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Home My WebLink AboutRES 506 Draft 01 2020-2022 COUNTY OF 6 r;. i� STATE OF 6 +To° MR MOF:' RESOLUTION NO. 506 22 RESOLUTION II G TO FUNDINGITEMS AWARDEDY ARBITRATION TO SHOPOBARGAINING IT 12 AND EMPLOYEES EXCLUDED FROM BARGAINING UNIT 12 FOR THE CONTRACT PERIOD JULY 1, 2021 THROUGH JUNE 3 , 2025. WHEREAS, Sections 89-11(e) and (g) of the Hawaii Revised Statutes relating to collective bargaining require that in the case of a "final and binding" decision by an arbitration panel, "[a]II items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies"; and WHEREAS, these sections further require that the employer "...shall submit all such items within ten days after the date on which the agreement is entered into is provided herein, to the appropriate legislative bodies"; and WHEREAS, pursuant to provisions of Section 89-11, Hawaii Revised Statutes, Union and Employer positions were heard before an arbitration panel for BU 12, SHOPO; and WHEREAS, after hearing arguments from both employer and employee representatives, the arbitration panel concluded its hearings and on July 26, 2022, issued its decision; and WHEREAS, the total cost of the arbitration decision to the County of Hawaii is illustrated in the attached exhibits to this resolution; and WHEREAS, the estimated cost to the County of Hawaii over the four years of the new contract as shown in the exhibits attached to this resolution will be $31,699,929; now therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the cost items included in the conclusions of the arbitration panel for SHOPO negotiations, as shown on the attached exhibits, are hereby approved. BE IT FURTHER RESOLVED that the funds necessary to pay the obligations under this agreement will be included in the operating budget in FY2024 and FY2025. BE IT FINALLY RESOLVED that copies of this resolution be forwarded to the Department of Human Resources and the Department of Finance. Dated at Hilo , Hawaii, this 7th day of September , 2022. INTRODUCED BY: , COUNCIL MEMBR, COU TY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by INABA X the vote indicated to the right hereof adopted by the COUNCIL of the KANEALI`I-KLEINFELDER X County of Hawaii on September 7, 2022 KIERKIEWICZ X KIMBALL X ATTEST: LEE LOY X RICHARDS X VILLEGAS X 7 0 2 0 FC ` Reference: I.'• CLERK _, 'i' RSON&PRESIDING OFFICER RESOLUTION NO. 506 22 County of Hawaii SHOPO Bargaining Unit 12-Cost Increases July 1,2021 (FY2022)through June 30,2025(FY2025) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/21 $ 43,324,488 $ 43,324,488 FY2022: Step movements,7/1/21-6/30/22 224,377 434,484 Total payroll cost in FY 2021-22 $ 43,548,865 Base pay at6/30/22 $ 43,758,972 C Base pay at 6/30/22 $ 43,758,972 $ 43,758,972 FY2023: Across-the-board increase of 5.0%on July 1,2022 2,187,949 2,187,949 Step movements,7/1/22-6/30/23 237,755 407,124 Total payroll cost in FY 2022-23 $ 46,184,676 Base pay at 6/30/23 $ 46,354,045 Base pay at 6/30/23 $ 46,354,045 $ 46,354,045 FY2024: Across-the-board increase of 5.0%on July 1,2023 2,297,347 2,297,347 Step movements,7/1/23-6/30/24 310,962 566,532 Total payroll cost in FY 2023-24 $ 48,962,354 Base pay at 6/30/24 $ 49,217,924 i Base pay at 6/30/24 $ 49,217,924 $ 49,217,924 FY2025: Across-the-board increase of 5.0%on July 1,2024 2,432,570 2,432,570 I Step movements,7/1/24-6/30/25 304,513 562,236 One-time lump sum bonus on July 1,2024 783,050 - Total payroll cost in FY 2024-25 $ 52,738,057 i Base pay at 6/30/25 52,212,730 { Less base pay at 6/30/21 (43,324,488) Increase to base pay over term of contract $ 8,888,242 FY22 FY23 FY24 FY25 Total 2021-22 2022-23 2023-24 2024-25 FY22-FY25 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 43,548,865 $ 46,184,676 $ 48,962,354 $ 52,738,057 Less base pay at beginning of fiscal year 43,324,488 43,758,972 46,354,045 49,217,924 Total additional cost 224,377 2,425,704 2,608,309 3,520,133 $ 8,778,523 Add affect of prior year increase in base pay - 434,484 3,029,557 5,893,436 9,357,477 Total increased cost subject to fringe benefits 224,377 2,860,188 5,637,866 9,413,569 18,136,000 Certain fringe benefit costs(65.68%) 147,371 1,878,571 3,702,950 6,182,832 11,911,724 Increased costs to be paid during fiscal years 2022 to 2025 371,748 4,738,759 9,340,816 15,596,401 30,047,724 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 47,119 600,639 1,183,952 1,976,849 3,808,559 Total increased costs 418,867 5,339,398 10,524,768 17,573,250 33,856,283 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation. 