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. , . ARDEN HILLS CITY COUNCIL - JANUARY 5 1998 6 Mayor Probst inquired as to the previous fee for vending machines. Mr. Fritsinger indicated it was $25 per machine. MOTION: Councilmember Hicks moved and Councilmember Keirn seconded a motion to adopt Resolution #98-07, Establishing the Fee Schedule for 1998. The motion carried unanimously (5-0). E. 1998 Pay Plan (Employee Insnrance-Maximum City Contribution) Mr. Fritsinger noted the City received significant increases in both its health and dental coverages for non-union employees. Health insurance increases for 1998 are 24.2% and dental insurance premiums increased by 20.5%. The City is currently covered through Medica for health and American Medical Security for dental insurance. Mr. Fritsinger indicated he would like to ask the Council to approve a motion to cover the cost of the increased insurance premiums for the month of January. This would provide Staff further opportunity to find an insurance carrier that would not inflict such a strain on City employees. Due to the short notice by Medica and Staff not having enough time to review, Councilmember Malone suggested freezing the employee contribution until a time that Staff can recommend options. He noted it is not the employee's fault for the situation and he believes the City should, as an employer, cover this extra cost until a new plan is resolvcd. Mayor Probst indicated he would like Council to defer actions 1-3 of the staff recommendation until Council can see what the financial impact would be of any insurance that is chosen. Mayor Probst concurred with Councilmember Malone in regard to undertaking the cost of the increase while Staff is looking for alternatives. Councilmember Malone indicated he is happy to see action regarding long term disability and stated he believes the coverage to be worthwhile. Councilmember Hicks inquired as to why the increase was so high. Mr. Fritsinger indicated the City in and of itself was reviewed and with the cost of claims made during 1997, premiums were increased. Councilmember Keirn expressed concern with obtaining insurance with Ramsey County since they could potentially increase their rates in the upcoming year. Mr. Fritsinger indicated Staff also had concerns since it would be a five-year commitment on the part of Arden Hills ifthey should go to Ramsey County for coverage under their plan. Councilmember Keirn inquired as to why Ramsey County was given a one-year notice of rates and Arden Hills only one month. Mr. Fritsinger indicated Ramsey County had a three-year plan/contract which is ending in 1998. Councilmember Keirn agreed with Councilmember Malone regarding freezing the costs to the employees.