Item 84-215 Resolution 84-3167 Pera Administration•
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 84- 3167
WHEREAS, all full time city employees are members of the Public
Employees Retirement Association (PERA), and
WHEREAS, city property taxes are contributed to PERA as the
employer share of retirement benefits for city employees, and
WHEREAS, some PERA board members, the Association of Minnesota
Counties' trustee on the PERA Board, in conjunction with the League
of Cities appointed trustee and other appointed and elected trustees,
raised significant questions regarding the appointment process used
to hire an interim executive director of PERA,
WHEREAS, the City of Hopkins wants to insure that all Public
Employees Retirement Association Board members meet their fiduciary
responsibilities; now therefore be it
RESOLVED, that the City of Hopkins requests that a five year
compliance audit of the Public Employees Retirement Association be
conducted by the Legislative Auditor; and
BE IT FURTHER RESOLVED, that the City of Hopkins supports the
actions of some Public Employees Retirement Association Board members
to remove the interim executive director and to provide for an open
process to select a Public Employees Retirement Association Executive
Director; and
BE IT FINALLY RESOLVED, that the City of Hopkins requests that
the Minnesota Legislative Commission on Pensions and Retirement review
the election process of Public Employees Retirement Association Board
Members to determine if there is a better way to provide a broader
representation of Public Employees Retirement Association members on
the Public Employees Retirement Association Board.
Passed and adopted by the Council of the City of Hopkins, Minnesota,
at a regular meeting of the Council held the 2nd day of October, 1984.
J. SCOTT RENNE ROBERT F. MILLER
City Clerk Mayor
JERRE A. MILLER
City Attorney
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COM3USTION ENGINE MAINTENANCE CONTRACT 1 .4 D„
MinneP.polis Gas Company, 733 Marquette Avenue, Minneapolis; Minnesota,
.h2rea_`ter referred to as "Company ", and City oi{ Honk.in.
_ Hopkno f.inne6o-ta , hereafter referred
(Custcner)
,o as "Cus t,Dmer" , hereby agree as follows:
Company agrees to render the maintenance services hereinafter describe,
Lo the following Natural Gas Fueled Internal Combustion Engine (s) of Custo:l
Model UV 800 -6A Serial n Manufacturer Moline
Model Serial # Manufacturer
Model Serial.. #. Manufacturer
ocaFed at the following. address(es).
Serial 4 Address WeLe. #5, C9atet Thee umen.t Ptan.t
Serial Address
Serial 4 Address
This contract covers only the Natural Gas Engine and the associated
engine controls and accessories. The water pump, water pump controls,
and heat recovery equipment is excluded from this contract.
This contract is contingent upon the basis that this engine shall be
as described above and shall be equipped with Impco Carburetor,'
Bendix Brakerless Ignition, and all safety devices outlined in the
original bid specifications as well as any additional safety devices
and /or safety circuit revisions which may be found necessary when the
equipment is tested. All such additions or revisions,' if any, shall
be reviewed by all parties involved and disposed of in the best
interests of the Customer.
The term of this contract shall be for a period of
1
years.
The Customer shall have the option to renew this contract after its
expiration and the Company agrees to renew the contract subject to
a negotiated rate for service to be established by mutual agreement
and based on the actual costs incurred during the previous team of
contract service.
1. CUS T Oi• ER' S OBLIGATIONS BEFORE ENGINE START-UP
a. Customer shall notify the Company before the engine is
started so Company's representative may observe the purging
of gas lines, air lines, oil_ lines, and water lines involved
in the engine circuit only, before the final connections
are made.
b. Customer shall notify Co mpany so Company representative
can be present when start-up, adjustment .
_ t r: t a is test is
conducted.
2. CUSTOMER'S OI LIGATICNS
(2)
a. Customer shall inspect, approve and accept engine water
pump from Contract :or before this co:lLract is in effect.
Contract effective date is
b. Customer shall maintain insurance coverage on the engine
to cover fire, explosion, and any breakdown due to other
than normal wear and tear of operation. Customer's
insurance shall cover death or injury to persons, damage
to building and its contents and damage to engine
equipment.
c. Customer shall instruct its employees in the proper care of
the engine and shall operate the engine in accordance with
instructions, service bulletins, and recommendations of
Company for the most economical operation.
d. Customer shall provide operating personnel and house-
keeping services for the engine room. Operating personnel
shall start and stop machinery, add oil when required,
observe operating conditions of the lube oil consumption;
fuel consumption; lube oil temperature; engine coolant
temperature; and report to Company on unusual performance.
e. Customer shall supply all fuel gas for the operation of
the engine. -
3 COMPANY'S OBLIGATIONS - GENERAL MAINTENANCE AGREEMENT
a. Company shall supply Customer with all necessary drawings,
service bulletins and instructions to enable Customer to
•properly and economically operate the engine.
b. Company shall perform the following:
Inspection, cleaning and adjusting of engine
ignition system inclwli r_g replacement of spark
plugs and distributor points - if necessary.
