HomeMy WebLinkAboutRES 114 Draft 01 2002-2004 COUNTY OF HAWAII STATE OF HAWAII
RESOLUTION NO. 114 03
A RESOLUTION APPROVING THE COST ITEMS DECIDED UPON BY AN
ARBITRATION PANEL AFFECTING SHOPO BARGAINING UNIT 12 AND
EMPLOYEES EXCLUDED FROM BARGAINING UNIT 12 FOR THE CONTRACT
PERIOD JULY 1, 2003 THROUGH JUNE 30, 2007.
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, negotiations
for Unit 12, SHOPO, were heard before an arbitration panel; and
WHEREAS, after hearing arguments from both employer and employee representatives, the
arbitration panel concluded its hearings and on September 25, 2003, issued its decision; and
WHEREAS, the total cost of the arbitrators' 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 $11,806,103.
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.
IT FURTI~ER RESOLVED that copies of this resolution be forwarded to the Department of
Civil Service and the Department of Finance.
Dated at ~ a L , ~lawai`i, this 5th day of NQvemb~~ , 2003.
INTRODUCED BY:
COUNCIL MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii
Hilo, Hawaii AYES NOES ABS EX
ARAKAKI X
I hereby certify that the foregoing RESOLUTION was by the CxuNG x
vote indicated to the right hereof adopted by the COUNCIL of ELARIONOFF x
the County of Hawaii on N~uemher 5 , 200 3 HOLSCHUH x
ATTEST JACOBSON X
REYNOLDS X
SAFARIK X
TULANG x
TYLER X
9 0 0 0
Reference C-366/FC
1,
COUNTY CLERK p AIRMAN & PRESIDING OFFICER RESOLUTION NO. ~
County of Hawaii
SHOPO -Four Year Arbitration Costs
July 1, 2003 (FY2004) through June 30, 2007 (FY2007)
Annual Effect on
Payroll Cost Base Pav
Base pay at 6/30/03 $ 16,645,440 $ 16,645,440
FY2004: Across-the-board increase of 4.00% on July 1, 2003 665,818 665,818
Step movements, 7/1/03 - 6/30/04 92,855 198,888
EUTF Supplement for PO-7B employees 6,720 -
Total payroll cost in FY 2003-04 $ 17,410,833
Base pay at 6/30/04 $ 17,510,146
Base pay at 6/30/04 $ 17,510,146 $ 17,510,146
FY2005: Across-the-board increase of 4.00% on July 1, 2004 700,406 700,406
Step movements, 7/1/04 - 6/30/05 85,717 143,388
Total payroll cost in FY 2004-OS $ 18,296,269
Base pay at 6/30/05 $ 18,353,940
Base pay at 6/30/05 $ 18,353,940 $ 18,353,940
FY2006: Across-the-board increase of 4.00% on July 1, 2005 734,158 734,158
Standard of conduct differential (SOCD) increase on 7/1/05 329,284 -
Step movements, 7/1/05 - 6/30/06 99,067 235,164
Total payroll cost in FY 2005-06 $ 19,516,449
Base pay at 6/30/06 $ 19,323,262
Base pay at 6/30/06 $ 19,323,262 $ ]9,323,262
FY2007: Across-the-board increase of 4.00% on July 1, 2006 772,930 772,930
Continuation of SOCD increase on 7/1/05 329,284 -
Step movements, 7/1/06 - 6/30/07 78,370 179,232
Total payroll cost in FY 2006-07 $ 20,503,846
Base pay at 6/30/07 20,275,424
Less base pay at 6/30/03 (16,645,440)
Increase to base pay over term of contract $ 3,629,984
De[emunation of total increase hi cost due to proposed contract:
Total payroll cost for each fiscal year as per above calculations:
FY2003-2004 $ 17,410,833
FY2004-2005 18,296,269
FY2005-2006 19,516,449
FY2006-2007 20,503,846
75,727,397
Less payroll cost without new contract (6/30/03 base pay x 4) (66,581,760)
Total cost subject [o fringe benefits 9,145,637
Certain fringe benefit costs (29.09%)* 2,660,466
Costs to be paid during fiscal years 2004-2007 11,806,103
Estimated employer's contribution to ERS (10.34%)** 945,659
Vacation, sick leave and holidays (21%) 1,920,584
Total increased costs $ 14,672,346
*Fringe benefits included are overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time,
workers' compensation, and unemployment compensation.
**Actuarially determined contribution rate for classes B and D per ERS annual actuarial valuation dated
6/30/02. However, the amount of the County's contribution for fiscal year 2004 is already established
and will no[ change because of this payroll increase. Future years' contributions will be affected.