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Home My WebLink AboutRES 240 Draft 01 2012-2014 COUNTY OF HAWAII ‘.:.,4\ 'S.0'-:.: 4?-...1..T:4_,?:....... STATE OF HAWAII f OF.M�.$ RESOLUTION NO. 24+ 13 A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AWARDED BY ARBITRATION TO HFFA (HAWAII FIRE FIGHTERS ASSOCIATION) BARGAINING UNIT 11 AND EMPLOYEES EXCLUDED FROM BARGAINING UNIT 11 FOR THE CONTRACT PERIOD JULY 1, 2011 THROUGH JUNE 30, 2017. WHEREAS, Sections 89-11(e) and (g) of the Hawaii Revised Statutes relating to collective bargaining require that in the case of a "final and binding" decision by an arbitration panel, "[a]II items requiring any moneys for implementation shall be subject to appropriations by the appropriate legislative bodies"; and WHEREAS, these sections further require that the employer "...shall submit all such items within ten days after the date on which the agreement is entered into as provided herein, to the appropriate legislative bodies"; and WHEREAS, pursuant to provisions of Section 89-11, Hawaii Revised Statutes, Union and Employer positions were heard before an arbitration panel for BU 11, HFFA; and WHEREAS, after hearing arguments from both the Union and the Employer, the arbitration panel concluded its hearings on November 13, 2013; and WHEREAS, the panel issued its majority decision on November 15, 2013 indicating the Union panel member's concurrence with the panel chairperson and the Employer panel member's dissent from the panel chairperson; and WHEREAS, the total cost of the arbitration 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 six years of the new contract as shown in the exhibits attached to this resolution will be $33,479,938 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 HFFA negotiations, 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 FINALLY RESOLVED that copies of this resolution be forwarded to the Department of Human Resources and the Department of Finance. Dated at Hilo , Hawai`i, this 8th day of January , 2014. INTRODUCED BY: a AfiX ' /9—) ' COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i EOFF X FORD X I hereby certify that the foregoing RESOLUTION was by ILAGAN X the vote indicated to the right hereof adopted by the COUNCIL of the KANUHA X County of Hawaii on January 8, 2014 KERN X ONISHI X ATTEST: POINDEXTER X WILLE X 0SC(14.1 .-- YOSHIMOTO X `� 6 0 3 0 ) ' Reference: C-545/FC -117 COUNTY CLERK CHAIRPERSON& PRESIDING OFFICER RESOLUTION NO. 24 13 County of Hawaii HFFA Bargaining Unit 11-Cost Increases July 1,2011(FY2012)through June 30,2017(FY2017) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/11 $ 22,355,832 $ 22,355,832 FY2012: No increase - - Total payroll cost in FY 2011-12 $ 22,355,832 Base pay at 6/30/12 $ 22,355,832 Base pay at 6/30/12 $ 22,355,832 $ 22,355,832 FY2013: No increase - - Total payroll cost in FY 2012-13 $ 22,355,832 Base pay at 6/30/13 $ 22,355,832 Base pay at 6/30/13 $ 22,355,832 $ 22,355,832 FY2014: Across-the-board increase of 2.0%on July 1,2013 447,117 447,117 Across-the-board increase of 2.0%on January 1,2014 228,029 456,059 Step movements,7/1/13-6/30/14 382,844 808,764 Total payroll cost in FY 2013-14 $ 23,413,822 Base pay at 6/30/14 $ 24,067,772 Base pay at 6/30/14 $ 24,067,772 $ 24,067,772 FY2015: Across-the-board increase of 2.0%on July 1,2014 481,355 481,355 Across-the-board increase of 2.0%on January 1,2015 247,018 494,035 Step movements,7/1/14-6/30/15 90,563 285,708 Total payroll cost in FY 2014-15 $ 24,886,708 Base pay at 6/30/15 25,328,870 Base pay at 6/30/15 $ 25,328,870 $ 25,328,870 FY2016: Across-the-board increase of 2.00%on July 1,2015 506,577 506,577 Across-the-board increase of 2.00%on January 1,2016 259,371 518,741 Step movements,7/1/15-6/30/16 59,684 223,860 Total payroll cost in FY 2015-16 $ 26,154,502 Base pay at 6/30/16 26,578,048 Base pay at 6/30/16 $ 26,578,048 $ 26,578,048 FY2017: Across-the-board increase of 5.0%on July 1,2016 1,328,902 1,328,902 Step movements,7/1/16-6/30/17 195,873 355,812 Total payroll cost in FY 2016-17 $ 28,102,823 Base pay at 6/30/17 28,262,762 Less base pay at 6/30/11 (22,355,832) Increase to base pay over tern of contract $ 5,906,930 FY12 FY13 FY14 FY15 FY16 FY17 