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Home My WebLink AboutRES 304 Draft 01 1996-1998OFFICE INFORMATION ONLY Meeting: Finance Committee Action: Withdrawn by introducer (Aaron Chung) via Comm. 723 (2000-2002 term) Re: Res. 304-98; Comm. 921 (1996-1998 term) COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 304 98 A RESOLUTION APPROVING THE COST ITEMS AS ORDERED BY THE HAWAII LABOR RELATIONS BOARD BETWEEN THE EMPLOYERS AND THE UNITED PUBLIC WORKERS, AFSCME, LOCAL 646, FOR THE CONTRACT PERIOD JULY 1,1995 THROUGH JUNE 30, 1999, PURSUANT TO SECTION 89-10(b), HAWAII REVISED STATUTES. WHEREAS, the Hawaii Labor Relations Board has ruled as a matter of law that based on the apparent authority of the Personnel Director for the City and County of Honolulu, the Public Sector Employers agreed to the terms and conditions of a new collective bargaining agreement with the United Public Workers, AFSCME, Local 646, in Order No. 1643, Case No. CE -01-390, and ordered the Employers to present all cost items to their respective legislative bodies pursuant to Section 89-10(b), Hawaii Revised Statutes; and WHEREAS, the Employers in Hawaii Labor Relations Case No. CE -01-394 and CE -01- 396, have also agreed to present the cost items to their respective legislative bodies, subject to an appeal in HLRB Case No. CE -01-390; and WHEREAS, before the 1998 Legislative Session, the County of Hawaii took the position that it did not oppose the cost items proposed by the Chief Negotiator for the State of Hawaii and the UPW; and WHEREAS, during the 1998 Legislative Session, the Hawaii State Legislature, substantially cut, reduced and slashed the County of Hawaii's share of the transient accommodations tax thereby drastically reducing the County of Hawaii's revenue base; and WHEREAS, the 1998 Legislative Session failed to supplement the County's revenues or compensate for the drastic reduction in revenues; and WHEREAS, the 1998 Legislature refused to approve the previously agreed upon cost items with the Hawaii Government Employees Association and the United Public Workers, AFSCME, Local 646; and WHEREAS, the Attorney General for the State of Hawaii has issued a prior written opinion that the Legislature's refusal to consider the cost items constitutes a rejection under Chapter 89, Hawaii Revised Statutes, requiring that all cost items to be subject to further negotiations; and WHEREAS, the cost items for the United Public Workers, AFSCME, Local 646, Bargaining Unit 1, are reflected in and attached hereto as Exhibit "I" and incorporated by reference herein; and WHEREAS, the cost items for the various bargaining units for the Hawaii Governmental Employees Association is reflected in and attached hereto as Exhibit 'T' and incorporated by reference herein; and WHEREAS, the cost items represent a substantial increase in the County's operating costs without any counterbalancing of revenues; and WHEREAS, the County of Hawaii has a legitimate and significant concern about its ability to fund the proposed costs items while maintaining the current level of services for its citizens and avoiding layoffs or reduction in force of its employees who are also members of the United Public Workers, AFSCME, Local 646 and Hawaii Governmental Employees Association; and WHEREAS, the Hawaii County Council recognizes that the rejection of the cost items by the 1998 Legislature and approval of the cost items by the County of Hawaii for the members of United Public Workers, AFSCME, Local 646, may result in treating employees differently, with members of the United Public Workers, AFSCME, Local 646, benefiting from the approval of the cost items, while the members of the different bargaining units of the Hawaii Governmental Employees Association would not receive similar benefits; NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that pursuant to Section 89-10(b), Hawaii Revised Statutes, the cost items for the United Public Workers, AFSCME, Local 646 as shown in and included in Exhibit "1" are hereby approved. BE IT FINALLY RESOLVED that copies of this resolution be forwarded to the Department of Civil Service and the Department of Finance, County of Hawaii. DATED: Hilo, Hawaii, Introduced by: COUNCIL MEMBER,/COUNTY OF HAWAII J COUNTY COUNCIL County of Hawaii Hilo, Hawaii 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: COUNTY CLERK CHAIRMAN & PRESIDING OFFICER ROLL CALL VOTE AYES NOES ABS EX ARAKAKI CHUNG LEITHEAD-TODD RAY REYNOLDS SANTANGELO SMITH TYLER YAGONG Reference C -921.02/17C Q _ RESOLUTION NO. 304 3 8 County of Hawaii Bargaining Unit 1- Cost of Settlement Fiscal Year 1998.99 assume prepaid legal premium is taxable Cost of proposed settlement to County of Hawaii in fiscal year 1998-99: Lump Sum