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90-2131 . �'I� � t7 l �V i`��„ , ' Sc.�-bs-�-i-}u.�e - 2�3 I Council File � qU ' Green Sheet # RESOLUTION CITY OF SAINT PAUL, MINNESOTA Presented By Referred To Committee: Date 1 2 , 3 4 5 WHEREAS, Mi esota Statutes, Chapter 353A, authorizes a local police 6 or salaried firefig ters r lief association to consolidate with the Public Employees Police and Fire 7 Fund (PERA-P& ) wit the approval of a majority of the membership and of the municipality; and 8 , 9 10 WHEREAS, a m�jority of the voting membership of the Saint Paul Fire Department Relief 11 Association has approv d the consolidation of the relief association with PERA-P&F in a 12 referendum held on thait question; and 13 14 �' 15 WHEREAS, the City Gouncil of the City of Saint Paul has given preliminary approval of the 16 consolidation of the relief association with PERA-P&F in a resolution adopted for that purpose; 17 and 18 ' 19 20 WHEREAS, actuarial calculations preliminary to consolidation required under Minnesota Statutes, 21 Section 353A.05, �ave been completed and have been communicated to all affected parties; and 22 23 24 WHEREAS, the �urren�,t legislatively mandated assumptions for a consolidating relief association 25 produce a substantially !different funding schedule than is required for a local relief association 26 under current loc�l relief association assumptions, and 27 28 29 WHEREAS, there doeS not appear to be any reasonable arguments for changing assumptions under 30 a consolidation saenario, NOW, THEREFORE, BE IT 31 i ,I C�� INAL � ��o -ai,�� ', ' _2- I �', RESOLVE�, that the City Council of the City of Saint Paul hereby xpr sses its intent to approve the consolidation of the Sai�t P ul Fire Deaprtment Relief Association with the Public �mpl yees Retiremen'c Association in the event that: 1 ) legi$lat ' ve action allows a consolidating local relief association to continue to use the same actuarial assumptions that are inieffect for the local relief association at the time of con olidation; and 2 ) the City Council determines after a pub ic hearing on this rnatter that the long-term costs of consolid tion under these new legislative assum�tions are not greaterlthan costs under the current relief association plan. I Na s Absent iaron Ye� � Requested by Department of: oswi z � on acca ee 'c`— e msn —�- � u e i son li � �— BY� ' ,IAN 3 1 i99� Form Approved by City Attorney Adopted by Counc'�il: bate Adoption Certifi�ed by Council Secretary By: \ BY° Approved by Mayor for Submission to Approved by yo�: Date� FE B - 4 1991 Council B �x.t,/„�,�(��1 BY: Y� 'P1IBtiSNEB FEB -�� I4�! � ' C�qo-�r3� 1 � �n -tt,e e��'`t�-= 2 �� l �F -�- ��' .��p rpssc�� n-�n}- -�a 3 RESOLVED, that' the C�ity of Saint Paul hereb '.approv�the consolidation of the int Paul Fire 4 De artment Relie As� ciation with the Public�m lo ees Retirement Associatio�' p � P Y $ • 1) legislative action A� allows a 6 consolidating loc relie association to continue to use the same actuarial assumptions that are in 7 effect for the loca relie association at the time of consolidation; and 2) the Cifiy Council 8 determines after publi hearing on this matter that the long-term costs of consolidation under 9 these new legislati e ass mptions are not greater than costs under the current relief association 10 plan. ' � I �, � , � Yea�s Nays Absent Requested by Department of: imon _�_ oswitz �_ on _�_ acca ee � ettman une gy; z son �_ ' Form Approved by City Attorney Adopted by Counci�l: ate Adoption Certified bylCouncil Secretary gy; I By: Approved by Mayor for Submission to Council Approved by Mayo�: Dlate By: By: I . �� %�aa"�� . �cr.f�lU�D u11�I IIID (�ITY OF �AINT PAUL J�i`��01991 OFFICE OF THE CITY COLJNCIL Members: L.`�r'i' r" r�=' Janice Rettman, Chair , Roger Goswitz Paula Maccabee JANICE RETTMAN JOE COLLINS Counplpereon ' Legislative Assistant ' COMMITTEE REPORT KATHY ZIEMAN I�INAI�CE� MANAGEMENT� AND PERSONNEL COMMITTEE �lati`'e.�sa�st�t JANUARY 28, 1991 II l. Call to ordei�• introduction of inembers staff uests• announcement of � > > 9 � sign-u�; she� a�proval of minutes of December 17 and January 7 meetings. Minutes werelapproved. 