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HomeMy WebLinkAboutBPW-02-09-94CARMEL BOARD OF PUBLIC WORKS AND SAFETY MEETING MINUTES DATE: February 9, 1994 6:15 P.M. CARMEL CITY HALL/ ONE CIVIC SQUARE The meeting of the Board of Public Works and Safety was called to order by Mayor Johnson. Members Steve Brown and Rick McKinney were in attendance. Also in attendance were Clerk-Treasurer Susan Jones and City Attorney Gordon Byers. Steve Brown made a motion to approve the APPROVAL OF MINUTES: minutes of the regular meeting of December 22, 1993, January 5, 1994 and January 31, 1994. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. BID OPENINGS FOR THE NORTHWEST WATER MAIN PROJECT, CONTRACT #5: Mayor Johnson read, out loud, the following bids: Eagle Valley, Inc. $467,840.00 Reynolds, Inc. $476,434.50 Titan Contracting, Inc. $460,018.00 Kajima/Tramco $389,000.00 Weitzel Construction $523,796.00 The bids were taken under advisement by Jones and Henry and will return at the next meeting with a recommendation for a bid award. WATER AND SEWER AVAILABILITY: REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF CARMEL AND WILLIAM The Mayor made a motion to postpone this item until the JAKELSKY: next meeting. The Mayor said there was a disagreement on the amount of money Mr. Jakelsky was claiming for a reimbursement. The Mayor also stated he would be including the entire group of homeowners that had a claim. The motion was seconded by Steve Brown. All members voted aye. Motion carried. WAIVER OF SEWER AND WATER AVAILABILITY FOR ST. MARK'S UNITED Steve Brown made a motion to waive the sewer METHODIST CHURCH: connection fees, as per ordinance, which is based on seating capacity for St. Mark's United Methodist Church. The motion was seconded by Rick McKinney. McKinney and Brown voted aye. Mayor Johnson abstained from voting since he is a member of the church. Motion carried. SEWER AND WATER AVAILABILITY FOR DANBURY ESTATES, SECTION 1, EXEMPTION OF AVAILABILITY FEES FOR 7.795 ACRES LOCATED IN THE Mayor Johnson made a motion to approve sewer and water FLOODWAY: availability for Danbury Estates in the amount of 48 EDU's as per sewer and water ordinance but to exempt 7.795 acres located in the floodway from the fees. as per ordinance. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. SEWER AND WATER AVAILABILITY FOR UNION 76 ENVIRO-MART/SOUTHEAST Mayor Johnson made a motion CORNER OF 116TH AND RANGE LINE ROAD: to approve sewer and water availability for the Union 76 Enviro- Mart at the southeast corner of 116th and Range Line Road in the amount of 21.08 EDU's as per sewer and water ordinance. The motion stipulated that the sewer be allowed to connect to the present manhole located on the southeast corner of 116th and Range Line Road in order to avoid open cutting of the intersection. The motion was seconded by Steve Brown. All members voted aye. Motion carried. Mayor Johnson made a motion to approve the BOND RELEASES: following bond releases. The motion was seconded by Steve Brown. All members voted aye. Motion carried. 1. Rosemeade Commons-Water Mains, Off & On Site 2. Rosemeade Commons-Street-Base & Binder 3. Rosemeade Commons-Storm Drainage Mayor Johnson made a motion to approve the following CONTRACTS: contracts. The motion was seconded by Steve Brown. All members voted aye. Motion carried. 1. Mobile Comm-Pager/Carmel Utilities $13.30 per month 2. Jones & Henry - Engineering Service Agreement 1994 - 106th Street Life Station $6,800 3. Data Systems/CFD/Firetech and Arson Support Update Agreements for 1994 $700 4. Pro Air, Inc/CFD/Breathing Air Compressor Maintenance Agreement for 1994 $795 5. Network Engineering/CFD/Computer Hardware Maintenance Agreement for 1994 $2,850 6. Advanced Business Conce pt/CFD/Fax Machine Maintenance Agreement for 1994 $350 7. Change Order No. 3 - for the 131st Street Water Main Project/Weitzel Construction Company +$10,880 8. Solutions Group/C-T/System Support for 1994 9. Data Design/Utilities/Technical Svs Agreement for 1994 10. Change Order No. 1 - for the 96th Street Lift Station/Weitzel Construction Company +$8,092.70 11. Van Audsall & Farrar/DOCD/Typewriter Maintenance Agreement for 1994 $174.00 12. Word Systems/CPD/Maintenance Agreement 1994 $75.00 13. Pitney Bowes/CPD/Postage Meter $39.00 per Quarter 14. M & R Cleaning/CPD/Cleaning Services for Police Department $1,500 per month 15. Steve Brown made a motion to amend the ADA Network Training Contract in the amount of $500.50. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. 16. Mayor Johnson made a motion to approve a supplemental agreement #1 for land acquisition services, water utility, well sites and easements with the Hoosier Group, Incorporated. The contract would not exceed $9,150. The motion was seconded by Steve Brown. All members voted aye. Motion carried. 17. Mayor Johnson made a motion to approve a modification in the rates of the contract with Katz, Sapper and Miller. The motion was seconded by Steve Brown. All members voted aye. Motion carried. 18. Steve Brown made a motion to approve a contract with Cellular One for the Mayor's car phone. This agreement was for an activation fee of $37.50 and a monthly rate charge of $26.95. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. 19. Mayor Johnson made a motion to approve an agreement with the Nyhart Company, Inc. to amend the schedule of fees charged to the City for plan administration of the self-funded medical plan. The motion was seconded by Steve Brown. All members voted aye. Motion carried. Steve Brown asked for the rate increase amounts. The fee increase was as follows: Old Rate New Rate Medical and Medical/Dental Claims Administration $12.45 $14.35 Dental Only Claims Admin. $ 1.05 $ 1.10 COBRA Administration $ 1.00 $ 1.05 Per Participating employee per month. 20. Mayor Johnson made a motion to approve the contract between Hal Espey and the Carmel City Council for taping their meetings. The motion was seconded by Steve Brown. All members voted aye. Motion carried. The rate approved was $90 per meeting. POLICE AND FIRE PERSONNEL: Mayor Johnson made a motion to promote Donald C. Snow and Larry J. Collins to 2nd Class Patrolman, and to promote Teresa K. Anderson to Administrative Assistant II/1st Class Civilian, effective January 29, 1994. The motion was seconded by Steve Brown. All members voted aye. Motion carried. SAM HAYMAKER/DISCUSSION OF DEFERRED COMPENSATION DISTRIBUTION: Gordon Byers gave a summary of the 457 deferred compensation program and outlined the set of circumstances surrounding Sam Haymaker's request to withdraw his funds from the plan. Byers stated the rules and regulations of this plan were the specific rules set out by the Internal Revenue Service. They were not the rules of PEBSCO or the Board of Public Works. Byers stated that whether Sam Haymaker was entitled to the funds held by PEBSCO because he resigned, terminated or quit the Carmel Police Department on December 31st and then started as a fireman on January 3rd should be the decision of the IRS. Byers went on to say that while he and the Board have great sympathy towards Mr. Haymaker, the IRS was the final decision maker and only the IRS had the absolute answer on the question of his distribution. A preliminary inquiry as to whether or not Mr. Haymaker was entitled to this withdrawal of funds was made to Katz, Sapper and Miller. K,S,M reviewed similar private letter rulings and IRS code and preliminarily determined that Mr. Haymaker may not be entitled to the funds since the City of Carmel was the employer. K,S,M could not find anything that would warrant a recommendation to the Board of Public Works for a distribution. It was the opinion of the City Attorney that while Mr. Haymaker changed departments, that he was still in the constant employ of the City and the assets of the plan are still held by the City and Mr. Haymaker may not be eligible, under an IRS ruling for a distribution. Byers went on to stated that if a distribution was made and the IRS would later determine that the distribution was not in accordance with the 457 plan, the entire plan could be ruled ineligible, the IRS could attack the validity of the plan, and jeopardize the retirement and tax benefits for everyone now enrolled in the plan. Penalties and assessments could also be levied against the City. It was the recommendation of the City