Salary Supplement (LSSS) effective 7/1/98 $ 1,009,922 10.46% across-the-board (ATB) increase on 7/1/98 1,131,331 Increase in night differential pay effective 7/1/98 20,045 New legal plan contributions, $7 per month effective 7/1/98 37,044 Total cost subject to fringe benefits 2,198,342 Certain fringe benefits (20.18%)* 443,625 Increase in Health Fund contributions, $7 per month effective 7/1/98 37,044 Settlement costs to be paid during fiscal year 1998-99 2,679,011 Estimated cost of other fringe benefits: Employers contribution to ERS (13.37% of total increased cost subject to fringe benefits)** 293,918 Vacation, sick leave and holidays (21% of increased cost subject to fringe benefits) 461,652 Total increased costs $ 3,434,581 Effect on base pay: Base pay at 6/30/998 $ 10,815,780 10.46% across-the-board (ATB) increase on 7/1/98 1,131,331 Base pay at 6/30/99 $ 11,947,111 Annual effect on recurring costs: 10.46% across-the-board (ATB) increase on 7/1/98 $ 1,131,331 Increase in night differential pay effective 7/1/98 20,045 Increase in Health Fund contributions, $7 per month effective 7/1/98 (NT) 37,044 New legal plan contributions, $7 per month effective 7/1/98 37,044 Total increase in direct costs 1,225,464 Certain fringe benefits (20.18%)* 443,625 Total estimated increase in recurring costs $ 1,669,089 *Fringe benefits include estimates for overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, workers' compensation, and unemployment benefits. **Actuarially determined contribution rate for classes A and C per ERS annual actuarial valuation dated 6/30/97 (most recent available). However, changes made by the most recent legislative session will change this figure, but the new rates are not available yet. In addition, the amount of the County's contribution for FY99 is already established and will not change because of this payroll increase. Exhibit 1 a County of Hawaii Bargaining Unit 61 - Cost of Settlement Fiscal Year 1998.99 assume prepaid legal premium is taxable Cost of proposed settlement to County of Hawaii in fiscal year 1998-99: Lump Sum Salary Supplement (LSSS) effective 7/1/98 $ 19,600 10.46% across-the-board (ATB) increase on 7/1/98 15,208 Increase in night differential pay effective 7/1/98 6 New legal plan contributions, $7 per month effective 7/1/98 588 Total cost subject to fringe benefits 35,402 Certain fringe benefits (20.18%)* 7,144 Increase in Health Fund contributions, $7 per month effective 7/1/98 588 Settlement costs to be paid during fiscal year 1998-99 43,134 Estimated cost of other fringe benefits: Employer's contribution to ERS (13.37% of total increased cost subject to fringe benefits)** 4,733 Vacation, sick leave and holidays (21% of increased cost subject to fringe benefits) 7,434 Total increased costs $ 55,301 Effect on base pay: Base pay at 6/30/98 $ 145,692 10.46% across-the-board (ATB) increase on 7/1/98 15,208 Base pay at 6/30/99 $ 160,900 Annual effect on recurring costs: 10.46% across-the-board (ATB) increase on 7/1/98 $ 15,208 Increase in night differential pay effective 7/1/98 6 Increase in Health Fund contributions, $7 per month effective 7/1/98 (NT) 588 New legal plan contributions, $7 per month effective 7/1/98 588 Total increase in direct costs 16,390 Certain fringe benefits (20.18%)* 7,144 Total estimated increase in recurring costs $ 23,534 *Fringe benefits include estimates for overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, workers' compensation, and unemployment benefits. **Actuarially determined contribution rate for classes A and C per ERS annual actuarial valuation dated 6/30/97 (most recent available). However, changes made by the most recent legislative session will change this figure, but the new rates are not available yet. In addition, the amount of the County's contribution for FY99 is already established and will not change because of this payroll increase. Exhibit lb Fact Sheet Recapitulation of Costs of UPW and HGEA Settlements If approved, all of the below costs would be paid FY99. These settlements cover the time period through 6/30/99. UPW settlement costs:' ITB:" BU01 $ 2,679,011 $ 1,131,331 BU61 (excluded) 43,134 15,208 $ 2,722,145 $ 1,146,539 HGEA settlement costs:` BU02 146,855 $ 91,228 BU03 1,079,574 663,453 BU04 105,229 59,761 BU13 484,464 378,956 BU63 (excluded from BU03) 126,244 81,109 BU73 (excluded from BU13) 21,024 15,209 BU84 (excluded from BU04) 4,569 2,330 $ 1,967,959 $ 1,292,046 Total settlement costs: $ 4,690,104 $ 2,438,585 Includes certain fringe benefits. Does not include ERS contributions or vacation/sick leave/holidays. Increase to base pay as a result of these settlements. Does not include $74,088 in annual additional payments for medical and legal plans for UPW members. Exhibit 2