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MINUTES <br />CITY COUNCIL <br />DECEMBER 11, 2013 <br />Montour noted that this is an example of considering a different approach <br />to resolve the situation. <br />Morelan felt that consideration of a defined contribution plan could take <br />some time and would require involvement by both the Relief Association <br />and the Fire Department. He noted that the Fire Department contract is up <br />at the end of the year. <br />Vitale felt that the only way to address the issue of benefit increases is to <br />do it on an annual basis reviewing current information. In that way, the <br />City is protected and there is no speculation. <br />Morelan stated that he appreciated Vitale's comments, but indicated that <br />this does not work for the Fire Department. The Department wants <br />consistency in benefit levels, and feels that tying increases to the rate of <br />inflation provides that consistency. The Department also wants to provide <br />a way for fire fighters contemplating retirement to know the status of <br />increases. <br />Blesener again stated that tying increases to the rate of inflation puts the <br />City at financial risk <br />Keis noted the two Department entities, the Fire Department and the <br />Relief Association, and indicated that he gets the feeling that there is not <br />an aligned approach on this issue between these two entities. Keis pointed <br />out that the City must work with both groups. Liebel indicated that the <br />City is working with the Fire Department on this issue. <br />There was additional discussion about the risk the City would be at to <br />guarantee benefit increases tied to inflation. Morelan felt there was a way <br />to craft an agreement that gave the City an out if the market crashes and its <br />required contribution was substantial. Morelan stated that the Fire <br />Department's goal is to have stable increases for at least the next five <br />years. Liebel also indicated that if investments make a lot, the Department <br />would not ask for an increase over the rate of inflation. <br />Keis indicated that he needed additional information before he could make <br />a decision. Blesener suggested that the City contribute $15,000 at this <br />time, but set an additional $16,000 aside pending the outcome of the final <br />decision. It was agreed that additional study was needed. The <br />Administrator suggested that a committee be formed to work on this issue <br />and bring a recommendation back to the Council within the next couple of <br />months. Morelan noted that the Fire Department's contract expires at the <br />end of December, and suggested that the Department and City enter into a <br />three -month contract while this issue is being worked on. The <br />5 <br />