2. Resolution 9�-2131 - approving consolidation of the Saint Paul Fire Department R�lief Association with the Public Employees Police and Fire Fund. ,�Referred from Council 12/06/90) Substitlute rlesolution was approved 4-3. (Ayes - Goswitz, Long, Maccabee Thune; Nays �- Dimond, Rettman, Wilson) i � I � i � CITY HALL , ROOM NO.718 SAINT PAUL,MINNESOTA 55102 612/298-5289 Sa�46 I Printed on Recycled Paper I I ` . � L � ,�� I �� ouncil File # � o?�� - � . Green Sheet ,� / RE T10N CITY L, MINNESOTA Presented y Referred To � �C� Committee: Date �� (, - �� '\ �, . � WHE EAS, M nesota Statutes, Chapter 353A, authorizes a local po ice or s laried firefighters relief association to consolid2�te ith t Public Employees Police and Fire Fund (PERA- P&F) with th appro �1 of a majority of the membership and of the municipality;' and �,� WHEPtEAS, a majorit�of the membership of the Saint Paul Fire Departmemt Rejlief Associa ion has approved the consolidation of the reli�f association wit PERA-P&F in a referendum held on that questionf and WHEREAS, the City Council f the City of Saint Paul has given preliminary approval of t consolidation of the relief association with PERA-P&F in a re olution adopted for that purpose; and - WHE�tEAS,i actuarial calculations reliminary to consolidation required und r Minnesota Statutes, Se ion 353A. 05, have been completed an� have been communicated to all affected parties; and NOW, TH�REFORE, BE IT RESOLVED by th City Council of the City of aain� Paul that consolidation of t e Saint Paul Fire Departmemt R�lief Association with the Publ c Employees Poliee and Fire Fund is given final approval under innesota Statutes Section �53A. 06, effective February 28, 1991. Ye�s Navs Absent Requested by Depar ent of: s.mon oswi z on acca ee _„_ e t man _,,,,_ une z son � BY� ' Form App ed by City Attorney Adopted by Counc l: ate Adoption Certifi�d by, Council Secretary , i BY' ` By= App ov by Ma for Submission to Approved by Mayo�: bate Cou c' .�: �� By• By: '- n�.. ,a��i ��,�- q CEPAiiTMENTIOFFlCFKOUNqL• DATE INITIATED � " ^"�^ � � I ' ' ' GREEN SHEET No. F M Serv ces Nov. 5 1990 CONTACT PERSON d PHONE I ITI DATE �DEPARTMENT DIRECTOR �GTY WUNCIL Gary Norstrem �� Q CITY ATTORNEY y �CITY(XERK MUBT BE ON COUNdL AOENDA,BY T� ROUTU�Ki �BUDOET aRECTOR �FlN.6 MOT.8ERVICEB DIR. I '�i November 20, 1990 ❑3 MAYOR(OR ASSISTAN � TOTAL At OF 81GNATURE QiEB � (CLIP ALL LOCATION8 FOR SIGNATURE7 ACTION REOUESTED: Pass Council Resolutio appr ing consolidation of the Saint Panl Fire Department Relief Association with PERA. f�c�oA�ENOn7ioNS:Mv�W o► (� WUtiql. RHPORT �TIONAL ANALYBT PFIONE N0. _PLANNINfi COMMISSION dVIL ERVICE COMMIS810N _C�COMMI7TEE WMMENT8: _STIIFF _DI8TRICT OOURT SUPPORTB WNlpi OOUNqL OBJE 4 IIWTIA71N0 Pt�BLEM,ISBUE, ITY ,MIhN.Whsn,Whsre,1NhY): The Relief Association has v ted to consolidate with PERA and the City must give final approval or denial. ADVANTAOES IF 11PPF�NED: It provides members di feren retirement options or altematives. Over time, it is expec ed th t consolidation v�ould lower the City�s contribution to the plan. The Cfty contribution or Fi e Relief Association active and retired members will drop substanciallp in 1991. DIBADVAMTRGES IF MPROVED: fl�ture Citp contributi ns ar speculative. They depend on actuarial assumptions relating to salary increases and investment retum. If the a tuarial assumptions wark agalnst the City, costs will increase. �ouncii ��c�^rch Center a NOV 2 �� 1990 018ADVANTA3E8 If NOT APPF�VE : Since the future is u nown, the amount of savinqs to the City cannot be determined. If the resolution fails, there rrill be no savi s to he City taxpapers in 1991 or 1992. If the resolution fails, and the St. Paul members would have ma ' choi es similar to other relief associations that have consolidated, St.