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r <br />MINUTES OF THE REGULAR ORONO CITY COUNCIL <br />MEETING HELD ON NOVEMBER 10,1997 <br />(#13 “ 1998 Non-Union Compensation Adjustments - Continued) <br />Goetten voiced concern that the non-union pay and benefits adjustments seem Jx <br />driven by the union contract settlements. <br />Peterson asked if the City accepted the health insurance renewal amounts or investigates <br />other options. Moorse said the City has not gone out independently for insurance bids. <br />Jabbour said the City could still investigate costs elsewhere. Moorse was doubtful of the <br />City obtaining a better rate on its own. Jabbour said that would not necessarily be the <br />case as average age may reflect in higher fees. Moorse said the issue can be reviewed. <br />Kelley voiced the problem with getting outside bids with artificial first year bids and <br />change in coverage resulting in employees having to change their doctors. <br />Flint asked for clarification on how much the City pays. <br />Moorse reported that the Council had authorized the City to move in the direction of <br />providing the same amount of benefit dollars to all employees, regardless of whether <br />they have single coverage or family coverage. For 1998, fifty percent of the difference <br />between the single coverage premium and the City's ma.ximum contribution of $328, can <br />be used in the cafeteria benefit plan. <br />Flint noted that family members will tend to choose the policy that favors their family. <br />Companies are moving toward providing single coverage and making up differences for <br />family coverage through increased salaries. Moorse noted the City has been taking the <br />direction suggested by Flint that the difference between single and family coverage <br />should disappear as far as the City's costs are concerned. <br />Flint moved, Goetten seconded, to adopt Resolution No. 4002 approving the 1998 no**- <br />union pay plan adjustments as follows: A 3.0% pay increase, a maximum insurance <br />contribution of $328.50/month, and a mileage reimbursement rate of $.32/mile. <br />Kelley asked if the 3% wage increase was driven by the police contract. Moorse <br />indicated the 3% increase is somewhat higher than the CPI increase of 2.7%. Moorse <br />reported the police contract is up the end of 1998. Kelley wras informed that negotiations <br />begin in August or September of 1998. Kelley asked Staff to inform the Council of <br />wage increases anticipated and how they arrive at the wage increases as it directly affects <br />the other employees in the City. Jabbour noted the problem with looking at what other <br />cities pay, resulting in a chain reaction of wage increases. <br />Vote: Ayes 5, Nays 0.