City and fire command officials will be working toward a resolution to contract issues.

Mayor Scott Eisenhauer said he's contacted the Danville Fire Command Officers Association and indicated the city's interest to sit down again and regroup.

This follows the city council last week voting down a new two-year fire command contract with a vote of 6-7. The contract covers three assistant fire chiefs and four captains. They will continue to work under their past contract.

Officials will go back to the bargaining table and negotiate again, or the contract could go to arbitration where it will cost the city thousands of dollars more in legal fees.

The proposed contract was retroactive to May 1 and included 3.5 percent salary increases each year; clarification of on-duty personnel and provision of four Kelly Days to reduce overtime; and a $15 monthly insurance increase each year.

Some aldermen indicated they couldn't approve the contract in light of more budget cuts being needed.

Assistant Fire Chief Don Hanetho, president of the Danville Fire Command Officers Association affiliated with Local 429 of the International Association of Firefighters, said there was an agreement made on both sides regarding the firefighters and fire command officers.

"Our negotiations were done months and months ago, back in February," Hanetho said.

But for various reasons, the contract wasn't presented for approval until last week.

"There was a proposal made to the city firefighters and command as a group," Hanetho said.

Those items were agreed upon and taken off the table, he added.

"We made some concessions with manning and other things that resulted in substantial savings to the city; a large part of those savings came from us, the command side," Hanetho said.

Those items agreed to during budget discussions earlier this year included: a reduction in fire department personnel from 58 to 51 through attrition, which included five current vacancies; there also was to be savings in overtime with a reduction of minimum manning at a fire station from 13 to 11 union firefighters, which does not include the captain and assistant chief positions.

Deputy Director Bobby Lillard's position also was cut as part of city budget cuts.

And the new firefighters' contract included a 3.5 percent wage increase per year. Also included: two additional Kelly Days or time off to reduce Fair Labor Standards Act overtime (they can't create a manning recall); while the work day is still 8 a.m. to 4:30 p.m. Monday through Friday, activities including building inspections can occur outside the times to accomplish performance standards; insurance increases of $15 per year; a new light duty policy that provides for the issuance of light duty activities regardless of whether the injury is on the job or non-work related; and a $50-a-year clothing allowance increase.

The contract runs through April 2011.

The overall savings to the city with the manning and other changes is $500,000 annually.

"From our standpoint, (the contract) was done months ago," Hanetho said. "I did think it would pass. I wish the vote would've gone the other way. It puts us in a difficult situation.

"At this point, we're going to consider our options and we will be meeting with the city's representatives at some point in the next couple weeks to discuss those options."

Eisenhauer said if the contract goes to arbitration, "they can put anything" back on the table.

Some aldermen have again questioned residency requirements. The four police and fire department unions only have the requirement that employees must live within a 5-mile radius of the city limits.

"Residency is a dead horse that has been beaten and beaten and beaten. It's pretty much getting thrown out," Hanetho said.

He said some state cases are going in the opposite direction of not having any residency requirement.

"It's kind of been a non-issue," Hanetho said, adding that 95 percent of the dollars he spends are in the city.

Hanetho lives outside city limits, south off Daisy Lane, and wishes he could annex into the city.

"I go out of my way to spend dollars here," he said.

Eisenhauer said city employees who live in the city can have a greater appreciation for the community and activities, and better knowledge and understanding of the city's conditions and challenges.

He added that police officers have argued they don't want their children going to school with children of persons they've arrested. Also union representatives say they lose out on job prospects with the requirement.

Hanetho said they have every intention of getting the fire command contract resolved.

"It's kind of frustrating. I'm confident that we will come to some type of resolution," he said.

"I think it's unfortunate that the vote went down like it did. Our department has taken a heck of a hit over the last several years. We're trying to make do with what we have...."