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Case #4: Authorize Staff to Enter into Agreement with Insurance Agent of Record for Year Beginning December 15, 1997 Mayor Gamec arrived (5:40 p.m.). Councilmember Haas Steffen arrived (5:41 p.m.). Acting City Administrator Waite Smith stated that the City annually contracts with an insurance agent. Staff counts on the agent of record to provide insurance and risk management advice and assistance, be up-to-date on the latest developments in the field and in legislation and to be pro- active in notifying staff of changes and areas of potential risk. Ms. Waite Smith expressed concern about the service that has been provided by the current agent of record and suggested entering into a one-year agreement with T.C. Field & Company. The Finance Officer has also worked with the current agent of record and expressed the same concerns as Ms. Waite Smith and concurred with her recommendation. Ms. Waite Smith noted that the quote received from the City's current agent is $2,000 while the quote from T.C. Field & Company is $3,000. However, she felt that the difference in service would be worth the additional $1,000. Ms. Waite Smith and Ms. Hart presented some examples of the poor service received from the current agent of record. Motion by Councilmember Haas Steffen and seconded by Councilmember Beyer to recommend Council authorize staff to enter into an agreement with T.C. Field & Company to serve as the City's insurance agent of record for one year, beginning December 15, 1997, for a fee of $3,000. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Haas Steffen, Beyer, Beahen and Zimmerman. Voting No: None. Case #5: Receive Recommendation for Exempt Salary Increases Acting City Administrator Waite Smith stated that at the last meeting, she presented Council with information about exempt salary increases for 1997, as well as employee increases for the two unions. Now that the Council has had time to review the information they received, she is asking how they feel the 2% should be distributed. If each exempt employee receives the 2%, they will still be at a lower average increase than the union employees. Councilmember Haas Steffen stated she does not like people being paid for tenure and longevity. She expressed concern about past practice and that she has a problem with a 6.4% increase just to bring an employee in line with employees of the same title in other cities. She is not opposed to the exempt group getting a raise but she is opposed to doing it without a rating. Councilmember Beyer stated she has a problem with distributing the 2% across the board. She felt that is not a fair way and she would rather take the 2% and put it into a fund for next year's distribution. Finance Committee/October 28, 1997 Page 3 of 6