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4.3 Consider a Resolution to approve 2012 Health Insurance Contributions for LELS- Patrol and LELS-Sergeants Human Resources Representative Lasher explained that staff has reached a tentative agreement with LELS-Patrol and LELS-Sergeants on the City's 2012 health insurance contributions. She pointed out that both groups are working under a two-year labor agreement that is effective through December 31, 2012; therefore, the only open item on the contract is the City's health insurance contributions for 2012. She stated that these rates are the same as what had been discussed. Motion by Councilmember Tossey, seconded by Mayor Ramsey to recommend City Council adopt the resolution approving the City health insurance contributions, effective January 1, 2012 for the LELS-Patrol and LELS-Sergeants. Motion carried. All voted in favor. 4.4 Consider a Resolution to approve 2012 Non -Union Health Insurance Contributions and 2012 Non -Union Cost of Living Adjustments (COLA) Human Resources Representative Lasher explained that this is again the same health insurance contribution as negotiated. She briefly summarized the reasoning for changing to contract with LOGIS. Ms. Lasher noted that wages for all City staff have been frozen for two years (2010 — 2011) and that for 2012, Council authorized a two percent increase as part of the LELS and AFSCME contracts. Mayor Ramsey stated he does not have a problem with approving the raises but he does have a problem with giving the Department Heads the same increase. Every time an increase is given across the board, it leaves a larger gap between the Department Heads and the rest of staff. Councilmember Tossey asked for clarification on how the City can save money with regard to the health insurance. Ms. Lasher responded that as part of that contract with LOGIS, there are guaranteed caps going forward for the next four years; however, the City cannot have more than 5.6 employees opt out of the plan. She noted that with the resignation of Building Official Mick Kaehler and one other person dropping the plan, the number is already down two of those 5.6. She added there are things that could be looked at like maybe base eligibility guidelines for waiving coverage on years of service to the City. Councilmember Tossey commented that if we lose four more people, we then violate this basic contract with LOGIS. Ms. Lasher responded that the City would then be placed into small group status. City Administrator Ulrich stated LOGIS may draw a distinction between employees opting out versus something happening beyond our control (Le. resignations, etc.). Personnel Committee — December 13, 2011 Page 3 of 5