Replacement of engine oil or a grade and quality
as recommended or required by enc; ine manufacturer.
Replacement of engine oil filters.
Lubrication of all en:'ine I arts .
Inspection and cl _'c:_,-. , engine cc'olil:g system
including filling 1,: '. t:i Droner coolant.
Inspection, cleaning and adjustment of carburetor
by use of a Flue G:1s Analys.i_s.
Testing all engine sa t e.ty
Co :upary shall provide 24 hoar e'ider service,
available On no than 'our hours notice Lo
repair any inopr.rable enc;.i ne.
d. Co!cilany shall not_ no r e _)on`_ ;.l b Le or J i,!h1 e, in any
event, for _lc`; :.c nS , l I1convc'rl i ence or (i !i,I ; ,)( ".: , general
or Conk ;e(111t `n t_ l a i , of c1;ly kind which 1 :lilt_ fro ;il
failure of th engine cc,v: re.1 1,y [his
4. COMPENSATION TO COMPANY
5. MAJOR REPAIR AGREEMENT
6. GENERAL PROVISIONS
Dated: This
By
Its
(3)
a. For the services of Company hereunder, Customer agrees to pay,
monthly upon receipt of an invoice from Company, the sum of
$ 70.42 plus $ 1.20 per operating hour in excess of
30 operating hours for the HD800 - or equal engine.
The contract period commences on October 1,
and ends on September 30 19 85
19 84
Defective or broken engine internal parts, and /or engine parts
lubricated by the engine oil, will be repaired or replaced on a
time and material basis upon receipt of customer's approval.
The time rate is $ 42.00 per hour, and material cost will
be Company cost plus 25 %.
The Company shall not be required to service any equipment
attached to and /or driven or operated by the natural gas fueled
engine(s) covered by this contract.
The Company shall not be responsible or liable, in any event,
for losses, inconvenience or damages, general or consequential,
of any kind which result from failure of the engine(s) covered
by this contract.
12 day of September 1984
MINNESOTA GAS COMPANY
Clayton Singer, Contract Sales
70Q Wes_t_Ltnden
Minneapolis, MN 55403
(612) 343 -3855
Its
City of Hopkins
(Customer)
•
a
CITY OF HOPKINS
Handicapped Accessability Self- Evaluation
Self- Evaluation Checklist
1. Insure availability of services, programs and benefits to handicapped
persons
A. The City of Hopkins is prepared to -
* Deliver programs and services in an alternative manner or at
a more accessible site.
The City of Hopkins is committed to providing services to all
of its citizens. Every reasonable attempt will be made to
accede to requests by handicapped individuals for access to
services or meetings.
If disabled individuals require a service that is normally
provided in an area which is not handicapped accessible, all
employees have been instructed to bring the service to the
individual.
A newsletter is mailed to each residence in the city twice
each year which details the services which the City provides.
B. The City of Hopkins continues to -
* Provide auxiliary aids to improve service provision and communi-
cation.
The City has acquired a TDD /TTY machine to enable the hearing
impaired to communicate with the Police and Fire Departments,
as well as City Hall.
Transportation -
The City of Hopkins sponsors Hop -a -Ride which consists of a
subsidized taxi for Hopkins citizens. The City also has a
handicapped accessible van available. The van is equipped
with a lift and is used to transport people in wheelchairs.
C. The City of Hopkins has given -
* Public notice to blind or hearing impaired persons concerning
its policies on handicapped accessibility.
Notice has been given in the following manner:
Posted on main bulletin board.
Posted in Community Development Office.
Posted in Public Works garage.
Put on cable bulletin board.
Put in Hopkins Highlights Newsletter.
Public service announcement on cable television.
2. Insure physical accessibility to facilities used by the public
A. Present accessibility of all public buildings:
1. Public works garage - handicapped accessible.
2. Community center - handicapped accessible.
3. Public meeting rooms - handicapped accessible.
4. The second floor of the City Hall is not currently hand-
icapped accessible. The main activities that take place
on the second floor are:
a. Paying bills - bills can be mailed in.
b. Taking out permits, licenses, etc. - Staff has
been instructed to duplicate any service on the first
floor of the building. Second floor of city hall will
be handicapped accessible when the new parking ramp
is built.
