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MEMO TO: MAYOR AND COUNCIL <br />�\ FROM: FINANCE DIRECTOR - TREASURER, BRAGER <br />DATE: SEPTEMBER 19, 1984 <br />SUBJECT: RECENT HAPPENINGS AT P.E.R.A. <br />Attached please find a letter from Barry R. Evans, City <br />Manager, City of Maplewood who is also serving as President <br />of the Metropolitan Area Management Association (MAMA) <br />outlining recent happenings at P.E.R.A. In his letter <br />Mr. Evans indicates that a lawsuit has been initiated <br />against members of the P.E.R.A. Executive Board relative to <br />a violation of the open meetings law. He also indicates <br />that this suit is to be expanded to include violations of <br />fudiciary responsibility. Also attached are photocopies of <br />recent articles which have appeared in the St. Paul and <br />Minneapolis newspapers giving background on this matter. <br />Mr. Evans, in his letter, suggests that cities' pass a <br />resolution calling for: <br />Removal of the acting executive director or the <br />P.E.R.A. <br />2. Proceeding with an open selection process for the <br />P.E.R.A. executive director and <br />Requesting that the legislative auditor of the State <br />of Minnesota conduct a five-year compliance audit of <br />P.E.R.A, fiscal operations <br />The Hennepin County 'bard of Commissioners and the <br />Association of Minnesota Counties have passed similar <br />resolutions. 0n September 19, 1984 I attended a meeting of <br />the Minnesota Municipal Officers Association at which the <br />topic was discussed. At that time a copy of the Corporate <br />Report, September 1981 issue was distributed which contained <br />a biographical sketch on John Allers, who has recently been <br />appointed acting executive director of the Public Employees <br />Rotirement Association. The article states "Aspiring as he <br />does to control over a billion dollars in assets, Allers has <br />little in his personal background to generate pensioner <br />confidence. In spite of a criminal record, little formal <br />education beyond high school and a job history of a school <br />janitor, Allers has risen through the ranks of his own <br />union, Service Employees International Union Local, to <br />represent upwards of 5,000 school service workers." In <br />addition, at the meeting it was stated that Mr. Allers has <br />retained his position as president of the Service Employees <br />Union Local in addition to being acting executive director <br />of the Public Employees Retirement Association. Mr. Allers <br />has reportedly stated that• he sees no conflict of interest <br />in holding those two positions. <br />