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Home My WebLink AboutRES 377 Draft 01 2024-2026COUNTY OF HAWAFI STATE OF HAWAI4I RESOLUTION NO. 37 � 25 A RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF LATER FISCAL YEARS FOR THE FUNDING OF COST ITEMS ASSOCIATED WITH THE STATE OF HAWAI°I ORGANIZATION OF POLICE OFFICERS, BARGAINING UNIT 12, AND CERTAIN OTHER EMPLOYEES EXCLUDED FROM BARGAINING UNIT 12 FOR THE CONTRACT PERIOD BEGINNING JULY 1, 2025, AND ENDING JUNE 30, 2029. WHEREAS, Section 10-11 of the Charter of the County of Hawaii (hereinafter "the Charter") provides, in part, that "any contract, lease or other obligation requiring the payment of funds from the appropriations of a later fiscal year or of more than one fiscal year shall be made or approved by resolution"; and WHEREAS, Section 89-11 of the Hawaii Revised Statutes, relating to collective bargaining, requires that, in the case of a "final and binding" decision made by an arbitration panel, "[a]ll items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies"; and WHEREAS, this section further requires that the employer "shall submit all such items within ten days after the date on which the agreement is entered into as provided herein, to the appropriate legislative bodies"; and WHEREAS, in accordance with the provisions of Section 89-11 of the Hawaii Revised Statutes, an arbitration panel heard from both employer and employee representatives for the State of Hawaii Organization of Police Officers, Bargaining Unit 12; and WHEREAS, the arbitration panel issued its decision on September 24, 2025, which included certain cost items, as shown in Exhibit "A", attached hereto and made a part hereof; and WHEREAS, the total estimated cost to the County over the four years of the new contract is $57,298,879, as shown in Exhibit "A'; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI'I that the cost items as shown in Exhibit "A" are hereby approved. BE IT FURTHER RESOLVED that, in accordance with Section 10-11 of the Charter, sufficient finds be budgeted in later fiscal years to cover the anticipated obligations of the County under the terms of the agreement. BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to Diane T. Nakagawa, Director of Finance; and Sommer J. Tokihiro, Director of Human Resources. Dated at Kona , Hawai`i, this 19th day of November , 20 25 . INTRODUCED 17) COUNCIL MkMBER, COUNTY OF HAWAPI COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby cedify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUN IL of the County of Hawaii on November 202 ATTEST: 1 T CHAIRPERSON & PRESIDING OFFICER 2 ROLL CALL VOTE AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALVI- KLEIN FELDER X KIERKIEWICZ X KIMBALL X ONISHI X VILLI GAS X 9 0 0 0 Reference: C-589/FG-102 RESOLUTION NO. &9 A,, � NgllB@IRllslllFINNl EXHIBIT A County of Hawaii SHOPO Bargaining Unit 12 - Cost Increases July 1, 2025 (FY2026) through June 30, 2029 (FY2029) Base pay at 6/30/25 FY2026: Across-the-board increase of 5.0% on July 1, 2025 Step movements, 7/1125 - 6/30/26 Base pay Total payroll cost in FY 2025-26 Annual Effect on Payroll Cost Base Pay $ 49,906,656 $ 49,906,656 2,495,333 $ 2,495,333 271,532 480,432 $ 52,673,521 $ 52,882.421 Base pay at 6/30/26 $ 52,882,421 $ 52,882,421 FY2027: Across-the-board increase of 5.0%on July 1, 2026 2,644,122 2,644,122 Step movements, 7/l/26 - 6/30127 292,246 535,848 One-time lump sum bonus on July 1, 2026 946,800 - Total payroll cost in FY 2026-27 $ 56,765.589 Base pay at 6/30/27 $ 56,062,391 Base pay at 6/3027 $ 56,062,391 $ 56,062,391 FY2028: Across-thaboard increase of5.0%on July 1, 2027 2,803,120 2,803,120 Step movements, 7/1127 - 6/30/28 376,112 732:240 Total payroll cost in FY 2027-28 $ 59,241,623 Base pay at 6/30/28 $ 59,597,751 Base pay at 6/30/28 $ 59,597,751 FY2029: Across-the-board increase of 5.0%on July 1, 2028 2,979,888 Step movements, 7/l/28 - 6/30/29 359,519 Total payroll cost in FY 2028-29 $ 62,937,158 Base pay at 6130/29 Less base pay at 6/30/25 Increase to base pay over tens of contract FY26 2025-26) Determination of total increase in cost due to proposed contract $ 59,597,751 2,979,888 625,284 63,202,923 (49,906,656) $ 13,296,267 FY27 FY28 FY29 Total 20( 26-27) 20( 27-28) 20( 28-29) FY26-FY29 Total payroll cost for fiscal year as per above calculations $ 52,673,521 $ 56,765,589 $ 59,241,623 $ 62,937,158 Less base pay at beginning of fiscal year 49,906,656 52,882,421 56,062,391 59,597,751 Total additional cost 2,766,865 3,883,168 3,179,232 3,339,407 $ 13,168,672 Add affect of prior year increase in base pay - 2,975,765 6,155,735 9.691,095 18,822 595 Total increased cost subject to fringe benefits 2,766,865 6,858,933 9,334,967 13,030,502 31,991,267 Certain fringe benefit costs (68.70%) Increased