3 County of Hawaii SHOPO Bargaining Unit 92-Cost Increases July 1,2021(FY2022)through June 30,2025(FY2025) Annual Effect on Payroll Cost Base Pav Base pay at 6/30/21 $ 205,188 $ 205,188 FY2022: Step movements,7/1/21-6/30/22 4,919 8,988 Total payroll cost in FY 2021-22 $ 210,107 Base pay at 6/30/22 $ 214,176 Base pay at 6/30/22 $ 214,176 $ 214,176 FY2023: Across-the-board increase of 5.0%on July 1,2022 10,709 10,709 Step movements,7/l/22-6/30/23 - - Total payroll cost in FY 2022-23 $ 224,885 Base pay at 6/30/23 $ 224,885 Base pay at 6/30/23 $ 224,885 $ 224,885 FY2024: Across-the-board increase of 5.0%on July 1,2023 11,245 11,245 Step movements,7/1/23-6/30/24 - - Total payroll cost in FY 2023-24 $ 236,130 Base pay at 6/30/24 $ 236,130 Base pay at 6/30/24 $ 236,130 $ 236,130 FY2025: Across-the-board increase of 5.0%on July 1,2024 11,807 11,807 Step movements,7/1/24-6/30/25 5,864 10,716 One-time lump sum bonus on July 1,2024 3,950 - Total payroll cost in FY 2024-25 $ 257,751 Base pay at 6/30/25 258,653 Less base pay at 6/30/21 (205,188) Increase to base pay over term of contract $ 53,465 FY22 FY23 FY24 FY25 Total 2021-22 (2022-23) (2023-24) 2024-25 FY22-FY25 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 210,107 $ 224,885 $ 236,130 $ 257,751 Less base pay at beginning of fiscal year 205,188 214,176 224,885 236,130 Total additional cost 4,919 10,709 11,245 21,621 $ 48,494 Add affect of prior year increase in base pay - 8,988 19,697 30,942 59,627 Total increased cost subject to fringe benefits 4,919 19,697 30,942 52,563 108,121 Certain fringe benefit costs(57.11%) 2,809 11,249 17,671 30,019 61,748 Increased costs to be paid during fiscal years 2022 to 2425 7,728 34,946 48,613 82,582 169,869 . Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 1,033 4,136 6,498 11,038 22,705 Total increased costs 8,761 35,082 55,111 93,620 192,574 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation. County of Hawaii SHOPO Bargaining Unit 36-Cost Increases July 1,2021(FY2022)through June 30,2025(FY2025) Annual Effect on Poll Cost Base Pay Base pay at 6/30/21 $ 2,347,236 $ 2,347,236 FY2022: WIRD 7/1/21-6/30/22 9,530 25,308 Total payroll cost in FY 2021-22 $ 2,356,766 Base pay at 6/30/22 $ 2,372,544 Base pay at 6/30/22 $ 2,372,544 $ 2,372,544 FY2023: Across-the-board increase of 5.0%on July 1,2022 118,628 118,628 WIRP 7/1/22-6/30/23 2,150 25,800 Total payroll cost in FY 2022-23 $ 2,493,322 Base pay at 6/30/23 $ 2,516,972 Base pay at 6/30/23 $ 2,516,972 $ 2,516,972 FY2024: Across-the-board increase of 5.0%on July 1,2023 124,559 124,559 WIRD 7/1/23-6/30/24 4,495 4,464 Total payroll cost in FY 2023-24 $ 2,646,026 Base pay at 6/30/24 $ 2,645,995 Base pay at 6/30/24 $ 2,645,995 $ 2,645,995 FY2025: Across-the-board increase of 5.0%on July 1,2024 132,077 132,077 WIRD 7/1/24-6/30/25 19,924 22,080 One-time lump sum bonus on July 1,2024 36,000 - Total payroll cost in FY 2024-25 $ 2,833,996 Base pay at 6/30/25 2,800,152 Less base pay at 6/30/21 (2,347,236) Increase to base pay over term of contract $ 452,916 FY22 FY23 FY24 FY25 Total 2021-22 2022-23 2023-24 2024-25 FY22-FY25 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 2,356,766 $ 2,493,322 $ 2,646,026 $ 2,833,996 Less base pay at beguming of fiscal year 2,347,236 2,372,544 2,516,972 2,645,995 Total additional cost 9,530 120,778 129,054 188,001 $ 447,363 Add affect of prior year increase in base pay - 25,308 169,736 298,759 493,803 Total increased cost subject to fringe benefits 9,530 146,086 298,790 486,760 941,166 Certain fringe benefit costs(57.50%) 5,480 83,999 171,804 279,887 541,170 Increased costs to be paid during fiscal years 2022 to 2025 15,010 230,085 470,594 766,647 1,482,336 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 2,001 30,678 62,746 102,220 197,645 Total increased costs 17,011 260,763 533,340 868,867 1,679,981 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation.