DECATUR - The early departure of former City Manager Steve Garman provides a "fresh opportunity" for the city to iron out a new contract for city employees, union leaders say.

Under a city-imposed contract, some union employees could be forced to choose between paying for health insurance or other necessities such as food and gasoline, said Jeff Bigelow, AFSCME Council 31 regional director.

"We think it was an insult to us, a travesty, really, for the city, that has torn things up here," Bigelow told members of the Decatur City Council on Monday. "But now, there is an opportunity to set things right."

City Manager Steve Garman resigned from his post last Friday.

Union officials say they are ready to negotiate with city administrators under the direction of Acting City Manager John Smith.

City administrators say both sides have reached an impasse after negotiating for nearly two years, and the city has the right to impose new contract conditions.

Union leaders say they haven't reached an impasse, and they are ready and willing to bargain.

"As you know, the former city manager may have done some good things in his career," Bigelow told the city council. "But toward the end, when he knew that he would be leaving and the conditions under which he was leaving, he turned around and poisoned this atmosphere for employees of Decatur by insisting that the people who are paid the least have to pay the most for their health insurance."

Assistant City Manager Billy Tyus said "there was some discussion" on Wednesday by city administrators.

"We're going to talk later in the week, and hopefully, there will be some movement," Tyus said. "We're hopeful."

Tyus declined further comment.

The city for years has paid 100 percent of single health coverage for members of AFSCME Local 268, and dependent coverage ran $23 per month.

Under the new plan, employees could choose from a tiered program, which requires them to pay $40, $61 or $85 per month for single coverage and $119, $184 or $255 per month for family coverage.

Retroactive to May 2007, employees would contribute $20 per month for single coverage and $50 per month for family coverage, with contributions deducted from retroactive wage increases.

Other terms of the agreement include a 5 percent pay increase, retroactive to May 2006, as well as 4 percent pay increases in 2007 and 2008, and a life insurance benefit of $20,000 per employee.

Mike Frazier can be reached at mfrazier@herald-review.com or 421-7985.