. R�chard D Huss, Vice President of the Association The letter agrees ihat the City's pension contribution should be reduced and stabil rz ed aC 21% He added, this was the reason for the current discussion, to arrive at this goal Mr, Kennedy asked the City Manager if he was williny to sit down w rth the negotiating committee ana work out a pension program. He added, the 7% has to come from somewhere, he asked where, The City Manager said the Gity has the new insurance program, He added, this may grow and cover it It �s currently 1% of the insurance premium �n the City. Mr Kennedy asked if the insurance money was to be used to reduce the City's cost. The City Manager stated they had not been directed on this matter. He said the City had contributed 21°jo and the insurance premium was in addition to this amount Mr. John F. Anderson, 6270 Van Buren St. N.E., Police Pension AssociaTion, said the Fridley Police would not retire at 50% of salary, he added, it is less than that Dr Smith said it would be 46.2/3°Jo. The C rty Manager said Fridley has a unique opportunity as there was no one presently retired from the police Force. He stressed the need to make any changes in the plan before someone does retire as it would be impossible to change a ret�red persons benef rts. Counci1man Nee asked Dr Smith if he had been active in lobbying for legislation for any act. Dr. Smith said he had only furnished professional advice, Councilman Nee asked �f �r. Smith felt the Guidelines Act were to be replaced. Dr. Smith said he was not prepared to answer. He added, he had hoped for some action after the November elections, but there had been no change. He said if the Minneapolis and St. Paul Councils talk with the Commission there may be some action. Counc�lman Nee asked if the �ndependent sets , the levels of payment, and the City then abides by those levels. The City Attorney said when the Police pension retirement plan was presented by the Council, they gave little thought to what the City's contribution would be. The program was approved, he added. Now, under the Guidelines Act, the fund must be acYUarially sound Councilman Nee asked if a new plan would reverse these requirements. Dr. Smith said the new plan could include some corrective measures, 6ut the plan must be funded adequately to cover the benefits and no change could be mal<e to el�minate ehis �� � � Mayor Liebl tha�ked Dr. Smith for his presentation � � � ! I �J Pl/BLIC HEARING MEETIN(k JANUARY 15, 1973 PUBLIC HEARINGS: Page 7 PUBLIC HEARING ON STREET IMPROUEMENT PROJECT ST. 1973-1, AQDENDUM #1 (Gl1MWOOD STREET FROM 77TH WAY TO 78TH WAY AND ALLEY BETWEEN GUMWOOD STREET & BEECH STREET) MOTION BY Councilman Utter to waive the pu6lic hearing notice. Seconded by Councilman Starwalt. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried. The City Engineer 6riefly explained the action planned. He had talked with the people and they had agreed to take care of the access on Gumwood & Alley paving themselves. MOTION by Councilinan Utter to close the public Hearing. Seconded by Council- man Nee. Upon a voice vote, all voting aye, Mayor Lieble declared the motion carried unanimously and the public hearing closed at g:10 p.m. PUBLfC HEARING ON A FINAL PLAT, P, S, #72-07, JIM LIIND ACRES, BY JAMES LUND CONSTRUCTION, INC., GENERALLY LOCATED IN THE 50UTHEAST CORNER OF 75TH AVENUE AND CENTRAL AVENUE• AND if�a AVENUE N,E, MOTIDN by Councilman Utter to waive the reading of the Public Hearing notice. Seconded by Councilman Starwalt. Upon a voice vote, all voeing aye, Mayor �iebl declared the motion carr�ed. The City Engineer explained that some oF the property involved was zoned commercial and some residential. The proposal was to have the entire plat zoned residential. The City Engineer added the pla�ning Commission had recommended approval Councilman Starwalt said he had met w rth some of the closest property owners and there was no ob�ection to this zoning. He asked if there was anyone in the audience who was opposed to it. There were no ob�ections Mayor Liebl asked the C rty Eng m eer if the overall pro�ect would be better if the zoning were all single family dwelling. The City Engineer said this would improve the pro�ect. MOTION by Councilman Starwalt to close the Public Hearing on the final plat, Seconded by Councilman Utter Upon a voicr. vote, all voting aye, Mayor L�ebl declared the motion carried, and the public hearing closed at 9:15 p•m• �[ ���� � ��� ' � i PUBLIC HEARING MEETING page 8 JANUARY 15, 1973 � MOTION by Councilman Utter to close the public hearing on the rezoning request. Seconded by Councilman Starwalt. Upon a voiced vote, all voting aye, Mayor Liebl declared the motion unanimously carried and the Public Hearing closed at 9:17 p.m. MOTION by Councilman Utter to waive the public hearing notice. Seconded by Councilman Starwalt. