RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SUNNYVALE AUTHORIZING LAYOFF BENEFIT

WHEREAS, as a result of the State of California's budget crisis and the uncertainty as to the amount of funds the City will receive from the State, certain probationary, regular and long-term provisional employees will be affected by layoffs caused by the current fiscal situation; and

WHEREAS, the City desires to provide assistance to affected employees to the extent it is able, and certain funds are available on a one-time basis from savings from the premium reductions in dental and life insurance programs in the Benefits Fund; and

WHEREAS, the City contributes certain amounts to the cost of medical, dental, vision and EAP coverage for employees.  Under COBRA (continuation of existing benefits) regulations, employees are entitled to continue to participate in the employer's coverage programs for up to eighteen months after termination by paying the employer's cost, plus an additional 2% carrier-imposed administration fee; and

WHEREAS, the City recognizes that obtaining medical, dental, vision and EAP coverage is one of the difficulties laid-off employees face and desires to provide some assistance in that regard.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SUNNYVALE THAT the following layoff benefit shall be provided, in fiscal year 2003/2004, for eight regular employees affected from the Department of Employment Development and one regular employee affected from the Department of Public Works:

City shall continue to pay the same share of the cost of medical dental, vision and EAP coverage through COBRA that the employee received before termination from the City, for up to three months for nine regular employees. Eligible employees will be responsible for the same current contribution for their health plans as when they were employed by the City.  The City contribution will be made through reimbursements when employees present proof of payment for continuation of coverage.  The 2% COBRA administrative cost will be paid by the employee.  The City Manager is authorized to take such steps as are necessary to effectuate this action.

Adopted by the City Council at a regular meeting held on January 6, 2004, by the following vote:

(SEAL)