Attorney and the fiscal consultant, Katz, Sapper and Miller to request a private letter ruling from the IRS on this distribution. Both felt it was the duty of the City to seek such a ruling. The City attorney stated the Clerk-Treasurer would pay for this private letter ruling from her budget an also expressed the need to have this letter for future reference. Byers also wanted to include Sam Haymaker's attorney, Bruce Petit in the process so they could or would feel comfortable with the findings of fact. Gordon Byers wanted Haymaker to acknowledge the fact that the Board of Public Works was willing to approve the transfer of Sam's longevity to the Fire department but wanted to caution Sam that if he accepted the longevity, that fact would have to be revealed to IRS in the private letter ruling. Rick McKinney asked Gordon Byers what position PEBSCO was taking in this matter. Byers stated PEBSCO is saying this is Carmel's call and all expenses involved would be on Carmel. Byers stated the worst part in all of this was that PEBSCO went ahead and issued a check to Sam and then stopped payment on the check. Mayor Johnson asked how a check had been cut to Sam in the first place. Clerk-Treasurer Jones stated that Sam had come to her with a form from PEBSCO that stated Sam would be terminating his employment with the Carmel Police Department on December 31st and because of that termination, was entitled to a distribution. At the time, Jones said, she had no other information to base a decision on. It wasn't until the December 22, 1994 BPW meeting that she realized Sam was asking for a transfer to the Fire Department so he could keep his benefits of longevity, PERF and salary but had only technically terminated from the police department in order to get a distribution from PEBSCO. Bruce Petit, attorney for Sam Haymaker, said he has not been provided any opinions of Katz, Sapper and Miller. Petit said that after having discussions with a Mrs. Stellhorn of the IRS who specializes in these types of plans, the IRS looks at a job change rather than a change of employer. Petit said the issue of the City of Carmel being the employer was not an issue with the IRS because the rules use the word separation of employment so that could mean transfer. Petit then outlined eleven reasons why he felt Mr. Haymaker had realized a termination of employment rather than a transfer. 1. The application to receive a distribution of PEBSCO funds showed a termination of employment on December 31, 1993 and was signed by the Clerk-Treasurer. 2. The health and life insurance provided by the City had been terminated on December 31, 1993 and then reinstated on January 3, 1994. 3. That Sam Haymaker had lost 6 years of longevity. 4. That Sam Haymaker had been hired at a level 3 class rather than a level 1 and had lost nearly $5,000 in pay. 5. That Sam Haymaker had lost vacation benefits because the police department earns 9 days vacation a year and the fire department earns 6. 6. That Sam Haymaker had been assigned a new employee number. 7. That Sam Haymaker realized a two day pay loss from January 1 to January 3rd. 8. That Sam Haymaker was paid from a different budget. 9. That Sam Haymaker signed a new W-4 form dated January 3rd. 10. That PEBSCO went ahead and honored the resignation and sent out a check. 11. That the IRS looks at job duties. Petit did not want to wait for an IRS private letter ruling because it would take up to 6 months and may have to take case to another forum. Petit also suggested that perhaps the Board would be willing to negotiate Sam's salary and benefits rather than go for a private letter ruling from the IRS. Petit also stated that it was his opinion there were two separate plans and two separate funds. He agreed there was only one trust agent, PEBSCO. One plan was for the police department and the other plan was for all other employees of the City and that Sam had resigned from the police department, there by resigned from the plan. Jones replied by saying there was only one plan document. Two separate account numbers had been assigned by PEBSCO through a request by her office, last year, in order to make it easier to reconcile the employers