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HomeMy WebLinkAboutCC 02-22-1993 .. , . . MINUTES CITY OF ARDEN HILLS, MINNESOTA REGULAR CITY COUNCIL MEETING February 22, 1993 7:30 P.M. - City Hall CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor sather called to order the regular City Council meeting at 7:30 p.m. Present: Mayor Thomas Sather; Councilmembers Beverly Aplikowski, Paul Malone, Dennis Probst. Absent: Councilmember Hicks. Also present were: Parks Director, John Buckley; Clerk Administrator, Dorothy Person; City Accountant, Terry Post; and Recording Secretary, Shar Foster. ADOPT AGENDA Note was made that a revised agenda was printed on February 22, 1993. Administrator Person stated that Consent Calendar item 4f should be "Approve List of Claims" rather than "Approve List of Claims/Payroll". MOTION: Probst moved, seconded by Malone, February 22, 1993 agenda with one calendar item 4f as noted above. unanimously (4-0). to adopt the revised correction to Consent Motion carried APPROVAL OF COUNCIL MINUTES councilmember Malone referred to the sixth paragraph of page three of the February 8, 1993 Council meeting minutes. He said the concern he expressed during the discussion contained within that paragraph referred to "berming plans that are to be southeast of the townhouses" rather than "berming plans on the old lift station site". He asked that paragraph be revised accordingly. MOTION: Aplikowski moved, seconded by Probst, to approve the minutes of the February 8, 1993 Regular Council Meeting with the appropriate revision to the sixth paragraph of page three requested by councilmember Malone. Motion carried unanimously (4-0). CONSENT CALENDAR MOTION: Malone moved, seconded by Aplikowski, to approve the Consent Calendar and authorize execution of all necessary documents contained therein. Motion carried unanimously (4-0). . . . Arden Hills council February 22, 1993 2 a. Adopt Resolution No. 93-09 Appointing Dennis P. Probst to Fill Council Vacancy. b. Appointment of Council Liaison for Park & Recreation and Human Rights Committees. c. Adopt Resolution No. 93-10 Increased Water utility Rates Effective 4/1/92 and 1/1/93. d. Adopt Resolution No. 93-11 Increased Sewer utility Rates Effective 4/1/92 and 1/1/93. e. Adopt Resolution No. 93-12 Approving One Additional Clerical staff Employee. f. Approve List of Claims PUBLIC COMMENTS There were no public comments. UNFINISHED AND NEW BUSINESS APPOINTMENT OF PLANNING COMMISSION CHAIRPERSON Mayor Sather commented that he has yet been unable to contact the candidate chosen to fill the Planning commission vacancy created by former Planning Commission member/chair Dennis Probst's being appointed to the City Council. He suggested that Planning Commission's vice chairperson, Jeanne Winiecki, be named as interim Planning Commission chairperson to conduct business at the Planning commission meeting March 3, 1993. MOTION: Probst moved, seconded by Malone, to ratify the appointment of Jeanne Winiecki to the position of interim Planning commission chairperson to conduct business at the March 3, 1993 Planning Commission meeting. Motion carried unanimously (4-0). PARKS & RECREATION DIRECTOR FISHING CONTEST UPDATE Parks Director Buckley reported that the February 13 and 14 Winter Frolics festivities included an ice fishing contest, pancake breakfast, medallion hunt, family sleigh rides, ice skating, chili feed and bonfire/storytelling. He added that the weather was very pleasant and the festivities were met with very positive remarks from participants; the entire two-day event was a great success. Buckley added that there were only two fish caught and those anglers received a girls and a boys bike. .. . . Arden Hills Council February 22, 1993 3 Councilmember Aplikowski said that all the feedback she heard was positive and she hopes the event can take place again. Mayor Sather thanked Buckley for his report. RESOLUTION NO. 93-13 REGARDING JOINT PUBLIC FACILITIES Administrator Person explained that proposed Resolution No. 93-13 has been drafted to represent Arden Hills' interest in sharing the Twin cities Army Ammunition Plant (TCAAP) property as a joint public facility with Ramsey County, the state of Minnesota and other public agencies. She added that Ramsey County will be attending a National Association of Counties Meeting within the next few days which County officials are planning to present to Congressional District Representatives a packet of information regarding this matter, including resolutions of support from interested parties. Mayor Sather stated he has been in contact with Ramsey County staff and learned that the information packet being compiled includes general information, resolutions of support, and collateral information which was discussed in joint meetings. He endorsed this effort and recommended adoption of Resolution 93-13. MOTION: Malone moved, seconded by Aplikowski, to adopt Resolution 93-13 Regarding Joint Public Facilities That Would Be Shared With the City of Arden Hills, Ramsey County, the State of Minnesota, and other Public Agencies. Motion carried unanimously (4-0). Councilmember Probst asked if Resolution 93-13 makes reference to the description of the property. Administrator Person stated that property description is planned to be included in the information packet that Ramsey County will be presenting to the Congressional District Representatives. SECTION 125 PRE-TAX DEDUCTION CORRECTION City Accountant Post reported that, during computer conversion, staff has discovered an erroneous payroll process has been used since 1989 in the treatment of pre-tax dependent health deduction. He explained that since 1989, payroll has been treating some dependent health deductions as if an approved "cafeteria (Section 125) plan" was in place, when in fact, such a plan was not approved. .. . . Arden Hills Council February 22, 1993 4 Post reported that, after being in contact with the IRS payroll tax compliance unit, the IRS would expect the employer and the employee to correct this mistake in the following manner: 1) The City