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Home My WebLink AboutRES 716 Draft 01 2024-2026Of M,4 O . • 1i COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 716 2' A RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF LATER FISCAL YEARS FOR THE FUNDING OF COST ITEM ADJUSTMENTS ASSOCIATED WITH THE HAWAI`I FIRE FIGHTERS ASSOCIATION, BARGAINING UNIT 11, AND CERTAIN OTHER EMPLOYEES EXCLUDED FROM BARGAINING UNIT 11 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, on May 20, 2026, the Council adopted Resolution No. 550-26, approving certain cost items resulting from an arbitration decision issued under Section 89-11 of the Hawaii Revised Statutes for the Hawaii Fire Fighters Association, Bargaining Unit 11, and certain other employees excluded from Bargaining Unit 11, for the contract period beginning July 1, 2025, and ending June 30, 2029; and WHEREAS, following the issuance of the arbitration decision, matters concerning the interest arbitration proceedings were brought before the Hawaii Labor Relations Board; and WHEREAS, the employer and employee representatives for the Hawaii Fire Fighters Association subsequently reached a mutual agreement to resolve the outstanding matters pending before the Hawaii Labor Relations Board, resulting in cost item adjustments to be incorporated into the collective bargaining agreement, without affecting the final and binding nature of the arbitration decision pursuant to Section 89-11(g) of the Hawaii Revised Statutes; and WHEREAS, the addition of these cost item adjustments brings the estimated total cost for the County to $38,888,033 over the four-year contract period, as reflected in Exhibit A, attached hereto and incorporated herein by reference, representing an increase of approximately $13,595,173 over and above the amount previously approved by Resolution No. 550-26; and WHEREAS, implementation of these cost item adjustments requires the commitment of funding in later fiscal years; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`I that, pursuant to Section 89-11 of the Hawaii Revised Statutes, the cost items as shown in Exhibit A, over and above the amounts previously approved by Resolution No. 550-26, are hereby approved. BE IT FURTHER RESOLVED that, in accordance with Section 10-11 of the Charter, sufficient funds be budgeted in later fiscal years to cover the anticipated obligations of the County under the terms of the collective bargaining 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 COUNTY COUNCIL County of Hawaii Hilo, Hawaii Hawaii, this I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on ATTEST: day of INTRODUCED B 20 MATTHEW NEALI`I-K EINFELDER Council Member BY REQUEST OF THE: Director of Finance RC)I,I, CALL VOTR AYES NOES ABS EX GALIMBA HUSTACE INABA KAGI W ADA KANEALI`I-KLEINFELDER KIERKIEWICZ KIMBALL ONISHI VILLEGAS Reference: COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO. 2 C-1125/FC 716 26 VI911sllllllllllllltllll EXHIBIT A County of Hawaii Bargaining Unit I I Settlement Costs July I, 2025 (F)'26) through June 30, 2029 (FY29) Effect on pgvrol Base pay at 6/30/25 FY26: 3 00% ATB effective 7/ 1 /25 FY26: Continue Step Movement 7/l/25 - 06130/26 'Total payroll cost in FY26 Base pay at 6/30/26 Base pay at 6/30/26 FY27: 3.00°i ATB cIIccuve 7/I/26 FY27: Continue Step Movement 7/ I/'_6 - 00/ 30/27 Total payroll cost in FY27 Base pay at 6/30/27 Base pay at 6/30/27 FY28: 2.50'% ATB effective 7/1/27 FY28: 1.509E Add] ATB effective 7/1/27 FY28: Continue Step Movement 7/I/27-06/30/28 Total payroll cost in FY28 Btvse pay at 6/30/28 Base pay at 6/30/28 FY29: 2504.E ATB effective 7/I /28 FY29: 1.50%Addl ATB clicctivc 7/I/28 FY29: Continue Step Movement 7/I/28 - 06/30/29 Total payroll cost in FY29 Base pay at 6/30/29 Less base pay of 6/30/25 Increase to base pay