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3.4. SR 02-08-1993 ITEM 3.4. TO: MAYOR & CITY COUNCIL FROM: LORI JOHNSON, FINANCE DIRECTOR DATE: FEBRUARY 5, 1993 SUBJECT: VOLUNTEER FIRE RELIEF ASSOCIATION APPOINTMENT OF EX-OFFICIO TRUSTEE Minnesota Statute 424A.04 states that a Board of Trustees shall be set up to manage the Fire Relief Association and that the Board shall consist of nine members; six trustees to be elected from the membership of the Relief Association and three ex-officio trustees consisting of the Mayor, the Finance Director, and the Fire Chief. In the past, if the Mayor has not been able to attend, one of the other Councilmembers has been appointed to this position. . The ex-officio trustees of the Board are voting members of the Board as are the six appointed trustees. It is the duty of the Board of Trustees to plan and manage the Relief Association's investments as required by Minnesota Statutes. The trustees also work with the Relief Association and the City Council in determining the retirement pension amount. The trustees also handle other minor Relief Association issues as they come forward. The by-laws of the Relief Association require that at least four meetings be held each year. These are typically held over the lunch hour at the Fire Station and last approximately one and one-half hours. If necessary, special meetings may be called by the Presidept. Since all of the activities required by the Board can pormally be taken care of at the four scheduled meetings, special meetings are very infrequent. Although the time commitment to be a member of the Relief Association is not that great, the issues addressed are sometimes complex. . The first Fire Relief Association meeting for 1993 is scheduled for February 9. In that regard, on Monday a Councilmember should be appointed to this position if Mayor Duitsman is unable to attend or feels it more appropriate to appoint someone else. I~ you have any questions regarding the Relief Association or the duties of a trustee, please feel free to contact either RU~S Anderson, Fire Chief, Jim Nystrom, President of the Relief Association, or me. I have also attached a copy of the by-laws of the Relief Association to help you become more familiar with the Relief Association. The Relief Association has cash and investments in excess of $500,000. 720 Dodge Avenue N.W., Elk River, Minnesota 55330 (612) 441-7420 . . . ;. r~!:' p~.~ D FEB 0 3.'993 ljl\la...l'~\~ February 2, 1993 Mr. Hank Duitsman, Mayor City of Elk River 720 Dodge Avenue Elk River, MN 55330 Dear Mayor Duitsman: My name is Bob Pearson. I am the secretary for the Elk River Fireman's Relief Association. As mayor, you are an ex officio of our organization; therefore, I am writing you to invite you to our quarterly meeting. This meeting will be held on February 9, 1993 at 12:00 noon at the fire station. Lunch will be provided. In the past, Jim Tralle was unable to attend, so he designated Gene Schuldt as the city's representative. Also, Lori Johnson has been a regular - attendee. I hope you are able to attend. Sincerely, Bob Pearson . . . BYLAWS OF THE ELK RIVER FIREMAN'S RELIEF ASSOCIATION ARTICLE 1 MEMBERSHIP section 1. Any regular active member of the Elk River Fire Department who is under 35 years of age shall be eligible for membership in this association. section 2. Resignation from the Elk River Fire Department or moving from (the vicinity of) Elk River to take up residence elsewhere, shall terminate the membership of the member so resigning, expelled or removing; provided , however, that any member who has served for at least the minimum number of years required by Article VIII of these bylaws for vesting of pension rights as an active member of the Elk River Fire Department shall retain membership in this association, regardless of resignation, expulsion or removal, subject to paYment of dues and such other regulations which may be from time to time imposed. Section 3. Each member shall pay to the association annual dues of $1.00 payable on or before the date of the annual meeting of each year. Section 4. Any member who shall, in the oplnlon of a majority of the board of trustees, fraudulently claim benefits from, or defraud or attempt to defraud the association in any way, shall be suspended from membership by the board, and shall forfeit all further rights to benefits from the association. Section 5. Any suspended member can only be reinstated upon his application therefor in writing, presented at a regular or special meeting of the association, accompanied by a sum of money equal to what he would have been required to pay to the association during the period of suspension had he not been suspended, plus a reinstatement fee of $1.00 upon the favorable vote of 2/3 of the members present and voting at such meeting. If the application for reinstatement is rejected, the money accompanying the same shall be returned to the applicant. ARTICLE II BOARD OF TRUSTEES Section 1. The board of trustees shall be composed of the following: a President, a Vice President, a Secretary, a Treasurer, and two general trustees, each of whom shall be elected for a term as specified in this Article, or until his successor has been elected an qualified, at the annual meeting of the association from its members, and the statutory ex officio trustees; the Chief of the Elk River Fire Department, the Mayor and the Financial Direct9r of the City of Elk River. 