contributions to the plan and the employees contributions. She said that from the beginning, way back in the 1980's there has only been one plan. Mayor Johnson then said he had no problem with continuing benefits for Sam Haymaker if that is what Sam wanted and was prepared to vote on his longevity tonight. Jay Benjamin from Katz, Sapper and Miller stated that a private letter ruling letter would cost approximately $6,000. The IRS charged a $3,000 user fee and the preparation of the letter would be somewhere around $2,000 to $3,000. Rick McKinney stated he was opposed to spending this kind of money on such a letter but if the Board voted to do this, he wanted a cap of $6,000 on the fee. Jones asked what the Board would do if the cost ended up being $6,100 and wondered if the private letter ruling would have to be scrapped because the cost was $100 over the limit. There was no response. Byers also asked for authority from the Board to go forward and negotiate on behalf of the City with Sam Haymaker and Mr. Petit. Sam's Mother then addressed the Board. She stated this was Sam's dream to be a fireman and felt the City was punishing her son. She said he was suffering financially and couldn't understand why the City was treating him this way. Sam's Mother went on to relay a court decision resulting in triple damages because of a conversion of funds with regards to cable television. Sam's Mother stated she was a paralegal and a court reporter and knew quit a bit about this type of thing and asked for the Board's cooperation in allowing a distribution without having to go to the IRS or to court. Steve Brown said that even if this case went to court, the Judge would more than likely ask what the IRS said. Steve reiterated the Board's opinion that it was not their rules governing a distribution of funds but the rules of the IRS. Mayor Johnson stated that while he was concerned with Sam's dream, he was equally concerned about the retirement dreams of 58 other policemen and all employees who had monies in this retirement plan and if this plan was ruled ineligible because of a decision he or the Board made without knowing the position of the IRS, he could never live with himself. EMPLOYMENT OF RE-PLACEMENT PROBATIONARY FIREFIGHTER/BRAD D. SOMBKE: Mayor Johnson made a motion to hire Brad Darrel Sombke as a Probationary Firefighter for the City of Carmel at a base salary of $1,053.93 bi-weekly. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. Mayor Johnson made a motion to approve the PROPERTY USE: following uses of City property. The motion was seconded by Steve Brown. All members voted aye. Motion carried. 1. Greenspace-Use of Gazebo, May 5, 6 & 7, 1994 2. Watercolor Society of Indian a Request- Use Council Chambers from 1:30 to 4:00 p.m. February 27, 1994 3. Herb Society of America Request to Use Caucus Rooms on October 1, 1994 from 8:00 a.m. - 3:00 p.m. 4. Family Reunion, Betty Ranes -Use of Gazebo, August 13, 1994 from 10:00 a.m. until 4:00 p.m. 5. Ladies Auxiliary/Carmel Fire Department - Use of Ground around the Fountain/2nd Annual Big Wheel 500 -May 21, 1994 from 7:00 a.m. until 1:00 p.m. Steve Brown made a motion to approve the CLOSING AND USE OF ROADS: use of the roadway for the Sam Costa Half Marathon to be held on March 20, 1994. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. REQUEST FOR STREET LIGHT AT THE END OF CUL-DE-SAC ON BRIAR CREEK Steve Brown made a motion to approve the installation of a PLACE: street light at he end of the cul-de-sac on Briar Creek Place. The City would pay the monthly charge of $14 for service to this light. The motion was seconded by Steve Brown. All members voted aye. Motion carried. Steve Brown made 1992/93 UNCOLLECTIBLE DEBTS FOR CARMEL UTILITIES: a motion to write off $198.04 for water and $536.08 in sewer for a total of $735.02 in uncollectible debts. The motion was seconded by Rick McKinney. All members voted aye. Motion carried. There being no further business before the Board of Public Works the motion was duly adjourned. Respectfully submitted, ________________________________ Susan W. Jones Approved, _________________________________ ATTEST: _________________________________