costs to be paid during fiscal years 2026 to 2029 Vacation, sick leave and holidays (21 % of total increased cost subject to fringe benefits) Total increased costs 1,908,279 4,730,538 6,438,233 8,987,007 22,064,057 4,675,144 11,589,471 15,773,200 229017,509 54,055,324 581,042 1,440,376 1,960,343 2,736,405 6,71 SJ66 5,256,186 13,029,847 17,733,543 24.753,914 60,773,490 -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 92 - Cost Increases July 1, 2025 (FY2026) through June 30, 2029 (FY2029) Base pay at 6/30125 FY2026: Across-the-board increase of 5.0%on July I, 2025 Total payroll cost in FY 2025-26 Base pay at 6/30/26 Base pay at 6/30/26 FY2027: Across-the-board increase of 5.0%on July 1, 2026 Step movements, 7/l/26 - 6/30127 One-time lump sum bonus on July I, 2026 Total payroll cost in FY 2026-27 Base pay at 6/30/27 Base pay at 6130/27 FY2029: Across-the-board increase of5.0%on July 1, 2027 Step movements, 7/1127 - 6/30/28 Total payroll cost in FY 2027-28 Base pay at 6/30128 Base pay at 6/30/28 FY2029: Across-the-board increase of5.0%on July 1, 2028 Step movements, 7/l/28 - 6/30/29 Total payroll cost in FY 2028-29 Base pay at 6/30/29 Less base pay at 6/30/25 Increase to base pay over tern of contract Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations Less base pay at beginning of fiscal year Total additional cost Add affect of prior year increase in base pay Total increased cost subject to fringe benefits Certain fringe benefit costs (49.90%) Increased casts to be paid during fiscal years 2026 to 2029 Vacation, sick leave and holidays (21 %of total increased cost subject to fringe benefits) Total increased costs Annual Effect on Pavroll Cost Base Pav $ 300,444 $ 300,444 15.023 15,023 $ 315.467 $ 315,467 $ 315,467 $ 315,467 15,774 15,774 6,332 11,256 5,400 $ 342,973 $ 342,497 $ 342,497 $ 342,497 17,125 17,125 $ 359,622 $ 359,622 $ 359,622 $ 359,622 17.125 17,982 $ 376,747 377.604 (300,444) $ 77,160 FY26 FY27 20( 25-26) 20( 26-27) FY28 FY29 Total 20( 27-29) 20( 28-29) FY26-FY29 $ 315,467 $ 342,973 $ 359,622 $ 376,747 300,444 315.467 342,497 359,622 15,023 27,506 17,125 17,125 $ 76,779 15,023 42,053 59,178 116,254 15,023 42,529 59,178 76,303 193,033 7,496 21220 29,527 38,072 96,315 22,519 63,749 88,705 114,375 289,348 3,155 8,931 12,427 16,024 40,537 25,674 72,690 101,132 130,399 329,885 -Fringe benefits included are overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, retirement system, workers' compensation, and unemployment compensation. County of Hawaii SIIOPO Bargaining Unit 36 - Cost Increases July 1, 2025 (FY2026) through June 30, 2029 (FY2029) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/25 $ 2,993,904 $ 2,993,904 FY2026: Across-the-board increase of5.0%on July 1, 2025 $ 149,696 $ 149,696 Step movements, 7/1125 - 6/30/26 12,709 27,132 Total payroll cost in FY 2025-26 $ 3,156,309 Base pay at 6/30/26 $ 3,170,732 Base pay at 6130/26 $ 3,170,732 $ 3,170,732 FY2027: Across-the-board increase of 5.0%on July 1, 2026 158,537 158,537 Step movements, 7/I/26-6/30/27 13,373 28,549 One-time lump sum bonus on July 1, 2026 34,200 - Total payroll cost in FY 2026-27 $ 3,376,842 Base pay at 6/30127 $ 3,357,817 Base pay at 6/30/27 $ 3,357,817 $ 3,357,817 FY2028: Across-the-board increase of5,0%on July 1, 2027 167,891 167,891 Step movements, 7/1127 - 6130/28 14.055 29,940 Total payroll cost in FY 2027-28 $ 3,539,763 Base pay at 6130/28 $ 3,555,648 Base pay at 6130/28 $ 3,555,648 $ 3,555,648 FY2029: Across-the-board increase of 5.0%on July 1, 2028 177,783 177,783 Step movements, 7/1/28 - 6/30/29 11,905 24,528 Total payroll cost in FY 2028-29 $ 3,745,336 Base pay at 6/30/29 3,757,959 Less base pay at 613025 (2,993,904) Increase to base pay over term of contract $ 764.055 FY26 FY27 FY28 20f 25-26) 20f 26-27[ 20( 27-28) Dere Total payroll cost for fiscal year as per above calculations Less base pay at beginning of fiscal year Total additional cost Add affect of prior year increase in base pay Total increased cost subject to fringe benefits Certain fringe benefit costs (60.33%) Increased costs to be paid during fiscal years 2026 to 2029 Vacation, sick leave and holidays (21 %of total increased cost subject to fringe benefits) Total increased costs FY29 Total 20J 28-29) FY26-FY29 $ 3,156,309 $ 3,376,842 $ 3,539,763 $ 3,745,336 2,993,904 3,170,732 3,357,817 3,555,648 162,405 206,110 176,828 181,946 363,913 189,688 $ 740,149 561,744 1,102,485 162,405 382,938 545,859 751,432 1,842,634 97,971 231,008 329,291 453,303 1,111,573 260,376 613,946 875,150 1,204,735 2,954,207 34,105 80,417 114,630 157,801 386,953 294,481 694,363 989.780 1,362,536 3,341,160 -Fringe benefits included are overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, retirement system, workers' compensation, and unemployment compensation.