FSTFSR 01-10-1995 JAN - 16 - 95 MON 13 : 26 ELK RIVER MACH
JANUARY
10, 1995
• COMPENSATION TASK FORCE
ELK RIVER FIRE DEPARTMENT
SUMMARY OF PROPOSED FAIR COMPENSATION PACKAGE
THIS COMPENSATION PACKAGE WILL INCLUDE CHANGING THE PENSION FROM
DEFINED BENEFIT TO DEFINED CONTRIBUTION. THIS CHANGE WILL BE DONE
IN A FAIR AND EQUITABLE WAY THAT WILL NOT REGRESS ANY PENSION
ACCOUNT BALANCES. THE CHANGE NEEDS TO BE DONE SO THAT NO FIRE
FIGHTER, WHETHER NEW OR LONG STANDING MEMBER, IS TREATED
DIFFERENTLY THAN ANOTHER.
TOTAL BENEFIT WILL BE DEFINED AS FOLLOWS:
TOTAL BENEFIT= HOURLY PAY + BENEFIT PAY
HOURLY PAY IS DEFINED AS THE PAY THAT IS PAID DIRECTLY TO THE FIRE
FIGHTER.
BENEFIT PAY IS DEFINED AS THE PENSION PAY PER HOUR THAT GOES INTO
THE DEFINED CONTRIBUTION RETIREMENT PAY.
TOTAL BENEFIT HOURS WOULD BE APPLIED TO THE FOLLOWING HOURS:
HOURS WHILE ON A PAGED EMERGENCY CALL (MINIMUM 1 HOUR PER PAGED
EMERGENCY) .
ALL HOURS FOR TRAINING DRILLS AND FIRE RELATED SCHOOLING.
HOURLY PAY ONLY. . .WOULD APPLY TO THE FOLLOWING HOURS:
HOURS FOR COMMITTEE WORK THAT HAS BEEN PRE-APPROVED.
ALL WORK DUTY HOURS AT THE FIRE STATION.
• ALL FIRE MEETINGS.
THE TOTAL BENEFIT PAYMENT WOULD BE MADE UP OF THREE FACTORS:
1 ) HOURLY WAGE PAID TO THE FIRE FIGHTERS.
2) THE 2% STATE PENSION PAYMENT.
3) THE CITY OF ELK RIVER PENSION PAYMENT.
EXAMPLE: IF 5000 HOURS WERE PUT IN BY THE FIRE FIGHTERS IN ONE
CALENDAR YEAR 5000 hrs X $22.25 (RATE PAID IN 1991 ) = TOTAL
BENEFIT.
THE FIRE FIGHTERS WERE PAID $8 .00 PER HOUR IN 1991, SO THE BENEFIT
PAY WOULD BE $22.25 LESS $8.00 = $14.25 PER HOUR. THE CITY PENSION
PAYMENT AND THE STATE 2% PENSION PAYMENT WOULD BE 5000 X $14 .25/hr,
WHICH WOULD BE PUT INTO THE RELIEF ASSOCIATION PENSION FUND FOR THE
FIRE FIGHTERS . THE CITY'S PENSION PAYMENT WILL FLUCTUATE WITH THE
HOURS PUT IN AND WITH WHAT THE STATE 2% PENSION PAYMENT IS FROM THE
STATE OF MINNESOTA.
SPECIAL HOURLY PAY RATE WILL BE AS FOLLOWS:
HOLIDAYS WILL BE PAID AT A DOUBLE TIME RATE. THIS ONLY APPLIES TO
THE HOURLY P Y THAT THE FIRE FIGHTER RECEIVES AND NOT THE
BENEFIT PAY FATE. THESE HOLIDAYS ARE TO BE NEW YEARS DAY,
MEMORIAL DAY, 4th OF JULY, LABOR DAY, THANKSGIVING DAY,
CHRISTMAS EVE AND CHRISTMAS DAY.
NIGHT CALLS WOULD HAVE A 2 HOUR MINIMUM PAY BETWEEN THE HOURS OF
10:00 PM AND 6:00 AM.
•
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JAN - 16 - 95 MON 13 : 27 ELK RIVER MACH
HOURLY PAY WOULD HAVE A BASE RATE WITH THIS RATE CHANGING AS
•
FOLLOWS: PROBATIONARY FIRE FIGHTER BASE RATE LESS00.