1 . section 2. At the first election following the adoption of these bylaws, the two general trustees shall be elected for terms of one year; the President and the Treasurer shall be elected for terms of of two years; and the Vice President and the Secretary shall be elected for terms of three years. Thereafter, as their respective terms of office expire, two officers or general trustees shall be elected for three year terms at each annual meeting. If a vacancy (other than a vacancy caused by removal for cause of an officer or trustee) occurs during the term of office of any officer or general trustee, the remaining members of the board of trustees shall elect a member of the association to serve for the unexpired term of the vacated position. . Section 3. A general trustee or officer may be removed for cause. Cause for removal shall include, but not be limited to, the breach of the duties as set forth in Articles II and III of these bylaws. One or more of the trustees or officers may be removed at a meeting of the membership which is called for that purpose by a 2/3 vote of those present and voting at such meeting. Noticeof the meeting at which removal is to be considered shall be given to each member and shall include the purpose of the meeting. The general trustee of officer shall be furnished with a statement of the particular charges at least 5 days before the meeting is held. At the meeting, the general trustee or officer shall be given an opportunity to be fully heard as to each charge. If a general trustee or officer is removed, his replacement shall be elected at the same meeting, and such replacement shall serve out the unexpired term of the removed general trustee or officer. Section 4. It shall be the duty of the board of trustees to prepare modes and plans for the safe and prpfitable investment of the unappropriated funds of the association, and whenever loans or investments are made, to investigate and pass upon the securities offered and to attend to the drawing and execution of the necessary papers. The board shall order an audit of the books and accounts of the secretary and the treasurer annually, according to law, and shall submit a written report of the condition of the association to the members at the annual meeting. Section 5. The investment of the funds of the association shall be in the exclusive control of the board of trustees, in conformance with the state statutes. Section 6. The members of the board shall act as trustees with a fiduciary obligation to the members of the association, to the city of Elk River and to the state of Minnesota. . 2 . . . ARTICLE III DUTIES OF OFFICERS Section 1. It shall be the duty pf the President to attend and to preside at all meetings of the association and of the board of trustees. He shall enforce the due observance of the Articles of Incorporation and the bylaws and see that the officers properly perform the duties assigned to them. He shall sign all checks issued by the Treasurer and all other papers which require his signature. He shall be a member of all committees except the aid commi ttee and he shall exercise careful supervision over the affairs of the association. He shall receive such salary as may be fixed from time to time by the board of trustees, subject to approval of the association, and payable from the Special Fund of the Association. section 2. It shall be the duty of the Vice President to perform the duties of the President in his absence. In the absences of both the President and the Vice President, it shall be the duty of the association to elect a President Pro Tem, who shall perform the duties incident to the office. section 3. It shall be the duty of the Secretary to keep a true and accurate record of the proceeding of all meetings of the association and of the board of trustees. He shall keep a correct record of all amendments, alterations and additions to the Articles of Incorporation of the bylaws in a separate book from the minute books of the association. He shall cause due notice of all special meetings of the association and of the board of trustees to be given. He shall receive all moneys due the association and pay the same over to the Treasurer, taking a receipt for the same, and failing to do so, he may be impeached and expelled from the association. He shall keep a roll of membership, with the date of joining, resignation, discharge, leaves of absence, dues and assessments paid and relief or pensions furnished. His books shall at all times be open to inspection by the board of trustees. Prior to entering upon the duties of his office, he shall give a bond in such amount and with such sureties as may be required and approved by the-board of trustees, conditioned upon the faithful discharge of his trusts and the full performance of the duties of his office. Such bond will be paid for from the Special Fund of the Association. He shall sign all orders for payment issued to the Treasurer, and jointly with the Treasurer, prepare and file all reports and statements required by law. He shall receive such salary as may be fixed from time to time by the board of trustees, subject to approval of the association, and payable from the Special Fund of the association. 