11-10-1997 Council Minutes - Laserfiche WebLink

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MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD ON NOVEMBER 10, 1997 ( #13 - 1998 Non -Union Compensation Adjustments - Continued) Is Goetten voiced concern that the non -union pay and benefits adjustments seem to be driven by the union contract settlements. Peterson asked if the City accepted the health insurance renewal amounts or investigates other options. Moorse said the City has not gone out independently for insurance bids. Jabbour said the City could still investigate costs elsewhere. Moorse was doubtful of the City obtaining a better rate on its own. Jabbour said that would not necessarily be the case as average age may reflect in higher fees. Moorse said the issue can be reviewed. Kelley voiced the problem with getting outside bids with artificial first year bids and change in coverage resulting in employees having to change their doctors. Flint asked for clarification on how much the City pays. Moorse reported that the Council had authorized the City to move in the direction of providing the same amount of benefit dollars to all employees, regardless of whether they have single coverage or family coverage. For 1998, fifty percent of the difference between the single coverage premium and the City's maximum contribution of $328, can be used in the cafeteria benefit plan. Flint noted that family members will tend to choose the policy that favors their family. • Companies are moving toward providing single coverage and making up differences for family coverage through increased salaries. Moorse noted the City has been taking the direction suggested by Flint that the difference between single and family coverage should disappear as far as the City's costs are concerned. Flint moved, Goetten seconded, to adopt Resolution No. 4002 approving the 1998 non- union pay plan adjustments as follows: A 3.0% pay increase, a maximum insurance contribution of $328.50 /month, and a mileage reimbursement rate of $.32 /mile. Kelley asked if the 3% wage increase was driven by the police contract. Moorse indicated the 3% increase is somewhat higher than the CPI increase of 2.7 %. Moorse reported the police contract is up the end of 1998. Kelley was informed that negotiations begin in August or September of 1998. Kelley asked Staff to inform the Council of wage increases anticipated and how they arrive at the wage increases as it directly affects the other employees in the City. Jabbour noted the problem with looking at what other cities pay, resulting in a chain reaction of wage increases. Vote: Ayes 5, Nays 0. 22