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Boardmember Cich asked if there is an annual audit conducted to which Chief Griffin replied that the funds are audited annually by the City's Auditor in conformance with the total City audit. Chairman Pearson asked if there are any other cities without a relief association in effect to which Chief Griffin answered none that he's aware of. City Attorney Goodrich explained that the Relief Association consists of nine members - six trustees and three ex officio members consisting of the Fire Department Chief, Mayor and City Finance Officer. There will be two funds; a General Fund which would include monies from dues, donations, fines, initiation fees and entertainments (any money other than the 2% from State aid). The money could be dispersed upon a majority vote of the membership or of the Board of Trustees for any purpose reasonably suited to promote the welfare of the association and its members. The Special Fund would include the 2% fund from State Aid. The treasurer has to be bonded. These funds are spent out for death, disability, etc. such as payment of members' service pension benefits in accordance with these by-laws and payment of an amount not to exceed $1,000.00 as a funeral benefit to the surviving spouse, or if no surviving spouse, the estate of the deceased Association member. Administrative Expenses are also listed as a disbursement of the special funds in the by-laws. Mr. Hartley asked to hear from the Fire Fighters acting as members on the Committee developing the By-Laws. Tom Hoxter stated they had a special meeting last night and discussed, at length, the options and took a vote. He explained the two main subjects discussed were "what we can get" and "what City Council will approve for us". It was decided, based on discussion, to go with Option A, Defined Contribution. Mr. Hartley felt it would be beneficial to hear the reasons why the vote went with Option A. Mr. Hoxter explained that they talked about how difficult it would be for the City Councilmembers to approve By-Laws for an association if they'd have to guarantee money for it. He stated, however, that the overall feeling of the Committee was that City Council didn't appear to have much confidence in the Fire Department. The Fire Department feels the relief association has to be developed and both Option A and Option B are good plans. They felt that the City Council would be more agreeable to Option A and this would allow the plan to get started. Mr. Hoxter also expressed the Fire Department's hope that if the City doesn't have to guarantee any funding, that they will be more willing to contribute to the Fire Department, when they can, which he felt will also show that they (City Council) have more confidence in the Department. Mr. Hartley asked if he understood correctly and rephrased Mr. Hoxter's statements by saying that the Fire Fighters preferred to present Defined Contribution with the hope that the City would make contributions. Mr. Hoxter answered yes, that was one of the reasons. He explained again that Ramsey's Fire Department wasn't eligible for Sate Aid before and any contributions would help take the place of the money the Department lost out on before. Mr. Goodrich pointed out that full funding will be available for the year 1992. Mr. Hartley asked Mr. Hoxter if the Committee talked about the effect of the number of Fire Fighters in the organization with respect to the two plans to which Mr. Hoxter replied they might have 36 Firefighter's on the department and the numbers are understood. Mr. Hartley asked City Attorney Goodrich to explain the differences between the two plans. City Attorney Goodrich explained that with the Defined Contribution (Piece of the Pie) each individual Fire Fighter has a percentage of the entire fund based on years in service. His "piece of the pie" goes with him always. He explained that with Defined Benefit it's set so that each Fire Fire Board/December 4, 1990 Page 2 of 6