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried. The City Engineer said this was requested by the property owner and had been approved by the planning Commission, The C rty Engineer explained this action was being taken to enable the property owner to acquire the land up to the water line and some of the property under the water. He said if the lake dries, he would have additional property presently under the water now. Mayor Liebl said part of the owners' building was on another lot. He explained this action as 6eing one agreed upon by the Planning Commission and also the Council in an attempt to solve this problem. He said if these requirements were met, the County would also give its approval of the plan The attorney representing Donovan A, Schultz said i� the water recedes, there would be new real estate and it would be Torrens property. Councilman Nee asked if � the owner would be purch,3sing 2he lake bottom. The City Attorney explained the property owners around Locke Lake do not own the property up to the water iine and the problem exists on all the lots. He added the people are trying to Find a solution to the pro6lems, and Torrens property laws are difficult to work with. He advised he thought it appropriate to approve the proposal. Mayor Liebl said in order to accomplish this, a legal description had Co be established, Gouncilman Nee asked what would be done for the remainder of the people. The City Attorney said they would have to go through the same procedure, and it's an expensive proposition, Councilman Utter said this had been going on for some time with the purpose of allowing this kind of survey, He added, the other people in the area could apply for t'riis kind of survey also. Councilman Nee said Mr. Schultz would then own property into the Creek and the other people would own the property up to the line Councilman Utter asked if they planned to use any fill in the area The Attorney for Mr. Schultz said they would have to work with [he Rice Creek Water-shed District on these matters Councilman Nee asked what the results may 6e if the land were transfered to the C�ty. The Ci[y Attorney said rt would then be public propertiy, and the people want it private He explained that under the waCer laa� in Minnesota, � the surface water is considered public if it can be used f-or pu6lic purposes and the ownersi��p o` the bed is private. f� PUBLIC HEARIfJG MEETING JANURRY 15, 1973 Page g MOTION by Councilman Utter to close the Public Hearing. Seconded by Council- man Nee. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried and the Public Hearing closed at 9:25 p m• PUBLIC HEARINf, ON A VACATION REQUEST, SAV #72-06, BY STATE LAND & DEVELOP 54TH ON THE WEST AND 6TH STREET ON THE EAST. The City Engineer said the plann rng Commission had recommencled approval of vacating the alley 6ut not the roadway He said the builder was willing to go along with this stipulation. Mayor Liebl asked the members of the polish National Cemetary that were pre- sent if they agree to give proper access. They answered yes, MOTION oy Councilinan Utter to close the Public Heari-ng. Seconded 6y Council- man Starwalt Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried and the Public Hearing closed at 9;30 p.m. RECEIVING REPORT ON LIAISON W1TH STATE LEGISLATUv",E Mayor Liebl called on the City Manager to give a brief report. The City Mana- ger said there had been a meeting with John Cottingham, City Manager of Coon Rapids, and members of other commun rties in Anoka County, including himself and Mayor Liebl, The purpose of their meating, according to the City Manager, was to determine a method where the communities in Anoka county would have better contact with the legislators and enable them to express their viewpoints Ne said they had decided upon three alternatives: lj Continuation of dependence on the League of Minnesota Municipal- ities to represent overall rnterests in the state He added this was very broad coverage as the League represents ail the Communit�es in the State 2) Spliting the work up 6etween City Manage� in the County, and they would do the lob6ying The City Manager said this wouid take away from their var�ous duties and create a lack ot con- tinuity as so many people would be sent as representatives. 3} A �oint powers agreement that would a11ow the communities to pool their resources and hire an rndivid�al w rth adequate know- ledqe to do this for the communities. Th� City Manager said that there had been t�ntative funding commitments established He said it was the op mion of the comm rttee that the third alter- native was the most suitable, A full time man could be hired to have close communication with the legislators Mayor Lie61 sa�d Fridley's commitinent, $2,500, was a very conservative one. ye said he had not wanted to comm�t the C rty to a certain amount. He said he had talked to many people about this proposal and they agree it'is a-sound one � � ' at) P�BLIC HEARING MEETING Page 10 JANUARY 15, 1973 � He said he would like to concur with the City Manager and recommend this pro- gram for one year. The Mayor said he would like to give Iqr. Davis the n 9ht to commit Fridley's participation in the program. Coun�ilman ULter asked who would be responsible for hiring our representative, Mayor L�ebl said the group of area City Managers The �ity Manager said they were not allowed a great deal of time for the choice, but would try to obtain ihe best available man He said the City Managers would be the commum ties' representatives in the choice Councilman Utter said the amount proposed is a greai deal of money for 120 days work. The C�ty Manager suggested this 6e cons�dered an annua1 salary with the man continuing to work the entire year and both sessions. Mayor Liebl suggested a bi-annual basis. Mayor Liebl said the C rty is in need of an input in the leqislature. He added, the City needs some help and stated as an example, the Gw deli�es Aci He said another of his interests is the bridge across the Mississippi River. ,ye said he believed Coon Rapids, Anoka and Northtown Shopping Center were also in favor of such a bridge Mayor Liebl stressed his viei�� that it would be worthwhile to