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Regular City Council Meeting Monday, October 10, 2011 Page 28 • this was the current situation in the insurance industry. When asked by Ms. Kes- ter on the number of companies researched to provide health coverage, Ms. Bacon advised that last year, the City had gone into a cooperative 33,000 member na- tional joint powers agreement consortium for insurance coverage, achieving very favorable negotiated rates for the City and its employees. Mayor Roe concurred with Ms. Bacon, noting that the City's claim history before joining the consortium had created an approximate 37% premium increase to the City, which had eventually been negotiated down as employees agreed to change plans and providers, and accept more out-of-pocket costs and higher deductibles. Mayor Roe opined that this new consortium appeared to be working well for the City by providing a larger pool to spread premiums among. Ms. Kester opined that the City's payment of$450/month per individual for not being in the insurance pool seemed extremely high, a rare step, and terribly ex- pensive; and suggested that the payment be dropped down to $200 per month, in addition to looking for other cost savings. Mayor Roe advised that such a proposal, including many others, would be taken into account going forward. • Ms. Kester expressed her hope that during ongoing budget discussions, the City Council would look for additional cost savings to reduce taxes rather than contin- uing to increase them. Councilmember Pust noted that the City was paying almost as much for an em- ployee to not take health insurance coverage as they were paying for single em- ployee coverage; and opined that the proposed savings of$150,000 annually was not accurate for banking; and questioned how many other cities had such a pro- gram. Ms. Bacon responded that fewer and fewer cities were doing so, with most going to a total cafeteria plan and offering a flat dollar amount. Ms. Bacon noted that this would be a tough thing for families to swallow right now with the current economy,but could serve as a future discussion among Councilmembers. Mayor Roe suggested that this was the type of item for future discussion, for a comprehensive review of the overall employee compensation package. McGehee moved, Roe seconded, approval of 2012 City benefits insurance renew- als and cafeteria contributions as described above with the respective contracts, subject to review and approval by the City Attorney; with a January 2012 review for 2013 years and beyond. • Pust moved, Johnson seconded, an amendment to the motion that the renewals be approved as presented, with the exception that the $18,200 savings not be put