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Home My WebLink AboutRES 195 Draft 01 2012-2014 JMtVOF . COUNTY OF HAWAII STATE OF HAWAII ATE Oi RESOLUTION NO. 195 13 A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AGREED UPON BY THE EMPLOYERS AND THE HAWAII GOVERNMENT EMPLOYEES ASSOCIATION (HGEA) UNIT 13 AND EMPLOYEES EXCLUDED FROM UNIT 13 FOR THE CONTRACT PERIOD JULY 1, 2013 THROUGH JUNE 30, 2017. WHEREAS, Sections 89-10 (b) of the Hawaii Revised Statutes relating to collective bargaining requires that, "[a]ll cost items shall be subject to appropriations by the appropriate legislative bodies"; and WHEREAS, this section further requires that "the employer shall submit within ten days of the date on which the agreement is ratified by the employees concerned all cost items contained therein to the appropriate legislative bodies"; and WHEREAS, pursuant to provisions of Section 89-10, Hawaii Revised Statutes, after good-faith negotiations and mediation, a settlement was reached between the employees and the HGEA on behalf of Bargaining Unit 13, and the settlement was ratified by the membership of the bargaining units; and WHEREAS, the cost items included in the settlement are shown on the attached exhibits; 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 $12,505,969. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that the cost items as negotiated and ratified with HGEA, as shown on the attached exhibits, are hereby approved. BE IT FURTHER RESOLVED that the funds necessary to pay the obligations under this agreement will be included in the operating budget in FY2015, FY2016 and FY2017. BE IT FURTHER RESOLVED that copies of this resolution be forwarded to the Departments of Human Resources and Finance. Dated at Kona , Hawaii, this 20th day of November , 2013. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii Hilo, Hawaii AYES NOES ABS EX EOFF X I hereby certify that the foregoing RESOLUTION was by the FORD X vote indicated to the right hereof adopted by the COUNCIL of ILAGAN X the County of Hawaii on NnvemhPr 20, 7013 • KANUHA X ATTEST KERN X ONISHI X POINTDEXTER X WILLE X YOSHIMOTO X 9 0 0 0 Reference C-475/FC -108 195 13 COUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. Exhibits Recap 14-17 Summary - Cost of HGEA Settlement, July 1, 2013 through June 30,2017 Recap of Additional Costs Bargaining Increased cost Certain Total increase unit FY14-FY17 fringes FY14-FY17 13 $ 6,991,594 $ 1,955,549 $ 8,947,143 73 400,927 137,157 538,084 35 2,304,854 715,888 3,020,742 $ 9,697,375 $ 2,808,594 $ 12,505,969 Recap of Increase to Base Pay Due to Settlement Bargaining Increase to unit base(ITB) 13 $ 3,240,880 73 188,220 35 1,068,572 $ 4,497,672 Page 1 BU13 County of Hawaii Bargaining Unit 13 Settlement Costs July 1,2013(FY14)through June 30,2017(FY17) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/13 $15,331,176 $15,331,176 FY14: 4.0%across-the-board(ATB)increase on July 1,2013 613,247 613,247 Total payroll cost in FY14 15,944,423 Base pay at 6/30/14 15,944,423 Base pay at 6/30/14 15,944,423 15,944,423 FY15: Place on appropriate step on July 1,2014 813,108 813,108 Step movements from July 1,2014 to June 30,2015 93,854 176,304 Lump sum payment for those with no step movement 9,000 9,000 Total payroll cost in FY15 $16,860,385 Base pay at 6/30/15 $16,942,835 Base pay at 6/30/15 16,942,835 16,942,835 FY16: Step movements from July 1,2015 to June 30,2016 108,702 193,404 3.5%ATB increase on January 1,2016 299,884 599,768 Total payroll cost in FY16 17,351,421 $17,736,007 Base pay at 6/30/16 17,736,007 17,736,007 FY17: Step movements from July 1,2016 to June 30,2017 110,042 208,008 3.5%ATB increase on January 1,2017 314,020 628,041 Total payroll cost in FY17 18,160,069 Base pay at 6/30/17 $18,572,056 Less base pay at 6/30/13 (15,331,176) Increase to base pay due to this settlement $ 3,240,880 FY14 FY15 FY16 FY17 Total (2013-14) (2014-15) (2015-16) (2016-17) FY14-FY17 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $15,944,423 $16,860,385 $ 17,351,421 $ 18,160,069 Less base pay at beginning of fiscal year 15,331,176 15,944,423 16,942,835 17,736,007 Total additional cost 613,247 915,962 408,586 424,062 $ 2,361,857 Add affect of prior year increase in base pay - 613,247 1,611,659 2,404,831 4,629,737 Total increased cost subject to fringe benefits 613,247 1,529,209 2,020,245 2,828,893 6,991,594 Certain fringe benefit costs(27.97%)* 