1d. Fire Dept Relief Bylaws MEMORANDUM
CITYOF Mayor
Clt SEI City Council
7700 Market Boulevard ~//,/, 1
PO Box 147 FROM: Bruce M. DeJong, Finance Director
Chanhassen, MN 55317
Administration DATE: October 22, 2003
Phone: 952.227.1100
Fax:
952.227Al10
SUBJECT: Approval of Modification to the Fire Department Relief
Building Inspecti0ns Association Bylaws
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160 When the Volunteer Fire Relief Association bylaws were changed to increase the
Fax: 952.227.1170
amount of pension benefit for each year of service from $2,700 to $4,000 in 2001,
Finance there was a technical problem with the modification. Due to statutory
Phone: 952.227.m0 calculations, which were caught during a review by the Office of the State
Fax: 952.227.1110
Auditor, the maximum pension benefit increase for 2002 could only be set to
Park & Recreation $3,400. The $4,000 pension benefit that was approved by the City Council could
Phone: 952.227.~20 take effect in 2003.
[ax: §52.227 A H0
Becreali0n Cenler
2310 Coulter Boulevard Randy Wahl, President of the Relief Association, has laid out the information in
Phone: 952.227.1400 the enclosed letter. This is just a retroactive change to meet state statutes and does
Fax: 952.227.1404 not negatively affect the relief association's finances.
Planning &
Natural Resources
Phone: 952.227.1t30 Enc: Memorandum from Randy Wahl
Fax: 952.227.1110
Resolution
Public Works
1591 Park Road
Phone: 952.227,1300
Fax: 952.227.1310
Sen[or Center
?h0ne: 952.227.1125
[ax: 952.227A1~0
Web Silo
v~,'~¥.ci.chanhassen.mn.us
The City of Chanhassen, A growing cornmunOy with clean lakes, quality schools, a charming downlown, thriving businesses, winding trails, and beautilul parks. A great place to live, work, and play.
9/25/2003
To the Chanhassen City Council and others to whom this may apply:
The Chanhassen Fire Department Relief Association is asking for your approval to
change the By-Laws that were recently adopted and approved by the council and the
relief association general membership in 2001. What was approved was a benefit level of
$4,000.00 per year of service from $2,700.00. Upon approval in 2001, the documents
were sent to the state for regular filing as required when changes are adopted. After their
review, they had determined that the maximum allowable benefit that the relief
association could pay in the year 2001 was $3,400.00 not the $4,000.00 that was
approved. The earliest that the relief could start with the new $4,000.00 benefit level is
January 1, 2002.
After several conversations with the OSA (office of State Auditor) and the cities attorney,
It was determined that we needed to reduced the maximum benefit level to the fund for
the year 2001 to $3,400.00 (and only the year 2001). The benefit level for the subsequent
years 2002, 2003, 2004 and beyond will stay at the dollar value approved in 2001 at a
level of $4,000.00 per year of service.
The state as you may or may not know is the largest contributor to our relief association.
This year' s estimated contribution from the state is $90,000.00 and will be withheld until
this resolution is approved by the council and the general membership.
There is no financial impact to the city for this change. The only impact is to the relief if
this is not adopted. This would result in the loss of our annual 2% state aid. The long term
impact to the city is that they would have to make up the entire required municipal
contribution to maintain funding which is currently estimated to be around $130,000.00
for the year 2003. The city of Chanhassen's estimated annual contribution is around
$40,000.00 for 2003.
In closing;
I ask for your approval to the following changes in our relief by-laws. This change is to
merely reflect the states statutory maximum allowable payment that the Chanhassen Fire
Department Relief Association is able to pay in 2001 and in our case this is a reduction to
the benefit level
(see attached from Campbell Knutson for changes to be enacted)
Thank for your consideration
Randy Wahl
President Relief Association
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTY, MINNESOTA
RESOLUTION
Date Resolution No.
Motion By Seconded By
RESOLUTION AMENDING ~ BY-LAWS OF THE
CHANHASSEN FIREFIGHTERS RELIEF ASSOCIATION
WHEREAS, the Chanhassen Firefighter's Relief Association has requested the City to
approve an amendment to Article X, Section 10.1 of the Association's by-laws; and
WltEREAS, it is in the best interest of the City and of the Relief Association that the by-
law amendment be approved.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Chanhassen, Minnesota
The attached amendment to Article X, Section 10.1 of the Firefighter's Relief
Association by-laws modifying pension benefits is approved.
APPROVED AND ADOPTED this __ day of ,2003.
CITY OF CHANHASSEN
By:
Thomas A. Furlong, Mayor
ATTEST:
Todd Gerhardt, City Manager
108091
AMENDMENT TO ARTICLE X, SECTION 10.1
Section 10.1. Pension. The association shall pay to each member who shall have served
as an active firefighter in the Chanhassen Volunteer Fire Department for a period of twenty (20)
years or more prior to their resignation from said fire department, and who satisfies the eligibility
requirements as described in Article X, Section 10.2, and with the approval of the Board of
Trustees the following sum for each year that they served as an active firefighter in said fire
department:
Amount Effective Date
3,400.00 January 1, 2001
4,000.00 January l, 2002
108091