3 . . . section 4. It shall be the duty of the Treasurer to receive from the Secretary all funds belonging to the association and hold them subject to the order of the President and countersigned by the Secretary. He shall keep separate and distinct accounts of the Special and General Funds, and shall prepare and present to the board of trustees a full and detailed statement of the assets and liabilities of each fund at each meeting of the board of trustees, and prior to the annual meeting of the association. Failing in his obligation, he may be impeached and expelled from the association. He shall deliver to his successor in office, or to any committee appointed by the board of trustees to receive the same, all books, moneys, papers, and other items pertaining to his office immediately upon the expiration of this term of office. Prior to entering upon the duties of this office, he shall give a bond in such amount and with such sureties as may be required and approved by the board of trustees, conditioned upon the faithful discharge of this trust and the faithful performance of the duties of this office, to be paid for from the Special Fund of the association. Jointly with the Secretary, he shall prepare and fill all reports and statements required by law. He shall receive such salary as may be fixed by the board of trustees from time to time, subject to approval of the association, and payable from the Special Fund of the association. section 5. There shall be an Aid Committee, composed of the Vice President and two other members of the association, who mayor may not be members of the board of trustees, appointed by the President. The Vice President shall be the chairman of this committee. The duty of the committee shall be to make provisions for assistance to be rendered to each sick or disabled member, and to the survivors of any deceased member. ARTICLE IV MEETINGS section 1. The annual meeting of the association, for the election of officers and trustees, and other business, shall be the same date as the Annual Meeting of the Fire Department. section 2. The board of trustees shall meet at least ~ times during each year. section 3. Special meeting of the association or of the board of trustees may be called by the President, or 2 members of the board of trustees, and shall also be called upon written request of 6 or more members of the association. Members or trustees shall be notified by the Secretary of such special meetings, and the object of the meeting shall be contained in such notice. 4 . section 4. A majority of the board of trustees then in office, and 40% of the members of the association shall constitute quorum for the transaction of business at their respective meetings. Less than a quorum may adjourn a meeting to a future time, which the Secretary,shall make known to the affected members. section 5. All reports resolutions should be submitted in writing and no report shall be accepted unless it is the report of a majority of a committee, provided, however, that a minority shall be permitted to present its views in writing. Section 6. All meetings shall be conducted according to Robert's Rules of Order, as revised. section 7. The Order of Business shall be: . 1. Call to order 2. Roll call 3. Reading of minutes of previous meeting 4. Reading of reports and minutes of board of trustees' meetings 5. Reports of officers 6. Propositions for membership 7. Reports of special committees 8. Unfinished business 9. Election of officers or trustees (annual meeting) 10. New business 11. Adjournment ARTICLE V FUNDS Section 1. The funds received by this association from dues, fines, application fees, entertainments and other miscellaneous sources shall be kept in the General Fund of the association on the books of the Secretary and the Treasurer, and may be disbursed for any purpose reasonably related to the welfare of the association or its members, as authorized by a majority of the members present and voting at any annual or special meeting of the members. Section 2. All funds received by the association from any tax sources and all funds or property donated or granted to the association for the benefit of this fund shall be kept in a special Fund on the books of the Secretary and the Treasurer and shall not be disbursed for any purpose except those specifically authorized by law. . 5 . section 3. No disbursement of funds of this association shall be made unless signed by the Treasurer and countersigned by the President. Except when issued for salaries, pensions, and other fixed charges, the exact amount of which has previously been determined and authorized by the board of trustees (or members, in case of disbursements from the General Fund) no check shall be issued until the claim to which it related has been approved by the board of trustees. section 4. All money belonging to tnis association shall be deposited to the credit of this association in such banks, trust companies, savings and loan associations or other depositories as the board of trustees may designate. ARTICLE VI APPLICATION FOR BENEFITS . Section 1. All applications for relief or pension benefits shall be made in writing on forms furnished by the Secretary. Section 2. All applications for pensions shall be submitted to the board of trustees at a regular or special meeting of the board. Applications shall be verified by an oath of the applicant and shall state the age of the applicant, the period (or periods) of service in and the date of retirement from active duty in the Elk River Fire Department, the length of time he has been a member of the association, and such other information as the board of trustees may require. Section 3. No benefits or pensions shall be paid until the application therefor has been