°Paul �ill miss an opportunity fo futu e reductions in fundinq these pensions. RECEIVED NOV2319.90 TOTAL AMOUNT OF TRAN8A COST/REVENUE SIlaiETBD(qRCLE OIiLh YE8 NO FUNDINO 80URCE ACTIVITY NUMOER FINANCIAL INFORAAIITION:(EXPW dw l • '• � " ° '� � � �'C� '�13� GGQ ��Qa.e-•-`- .. . �,pt�t r i oi s. CITY OF SAINT PAUL ° � OFFICE OF THE CITY ATTORNEY a �i�til ft11t � ', � Ilil 1 ii 11 a . �°+ n ,s•• JANE A. MC PEAK, CITY ATTORNEY � 647 City Hall,Saint Paul,Minnesota SS102 612-298-5121 JAMES SCHEIBEL F�c 6ia-29a-5619 MAYOR January 7 1991 Council P esi ent william wilson �Fr�FiVEO 7th Floor �� g1991 City Hall Saint Pau�, M nnesota 55102 ClTY ClERK Re: Cons lid�tion of Local Fire Relief Association Janu ry �1, 1991 Public Hearing Dear Coun�il President Wilson: I The proposed consolidation of the local fire relief associatibn w�.th the Police and Fire PERA is presently under consideration before the Finance, Management and Personnel Committee. Tl�e Committee has continued its deliberations until Monday, Janua�y 28th at 1: OO,rand indicated that it will place the issue on the City Council agenda for Thursday, the 31st of January. Accarding to Minnesota State law, the Council is required to consider the question of approval of consolidation at a public hearing held '�or that purpose within one month after receiving the final, repbrt from the executive director of the public employee� retiirement association. , , _ . _..., ,, :. - , _ .. __ . :. . _ :. ,. , .. _ .. .: . .___... . . .., . - -- � � �" � � ,, , � . � � ; � �n ,�� The purpase of this letter is to remind you that the Council should scl�edu e a public hearing on the question of consolidation 31 for its Janua y� 1991 meeting. The scheduling of the hearing may be accomplished by motion made at a regular Council meeting with direction to the City Clerk to place the question on the official Coun�il agenda for January 31, 1991. - If I can be of further assistance please notify me. Yo s tru�y, � � ,Cvvw/'' �� JE +ME J. SE�G " j�Ass stant City Attorney � , J.J�S:s cc: Councilm�mbers City Clerk City TreAsurer _ I �' ,II I ,�I i ,..... . .. ._.. . .. ....a.. ...._,.y ,,_,.�, r _,,. .�,. - - -- -- __, - . ._,...-,-._�<.,,. .�_o,.� ..,-.,� ,,._ _.,. ,,, ,_ ,_,, . � . � ._, _.. ,.� _ . .�., � `:r� �31 / -3�,� � � c o sr� �.,v� . �� °/Z,�s� ,— ��4 c u�. _ __ _ _ _ _'. _ ___ ___ . c os� o � t __ __ _ __ --- -- _ _ _ _ _ � I ' D //�Ff.��'� 5��,�,Qio s _ _ _ .__ ,: _ _ . _ _ __ _ _ . __ _ __ _ _ _ _ _ _ __ _ __ _ _ --- �PT<an15i ! _' TaT�-L «s �-- /°�fs��rvr!-4(�� .�°',-p _______ -- � ____ __ _- --______--- ____ _ � ! �Nri��£- _I; _ - - -- _ __ ___.-- --___. ---- _ . __ __ . _ __-- _ - -- . i2-�L �FF /�s� - � � l�Of l0 0, D-� �� 5� � 7 4 � 1�.3 > J _ - --- �; , _G6MSo�,Qlt�r�on�1 _ r _ _ _ t� . �}GG'�c f ct- _ _ _ _ _ _ .. _ -- .__ _ __ __ __ _ _ _ __ , ' l ��i `� �' � g �� , 3�3 _ _ ��'�- 1 3� _ __- _ _ :; . �5• sr�c� . . �oct � D D �,�__ :: ', l �, 3 , � o� $z�, yy9- _ .. _ _ _ � . az� � «u- �.��EFPr�N' , /Lf� id�� a-� .. `��j 3�`-�� ao� (��ss�,� , s��t� - s y��s G°'�rlN�� r� �t-s3,� � 7 yoc��, o a a 3 �� a 7� a g/ Gb�So�.rD�K t Y� ova,�� 3 g, �s� �/ g t]�� y�a�':�- i i, � ��I,� - � �,�.� � 5�`c,tT '��h ., CITY OF SAINT PAUL �a �6,,.,�, s� OFFICE OF THE CITY ATTORNEY � F-•• [Iitt yC�� ri �`'�y�,:.•• �b JANE A. MC PEAK, CITY ATTORNEY a_....�,.�'` 647 City Hall, Saint Paul,Minnesota 55102 ' 6t2-298-512I JAMES SCHEIBEL ' ', FAX 612-298-5619 MAYOR �I January �0, 991 President Wil�liam Wilson and Members of tY�e City Council: FACTS The', Saint Paul Fire Relief Association, following the procedures contained in Minnesota Statutes, Chapter 353A, had requested that the City Council approve consolidation of the local relief association with the Public Employees Retirement Association-�olice and Fire. The procedural steps which must be foll,owed by �he local relief association and the City Council are � contained inlChapter 353A. i The con�olidation process begins with a petition and election by members oi� the local relief association�, and if approved by the members then, the City Council may act within two months of the election to �rant preliminary approval to the consolidation.z If prel�minary approval of consolidation is given by the City Council, then the executive director of the Legislative Commission ' i ; � I��. � §353A. 04, subd. 2 and 3. Z§363A. 44, subd. 5 and 7 . CF9o-��3t , on Pensians ai�d Retirement obtains an actuarial calculation in the manner specif ' ed by the law,3 and the actuarial report is given to the executiv director, the executive director of PERA, chief administ�ativle officer of the local relief