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MINUTES <br />CITY COUNCIL <br />NOVEMBER 18, 1992 <br />Collova pointed out the salary comparisons with other <br />cities in an attempt to make salaries equal, and <br />questioned why the City should not use the average <br />amount that other cities contribute towards health <br />insurance costs. <br />The Administrator acknowledged that this was a good <br />question, and stated that an option would be to look at <br />insurance plans and look for a plan with lesser <br />coverage at a lesser cost. The problem is, however, <br />that with the City's small group a number of carriers <br />that have quoted in the past have placed limitations or <br />exclusions on the group. The Administrator reported <br />that there may be the option to remain with the current <br />health plan, but at lesser coverage. Either way it <br />will mean an increased cost for employees. <br />Scalze pointed out that health insurance coverage is <br />very expensive, and she knew of no situations where the <br />employer was eating the entire increase. <br />LaValle pointed out that $250 is the average and that <br />other cities are paying more. LaValle pointed out that <br />because of budget constraints, salary increases have <br />been limited. LaValle preferred for the City to pick <br />up the increased cost of health insurance rather than <br />have whatever increases the employees received eaten up <br />by increased health insurance costs. LaValle pointed <br />out that some employees whose salaries are proposed to <br />be frozen would be put at a loss. <br />Scalze stated that she was not in favor of the City <br />picking up the entire increase in health insurance <br />costs. Scalze felt that when the cap was set on the <br />amount of participation the City would provide, that <br />cap was not meant to be increased each year. <br />Blesener stated that he had no problem increasing the <br />cap, but suggested that if health insurance costs do <br />not increase by 15%, the City's cap increase by the <br />actual insurance cost increase. <br />LaValle and Collova agreed. <br />Blesener suggested that perhaps the City should look at <br />a less expensive plan. <br />The City Administrator reported that rates are <br />evaluated each year. The policy comes up for renewal <br />in March, and various options will be evaluated. <br />Mr. Blesener introduced the following resolution and <br />moved its adoption: <br />Page 10 <br />