HomeMy WebLinkAboutCity Council Packet 03-11-2014 SpecialCITY OF PLYMOUTH
AGENDA
SPECIAL COUNCIL MEETING
MARCH 11, 2014, 5:30 p.m.
MEDICINE LAKE CONFERENCE ROOM
1. CALL TO ORDER
2. TOPICS
A. Discuss modification to Minnesota's 218 Agreement to allow
Councilmembers to contribute to Social Security and Medicare
B. Suburban Transit Authority Update
C. Set Future Study Sessions
3. ADJOURN
Special Council Meeting 1 of 1 March 11, 2014
rp)City of Agenda 2APlymouthNumber:
Adding Quality to Life
To: Dave Callister, City Manager
SPECIAL
COUNCIL MEETING Prepared by: Givonna Kone, Human Resources Manager
March 11, 2014 Reviewed by: Dave Callister, City Manager
Item: Discuss modification to Minnesota's 218 Agreement to allow
Councilmembers to contribute to Social Security and Medicare
1. ACTION REQUESTED:
Discuss modification to Minnesota's 218 Agreement to allow Councilmembers to contribute to
Social Security and Medicare
2. BACKGROUND:
State and federal guidelines permit local elected officials to participate in PERA's Defined
Contribution Plan and FICA simultaneously once the city has requested a modification of
Minnesota's section 218 Agreement. Several of Plymouth's council members participate in
both plans, therefore, the city council must request a modification to Minnesota's 218
Agreement to enable these council members to continue to participate in both plans.
Participation in PERA's Defined Contribution Plan is optional and council members may enroll
or unenroll as they wish. Guidelines with regard to FICA are as follows:
Officials who were elected prior to June 30, 2002 and who have served continuously
Slavik and Stein) are required to participate in FICA and may not unenroll or request a
refund of past contributions.
2. Officials who were elected after July 1, 2002 (Bildsoe, Johnson, Prom, Willis and Wosje)
may participate in either PERA's Defined Contribution Plan or FICA, but not both, unless
there is a 218 Agreement in place.
Several of Plymouth's City Council Members were elected after July 1, 2002 and are
participating in PERA's Defined Contribution Plan and FICA simultaneously. This is
permissible if there is a 218 Agreement in place. In January 2014, staff proposed that the City
Council adopt a resolution requesting a modification to Minnesota's 218 Agreement which
would allow participation in both programs. The item was pulled from the City Council
meeting agenda and referred to a study session to provide an opportunity for the city council to
receive additional information.
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This process of requesting a modification to Minnesota's 218 Agreement includes two action
items and they will impact sitting council members who were elected after July 1, 2002
Bildsoe, Johnson, Prom, Willis and Wosje) and future council members:
1. Consideration by the full city council of a resolution that notifies the Social Security
Administration (SSA) that Plymouth has completed the process necessary for the SSA to
accept past and future FICA contributions made by Plymouth council members.
2. An individual vote by eligible council members (Bildsoe, Johnson, Prom, Willis and
Wosje) indicating whether or not they wish to participate in FICA on a go -forward basis.
If the city council decides not to address this issue or if the resolution does not pass, council
members elected after July 1, 2002 should request a refund of FICA contributions made during
the last three calendar years (due to the IRS's statute of limitations) and the city will do the
same.
3. BUDGET IMPACT:
If the 218 Agreement resolution is approved by the city council, the financial impact to the city
will be approximately $300 in back taxes for one member of the city council ifthat member
elects to make future contributions to FICA. All other members of the city council are (and
have been) paying into FICA so there are no back taxes to consider.
If the resolution is not approved or if individual council members elect not to participate in
FICA, the city will request a refund ofFICA contributions made over the last three years.
Under separate cover, staff will provide each member of the city council with an estimate of
their total FICA contributions during their most recent period of continuous service as a member
of the Plymouth City Council.
Staff will be available at the March 11, 2014 study session to answer any questions council
members may have.
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City of
piymouth
Adding Quality to Life
SPECIAL
COUNCIL MEETING
March 11, 2014
Agenda 2CNumber: v
To: Mayor and City Council
Prepared by: Dave Callister, City Manager
Item: Set Future Study Sessions
1. ACTION REQUESTED:
Staff has identified a number of potential topics that could be placed on the study session topic list or
be scheduled:
1. Emerald Ash Borer program update — late April
2. Bridges on 494 Project— April/May
3. Met Council Thrive 2040 — Later April
4. Snow removal policies and practices
In addition, when the Council adopted the 2014 Council meeting schedule late in 2013, a suggestion
was made to cancel a meeting or two in the summer. Council should provide direction whether
meeting(s) will be canceled this summer.
Lastly, Council should review the list of pending study sessions and set meetings as desired.
Calendars are attached to assist with scheduling.
PENDING STUDY SESSION TOPICS
at least 3 Council members have approved the following study items on the list):
OTHER REQUESTS FOR STUDY SESSION TOPICS
Re-evaluate Comprehensive Plan update process
City's role in economic development and redevelopment
Quarterly Update with City Manager (spring)
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City of
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Adding Quality to Life
March 2014
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Discuss Modification io MN Agreement to
Allow Councilmem ers to Contribute to
Social Securi y and Medicare and
Suburban Tran it Authority Update
Discuss Purchasc of Property for the
Vi ksburg Lane Project
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r Plymouth
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Breakfast Council Chambers
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Adding Quality to Life
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