5. City Council and Zoning and Planning Commission meet-
ings - All meetings of the Hopkins City Council are cable -
cast over the local cable network. By January, 1986, all
Zoning and Planning Commission meetings will also be cablecast.
6. All polling places are handicapped accessible.
3. Policies and practices concerning employment
The City's policies specifically prohibit discrimination because
of disabilities.
It is the policy of the City of Hopkins, in recognition of essential
rights of all employees and applicants as individuals, to recruit,
hire and promote all job classifications including full, part -time,
temporary and seasonal employment and to prohibit discrimination
because of race, color, creed, religion, national origin, sex,
ages between forty and sixty -five, disability, marital status,
place of residence, status with regards to public assistance and
political affiliation in all aspects of its personnel policies,
programs, practices, and operations.
It is also the policy of the City of Hopkins in all matters relating
to recruiting, hiring, training, compensAtion, benefits, promotions,
transfers, layoffs, recall from layoffs, terminations, educational
opportunities, employee social and recreational programs, to make
sure that all opportunities, facilities and participation in all
City- sponsored activities are free of discriminatory practices.
The City notifies Hire Ability for all job openings.
All employment testing is done in handicapped accessible rooms.
4. Contractual arrangements made by recipient government
All the City's practice of awarding contracts to the lowest bidder
shall be followed, provided the bidder meets the City's affirm-
ative action requirements.
•
1. A signed statement from all contractors, sub contractors
or vendors with a contract in excess of $10,000. This
statement must affirm the Organizations or Corporations
intention to comply with the Civil Rights Act and amend-
ments thereto, Equal Opportunity and Affirmative Action
Employment
2. All contracts less than $10,000 will comply by submitting
a similar statement whenever possible.
5. Grievance Procedure
The City of Hopkins has an established grievance procedure to deal
with claims of discrimination.
Jim Genellie has been designated to coordinate compliance with
the nondiscrimination requirements contained in Section 51.55 of
the revenue sharing regulations.
Complaints of descrimination can be addressed to:
Jim Genellie
Administrative Assistant
City of Hopkins
1010 - 1st Street South
Hopkins, Mn 55343
The grievance procedure will follow section 960:40 of the Hopkins
Code of Ordinance.
DATE: September 27, 1984
TO: Mayor & Council
FROM: William P. Craig, City Manager
SUBJECT: State PERA Upheaval
The Minneapolis paper has said little about a major issue for
public employees now getting extensive coverage in the St. Paul
papers. It involves the Public Employees Retirement Associaton
(PERA), which virtually all city employees are required by law to
use as their pension plan.
It has been alleged that a faction on the Board of Trustees
excluded the rest of the trustees and held a private session,
there electing John Alters as acting Director. It is further
alleged that the current director, Mike McLaren, has neither
resigned nor formally been discharged. Mr. Allers is well -known
in municipal circles; a rather unflattering account of his
background was contained in a September 1981 article in Corporate
Report magazine (attached). The proposed resolution uses the
text endorsed by the Minnesota Municipal Finance Officers
Association at their September 19, 1984, meeting.
Respectfully submitted,
P, -
William P. Crai
City Manager
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CORPORATE REPORT
SEPTEMBER 1981
wrested control of PERA away from
O.M. Ousdigian, architect of the current
pension fund system; and Jonathan
White took over Minnesota's invest-
ments as the board's new director.
Now, three years later, the actions of
the three investment board critics —John
Chenoweth, John Allers and Ousdi-
gian's successor, Mike McLaren—
threaten the structure and philosophical
underpinnings of a government -
controlled public pension fund system.
HO ARE THEY AND WHY
the are they determined to sink the
state investment board?
the . ;John Allers: On March 12,
faced with an almost certain demand
o from John Allers to quit, then -PERA-
e director O.M. Ousdigian resigned, effec-
're t-
i five June 30, 1979. PERA's board ac-
cepted the resignation, ending Ousdi-
in-
its gian's more than 40 -year career at :c- PERA. At the June 26 meeting, 104 days
later, Allers killed a motion to keep the
-s, former director on 90 days more and
by
nt thus allow him the standard employee's
severance pay. Ousdigian, one of the
original architects of the legislatively
controlled pension fund system, was
out.
A member of the PERA board of
trustees, Allers is often referred to as the
driving force behind PERA's campaign
to pull out of the investment board.