association, the Mayor of the City c�f Saint Paul, the State Auditor and the Legislative Auditor.4 The nex�; step in the consolidation process includes a review of the existing investment portfolio of the local relief associat�.on �y the executive director of the State Board of Investmemt arid a determination regarding the transfer of those assets.5 The las� step in this process requires that the City Council grant fi#�al pproval to the consolidation within one month of the above final reliminary actions, and that the Council 's actions are to be tal�en at a public hearing held for that purpose.6 Thel� onelmonth period of time in which the Council must act in i order to gramt final approval to the consolidation began to run on January II2 , 1991, and the Council has set the public hearing for Thursday, Ja uary 31, 1991. In the event the Council either � 3§3$3A. �5, subd. 1. 4§3�3A. 05, subd. 1. 5§3�3A. 5, subd. 2 . The report of the State Board's Executive Director, Ho�aard J. Bicker, dated January 2, 1991, was submitted to the local� relief association and to the City Treasurer. Copy of that repo�t is attached. 6§353A. 04, subd. 8 . ' 2 � I i ' C,� �'D�3l I II disapproves ithe consolidation or Council fails to grant final approval 'to he consolidation before the expiration of the month deadline� th n the preliminary approvals of the local relief association �nd the City Council will no longer be effective.7 Another consqlidation attempt may not be made until the following January iLn th�le event final approval is not granted by the Council.8 The proposed consolidation is pending now before the City Council. The Council 's Finance, Management and Personnel Committee at its m�etir}g on Monday, January 28th, considered the matter and adopted a mation recommending that the following resolution be adopted �t the January 31st Council public hearing: , iRE$OLVED, that the City of Saint Paul hereby ; ap�roves the consolidation of the Saint Paul Fire �, De�artment Relief Association with the Public ' Em�loyees Retirement Association, subject to two comditions occurring subsequent to passage of this re�olution: 1) legislative action that allows a co�solidating local relief association to continue toluse the same actuarial assumptions that are in ef�ect for the local relief association at the time of' consolidations; and 2) the City Council determines after a public hearing on the matter that the long term costs of consolidation under these new legislative assumptions are not greater than costs under the current relief association plan. The Comlmittee has requested that the City Attorney advise whether this resolution, if adopted by the City Council, would constit te "final approval" of the governing body of the municipajlityiand thus permit the consolidation of the local relief � �I 7§3�3A. �4, subd. 8 . $§353A. 44, subd. 6. I 3 ' � I C� o -z�3 i q ' associati;on �uith the Public Employees Retirement Association- Police amd F�re, in accordance with the provisions of Minnesota Statutes, Chapter 353A. I ' ISSUE Whettherlthe above resolution constitutes "final action" or '�fina'l approval" of the consolidation by the governing body of the municipality? ' OPINION The pro�osed resolution states that the City of Saint Paul approves the consolidation of the local relief association with PERA, and th�n continues by stating that the approval is "subject to two cpndi�.ions" , which conditions are to occur after passage of the resalutibn. The final action to be taken to complete the process is t}�e determination by the Council whether to give final approval, an�d this action of the Council must occur within one month of January 2, 1991. The resolution as stated provides that the approval will become effective in some future date and upon the happeninig o�f two future actions (one action by the state legislature and the second action by the Council) . Conditioning approval upon a future event does not comply with the requirements of Minnesota'' Statute, section 353A. 04, subd. 8 because the approval will no� be effective within the prescribed one month' s time. My reselarch has not found any statutory provisions or court decisions w�ich interpret the provisions of section 