approved by a majority vote of the board of trustees. Decisions of the board shall be final as to the payment of such benefits or pensions. No other benefits shall be paid to or on behalf of any member who has received a service pension. Section 4. For purposes of computing benefits or pensions payable under Article VII and VIII, a year of service shall be defined as a period of 12 full months of active duty in the Elk River Fire Department, beginning on the date when the member became an active firefighter in said Fire Department. If a member's period of active service has not been continuous, parts of years may be added together to compute full years. Section 5. Because the special fund contains many lopg term investments. retiring members are requested to voluntarily submit their intentions to retire at least 12 months before their retirement date. Prior announcement of retirement is strictly voluntary and failure to do so will not affect. pensions. . 6 . . . ARTICLE VII SICK AND DISABILITY BENEFITS section 1. If a member of this Association shall become totally and permanently disabled, to the extent that a physician or surgeon acceptable to the board of trustees shall certify that such disability will permanently prevent the said member from performing his duties in the Elk River Volunteer Fire Department, ~ Association shall pay to such member the sum of the vested amount in his service account. or at a minimum equivalent to three times the yearly rate of retirement benefits. ARTICLE VIII DEATH BENEFITS AND PENSIONS section 1. Upon the death of any member of the association who is in good standing at the time of his death, the association shall pay to the surviving spouse, if any, and if there is no surviving spouse, to surviving child or children, if any, and if no child or children survive, to the estate of such deceased member, the sqm of Sl~OO.OO for each year tl1at he served as an active mEilmber of tl)e Elk River Fire Department or a minimum equivalent to three times the yearly rate of retirement benefits. section 2. The association shall pay to each member who shall have served as an active firefighter in the Elk River Fire Department for a period of 20 years or more prior to his resignation from said Fire Department, and who has reached the age of 50 years of more, and who has been a member in the association for at least ~ years, the sum of $1900.00 for each year that he served as an active member of said Fire Department. Section 3. A member of the association who shall have served in the Elk River Fire Department for at least 20 years, but has not reached the age gf 50 years may retire from said Fire Department and be placed on the deferred pension roll. When he reaches the age of 50 years, and provided that, at that time, he has been a member of the association for at least 2 years, upon application therefor he shall be paid the sum of $1900.00 for each year that he served as an active firefighter in the Elk River Fire Department. During the time that a member is on the deferred pension roll, he shall continue to pay his dues, and he will not be eligible to receive any of the benefits provided for in Article VII. Section 4. During the time that a member is on the deferred pension roll, the association shall add to the amount payable to such member interest, compounded annually, at the rate actually earned on the a.. eta of the SpQcial Fund, bu~ not to 8xcaad 5' par year. 1 . . . section 5. If a member shall have served for more that ~ years, but less than 20 years, as an active firefighter in the Elk River Fire Department, he may retire from said Fire Department and be placed on the early vested pension roll. When he reaches the age of 50 years, and provided that at that time he has been a member of the association for at least ~ years, he shall upon application therefor, be paid in the following manner: (a) For active duty of more than 2 years, but less than ~ years, 40% of the amount per years of service which would have been earned, had the member served for 20 years or more. (b) For active duty of more than Q years, but less than 20 years, 4% of the amount per year of service which would have been earned, had the member served for 20 years or more, shall be added to all years of service for each additional.year of service between Q and 20 years. (c) During the time that any member is on the early vested pension roll, he shall continue to pay his dues, and he will not be eligible to receive any of the benefits provided for in Article VII. Pension payable to members on the early vested pension roll shall be based on the amount payable per year of service in effect at the time of such early retirement. ARTICLE IX AMENDMENTS section 1. The bylaws of this association may be amended at any regular or special meeting of the association by a favorable vote of 2/3 of the members present and voting, provided that a quorum is present; and provided further that notice of any proposed amendment or amendments shall be given by reading the same at a regular or special meeting not more than 31 days next preceding the date upon which such amendment or amendments are to be acted upon, and that a notice be mailed to each member at his last known address not less than 10 days prior to such meeting; and provided further, that if such amendment or amendments shall change the amount of the benefits or pensions, approval of the city council of Elk River must be obtained before such change may take affect. 8