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<br />4. Resolution 01-019 - Awarding the Issuance of Bond for the Pheasant Marsh Sub- <br />Division (Phase 1) <br /> <br />This item was removed from the agenda. <br /> <br />5. Budget/Deferred CompensationlUnion Contract <br /> <br />Council Member Capra indicated that when she was reviewing budget information from <br />the League of Minnesota Cities she came across a statement that states that, although <br />employees may contribute to other deferred compensation plans, public employers may <br />only contribute to the states plan for their employees. She then indicated that the City <br />does have a deferred compensation plan by .~ that the City is contributing to. <br />~6~ <br /> <br />City Attorney Hoeft noted that, in speaking with Council Member Capra, it pretty <br />strongly appears the City has a problem because it is offering a deferred compensation <br />plan that does not comply. He then said the City needs to research the matter and fix it <br />immediately to limit the amount of penalties that will be charged to the City. <br /> <br />Council Member Capra indicated she had determined that the plan began in 1996 and <br />said she had asked staff to locate a copy of the agreement but staff has not been able to <br />locate it. <br /> <br />Mayor Swedberg asked if there were plan documents to review. City Attorney Hoeft <br />indicated he had not seen any. Q~~ <br />--7' {~ Jh.v-Jusf-' <br />Council Member Capra indicated that s ad reviewed the minutes from the ~ <br />1996 Council meeting where . approved Resolution 96-028 authorizing City <br />participation in the P--epsiC-e deferred compensation plan. <br />~66SCb <br /> <br />City Attorney Hoeft indicated the City needs to gather documentation and work with staff <br />and his office to find out what needs to be done to rectify the situation. He then <br />suggested contacting the League of Minnesota Cities for assistance once the relevant <br />documents had been gathered. <br /> <br />Council Member Broussard Vickers asked what the time line was for resolving the issue. <br />City Attorney Hoeft indicated that as soon as the City knows for sure there is a problem it <br />needs to be fixed immediately. He then indicated there is a former IRS agent working in <br />his office who may be able to advise the City on this matter. <br /> <br />Council Member Capra indicated she would continue to work with staff to locate <br />documents and would then contact the League of Minnesota Cities for assistance with the <br />matter. She then noted that she had been told by representatives of the League of <br />Minnesota Cities that if the City contacted them for any further help on the matter there <br />would be a fee associated with the service. <br /> <br />Page 15 of 18 <br />