would be responsible to pay the employer's share of back FICA taxes. The employee's share of back FICA taxes could either be paid by the affected employees or by the employer (the City) on behalf of the employees; and 2) For the affected employees to amend income tax returns for the affected years and pay the appropriate federal and state tax liability due. Post stated that if the City chooses to pay both the employee's share and the employer's share of FICA taxes, there is a formula which would be used (called "circular computation") in calculating the employee's share of back FICA. Post added that, since the error is considered by the IRS to be an "honest error", no penalties or interest will be imposed on back FICA. He added that the "honest error" defense could be used by employees so penalties would not be imposed on the corrected federal and state tax liability, however, employees would be liable for interest. Councilmember Malone said there is no question that the City is responsible to pay the employer's share of FICA, and the question is whether the City will accept responsibility to pay the employee's share also. He asked if there will be an impact on State taxes as well as Federal taxes as a result of this misreporting. Post answered yes. Councilmember Aplikowski stated that since this error was not the fault of the affected employees, she would prefer that the City accept both the employee's and the employer's share of back FICA. Post stated that the tax liability impact on each individual employee will be determined by their income level and their dependent health deductions in the years in which they are affected. Councilmember Probst asked if there is any way the City can assist the affected employees in amending their tax returns for the affected years. Person suggested that, for employee income privacy purposes, perhaps the City could offer a fixed allowance to each affected employee as reimbursement for tax preparation costs. . . . Arden Hills Council February 22, 1993 5 Mayor Sather said he would support the City's taking responsibility for the entire FICA matter, furnishing the appropriate forms to the affected employees, and allowing a fixed amount for them to prepare amended returns. Post stated that the City's auditors estimate that it would cost about $50 per year for employees to amend their tax returns. He said affected employees could be reimbursed for tax preparation costs using the standard employee expense reimbursement process with a specific allowance determined by Council. councilmember Aplikowski asked if there is any indication as to how affected employees will receive this news. Post stated that he was not part of City staff when the incorrect payroll process was implemented, and he believes the affected employees are faced with an inconvenience rather than financial harm. Councilmember Probst asked if the City has any exposure if affected employees don't file amended tax returns. Post stated that the City's action of filing corrected W-2c forms will allow affected employees to file amended returns. Discussion took place as to what amount the City should allow for amended tax return preparation costs and how the matter should be administered. MOTION: Probst moved, seconded by Aplikowski, to take the following action as a means of correcting the identified past employment tax underreporting issue: 1) Authorize City staff to pay and properly report both the employee's and the employer's share of back FICA, and 2) Provide affected employees the forms they will need to amend their individual income tax returns for the affected years, and . . . Arden Hills Council February 22, 1993 6 3) Reimburse all affected employees in the amount of $50 per affected year for tax preparation costs. This reimbursement will be conditioned upon: A) Proof that amended tax returns are filed (regardless of who prepares the return), and B) Request for reimbursement being received by the City no later than July 1, 1993. Motion carried unanimously (4-0). COUNCIL COMMENTS COUNTY'S CIP FOR COUNTY ROAD I Counci1member Malone referred to Ramsey County's Capital Improvements Plan (CIP) wherein the County has allocated an amount for improvements to County Road I. He noted that the CIP indicates that Arden Hill's share for County Road I improvements is much more than the City has anticipated. Administrator Person said she would check into this matter. "COTTAGES" DEVELOPMENT Councilmember Probst asked when John Arke11' s "Cottages" development proposal is expected to come before the City. Staff answered that the proposal is expected very soon. SPEED LIMIT ON OLD SNELLING Counci1member Ap1ikowski reported that the issue of the speed limit on Old Snelling received a lively discussion at the last Public Safety/Works meeting. Mayor Sather recalled that a tentative date of March 29, 1993 has been set to discuss the Old Snelling issue and since that meeting will have to be held at a location other than the City Hall in order to accommodate the expected number of attendees, he suggested the date be definitely established to assure the matter is dealt in a timely fashion. He added that a few locations have been suggested, but his first choice is the Mounds View High School. Staff was directed to make arrangements for the March 29, 1993 Council meeting to take place preferably at the Mounds View High School either at 7:30 p.m. or 6:30 p.m. (whichever is most convenient for the school), and to make every attempt to place as few other items on that agenda as possible. -- . . A~den Hills council Feb~ua~y 22, 1993 7 ADJOURN MOTION: Malone moved, seconded by P~obst, to adjou~n the meeting at 8:17 p.m. Motion ca~~ied unanimously (4-0). Thomas R. Sathe~, Mayo~ Do~othy A. Pe~son, Cle~k Administ~ato~ NOTICE OF MEETINGS: The next ~egula~ Council meeting will be held Ma~ch 8, 1993 at 7:30 p.m. at City Hall. The next Council wo~ksession will be held Tuesday, Ma~ch 16, 1993 at 4:30 p.m. Confi~mation has been made fo~ the Ma~ch 29, 1993 Council meeting to be held at the Mounds View High School Cafete~ia at 7:30 p.m.