$1hz
1
APPARATUS OFFICER BASE RATE PLUS $1.00/hr
CAPTAINS BASE RATE PLUS $1 .00/hr
ASSISTANT CHIEFS BASE RATE PLUS $2.00/hr
THE INDIVIDUAL FIRE FIGHTER COULD INCREASE THEIR OWN BASE RATE BY
GETTING ADDITIONAL TRAINING. THE RATE WOULD CHANGE BY $0.50/hr
AFTER THE FIRST 60 HOURS OF FORMAL TRAINING. FOR EACH ADDITIONAL 75
HOURS THE RATE WOULD INCREASE BY $0.25/hr. THE MINIMUM
PROBATIONARY TRAINING HOURS WOULD NOT COUNT TOWARDS THIS INDIVIDUAL
RATE CHANGE,
THE FIRE FIGHTERS WOULD GET THE SAME RAISE PERCENT AS THE REST OF
THE CITY EMPLOYEES GET. THIS WOULD BE APPLIED TO THE HOURLY RATE,
THE BENEFIT RATE AND THE TRAINING HOURLY PAY INCREASE.
THE PENSION PAY RATE WOULD BE THE TOTAL BENEFIT RATE LESS THE BASE
HOURLY RATE. AN INCREASE IN AN INDIVIDUAL' S PAY RATE WOULD NOT
EFFECT (LESSEN) THE PENSION PAY RATE.
•
•
Elk River City Council
Page 4
January 16, 1995
• 6.1 Review Municipal Utilities Legal Bill
COUNCIL MEMBER FARBER MOVED THAT THE ELK RIVER UTILITIES AND THE CITY OF
ELK RIVER SPLIT THE LEGAL BILL FOR SERVICES PERTAINING TO THE UTILITIES
SUPERINTENDENT'S CONTRACT AND THAT THE MONEY COME OUT OF THE 1994
COUNCIL CONTINGENCY. COUNCIL MEMBER HOLMGREN SECONDED THE
MOTION. MOTION CARRIED 5-0.
6.2 ISTEA Grant
Mayor Duitsman stated that Phil Hals is requesting that the City Adopt a
Resolution in support of the 1995 Federal ISTEA Grant application. He indicated
that in order to receive the funds,which will be used for improvements on the
railroad trail, the City must pledge financial support for 25% of the total cost,
totaling $69,375.00.
COUNCIL MEMBER DIETZ MOVED TO ADOPT RESOLUTION 95 - 2, A RESOLUTION IN
SUPPORT OF THE 1995 FEDERAL ISTEA GRANT APPLICATION. COUNCIL MEMBER
HOLMGREN SECONDED THE MOTION. MOTION CARRIED 5-0.
The Mayor updated the Council on the status of discussions held with the Fire
Department Task Force regarding a revised Compensation Plan for both hourly
wages and for the Relief Association Pension Fund.
• 6.4 Minnesota Pollution Control
Mayor Duitsman informed the Council of a Minnesota Pollution Control Agency
Conference being held on February 16, 1995.
6.5 Lions Park
Mayor Duitsman requested that the City send a staff person to discuss the use of
Lions Park with the Lions. Council Member Holmgren suggested that the Park
and Recreation Board resolve the issue. It was the consensus of the Council that
the Park and Recreation Commission discuss the issue and make a
recommendation to the City Council.
6.6 Towing Bill
Mayor Duitsman requested that the Police Chief discuss the towing bill the City
received for towing the squad car that was damaged by the train. Discussion
was held regarding the high cost of the towing bill. It was suggested that the
City consider going out for bids for towing services.
6.7 Moratorium on R-4 Development
Mayor Duitsman indicated at the last Comprehensive Plan Steering Committee
meeting the Committee adopted a resolution requesting the City Council to put
• a Moratorium on R-4 Development until the new Growth Management Plan is
completed.
ELK RIVER FIRE DEPARTMENT
FAIR COMPENSATION TASK FORCE
SUMMARY OF PROPOSED COMPENSATION ITEMS
IIICOMPENSATION DEFINED IN TWO CATAGORIES:
1) PENSION �.
2) HOURLY PAY
THIS COMPENSATION PACKAGE WILL INCLUDE CHANGING THE PENSION FROM
DEFINED BENEFIT TO DEFINED CONTRIBUTION. THE TOTAL DOLLAR PER YEAR
WILL BE BASED ON THE TOTAL HOURS PUT IN AT A RATE OF ($19.00 PER
HOUR-HANKS PROPOSAL OR $22.25 PER HOUR—RATE PAID IN 1991) . THIS
RATE WOULD BE MADE UP OF THREE FACTORS:
1) HOURLY WAGE PAID TO THE FIREFIGHTER BY
THE CITY OF ELK RIVER.
2) THE 2% STATE PENSION PAYMENT.
3) THE CITY OF ELK RIVER PENSION PAYMENT.
