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Home My WebLink AboutRES 045 Draft 01 1996-1998 . , CP'...... . . . .~ '~ t COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO.~ A RESOLUTION APPROVING THE COST ITEMS COVERED IN THE ARBITRATION DECISION AFFECTING HGEA BARGAINING UNITS 03, 04, 13 AND EXCLUDED BARGAINING UNITS 63, 73, AND 84. WHEREAS, Section 89-11(d) ofthe Hawaii Revised Statutes relating to collective bargaining requires that the employer "...submit within ten days after the date on which the agreement is entered into... to the appropriate legislative bodies"; and WHEREAS, the same section further provides that all agreed-upon cost items are "...subject to appropriations by the appropriate legislative bodies..."; and WHEREAS, pursuant to provisions of Section 89-11, Hawaii Revised Statutes, negotiations for Units 3, 4, and 13, HGEA, 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 February 3, 1997, issued their decision; and WHEREAS, the total cost of the arbitrators' decision to the County of Hawaii is illustrated in the attached exhibit to this resolution; and WHEREAS, the total cost to the County of Hawaii over the two years covered by the arbitration decision for bargaining units 03, 04 and 13 and excluded bargaining units 63, 73 and 84 as shown in the exhibits attached to this resolution will be $882,552; and ,. . . . WHEREAS, the current budget for FY97 does not presently include any provision for these increases, and it is understood that supplemental appropriations will be made from the excess fund balance at June 30, 1996 to cover this cost. 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 HGEA negotiations, as shown on the attached exhibit, are hereby acknowledged and required appropriations will be approved under separate ordinance. , BE IT FURTHER RESOLVED that copies of this resolution be forwarded to the Department of Civil Service and the Department of Finance. DATED: Hilo, Hawaii, March 7, 1997 Introduced by: NTY OF HAWAII COUNTY COUNCIL County of Hawaii Dilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNClL of the County of Hawaii on March 7, 1997 ATTEST: ROLL CALL VOTE AYES NOES ADS EX ARAKAKI ..._~- X CHUNG X LEITHEAI>- TODD X RAY X REYNOLDS X SANTANGELO X SMITH X TYLER X -" YAGONG X 8 :r~ 'Q. 0 L;-lJ Y /1"(; Reference 45 97 CHAIRMAN & PRESIDING OJ-FICER RESOLUTION NO. , , " . . . . RC96HGEA.XLS Summary. Cost of HGEA Arbitration Decision Recap of Additional Costs for FY97 Bargaining Salary Night Certain Total increase mill increase differential Subtotal ~ to be paid FY97 03 $ 431,477 $ 5,942 $ 437,419 $ 62,507 $ 499,926 04 37,475 580 38,055 5,073 43,128 13 241,567 241,567 29,205 270,772 63 43,291 8 43,299 5,594 48,893 73 16,069 16,069 2,478 18,547 84 1,196 1,196 90 1,286 $ 771,075 $ 6,530 $ 777 ,605 $ 104,947 $ 882,552 Recap of Increase to Base Pay Due to Arbitration Decision Bargaining Increase mill ~ 03 $ 578,418 04 50,133 13 334,170 63 58,066 73 25,035 84 1,601 $ 1,047,423 .' .' , . . County of Hawaii HGEA Unit 3 - Two Year Additional Costs Fiscal Years 1996-97 . Note: There are no additional costsfor thefiscal year ended June 30,1996 (FY96). Base pay at 6/30/96 FY97: Step movements, 7/1/96 - 6/30/97 (already approved) Total payroll cost in FY97 before arbitration decision Base pay at 6/30/97 before arbitration decision Results of arbitration: Across-the-board (ATB) increase of 2.25% on July 1, 1996 Across-the-board (ATB) increase of 2.25% on January 1,1997 Effect of ATB increases on step movements, 711/96 - 6{30/97 Increase in night differential from 45 to 55 cents per hour Total payroll cost in FY97 Base pay at 6/30/97 Less base pay at 6{30/97 before arbitration decision Increase to base during FY97 due to arbitration decision Determination of total increase in cost due to proposed contract: Total payroll cost for the fiscal year as per above calculations Less payroll cost for fiscal year before arbitration decision Total additional cost subject to fringe benefits Certain fringe benefit costs (14.29%)* Costs to be paid during FY97 Employer's contribution to ERS (13.71 %)** Vacation, sick leave and holidays (21 %) Total increased costs Annwll Affect on Payroll Cost Base Pay $ 12,640,056 $ 12,640,056 74,486 142,956 $ 12,714,542 $ 12,783,012 284,401 284,401 145,400 290,800 1,676 3,217 5,942 $ 13,151,961 $ 13,361,430 (12,783,012) $ 578,418 W! $ 13,151,961 (12,714,542) 437,419 62,507 499,926 59,970 