City Council Resolution 1982-38RESOLUTION 1982 #38
RESOLUTION AUTHORIZING AGREEMENT WITH
CITY ADMINISTRATOR RELATING TO DEFERRED COMPENSATION
WHEREAS, Thomas A. Eidem, ("Eidem"), City Administrator of the City of
Monticello has elected to be excluded from membership in the Public Em-
ployees Retirement Association, which election has been approved by~the
City Council; and,
WHEREAS, prior to such action the City has contributed an employer's con-
tribution to the Public Employees Retirement Association for his account;
and,
WHEREAS, by reason of such election, the City's employer contribution to
PERA on his account will cease; and,
WHEREAS, Minnesota Statutes, Section 353.025, Subdivision 3, provides as
follows:
"(DEFERRED COMPENSATION: CITY CONTRIBUTION.) If an election
of exclusion is made, and if the City Manager and the governing
body of the City agree in writing that the additional compen-
sation is to be deferred and shall be contributed on behalf of
the City Manager to a deferred compensation program which meets
the requirements of Section 457 of the Internal Revenue Code of
1954, as amended through December 31, 1980, the governing body
may compensate the City Manager, in addition to the salary
allowed under any limitation imposed on salaries by law or
charter, in an amount equal to the employer contribution which
would be required by Section 353.27, Subdivision 3, if the City
Manager were a member of the association.
WHEREAS, the City Council desires to exercise the authority conferred
by the aforementioned Subdivision 3,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Monticello, Minnesota, as follows:
1. In addition to the City Administrator's salary now in effect
or which may hereafter be established from time to time as his stated
salary, Eidem shall be compensated in an additional amount equal to the
employer contribution which would be required by Minnesota Statutes,
Section 353.27, if he were a member of the Public Employees Retirement
Association subject, however, to the provisions of the following para-
graph of this resolution.
2. Such additional compensation shall be paid only if and during
the time that there is an agreement between City and Eidem wherein it is
agreed in writing that the additional compensation is to be deferred and
shall be contributed on behalf of Eidem to a deferred compensation program
which meets the requirements of Section 457 of the Internal Revenue Code
of 1954, as amended through December 31, 1980.
3. The Mayor, acting for and in behalf of the City, is hereby
authorized and directed to enter into an agreement of a type described
in the foregoing paragraph no. 2 with Eidem. Upon the execution of such
agreement, the Mayor, City Administrator and other appropriate officials
of the City are authorized to take the actions necessary to give. effect
to the provisions of such agreement.
The question was on the adoption of the Resolution and upon a vote being
taken thereon, the following voted in favor thereof- Arve A. Gri~msmo,
Fran Fair, Dan Blonigen, Phil White, and Ken Maus.
and the following voted against the same: None
WHEREUPON SAID RESOLUTION WAS DECLARED DULY PASSED AND ADOPTED THIS
10th day of May, 1982.
.~~' ,
Arve A. Grimsmo
D4ayor of Monticello
ATTEST:
r-`
Thomas A. Eidem
City Administrator