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Home My WebLink AboutRES 109 Draft 01 1998-2000 COUNTY OF HAWAN STATE OF HAWAII RESOLUTION 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, 1999 THROUGH JUNE 30, 2003. WHEREAS, Section 89-11(d) of the Hawaii Revised Statutes relating to collective bargaining requires that the employer submit all cost items resulting from binding arbitration `...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 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 June 14, 1999, 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 $5,067,770. 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. 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, July 28. 1999 Introduced by: COUNCIL MEMBER, COUNTY F HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AvES NOES ABS EX Hilo, Hawaii ARAKAKI CHUNG g 1 hereby certify that the foregoing RESOLUTION was by ELARIONOFF X the vote indicated to the right hereof adopted by [he COUNCIL of the JACOBSON County of Hawaii on July 28, 1999 LEITHEAD-TODD X ATTEST: PISICCHIO X SMITH TYLER X YAGONG X 6 1 2 0 C TY CLE CHAIRMAN & PRESIDING OFFICER Reference: C-349~FC -9B RESOLUTION NO. lU9 99 County of Hawaii SHOPO -Four Year Arbitration Costs July 1, 1999 (FY2000) through June 30, 2003 (FY2003) Annual EffecS4n Payroll Cost Base Pav Base pay at 6/30/99 $ 14,805,168 $ 14,805,168 FY2000: Step movements, 7/1/99 - 6/30/00 77,280 175,413 Across-the-boazd increase of 1.00% on January 1, 2000 74,462 148,924 Total payroll cost in FY 1999-00 $ 14,956,910 Base pay at 6/30/00 $ 15,129,505 Base pay at 6/30/00 $ 15,129,505 $ 15,129,505 FY2001: Step movements, 7/1/00 - 6/30/01 75,558 164,993 Across-the-board increase of 1.00% on October 1, 2000 113,778 151,704 Retention bonus of $500 on October 1, 2000 174,500 - Total payroll cost in FY 2000-O1 $ 15,493,341 Base pay at 6/30/01 $ 15,446,202 Base pay at 6/30/01 $ 15,446,202 $ 15,446,202 FY2002: Across-the-board increase of 2.00% on July 1, 2001 308,924 308,924 Step movements, 7/1/01 - 6/30/02 104,273 189,376 Total payroll cost in FY 2001-02 $ 15,859,399 Base pay at 6/30/02 $ 15,944,502 Base pay at 6/30/02 $ 15,944,502 $ ]5,944,502 FY2003: Across-the-board increase of 5.00% on July 1, 2002 797,225 797,225 Step movements, 7/]/02 - 6/30/03 95,350 211,714 Total payroll cost in FY 2002-03 $ 16,837,077 Base pay at 6/30/03 16,953,441 Less base pay at 6/30/99 (14,805,168) Increase [o base pay over term of contract $ 2,148,273 Determination of total increase in cost due to proposed contract: Total payroll cost for each fiscal year as per above calculations: FY1999-2000 $ 14,956,910 FY2000-2001 15,493,341 FY2001-2002 15,859,399 FY2002-2003 16,837,077 63,146,727 Less payroll cost without new contract (6/30/99 base pay x 4) (59,220,672) Total cost subject to fringe benefits 3,926,055 Certain fringe benefit costs (28.7%)* 1,126,778 Costs to be paid during fiscal years 2000-2003 5,052,833 Estimated employers contribution to ERS (10.6%)** 416,162 Vacation, sick leave and holidays (21%) 824,472 Total increased costs $ 6,293,467 *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 II and D per ERS annual actuarial valuation dated 6/30/98. However, the amount of the County's contribution for fiscal year 2000 is already established and will not change because of this payroll increase. Future years' contributions will be affected. County of Hawaii SHOPO (Excluded) -Four Year Arbitration Costs July 1, 1999 (FY2000) through June 30, 2003 (FY2003) Auuual Rffect on Payroll Cost Bas~Pav Base pay at 6/30/99 $ 51,720 $ 51,720 FY2000: Across-the-board increase of 1.00% on January 1, 2000 259 517 Total payroll cost in FY 1999-00 $ 51,979 Base pay at 6/30/00 $ 52,237 Base pay at 6/30/00 $ 52,237 $ 52,237 FY2001: Across-the-board increase of 1.00% on October 1, 2000 392 522 Retention bonus of $500 on October 1, 2000 500 - Total payroll cost in FY 2000-01 $ 53,129 Base pay at 6/30/01 $ 52,759 Base pay at 6/30/01 $ 52,759 $ 52,759 FY2002: Across-the-board increase of 2.00% on July 1, 2001 1,055 1,055 Step movements, 7/1/01 - 6/30/02 665 2,280 Total payroll cost in FY 2001-02 $ 54,479 Base pay at 6/30/02 $ 56,094 Base pay at 6/30/02 $ 56,094 $ 56,094 FY2003: Across-the-board increase of 5.00% on July 1, 2002 2,805 2,805 Tota] payroll cost in FY 2002-03 $ 58,899 Base pay at 6/30/03 58,899 Less base pay at 6/30/99 (51,720) Increase to base pay over term of contract $ 7,179 Determination of total increase in cost due to proposed contract: Total payroll cost for each fiscal year as per above calculations: FY1999-2000 $ 51,979 FY2000-2001 53,129 FY2001-2002 54,479 FY2002-2003 58,899 218,486 Less payroll cost without new contract (6/30/99 base pay x 4) (206,880) Total cost subject to fringe benefits 11,606 Certain fringe benefit costs (28.7%)* 3,331 Costs to be paid during fiscal years 2000-2003 14,937 Estimated employer's conhibution to ERS (10.6%)** 1,230 Vacation, sick leave and holidays (21%) 2,437 Total increased costs $ 18,604 *Finge 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 6/30/98. However, the amount of [he County's contribution for fiscal yeaz 2000 is already established and will not change because of this payroll increase. Future years' contributions will be affected.