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Councilmember Hendriksen inquired if the City is obligated for the second year of the contract. <br /> <br />Human Resources Manager Heryla replied yes. <br /> <br />Councilmember Hendriksen inquired if it would be possible to include an "out" in the contract <br />for the second year if the rates were to increase more than a certain percent or only enter into a <br />one-year agreement. <br /> <br />Councilmember Anderson stated that she does not like the ten- percent increase, but th/nks the <br />City does need to enter into the contract. <br /> <br />Councilmember Hendr/ksen asked what happens if they come back in a year with a 50 percent <br />increase. He stated that if the City is going to enter into a two-year agreement, the rates should <br />not be allowed to increase over a certain percentage and if they do the City should be allowed out <br />of their contract. <br /> <br />Councilmember Zimmerman stated that fi.om what he has seen with the health care industry, a <br />ten- percent increase is reasonable. <br /> <br />Councilmember Hendriksen stated that he is not opposed to providing good medical coverage <br />but thinks the City really needs to watch the dollars. He is opposed to the open-ended contract <br />and the City being obligated. <br /> <br />Motion by Councilmember Hendriksen, seconded by Councilmember Connolly, to direct staff to <br />work with the City Attorney to define parameters for the second year of the contract with PEIP <br />that would not obligate the City to the second year of the contract if the rates were to increase by <br />a certain percentage. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Hendr/ksen, Connolly, Anderson, <br />and Zirnmerman. Voting No: None. <br /> <br />Case #8: Report from Finance Committee <br /> <br />1) Award Bid for Purchasing a Photocopier <br /> <br />Motion by Councilmember Zimmerman, seconded by Councilmember Cormolly, to approve the <br />5;34,750 bid from Metro Sales for the Aficio 850 copier and authorize the purchase of this copier <br />with a guarantee in the contract that the undemonstrated capabilities will work. <br /> <br />Motion camed. Voting Yes: Mayor Gamec, Councilmembers Zimmerman, Cormolly, <br />Anderson, and Hendriksen. Voting No: None. <br /> <br />City Council/July 11, 2000 <br />Page 14 of 15 <br /> <br />-89- <br /> <br /> <br />