THE CITY'S PENSION PAYMENT WILL• FLUCTUATE WITH THE HOURS PUT IN AND
WITH WHAT THE STATE PENSION PAYMENT IS.
HOURS PAID TO BE DEFINED AS FOLLOWS:
EACH FIRE CALL WILL BE PAID MINIMUM OF 1HOUR.
IF IT 'S PAGED IT IS PAID (ALL CALLS WILL BE RECORDED)
ALL TRAINING DRILLS AND FIRE RELATED SCHOOLING.
COMMITTE WORK THAT HAS BEEN PRE—APPROVED.
ALL WORK DUTIES AT THE FIRE STATION. Cg
ALL FIRE MEETINGS.
• SPECIAL RATE PAY WILL BE AS FOLLOWS:
HOLIDAYS (DEFINED BY CITY OBSERVED HOLIDAYS) 7 S yC
WILL BE PAID AT A DOUBLE TIME RATE ON WAGE PER
HOUR PAID TO THE FIREFIGHTER.
NITE CALLS WILL HAVE A 2 HOUR MINIMUM PAY BETWEEN -- 7
THE HOURS OF 10 PM TO 6 AM.
HOURLY PAY WOULD HAVE A BASE RATE. THIS RATE WOULD BE THE HOURLY
PAY A THE TIME ACCEPTED AS A FIREFIGHTER AFTER THE COMPLETION OF
THE PROBATIONARY PERIOD. RATE CHANGES AS FOLLOWS:
PROBATIONARY FIREFIGHTER BASE LESS $1 . 00 PER HOUR. ( c --
APPARATUS
c APPARATUS OFFICER BASE PLUS $1.00 PER HOUR.
CAPTAINS BASE PLUS $1 .00 PER HOUR.
ASSISTANT CHIEFS BASE PLUS $2.00 PER HOUR.
ADDITIONAL TRAINING (AFTER PROBATIONARY PERIOD) WOULD RESULT IN A
WAGE INCREASE. THE RATE WOULD CHANGE BY $0.50 PER HOUR FOR THE
FIRST 60 HOURS OF FORMAL TRAINING. THE RATE COULD THEN BE
INCREASED BY $0.25 PER HOUR FOR EACH ADDITIONAL 75 HOURS OF FORMAL
TRAINING.
L.., c -
411
3; I ,
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HOURLY PAY ESTIMATES
TOTAL STATE CITY HOURLY
• YEAR HOURS 2% CONTRI. PAY
1981 1250* 20512 $24.41
l,
1982 1400* 20818 $22.87 •
1983 1764* 20214 $19.45
1984 1932* 20939 $18.84
1985 2128* 22646 $18.64
1986 2460* 26997 11000 $23.45
1987 2670* 30837 11000 $23.67
1988 2850* 33509 15000 $25.02
1989 3570* 36297 15000 $22.36
1990 3780* 38221 18100 $22.90
1991 4032 38907 19000 $22.36
1992 5171 38590 19000 $19.14
• 1993 5277 38514 19000 $18.90 .
1994 5907 41526 19000 $18.24
*ESTIMATED HOURS ONLY, NO HARD DATA AVAILABLE AT TIME OF
CALCULATIONS.
•
MEMORANDUM
TO: Pat Klaers, City Administrator
FROM: Lori Johnson,Finance Director
DATE: January 3, 1995
SUBJECT: Elk River Fire Department Compensation Task
Force
As requested, here is an update on the progress of the Fire Department Compensation
Task Force. Our last formal meeting was held on Wednesday, October 12, 1994. At that
time, the Task Force agreed that the next step should be to have informal small group
discussions with the Fire Department membership in order to present to them the facts on
both the defined benefit and defined contribution plans.
Steve Eide met with the Fire Department membership on November 15 and November
17. There were approximately fifteen firefighters present for each of those meetings.
Steve Eide has worked with several fire departments in their conversion from defined
benefit to defined contribution. He presented information to the firefighters on each of
the plans. In addition,he answered questions from the firefighters and showed examples
of the estimated account balances based on defined benefit and defined contribution
plans. One of the main concerns of the firefighters present at the meetings was whether
or not they would lose anything in the conversion. I informed them that their balances
would not decrease due to the conversion, and, in fact, some of their values would
increase based on the present value calculations as previously prepared by the Wyatt
Company. Both of the meetings were very productive as they gave members an
opportunity to have questions answered and concerns addressed.
The Task Force did not meet in December due to the schedules of some of the Task Force
members. The next meeting will be scheduled for some time in January. At this meeting
the Task Force will review the November meetings and discuss the steps necessary in
order to bring these issues up for approval by both the Fire Department membership and
the City Council so that the work of the Task Force can be concluded.
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