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Elk River City Council Minutes Julv 19. 1999 Page 4 e Council member Farber questioned Charlie Blesener (Community Education Director) why he is in favor of Option C. Charlie Blesener indicated that he is in favor of Option C because he feels it is more cost effective than Option Band creates less confusion for the public. Councilmember Motin requested the City Administrator to contact the members of the joint powers agreement to find out what type of long term commitments to the program they are considering. It was the consensus of the City Council that a majority of the council supports Option A but then is in favor of Option B over Option C. 4.6. (3.2.) Consider Elk River Fire Relief Association 2000 Benefit Level Mayor Klinzing noted that this issue had been tabled from the July 12 meeting. She indicated that the city received a request from the Fire Relief Association to table this issue again to July 26. Councilmember Dietz indicated that he would not be present on July 26 and stated he would like to review the information at this time. Councilmember Dietz indicated that he received a packet of information from the Association regarding benefit level projections of 8, 10, 12, and 14 percent increases. Council member Dietz distributed this information to the remaining council members. Council member Dietz stated he does not feel comfortable bringing the reserves down to zero. The council reviewed the information prepared by the Association regarding the 8, 10, 12, and 14 percent increases. e Council member Thompson questioned the purpose of bringing the reserves to zero. Randy Sykes indicated that the amount of money is not considered a reserve, but an excess. He indicated that the Fire Relief Association is merely requesting approval to disperse its own funds. The City Administrator informed the council that once the benefit level is established, it then cannot be lowered. Councilmember Farber noted that in order for the pension to have a shortfall, all of the firefighters would have to collect the pension at one time. He indicated that the chances of this happening are very minimal and stated that he is in favor of the Association's request of the 16 percent level increase. Mayor Klinzing reminded the council that the tabled motion before the council from the July 12,1999, meeting is to approve the Elk River Fire Relief Association's request to increase benefits to $3,370 per year of service for 2000. She noted that this is at the 16 percent level. It was the consensus of the council to call the vote on this motion at this time. The motion from the July 12 meeting is as follows: e (COUNCILMEMBER FARBER MOVED TO APPROVE THE ELK RIVER FIRE RELIEF ASSOCIATION'S REQUEST TO INCREASE BENEFITS TO $3,370 PER YEAR OF SERVICE FOR 2000. MAYOR KLINZING SECONDED THE MOTION.) THE MOTION CARRIED 4-1. Councilmember Dietz opposed.