91,858 $ 651,754 *Fringe benefits included are 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{30/96. However, the amount of the County's contribution for fiscal year 1997 is already established and will not change because of this payroll increase. Future years' contributions will be affected. ~, . . . . County of Hawaii HGEA Unit 4 - Two Year Additional Costs Fiscal Years 1996-97 Note: There are no additional costsfor the fiscal year ended June 30,1996 (FY96). Annual Affect on Payroll Cost Base Pay Base pay at 6/30/96 $ 1,099,824 $ 1,099,824 FY97: Step movements, 7/1/96 - 6/30/97 (already approved) 3,416 3,696 Total payroll cost in FY97 before arbitration decision $ 1,103,240 Base pay at 6/30/97 before arbitration decision $ 1,103,520 Results of arbitration: Across-the-board (A TB) increase of 2.25% on July 1, 1996 24,746 24,746 Across-the-board (ATB) increase of 2.25% on January 1, 1997 12,652 25,304 Effect of ATB increases on step movements, 7/1/96 - 6/30/97 77 83 Increase in night differential from 45 to 55 cents per hour 580 Total payroll cost in FY97 $ 1,141,295 Base pay at 6/30/97 $ 1,153,653 Less base pay at 6/30/97 before arbitration decision (1,103,520) Increase to base during FY97 due to arbitration decision $ 50,133 Total increased costs EI21 $ 1,141,295 (1,103,240) 38,055 5,073 43,128 5,217 7,992 $ 56,337 Determination of total increase in cost due to proposed contract: Total payroll cost for the fiscal year as per above calculations Less payroll cost for fiscal year before arbitration decision Total additional cost subject to fringe benefits Certain fringe benefit costs (13.33%)* Costs to be paid during fiscal year FY97 Employer's contribution to ERS (13.71 %)** Vacation, sick leave and holidays (21 %) *Fringe benefits included are 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 6/30/96. However, the amount of the County's contribution for fiscal year 1997 is already established and will not change because of this payroll increase. Future years' contributions will be affected. ~. . .... . . County of Hawaii HGEA Unit 13. Two Year Additional Costs Fiscal Years 1996.97 . Note: There are no additional costs for the fiscal year ended June 30,1996 (FY96). Base pay at 6!30/96 FY97: Step movements, 7/1196 - 6/30/97 (already approved) Total payroll cost in FY97 before arbitration decision Base pay at 6!30/97 before arbitration decision Results of arbitration: Across-the-board (ATB) increase of 2.25% on July 1, 1996 Shredding Plan effective July 1, 1996 Effect of A TB increases on step movements, 7/1/96 - 6!30197 Total payroll cost in FY97 Base pay at 6!30/97 Less base pay at 6!30/97 before arbitration decision Increase to base during FY97 due to arbitration decision Detennination of total increase in cost due to proposed contract: Total payroll cost for the fiscal year as per above calculations Less payroll cost for fiscal year before arbitration decision Total additional cost subject to fringe benefits Certain fringe benefit costs (12.09%)* Costs to be paid during fiscal year FY97 Employer's contribution to ERS (13.71 %)** Vacation, sick leave and holidays (21 %) Total increased costs Annual Affect on Payroll Cost Base Pay $ 6,546,315 $ 6,546,315 58,526 100,992 $ 6,604,841 $ 6,647,307 147,292 147,292 92,958 184,606 1,317 2,272 $ 6,846,408 $ 6,981,477 (6,647,307) $ 334,170 En! $ 6,846,408 (6,604,841) 241,567 29,205 270,772 33,119 50,729 $ 354,620 *Fringe benefits included are estimates for overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, workers' compensation, and unemployment compensation. ** Actuarially detennined contribution rate for classes A and C per ERS annual actuarial valuation dated 6!30/96. However, the amount of the County's contribution for fiscal year 1997 is already established and will not change because of this payroll increase. Future years' contributions will be affected. . -, . . . County of Hawaii HGEA Unit 63. Two Year Additional Costs Fiscal Years 1996.97 Note: There are no additional costs for the fiscal year ended June 30, 1996 (FY96). Amwal Affect on Payroll Cost Base Pay Base pay at 6{30/96 $ 1,268,695 $ 1,268,695 FY97: Step movements, 7/1/96 - 6/30/97 (already approved) 6,696 14,760 Total payroll cost in FY97 before arbitration decision $ 1,275,391 Base pay at 6{30/97 before arbitration decision $ 1,283,455 Results of arbitration: Across-the-board (A TB) increase of 2.25% on July I, 1996 28,546 