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09. Meyers Geddes City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 Telephone: (408) 777-3213 FAX: (408) 777-3109 CITY OF CUPEIUINO HUMAN RESOURCES SUMMARY Agenda Item No. 9 Meeting Date: September 19, 2006 SUBJECT AND ISSUE Adopt a resolution fixing the employer's contribution for medical and hospitalization insurance consistent with the Meyers-Geddes State Employees Medical and Hospital Care Act for public works maintenance employees represented by Operating Engineers, Local Union No.3. BACKGROUND On July 1,2004, the City and Operating Engineers, Local Union No.3 entered into a three year memorandum of understanding (MOD) that extends through June 30, 2007. The MOU includes an increase in the City's contribution for employee medical insurance effective January 1,2007. For employees with dependent coverage (either employee plus one or family coverage), the City's contribution will increase by $40 per month. The contribution for employee only coverage will remain the same. Adoption of the attached resolution fulfills reporting requirements associated with the Meyers-Geddes Act. RECOMMENDATION Staff recommends that the City Council adopt Resolution No. 06-151 fixing the employer's contribution for medical and hospitalization insurance for employees represented by Operating Engineers, Local Union No.3. Submitted by: Approved by: .("U /a?~ /,< 'Sandy Abe Human Resources Director ~L David W. Knapp City Manager (1-1 Printed on Recycled Paper DRAFT RESOLUTION NO. 06-157 A RESOLUTION OF THE CUPERTINO CITY COUNCIL FIXING THE EMPLOYER'S CONTRIBUTION UNDER THE MEYERS-GEDDES STATE EMPLOYEES MEDICAL AND HOSPITAL CARE ACT WHEREAS, Government Code Section 22825.6 provides that a local agency contracting under the Meyer-Geddes State Employees' Medical and Hospital Care Act (Act) shall fix the amount of the employer's contribution at an amount not less than that required under Section 22825 of the Act; and WHEREAS, the City of Cupertino is a local agency contracting under the Act; NOW, THEREFORE, BE IT RESOLVED that the employer's contribution for each employee and for each annuitant first hired before August I, 2004 shall be the amount necessary to pay the cost of his /her enrollment, including the enrollment of his /her family members, in a health plan or plans, up to a maximum as set forth herein effective January 1,2007: Code Bargaining Unit Cost Per Month 04 Operating Engineers, Local Union No.3 (OE3) $762.50 - Employee Only Coverage $902.50 - Employee + 1 Coverage $942.50 - Employee + 2 or More Coverage PASSED AND ADOPTED at a regular City Council meeting of the City of Cupertino this 19th day of September, 2006 by the following vote: VOTE MEMBERS OF THE CITY COUNCIL AYES: NOES: ABSENT: ABSTAIN: ATTEST: APPROVED: City Clerk Mayor, City of Cupertino Ll-J-