due to this settlement Determination of total increase in cost due to prnpoSed rotrn oCtr 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 (86.4903%)* Increased costs to be paid during fiscal years 2026-29 Vocation. sick leave and holidays (21 %. ot'total increased cost subject to fringe benefits) Total increased costs Annual Allect on Pavroll Cost Base N $ 39,721,008 S 39,721,008 1,191,631 1,191,631 357,863 581,268 $ 41270,502 $ 41,493.907 S 41,493,907 $ 41,493,907 1.244,818 1,244,818 _ 211,479 470A00 $ 42950 04 --- S 43209,185 $ 43.209,1 S5 $ 43,209,185 1.080,230 1,080,230 664342 064-342 If 9,564 260.628 $ 45.123.321 S 45,214.385 $ 45.214,385 $ 45,214,385 1,130.360 1,130,360 695,172 695,172 423,572 664,212 $ 47,463,489 $ 47,704,129 (39,72 1 .008 $ 7,983,121 FY26 FY27 FY28 F1'29 'Total (2025-26 2(1( 26-271 C2(-)TUD 1?028-291 IrY?6-F)'r9 $ 41,270,502 $ 42,950,204 $ 45,123,321 $ 47,463,499 39.721,008 4t,493,907 43,209.185 45,214,385_ 1,549,4194 1,456297 1,914,136 2,249,104 .$ 7J69,011 1,772,899 _ 3,488,177 5,493,377 _ I o,754,453 1,549,494 3,229.196 5,402,313 7,742.481 17,923,484 1340.162 2,792,941 4.672,477 60)6,495 1i.502,075_ S 2,889,656 S 6,022,137 $ 10,074,790 S 14,438,976 S 33,425,559 325,394 _678,1_31 1,134,496 1,625,921 _3,763,'f32 3 3215.050 $ 0,700 268 $ 1 1,209,27o 16.064,897 $ 37.189,491 * Fringe benefits include estimates for overtime, prcmitnn pay, hazard pay, standby, temporary assignment, counpensatory time, retirement system, workers' compensation. and unemployment compensation. Page 1 County of Hawaii Bargaining Unil 34 Selllement Costs July 1.2025 (FY26) Through June 30, 2029 (FY29) GJfecr on /,ayroti. Base pay at 6/30/25 FY26: 3.001/,) ATB efective 7/1/25 FY26: Continue Within Range Progress 7il/25-06/30/2(1 Total payroll cost in FY26 Base pay at 6/30/26 Base pay at 6/30/26 FY27: 3,00%ATB effective 7/l/26 FY27: Continue Step Movement 7/I/26 - 06,130/27 Total payroll cost in FY27 Base pay at 6/3027 Base pay at 6/30/27 PY28: 2 50% ATB effective 7/1/27 FY281,50% Addl ATB effective 7/1/27 FY28: Continue Step Movement 7/1/27 - 06/30/28 Total payroll cost in 17Y28 Base pay at 6/30/28 Base pay at 6/3028 FY29: 2.501,1� ATB effective 7/I/28 FY29: 1.50%Addl ATB effective 7/1/28 FY29. Continue Step Movement 7/l28 - 06/30/29 Total payroll cost in FY29 Base pay at 6/30/29 Less base pay at 6/30/25 Increase to base pay due to this settlement Determination q%tornl increase in cost title ro prnpased contract: Total payroll cost Ibr 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 (88.1534'r,W Increased costs to be paid during fiscal years 2026-29 Vacation, sick leave and holidays (21 *,, of total increased cost subject to fringe benefits) Total increased costs Annual AlTect on Payroll Cost Base Pav $ 1,877.532 $ 1,877,532 56.326 56,326 10,591 19.224 1,944A49 $ 1,953,092 $ 1,953,082 $ 1,953,082 58,593 58,593 10,948 19,872 2.022.623 - - �� $ 1031.547 $ 2,0 1,547 $ 2,031,547 50,789 50,789 31,236 31,236 11.366 20,628 $ 2,124.938 $ 2,134.200 $ 2,134,200 $ 2,134 200 53,355 53355 32,814 32,814 9,852 16.716 $ 2,230,221 $ 2,237,085 _ (1,877,532) $ 359,553 FY26 FY27 FY28 FY29 Total 20t 25.26) (3U26-271 (202728 2028-29 FY26-FYs9 $ 1,944,449 $ 2,022,623 $ 2,124,938 $ 2230,221 1.877.532 1,953,082 2,031,547 2,134,200 66,917 69,541 93,391 96,021 $ 325,870 75.550 _ 154,015 _ 256.668 486,233 66,917 145,091 247,406 35209 812,103 58.990 127,903 219,097 310,907 715.897 S 125,907 S 272,994 $ 465,503 S 663,596 S 1,528,000 _ 14,053 30,4_6_9 _ _ 51,955 74,065 _ 170,542 $ 139,960 $ 303.463 $ 5IT458 $ 737,661 $ 1-698.542 * Fringe benefits include estimates li,r overtime, premium pay, hazard pav, standby, temporary assignment, compensatory time, retirement system, workers' compensation. and unenynloyntent compensation. 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