28,546 Across-the-board (A TB) increase of 2.25% on January 1, 1997 14,594 29,188 Effect of ATB increases on step movements, 7/1/96 - 6{30/97 151 332 Increase in night differential from 45 to 55 cents per hour 8 Total payroll cost in FY97 $ 1,318,690 Base pay at 6{30/97 $ 1,341,521 Less base pay at 6{30/97 before arbitration decision (1,283,455) Increase to base during FY97 due to arbitration decision $ 58,066 Total increased costs Erll $ 1,318,690 (1,275,391) 43,299 5,594 48,893 5,936 9,093 $ 63,922 Determination of total increase in cost due to proposed contract: Total payroll cost for the fiscal year as per above calculations Less payroll cost for fiscal year before arbitration decision Total additional cost subject to fringe benefits Certain fringe benefit costs (12.92%)* Costs to be paid during fiscal year FY97 Employer's contribution to ERS (13.71 %)** Vacation, sick leave and holidays (21 % ) *Fringe benefits included are 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{30/96. However, the amount of the County's contribution for fiscal year 1997 is already established and will not change because of this payroll increase. Future years' contributions will be affected. . .- . . " County of Hawaii HGEA Unit 73. Two Year Additional Costs Fiscal Years 1996.97 . Note: There are no additional costs for the fiscal year ended June 30,1996 (FY96). Base pay at 6/30/96 FY97: Step movements, 7/1/96 - 6/30/97 (already approved) Total payroll cost in FY97 before arbitration decision Base pay at 6/30/97 before arbitration decision Results of arbitration: Across-the-board (A TB) increase of 2.25% on July 1, 1996 Shredding Plan effective July 1, 1996 Effect of ATB increases on step movements, 7/1/96 - 6/30/97 Total payroll cost in FY97 Base pay at 6/30/97 Less base pay at 6/30/97 before arbitration decision Increase to base during FY97 due to arbitration decision Determination of total increase in cost due to proposed contract: Total payroll cost for the fiscal year as per above calculations Less payroll cost for fiscal year before arbitration decision Total additional cost subject to fringe benefits Certain fringe benefit costs (15.42%)* Costs to be paid during fiscal year FY97 Employer's contribution to ERS (13.71 %)** Vacation, sick leave and holidays (21 %) Total increased costs Annual Affect on Payroll Cost Base Pay $ 310,912 $ 310,912 1,126 4,392 $ 312,038 $ 315,304 6,996 6,996 9,048 17,940 25 99 $ 328,107 $ 340,339 (315,304) $ 25,035 En1 $ 328,107 (312,038) 16,069 2,478 18,547 2,203 3,374 $ 24,124 *Fringe benefits included are 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 6/30/96. However, the amount ofthe County's contribution for fiscal year 1997 is already established and will not change because of this payroll increase. Future years' contributions will be affected. . " ..... . . County of Hawaii HGEA Unit 84. Two Year Additional Costs Fiscal Years 1996.97 . . Note: There are no additional costs for the fiscal year ended June 30,1996 (FY96). Annual Affect on Payroll Cost Base Pay Base pay at 6/30/96 $ 35,172 $ 35,172 FY97: Step movements, 7/1/96 - 6/30/97 (already approved) Total payroll cost in FY97 before arbitration decision $ 35,172 Base pay at 6/30/97 before arbitration decision $ 35,172 Results of arbitration: Across-the-board (A TB) increase of 2.25% on July 1, 1996 791 791 Across-the-board (A TB) increase of 2.25% on January 1, 1997 405 810 Effect of A TB increases on step movements, 7/1196 - 6/30/97 Total payroll cost in FY97 $ 36,368 Base pay at 6/30/97 $ 36,773 Less base pay at 6/30/97 before arbitration decision (35,172) Increase to base during FY97 due to arbitration decision $ 1,601 Costs to be paid during fiscal year FY97 Er2Z $ 36,368 (35,172) 1,196 90 1,286 164 251 $ 1,701 Determination of total increase in cost due to proposed contract: Total payroll cost for the fiscal year as per above calculations Less payroll cost for fiscal year before arbitration decision Total additional cost subject to fringe benefits Certain fringe benefit costs (7.49%)* Employer's contribution to ERS (13.71 %)** Vacation, sick leave and holidays (21%) Total increased costs *Fringe benefits included are 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 6/30/96. However, the amount of the County's contribution for fiscal year 1997 is already established and will not change because of this payroll increase. Future years' contributions will be affected.