Total (2011-12) (2012-13) (2013-14) (2014-15) (2015-16) (2016-17) FY12-FYI7 Determination of total increase in cost due to proposed contract-. Total payroll cost for fiscal year as per above calculations $ 22,355,832 $ 22,355,832 $ 23,413,822 $24,886,708 $26,154,502 $28,102,823 Less base pay at beginning of fiscal year 22,355,832 22,355,832 22,355,832 24,067,772 25,328,870 26,578,048 Total additional cost - - 1,057,990 818,936 825,632 1,524,775 $ 4,227,333 Add affect of prior year increase in base pay - - - 1,711,940 2,973,038 4,222,216 8,907,194 Total increase in regular pay - - 1,057,990 2,530,876 3,798,670 5,746,991 13,134,527 Non-wage cost items: Temporary Change in Station Pay - - - 219,000 219,000 219,000 657,000 Continuation of Rank for Rank(12 shifts per year) - - - 2,391,404 2,513,268 2,689,862 7,594,534 Total increased cost subject to fringe benefits - - 1,057,990 5,141,280 6,530,938 8,655,853 21,386,061 Certain fringe benefit costs(48.87%) - - 517,040 2,512,544 3,191,669 4,230,115 10,451,368 Increased costs to be paid during fiscal years 2012 to 2017 - - 1,575,030 7,653,824 9,722,607 12,885,968 31,837,429 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) - - 222,178 1,079,669 1,371,497 1,817,729 4,491,073 Total increased costs - - 1,797,208 8,733,492 11,094,104 14,703,697 36,328,502 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation. Exhibit County of Hawaii HFFA Bargaining Unit 34-Cost Increases July 1,2011(FY2012)through June 30,2017(FY2017) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/11 $ 1,103,688 $ 1,103,688 FY2012: No increase - - Total payroll cost in FY 2011-12 $ 1,103,688 Base pay at 6/30/12 $ 1,103,688 Base pay at 6/30/12 $ 1,103,688 $ 1,103,688 FY2013: No increase - - Total payroll cost in FY 2012-13 $ 1,103,688 Base pay at 6/30/13 $ 1,103,688 Base pay at 6/30/13 $ 1,103,688 $ 1,103,688 FY2014: Across-the-board increase of 2.0%on July 1,2013 22,074 22,074 Across-the-board increase of 2.0%on January 1,2014 11,258 22,515 Step movements,7/1/13-6/30/14 557 3,336 Total payroll cost in FY 2013-14 $ 1,137,577 Base pay at 6/30/14 $ 1,151,613 Base pay at 6/30/14 $ 1,151,613 $ 1,151,613 FY2015: Across-the-board increase of 2.0%on July 1,2014 23,032 23,032 Across-the-board increase of 2.0%on January I,2015 11,902 23,803 Step movements,7/1/14-6/30/15 3,589 18,972 Total payroll cost in FY 2014-15 $ 1,190,136 Base pay at 6/30/15 1,217,420 Base pay at 6/30/15 $ 1,217,420 $ 1,217,420 FY2016: Across-the-board increase of 2.0%on July 1,2015 24,348 24,348 Across-the-board increase of 2.0%on January 1,2016 12,583 25,165 Step movements,7/1/15-6/30/16 3,823 20,196 Total payroll cost in FY 2015-16 $ 1,258,174 Base pay at 6/30/16 1,287,129 Base pay at 6/30/16 $ 1,287,129 $ 1,287,129 FY2017: Across-the-board increase of 5.0%on July 1,2016 64,356 64,356 Step movements,7/1/16-6/30/17 12,685 21,168 Total payroll cost in FY 2016-17 $ 1,364,170 Base pay at 6/30/17 1,372,653 Less base pay at 6/30/11 (1,103,688) Increase to base pay over term of contract $ 268,965 FY12 FY13 FY14 FY15 FY16 FY17 Total (2011-12) (2012-13) (2013-14) (2014-15) (2015-16) (2016-17) FY12-FY17 Determination o/total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 1,103,688 $ 1,103,688 $ 1,137,577 $ 1,190,136 $ 1,258,174 $ 1,364,170 Less base pay at beginning of fiscal year 1,103,688 1,103,688 1,103,688 1,151,613 1,217,420 1,287,129 Total additional cost - - 33,889 38,523 40,754 77,041 $ 190,207 Add affect of prior year increase in base pay - - - 47,925 113,732 183,441 345,098 Total increase in regular pay - - 33,889 86,448 154,486 260,482 535,305 Non-wage cost items: Continuation of Rank for Rank(12 shifts per year) - - - 177,738 188,140 201,542 567,420 Total increased cost subject to fringe benefits - - 33,889 264,186 342,626 462,024 1,102,725 Certain fringe benefit costs(48.95%) - - 16,589 129,319 167,715 226,161 539,784 Increased costs to be paid during fiscal years 2012 to 2017 - - 50,478 393,505 510,341 688,185 1,642,509 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) - - 7,117 55,479 71,951 97,025 231,572 Total increased costs - - 57,594 448,984 582,293 785,210 1,874,081 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation. Exhibit