Aspiring as he does to control over a
billion dollars in assets, Allers has little
in his personal background to generate
pensioner confidence. In spite of a crim-
inal record, little formal education be-
yond high school and a job history as a
school janitor, Allers has risen through
the ranks of his own union, Service Em-
r ployees International Union Local, to
i epresent upwards of 5,000 school serv-
ce workers. Though given to occasion-
ally bitter political battles, Alters is
nonetheless popular with his own union
and enjoys a solid base of support on the
PERA board. Most other school service
unions are affiliated with the AFL -C10.
Allers's local is not and this fact has
prompted Minnesota AFL -CIO presi-
dent Dave Roe to comment that while
Alters is personally likeable, he is per-
haps "misdirected."
"John Allers is a maverick," says
Roe. "As a union leader, he's totally by
himself. He has supported political can-
didates not supported by organized
labor, his own union is not affiliated
with anyone and he pays no membership
fees to any [parent organization)."
Allers turned down CORPORATE RE-
PORT'S request for an interview. (This is
in keeping with speculation that he is
deliberately maintaining a low profile.)
Conversations with fellow union mem-
bers, legislators and PERA staff mem-
bers, however, paint a picture of John
Allers as one of the toughest, most in-
timidating political operators in Minne-
sota politics —that he can be vindictive
and downright mean.
According to a member of the Legisla-
tive Pension Commission, who wished
to remain unnamed, all of Allers's ef-
forts over the last four years have been
centered on getting himself seated on the
PERA board and then gaining control
of both it and the fund's director.
PERA's bid to withdraw funds from the.
investment board is, according to this
source, Allers's desire to "move with the
big boys. He'd just like to be controlling
a big pile of assets. And there are a lot of
spin -offs from that. All of a sudden he'd
attain a certain level of prominence.
He'd be catered to by the investment
community." If the experience of p
vate fund managers is any clue, such
perks would include luncheons, favors,
and, in one case, trips to Hawaii.
Since being seated in 1976, Allers has
successfully maneuvered around two
statutes, one attorney general's opinion
and a lawsuit to remain on the PERA
board. An attorney for the AFL -CIO of-
fers the opinion that Allers brazenly
violated the law in 1978 when, contrary
to the intent of Minnesota law 1978,
Chapter 796, Section 8, which in effect
abolished Allers's term on the PERA
board, Allers remained seated. The
PERA board voted in Allers's favor and
he served for an estimated two' years.
The exact length of his term is hard to
determine. Technically his term expired
June 30, 1981. Robert Larson, PERA's
board chairman (and, it should be
noted, John Allers's employee in Local
284), at a board meeting on June 23,
1981, simply "recognized" Allers's
claim to the seat and rendered his opin-
ion that it belonged to him for two more
years. No vote was taken or re
"The whole thing [Allers's seat
a farce," asserts the AFL -CIO a
By mid - September, the issue wit
cided in Ramsey District Cou
1 AFL -CIO, which represents in e
18,000 PERA union members, w
that time to unseat John H.
again.
Observers in the legislature w•id
pect that the PERA board is Alle
hicle for further political power
treasurer Jim Lord, a member
state investment board, sees PER:
to pull out of the investment boar(
move to acquire power. The memt
PERA's board are political, anc
trolling the assets is [the same as]
ing additional power."
John Chenoweth: A former 5
broker, Chenoweth is currently dir
of the Minneapolis Municipal En:
ees Retirement Fund ( MMERF).
state senator, Chenoweth (DF
Paul) was agitating for changes or
investment board back in 1973. I
1979 his was a largely unheeded voi
the wilderness. On Oct. 12, 1979,
Chenoweth charged in a copvrig
story in the St. Pau! Dispatch that I
management of 52 billion in state ft
by the board of investment had cost
payers and retirees as much as S183 .
lion since 1976• Chenoweth release
U.S. Commerce Department report t
ranked Minnesota 43rd out of 50 stz
in net return on investments (5.5 p
cent).
That same day Chenoweth resier
from the legislature to take over the
rectorship of MMERF. PERA had d:
gled the assistant directorship in front
Chenoweth but, not wanting to open
as Allers's front man. Chenoweth opt
for MMERF. At first Chenowed-
move seemed doomed to failur
MMERF's membership was steadi
melting into PERA as a result of legisl.
rive action in 1979. More than a few of
servers wondered at the time why Cher
oweth would set his sights on a deteriol
acing fund.
Their answer came in the closing me
ments of the 1981 legislative session.
bill, which moved out of committe,
without recommendation, was passed b
the 1981 legislature enabling Chenow•er,-
and his fund, MMERF, to withdraw