353A. 04. I �i 4 II cF �o -a,3i However t'here is a New York Supreme Court decision9 holding that an approval of a site plan conditioned upon future "ministerial actions" as pposed to "substantive actions" constituted a "final approval" fo the purpose of ineeting the grandfather exemption contained in state legislation enacted subsequent to the city's actions. Conditioning approval of consolidation upon future legislative action aMd fu�ture findings by the Council of cost savings does not, in our opini�n, constitute "merely ministerial action" , and based on the New York decision would not constitute a final approval. As a geMeral rule conditioning a decision or approval on the happening of , some future event can be interpreted as meaning that the approval will not be effective until after the happening of that eveht. IThis type of condition is referred to as a condition preceden�t, ahd is defined as a condition that must be performed before t�e euent or action shall be effective.10 It 'is our opinion that to state in the resolution that final approva�' is }�ereby given to consolidation but then providing that the app oval, will not take effect unless the state law is amended � does not� meet the statutory requirements of section 353A. 04 , subd. 8 . The �Legi�lature has provided that the Council must make a final decisior� toj approve consolidation. The legislation further I 9Mi ac1 Mile Associates v. Department of Environmental Conserv tio 423 NYS2d 732 70Black'Is Dictionary of Law, Fourth Edition. 5 � . ', C � qo �� P rovides I' that� consolidation will be deemed to have been not approved �unless the Council takes an affirmative action after a - public hejarin� to approve the consolidation. No provision is made in the state 'law which allows any type of approval other than a final appiroval�. The condition in the draft resolution which gives the Counail a� option to rescind its approval in the future if the Council dete�mines that consolidation will have the effect of increased co�ts in the long term illustrates the fact that the Council does �►ot intend to grant its final approval at this time. CONCLUSION As �tat$d above, the City Council must act within one month from January 2nd if the Council intends to grant approval to the consolidation. Failure to affirmatively act to grant approval within tlhat �time frame will have the same effect as a denial. An � unqualif.�ed c�r unconditional approval would avoid any doubt as to whether the laction met the requirements of Minnesota Statute, section 353A� 04, subd. 8. Any conditions or exceptions contained in the r�solyZtion promote the issue as to whether the action was, in fact and in law, a final approval of the consolidation. If the intention of�, the Council is to approve the consolidation at this time, thien i� would be most prudent to omit any and all conditions I 6 , . . - � C r qo -�r3 i , from the ;�reso ution and by doing so remove that ground for a legal challeng� to � he decision. Respectfully Isubmitted, ,i�. ,�- �� JAN A. P4CPEA�K Cit ttorney! � , JERO E J. d Ass stan� i Attorney JJS �I i i I I 7 � .� ... _ : . .. : _ . f ___. .,: . ... . . . . . � ' � . - �. � . . � . . . .• . �l:.... " ' - : .__ .. ..:__.: . ... .. ._ . . _ , . � _ . � Cr�0��3� :; � i i �� , ' NO'i'ICE OF PUBLIC HEARING . . . � �� - , The City �ounc�l of the City of Saint Paul, A�innesota, will hold a public h��ring!,on� th� 3��. ciay of Januaryi I991 at 9:00 A.�1. in the . Council Chambe�s on the 3rd floor of City Hall, to con�ider final ap�roval of th� consoli8ation of the Saint Paul Fir� Departin2nt Relief Association wilth the Public Ernployees Police and Fir� Fund. Datc� January 15, 1991 P.lbert B. Olso�n City Clerk � (January 19, 1991) � - � ; . ; � �, � � � � . I . �i . �� Qo a�� NOTICE OF PUBLIC HEARING �`� ' The City CounMl of the City oCSaint Paul,Minnesota,will hold a public hearing on thd 31st day of January, 1991 at 9:00 A.M.in the Council Chambers on the 3rd floor, ,- of City a , o consi er na approval of he consolidation oC the Saint Paul Fire Department Relief AssociaUon with the Public Employees Police and F1re F�nd. Dated January 15, 1991. AL$ERT B.OLSON,City Clerk , (January 19, 1991) !