Agenda 08/26/2008 - Laserfiche WebLink

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August 12, 2008 with a 5-0 vote, the following resolution regarding affirmation of authorization to pick-up the Employee's 5% contribution to Virginia Retirement System: RESOLUTION AFFIRMATION OF AUTHORIZATION TO PICK-UP THE Employee's Contribution to VRS for CITY OF MARTINSVILLE, 55223 Under Section 414(h) of the Internal Revenue Code WHEREAS, the City of Martinsville, Virginia, provides its employees with tax deferral pursuant to Section 414(h) of the Internal Revenue Code with respect to their member contributions to the Virginia Retirement System (referred to as VRS) by picking up member contributions to VRS: and WHEREAS, the VRS keeps track of such picked up member contributions, and treats such contributions as employee contributions for all purposes of VRS; WHEREAS, the Internal Revenue Service in Notice 2006-43 has provided transition relief for existing pick up arrangements provided that an authorized person takes formal action to evidence the establishment of the pick-up arrangement no later than January I, 2009. WHEREAS, in order to avail itself of the protection given under Notice 2006-43, the CITY OF MARTINSVILLE desires to affirm its intention to establish and maintain a pick-up arrangement through formal action by its governing body. NOW, THEREFORE, IT IS HEREBY RESOLVED that the existing member contribution pick-up arrangement is hereby aiTirmed as it relates to salary reduction elections in effect prior to the date of this Resolution, and it is further RESOLVED that etTeetive the first pay day on or after August 12,2008, the CITY OF MARTINSVILLE shall pick up member contributions of its employees to VRS, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States; and it is further RESOLVED that such contributions, although designated as member contributions, are to be made by the CITY OF MARTINSVlLLE in lieu of member contributions; and it is further RESOLVED that pick up member contributions shall he paid from the smne source of funds as used in paying the wages to affected employees; and it is further RESOLVED that member contrihutions made hy the CITY OF MARTlNSVILLE under the pick up arrangement shall he treated for all purposes other than income taxation, including but not limited to VRS benelits, in the sallle manner and to the same extent as member contributions made prior to the pick up arrangement; and it is further RESOLVED that nothing herein shall be construed so as to permit or extend an option to VRS members to receive the pick up contributions made by the CITY OF MARTINSVILLE directly instead of having them paid to VRS; and it is further RESOLVED that notwithstanding any contractual or other provisions, the contributions of each member of VRS who is an employee of the CITY OF MARTINSVll,[.E shall he picked up either through a reduction in the current salary of such employee or as an offset against future salary increases of such employee or as a comhination of both at the option of the employer by the CITY OF MARTlNSVILLE on behalf of such employee pursuant to the foregoing resolutions. Council agreed to set a public hearing for August 26, 2008 to consider abandoning the eastern portion of an alley off Geter Street, being approximately 10 feet in width and 148 feet in length, located south of E. Church Street as shown on Tax Map 36 of the City of Martinsville, on a recommendation from the Planning Commission. Wayne Knox briefed Council advising this abandonment will allow an existing residence to be reconstructed on the same building lot and be closer to conforming to today's zoning standards. Council discussed staffs recommendations regarding disposal of city owned surplus property. Chris Morris, Project Engineer, pointed out the tracts have been broken down into three groups: 1. Five parcels ranging in size from 2.6 acres to 6.6 acres to be sold outright through advertisement for bids, or solely for timber rights, and have a combined assessed value of approximately $29,800. 2. 40 parcels of various sizes that can be combined as shown, to be sold outright through advertisement for bids, and have a combined assessed value of approximately $104,000. 3. 20 smaller residual tracts not suited to stand alone as buildable parcels, to be disposed of through