HomeMy WebLinkAboutREP FC 179 01/23/2002 2000-2002 REPOIaT OF TIIE
COIVIIVIITTEE ON FINANCE
DATE: January 23, 2002 Re: Comm. No. 486/Res. No. 168-02
PLACE: Council Chambers
TIME: 10:02 A.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution No. 168-02, reports as follows:
Resolution No. 168-02, transmitted by Director of Finance William Takaba, via Communication
No. 486, dated January 11, 2002, approves the cost adjustments agreed upon by the employers
for excluded managerial employees covered by Chapter 77, Hawaii Revised Statutes.
Pursuant to Section 89C-3, Hawaii Revised Statutes, relating to adjustments for officers and
employees excluded from collective bargaining, the directors of personnel services of the State
and counties serving as representatives of their respective chief executives and the administrative
director of the courts serving as representative of the chief justices, shall decide by majority vote
on the adjustments to be made for officers and employees covered under Chapter 77, Hawaii
Revised Statutes.
Pursuant to Section 89C-5, Hawaii Revised Statutes, any such adjustment which constitute cost
items shall be subject to appropriations by the appropriate legislative bodies.
The proposed- adjustments for excluded managerial employees cover the two-year period from
July 1, 1999 to June 30, 2003. The cost items are a combination of a 4.0% across-the board
increase effective July 1, 2001, and the implementation of a shredding plan. A shredding plan
credits employees for their years of service and then places them at their appropriate salary step.
The total increase in cost for fiscal year 2003 to the County of Hawaii due to this adjustment
will be $1,272,654. Additional adjustments such as employer's contribution to the Employee
Retirement System, vacation, holiday and sick leave reparations will increase the total cost to
$1,594,745. The adjustments will be covered from the Provision of Compensation Adjustments
account.
Committee members struggled with the County's ability to pay public employees salary
increases while the County faces financial hardships and their responsibility to be in compliance
with the Hawaii Revised Statutes, which states that excluded managerial employees must get
increases not less than scientific and professional public employees. Recently the Council
approved pay increases for Bargaining Unit 13.
Your Committee heard testimony in support of the measure from Mr. James E. Halvorson.
FC REPORT NO. 179
A motion to approve was made and seconded, followed by a vote by the eight members in
attendance. The final vote, as reflected below, prompted the Committee Chair to forward this
measure to full Council with no recommendation.
Accordingly, Your Committee on Finance forwards Resolution No. 168-02 to Council with no
recommendation.
smc
AvES woES n&E ex Respectfully submitted
CFIUNG X
Plstcct~lo x COMMITTEE ON FINANCE
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SAFAItII~ AARON S.Y. CHUNG, CH IR
TYLER X FC REPORT NO. 179
YAGONG X ADOPTED: