04-03-1997 CC MINSPECIAL MEETING OF THE ELK RIVER CITY COUNCIL
HELD AT THE ELK RIVER FIRE STATION
THURSDAY, APRIL 3, 1997
Members Present:
Mayor Duitsman, Council Members Dietz, Thompson, Farber, and
Holmgren
Members Absent: None
Staff Present:
Pat Klaers, City Administrator; Sandra Thackeray, City Clerk; Lori
Johnson, Finance Director; and Bruce West, Fire Chief
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Elk River City Council
was called to order at 7:00 p.m. by Mayor Duitsman.
Flood Update
Fire Chief Bruce West updated the Council on the possibilities of flooding of the
Elk and Mississippi Rivers.
Fire Department Compensation Proposal
Mayor Duitsman indicated that the City is interested in arriving at a total
compensation package for firefighters. He reviewed the proposal for changing
the existing retirement plan from a defined benefit to a defined contribution type
of plan. He indicated that the city is also interested in paying the firefighters
based on the amount of service they provide. Mayor Duitsman explained the
different components of the wages section of the plan including training pay,
pay structure, and holiday pay. Mayor Duitsman explained that with this new
plan, firefighters need not wait 20 years to be vested. He stated thaf the vesting
period could be as early as one year.
The firefighters had several questions/comments regarding the proposal.
They indicated that they did not want the benefit plan changed until the
City is fully developed as City development or value affects the amount
received from the State.
Tying the wage to hours served may prevent firefighters from working
efficiently and therefore would offer no incentive to cut hours.
It was suggested that the 2% state aid be eliminated from the "total pay"
calculation.
The firefighters were concerned about a possible drop in the stock market
and the possibility of losing their retirement fund. With the present plan,
they are guaranteed a certain amount of money upon retirement based
on years of service.
City Council Minutes
April 3, 1997
Page 2
The firefighters indicated that it is the retirement money and the 20 year
vesting period that keeps the firefighters in the department for the long
term.
Mayor Duitsman stated that if it is not the desire of the firefighters to consider or
accept this proposal, then the staff and firefighters should work together toward
another plan that is acceptable to both parties. Mayor Duitsman stated that the
firefighters provide a valuable service to the City. He indicated that he wants to
work together to come up with a plan that is acceptable to both the City and
the firefighters as soon as possible.
It was the consensus of the Council and the firefighters to reconstruct the Fire
Compensation Task Force. Randy Sykes indicates that the Task Force has drafted
a proposal that they would like to present to the Council. Mayor Duitsman
indicated that the Council would be willing to consider the proposal as a starting
point and stated that he would like to see the Task Force and Council work
together toward a plan that is agreeable to all. Mayor Duitsman indicated,
however, that the City is more interested in raising the $8.00 per hour wages and
not the pension benefit. He stated that the City is interested in paying the
firefighters for the hours of service they provide.
Adjournment
There being no further business, COUNCILN%EMBER FARBER MOVED TO ADJOURN
THE COUNCIL MEETING. COUNCILMEMBER THOMSON SECONDED THE MOTION. THE
MOTION CARRIED 5-0.
The meeting of the Ell( River was adjourned at approximately 8:30 p.m.
Respectfully submitted,
Sandra Thackeray
City Clerk
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