the community. Councilman Nee asked if there had been a decision on who vaould be hired. The City Manager said they could not contact anyone until there is an agreeinent from the City. Councilman Nee asked if for 522,000, couldn't the C rty hire an attorney to do the �ob. The C�ty Attorney said the salary would be $17,000 � and in his opinion the man hired should be a former legislator or a man who would know his way around. Mayor Liebl caid he had talked with Mayor Nawrocki of Columbia Heights and he had suggested several men who viould have knooeledye and experience, Councilman Nee asked if it would be possible to find a man who was a specialist in different areas. The City Attorney suggested the man be hired and allowed to obtain special help when needed. Councilman Nee asked if there would be a problem with the proposed funding method. He added, would those communities contributing more, receive special attention� The City Manager a,�swered, this would have to 6e a point of discussion after the C rty had directed to represent them at the meetings. He added, whal-ever ihe Council directs, he would present at the next meeting. Councilman Nee expressed concern at whether they would find an effective man. He agreed that the Gity Manager said Anoka and Columbia Heights are also interested in some represen- tation on this matter as they are having the same problems. The City Manager said his concern r�nv� was if the Council would direct him as to their participation in the program MOTION by Councilman Utter to approve the City Manager's attendance at the meet- ings, to have him express interest in the proposal and return to the Council wieh addrtional information on the program Seconded by Councilman Starwalt Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried. COMMUNICATIONS; � COON RAPIDS MAYOR: NORTH SUBURBAN YOUTH SERUICES CENTER MEETING The City Engineer said the letter from Donald G Erlandson, Mayor of Coon Rapids issued an invitation to Mayors of neighboring communities and all others �{Y PUB�.IC NEARING MEETING JANUARY 15, 1973 Page 11 willing to attend the �o mt meeting regarding the North Su6urban Youth Ser- � vices Center, Tuesday January 23, 7:OD p.m., in the Coon Rapids Council Chambers. MOTfON by Councilman Utter to receive the communication from Donald G. Erlandson, Mayor of Coon Rapids Dates 1-4-73 Seconded by Councilman Nee Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried unanimously MINNESOTA DEPARTMENT OF PUBLIC SERVICE: PROTECTING CENTRAL AVENUE CROSSING OF MINNESOTA TRANSFER RAILWAY, MOTION by Councilman Nee to receive the communication from J. W. Bolstad, Engineer of Railway Negotiations dated January 11, 1973, regardrng the proposed additional protection at the Central Avenue N.E. Crossing Seconded by Council- man Utter. Upon a voice vote, a�l vot�ng aye, Mayor Liebl declared the motion carried CONTINUED DISCUSSION OF FRIDLEY POLICE PENSlON ASSOCIATION RETIREMENT FUND: The City Manager asked the members of the Councii what their opinions were as how to approach the Police Pens�on Plan, as it has become a ma�or problem. He said the administration was seeking rea{�irmation or direction The Mayor expressed his desire for solid hard negotiation to meet the obligation Counc�iman Nee asked if it would be pussible to place the new men on pEitA. Councilman Utter said his opinion would be to raise the retirement age from � 50 to 55 and review the escalation clause every three years. The City Attorney said the members of the Police Pens�on Association want the Council to approve the Hewitt Plan, Councilman Nee said the problem with the Hewitt Plan would be getting the people thirty years from now to pay for the serv�ce done today. Councilman Nee said he was in favor of a pay as you go plan. He said he thought it would 6e better to pay more today than to e�,pect your children to pay for it in the future. The City Manager expressed concern at whether a sensible plan could 6e reached Mayor Liehl said the City had made a commitment in 1966 and in his opinion the City should comply The City Manager asked if the selection of new people should be delayed until some agreement is made on their retirement plan? Councilman Starwalt asked if it would be possible to hire them without telling them what the plan would be? The C rty Manager sa�d they would like to hire the new men soon to enable them to attend the rookie train+ng school, wh�ch is only offered once a year. Councilman Nee asked if it were possible to hire the men and place them on a PERA plan The City Attorney suggested they talk about dual plans as an alternative and see whah the reaction is. The City Manager said he would like some solid direction on a position of the Council to determine the City's obligations. � PUBLIC HEARING MEETING JANUARY 15, 1973 Page 12 � Mayor Liebl asked the Finance Director to prepare a report stating what the var�ous plans would wst. Mr. Brunsell asked if he were to assume there would be no changes in the Guidelines Act and use the present laws. He said he could work out a report on the alternative plan ot placiny �ew men on PERA Mayor Liebl asked the Finance Director to subinit this report at the next regular ineeting. ADJOURN: MOTION by Councilman Starwalt to ad�ourn the regular meeting. Seconded by Councilman Utter. Upon a voice vote, all voting aye, Mayor Liebl declared the motion carried and the regular meeting of January 15, 1973 ad�ourned at 10:25 p.m. Respectfully Submitted ��.�.� �. Patricia Ellis Council Secretary � � ��F �,