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In a move that could defuse a potentially explosive 1993 mayoral election issue, the Aurora City Council`s Government Operations Committee Thursday approved an ordinance abolishing a requirement that its employees be city residents.

The ordinance, however, would give ”preference” in hiring to city residents, maintaining at least the spirit of the 16-year-old residency requirement.

It would give five extra civil service points to applicants who are residents of the city and initially qualify for a job based on civil service ratings. The measure also would require employees to live ”in a location compatible with the on-time performance of their job.”

Seasonal and part-time workers must still live in the city, and the city can still require that department and division heads live there.

”It`s a compromise,” said Mayor David Pierce. ”Based on individual discussions I`ve had with aldermen, I think it will pass.”

If aldermen do approve the measure at the Sept. 1 City Council meeting, Pierce will have avoided a tie-breaking vote on what has been a divisive political issue for the past two years.

Out-and-out abolishment of the residency requirement was supported by 5 of the 10 aldermen, and opposed by the other five. Meanwhile, Aurora union members were setting up the vote as a major issue for next year`s mayoral campaign, in which Pierce is expected to seek a third term.

”The morale of city employees should be lifted because of this,” said Wayne Biles, president of the Aurora Association of Professional Police Officers. ”I want to give some credit to the mayor, who was willing to change his mind.”

Pierce said the ordinance ”meets my operational concerns” and ”about 65 percent of my philosophical concerns.

”If you live and work in the community, you have a greater stake in the community,” he added.