2012.04.02 CC Minutes - Laserfiche WebLink

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Hugo City Council Meeting Minutes for April 2, 2012 Page 7 of 10 Discussion on Resolution Concerning Hugo Firefighters Relief Association Pensions On October 19, 2011, the City Council attended a meeting of the Hugo Firefighter's Relief Association Board of Trustees. At this meeting, the Council discussed possible increase(s) in the pension payout amount as well as possible voluntary contributions to the pension fund. It was the consensus of the City Council that the Finance Department should research these issues and report back to the Council. Finance Director Ron Otkin explained the formula for establishing the optimum pension benefit level needed to be tied to the state fire aid received by lump -sum associations. In comparing nine other cites who have lump -sum relief associations that received state fire aid in 2011 within 10% of the amount received by Hugo, Ron found the average lump - sum benefit paid was $3,217. Hugo's current lump -sum benefit is $2,700 per year of service, $517 below the average of the nine cities. He explained a financing plan to achieve the optimum pension benefit level with the assumption that state fire aid will maintain the current level through 2015, and the pension assets annual rate of return will not fall below 5 percent. He proposed raising the lump -sum pension benefit by $200 for the year 2012 and $100 each year thereafter. Assistant Fire Chief Kevin Colvard further explained that if a firefighter should return after leaving the department, the Relief Association Bylaws require he serve the time away from the department before accruing time needed to qualify for the pension. Weidt made motion, Haas seconded, to approve RESOLUTION 2012 — 8 ADOPTING FIREFIGHTER RELIEF PENSION FISCAL POLICY. Ayes: Klein, Petryk, Weidt, Haas, Miron Nays: None Motion carried. Miron made motion, Weidt seconded, to ratify an immediate increase in the Hugo Firefighters Relief Association lump -sum pension benefit form $2,700 to $2,900 per year of service. All Ayes. Motion carried. Discussion on Basic Life Support (BLS) with White Bear Lake For the past several months, City staff has been in discussions with staff from the City of White Bear Lake concerning Basic Life Support (BLS) ambulance costs. The two cities share BLS service as outlined in a Joint Powers Agreement (JPA), which began in 2008 to provide service at different times during the day. Administrator Bryan Bear explained that the BLS is provided by (Emergency Medical Technicians) EMT, and all Hugo Firefighters are trained EMT; however two-thirds of the calls require a paramedic for Advance Life Support (ALS), which is provided by White Bear Lake paramedics. Variances have been obtained that permit the EMT to provide for some advance care needs. Hugo Fire Department has one trained paramedic, though there are others interested. He explained that Hugo's direct costs are reimbursed by the City of White Bear Lake as outlined by the JPA, however there are a number of additional costs associated with training, administration and overhead that are incurred by Hugo, but are not contemplated for reimbursement under the agreement. The City's Finance Department has calculated these costs, and the two cities have determined how these costs can be collected through the existing ambulance billing system. City Administrator Bryan Bear explained that ambulance rates could