171,525 427,720 565,063 791,241 1,955,549 Increased costs to be paid during fiscal years 2014-17 784,772 1,956,929 2,585,308 3,620,134 8,947,143 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 128,782 321,134 424,251 594,068 1,468,235 Total increased costs $ 913,554 $ 2,278,063 $ 3,009,559 $ 4,214,202 $ 10,415,378 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation,and unemployment compensation. Page 2 BU73 County of Hawaii Bargaining Unit 73 Settlement Costs July 1,2013(FY14)through June 30,2017(FY17) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/13 $ 868,800 $ 868,800 FY14: 4.0%across-the-board(ATB)increase on July 1,2013 34,752 34,752 Total payroll cost in FY14 903,552 Base pay at 6/30/14 903,552 • Base pay at 6/30/14 903,552 903,552 FY15: Place on appropriate step on July 1,2014 45,864 45,864 Step movements from July 1,2014 to June 30,2015 7,023 13,200 Total payroll cost in FY15 $ 956,439 Base pay at 6/30/15 $ 962,616 Base pay at 6/30/15 962,616 962,616 FY16: Step movements from July 1,2015 to June 30,2016 3,359 7,404 3.5%ATB increase on January 1,2016 16,975 33,951 Total payroll cost in FY16 982,950 $ 1,003,971 Base pay at 6/30/16 1,003,971 1,003,971 FY17: Step movements from July 1,2016 to June 30,2017 11,343 17,304 3.5%ATB increase on January 1,2017 17,872 35,745 Total payroll cost in FY17 1,033,186 Base pay at 6/30/17 $1,057,020 Less base pay at 6/30/13 (868,800) Increase to base pay due to this settlement $ 188,220 FY14 FY15 FY16 FY17 Total (2013-14) (2014-15) (2015-16) (2016-17) FY14-FY17 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 903,552 $ 956,439 $ 982,950 $ 1,033,186 Less base pay at beginning of fiscal year 868,800 903,552 962,616 1,003,971 Total additional cost 34,752 52,887 20,334 29,215 $ 137,188 Add affect of prior year increase in base pay - 34,752 93,816 135,171 263,739 Total increased cost subject to fringe benefits 34,752 87,639 114,150 164,386 400,927 Certain fringe benefit costs(34.21%)* 11,889 29,981 39,051 56,236 137,157 Increased costs to be paid during fiscal years 2014-17 46,641 117,620 153,201 220,622 538,084 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 7,298 18,404 23,972 34,521 84,195 Total increased costs $ 53,939 $ 136,024 $ 177,173 $ 255,143 $ 622,279 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation,and unemployment compensation. Page 3 BU35 County of Hawaii Bargaining Unit 35 Settlement Costs July 1,2013(FY14)through June 30,2017(FY17) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/13 $ 4,512,516 $ 4,512,516 FY14: 4.0%across-the-board(ATB)increase on July 1,2013 180,501 180,501 Total payroll cost in FY14 4,693,017 Base pay at 6/30/14 4,693,017 Base pay at 6/30/14 4,693,017 4,693,017 FY15: Place on appropriate step on July 1,2014 187,721 187,721 Step movements from July 1,2014 to June 30,2015 107,376 107,376 Total payroll cost in FY15 $ 4,988,114 Base pay at 6/30/15 $4,988,114 Base pay at 6/30/15 4,988,114 4,988,114 FY16: Step movements from July 1,2015 to June 30,2016 109,739 109,739 3.5%ATB increase on January 1,2016 89,212 178,425 Total payroll cost in FY16 5,187,065 $5,276,278 Base pay at 6/30/16 5,276,278 5,276,278 FY17: Step movements from July 1,2016 to June 30,2017 116,078 116,078 3.5%ATB increase on January 1,2017 94,366 188,732 Total payroll cost in FY17 5,486,722 Base pay at 6/30/17 $5,581,088 Less base pay at 6/30/13 (4,512,516) Increase to base pay due to this settlement $1,068,572 FY14 FY15 FY16 FY17 Total (2013-14) (2014-15) (2015-16) (2016-17) FY14-FY17 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $4,693,017 $4,988,114 $ 5,187,065 $ 5,486,722 Less base pay at beginning of fiscal year 4,512,516 4,693,017 4,988,114 5,276,278 Total additional cost 180,501 295,097 198,951 210,444 $ 884,993 Add affect of prior year increase in base pay - 180,501 475,598 763,762 1,419,861 Total increased cost subject to fringe benefits 180,501 475,598 674,549 974,206 2,304,854 Certain fringe benefit costs(31.06%)* 56,064 147,721 209,515 302,588 715,888 Increased costs to be paid during fiscal years 2014-17 236,565 623,319 884,064 1,276,794 3,020,742 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 37,905 99,876 141,655 204,583 484,019 Total increased costs $ 274,470 $ 723,195 $ 1,025,719 $ 1,481,377 $ 3,504,761 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation,and unemployment compensation. 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