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Home My WebLink AboutCOM 0778.000 1996-1998 V OF Stephen K. Yamashiro Harry A. Takahashi Mayor _ Do"t"' S K. Schulte ,or 0 L~Plllllll (f[Ittttft of Itt W tit DEPARTMENT OF FINANCE 25 Aulmni Street, Room 118 • Hilo, Hawaii 96720-4252 (808) 961-8234 • Fax (808) 961-8248 March 23, 1998 U' 0 v The Honorable James Arakaki, Chairman, r and Members of the Hawaii County Council County of Hawaii Y Hilo, Hawaii 96720 Dear Chairman Arakaki and Members of the County Council: u-1 SUBJECT: Negotiated Cost Items, Hawaii Government Employees Association Bargaining Unit 13 and Employees Excluded from Bargaining Unit 13 In accordance with Section 89-10(b), HRS, attached for council action is a resolution to approve the cost items agreed upon by the Employers and the Hawaii Government Employees Association (HGEA) for bargaining unit 13 and employees excluded from bargaining unit 13 (BU73). The settlement covers the period from July 1, 1997 through June 30, 1999. Cost items presented for your consideration are a continuation of step movements over the two years; a 1.55% across-the-board increase on January 1, 1998; and a 1.54% across-the-board increase on July 1, 1998. Attached as an exhibit to the resolution is a schedule showing the total cost of these various adjustments over the two years of the contract. If approved by the legislative bodies of all jurisdictions, the increased costs for this fiscal year will be covered by the Provision for Compensation Adjustment appropriation in the current budget. Sincerely, STEPHEN I . AMASHIRO Mayor Attachment - Resolution and Exhibit R25_ Q5) MAR 2 4 1998 Sheet2 Summary - Cost of HGEA Unit 13 Settlement Recap of Additional Costs for FY98-FY99 Bargaining Certain Total increase unit FY98 FY99 Subtotal fringes FY98-FY99 13 $ 94,156 $338,054 $432,210 $ 52,254 $ 484,464 73 3,645 14,570 18,215 2,809 21,024 $ 97,801 $352,624 $450,425 $ 55,063 $ 505,488 Recap of Increase to Base Pay Due to Settlement Bargaining Increase unit to base 13 $378,956 73 15,209 $394,165 Page 1 Sheet6 County of Hawaii Bargaining Unit 13 Settlement Costs July 1,1997(FY98)through June 30, 1999(FY99) Annual Affect on Payroll Cost Base Pay. Effect on payroll: Base pay at 6/30/97 $ 7,175,838 $ 7,175,838 FY98: Step movements from July 1, 1997 to June 30, 1998 38,032 66,018 1.55%across-the-board(ATB)increase on January 1, 1998 56,124 112,249 Total payroll cost in FY98 $ 7,269,994 Base pay at 6/30/98 $ 7,354,105 Base pay at 6/30/98 $ 7,354,105 $ 7,354,105 FY99: 1.54%across-the-board(ATB)increase on July 1, 1998 114,579 114,579 Step movements from July 1, 1998 to June 30, 1999 45,208 86,110 Total payroll cost in FY99 $ 7,513,892 Base pay at 6/30/99 $ 7,554,794 Less base pay at 6/30/97 (7,175,838) Increase to base pay due to this settlement $ 378,956 FY98 FY99 Total (1997-98) (1998-99) FY98-FY99 Determination of total increase in cost due to proposed contract: Total payroll cost for each fiscal year as per above calculations $ 7,269,994 $ 7,513,892 Less base pay at beginning of each fiscal year (7,175,838) (7,354,105) Total additional cost 94,156 159,787 $ 253,943 Add affect of prior year increase in base pay - _ 178,267 178,267 Total increased cost subject to fringe benefits 94,156 338,054 432,210 Certain fringe benefit costs(12.09%)* 11,383 40,871 52,254 Increased costs to be paid during fiscal years 1998-99 105,539 378,925 484,464 Employer's contribution to ERS(13.37%of total increased cost subject to fringe benefits)** 12,589 45,198 57,787 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 19,773 70,991 90,764 Total increased costs $ 137,901 $ 495,114 $ 633,015 *Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,workers'compensation,and unemployment compensation. **Actuarially determined contribution rate for classes A and C per ERS annual actuarial valuation dated 6/30/97(most recent available). However,the amount of the County's contribution for fiscal years 1998 and 1999 is already established and will not change because of this payroll increase. Future years'contributions will be affected. Page 1 I" Sheet? County of Hawaii Bargaining Unit 73 Settlement Costs July 1,1997(FY98)through June 30, 1999(FY99) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/97 $ 319,500 $ 319,500 FY98: Step movements from July 1, 1997 to June 30, 1998 1,150 2,396 1.55%across-the-board(ATB)increase on January 1, 1998 2,495 4,989 Total payroll cost in FY98 $ 323,145 Base pay at 6/30/98 $ 326,885 Base pay at 6/30/98 $ 326,885 $ 326,885 FY99: 1.54%across-the-board(ATB)increase on July 1, 1998 5,076 5,076 Step movements from July 1, 1998 to June 30, 1999 2,109 2,748 Total payroll cost in FY99 $ 334,070 Base pay at 6/30/99 $ 334,709 Less base pay at 6/30/97 (319,500) Increase to base pay due to this settlement $ 15,209 FY98 FY99 Total (1997-98) (1998-99) FY98-FY99 Determination of total increase in cost due to proposed contract: Total payroll cost for each fiscal year as per above calculations $ 323,145 $ 334,070 Less base pay at beginning of each fiscal year (319,500) (326,885) Total additional cost 3,645 7,185 $ 10,830 Add affect of prior year increase in base pay - 7,385 7,385 Total increased cost subject to fringe benefits 3,645 14,570 18,215 Certain fringe benefit costs(15.42%)* 562 2,247 2,809 Increased costs to be paid during fiscal years 1998-99 4,207 16,817 21,024 Employer's contribution to ERS(13.37%of total increased cost subject to fringe benefits)** 487 1,948 2,435 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 765 3,060 3,825 Total increased costs $ 5,459 $ 21,825 $ 27,284 *Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,workers'compensation,and unemployment compensation. **Actuarially determined contribution rate for classes A and C per ERS annual actuarial valuation dated 6/30/97(most recent available). However,the amount of the County's contribution for fiscal years 1998 and 1999 is already established and will not change because of this payroll increase. Future years'contributions will be affected. Page 1