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Home My WebLink AboutRES 209 Draft 01 2016-2018 .oJ�tY OF N, ,.,.. COUNTY OF HAWAII ; �:. ;,�;r. } STATE OF HAWAII �TE•OFMF`� RESOLUTION NO. 219 17 A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AWARDED BY ARBITRATION TO HAWAII GOVERNMENT EMPLOYEES ASSOCIATION (HGEA) UNITS 03, 04 AND EMPLOYEES EXCLUDED FROM THOSE UNITS FOR THE CONTRACT PERIOD JULY 1, 2017 THROUGH JUNE 30, 2019. WHEREAS, Sections 89-11 (e) and (g) of the Hawai'i 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, Hawai`i Revised Statutes, Union and Employer positions were heard before an arbitration panel for Bargaining Units 03 and 04 HGEA; and WHEREAS, after hearing arguments from both the Union and the Employer, the arbitration panel concluded its hearings on February 14, 2017; and WHEREAS, the panel issued its majority decision on April 27, 2017 indicating the Union panel member's dissent from the panel chairperson and the Employer panel member's concurrence with the panel chairperson; and WHEREAS, the estimated cost to the County of Hawaii over the two years of the new contract, as shown in the exhibits attached to this resolution, will be $4,217,368. 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 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 budgets in FY2018 and FY2019. 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 17th day of May , 2017. INTRODUCED BY: 4111110 /PAW 1.71/2__ COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawai`i CHUNG X DAVID X I hereby certify that the foregoing RESOLUTION was by EOFF X the vote indicated to the right hereof adoptedKANUHA b the COUNCIL of the County of Hawaii on May 17, 2017 X LEE LOY X O'HARA X ATTEST: POINDEXTER X RICHARDS X RUGGLES X 8 0 1 0 Reference: C-286/Waived FC COUNTY CLERK CHAIRPERSON&PRESIDING OFFICER RESOLUTION NO. 209 1 Recap 18-19 Summary- Cost of HGEA Settlement, July 1, 2017 through June 30, 2019 Recap of Additional Costs Bargaining Increased cost Certain Total increase unit FY18-FY19 fringes FY18-FY19 03 $ 2,646,558 $ 894,801 $ 3,541,359 04 237,861 87,676 325,537 63 258,687 74,088 332,775 84 5,403 1,762 7,165 31 7,196 3,336 10,532 $ 3,155,705 $ 1,061,663 $ 4,217,368 Recap of Increase to Base Pay Due to Settlement Bargaining Increase to unit base(ITB) 03 $ 1,927,072 04 174,005 63 187,599 84 4,130 31 4,869 $ 2,297,675 Page 1 • BU03 County of Hawaii Bargaining Unit 03 Settlement Costs July 1,2017 (FY18)through June 30,2019 (FY19) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/17 $ 26,117,997 $ 26,117,997 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 522,360 522,360 $150 One-time Bonus on July 1,2017 97,838 - 1.50%across-the-board(ATB)increase on January 1,2018 199,803 399,606 Total payroll cost in FY18 26,937,998 Base pay at 6/30/18 27,039,963 Base pay at 6/30/18 27,039,963 27,039,963 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 608,400 608,400 $150 One-time Bonus on July 1,2018 97,838 - 1.25%across-the-board(ATB)increase on January 1,2019 172,803 345,605 Drop Step A and move to Step B on January 1,2019 25,550 51,101 Total payroll cost in FY19 $ 27,944,554 Base pay at 6/30/19 $ 28,045,069 Less base pay at 6/30/17 (26,117,997) Increase to base pay due to this settlement $ 1,927,072 FY18 FY19 Total (2017-18) (2018-19) FY18-FY19 Determination of total increase in cost due to proposed contract: • Total payroll cost for fiscal year as per above calculations $ 26,937,998 $ 27,944,554 Less base pay at beginning of fiscal year 26,117,997 _ 27,039,963 Total additional cost 820,001 904,591 $ 1,724,592 Add affect of prior year increase in base pay - 921,966 921,966 Total increased cost subject to fringe benefits 820,001 1,826,557 2,646,558 Certain fringe benefit costs(33.81%)* 277,242 617,559 894,801 Increased costs to be paid during fiscal years 2018-19 1,097,243 2,444,116 3,541,359 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 172,200 383,577 555,777 Total increased costs $ 1,269,443 $ 2,827,693 $ 4,097,136 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation, and unemployment compensation. Page 2 BUO4 County of Hawaii Bargaining Unit 04 Settlement Costs July 1,2017(FY18)through June 30,2019 (FY19) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/17 $ 2,422,548 $ 2,422,548 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 48,451 48,451 $150 One-time Bonus on July 1,2017 6,450 - 1.50%across-the-board(ATB)increase on January 1,2018 18,533 37,065 Total payroll cost in FY18 2,495,982 Base pay at 6/30/18 2,508,064 Base pay at 6/30/18 2,508,064 2,508,064 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 56,432 56,432 $150 One-time Bonus on July 1,2018 6,450 - 1.25%across-the-board(ATB)increase on January 1,2019 16,029 32,057 Drop Step A and move to Step B on January 1,2019 - - Total payroll cost in FY19 $ 2,586,975 Base pay at 6/30/19 $ 2,596,553 Less base pay at 6/30/17 (2,422,548) Increase to base pay due to this settlement $ 174,005 FY18 FY19 Total (2017-18) (2018-19) FY18-FY19 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 2,495,982 $ 2,586,975 Less base pay at beginning of fiscal year 2,422,548 2,508,064 Total additional cost 73,434 78,911 $ 152,345 Add affect of prior year increase in base pay - 85,516 85,516 Total increased cost subject to fringe benefits 73,434 164,427 237,861 Certain fringe benefit costs(36.86%)* 27,068 60,608 87,676 Increased costs to be paid during fiscal years 2018-19 100,502 225,035 325,537 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 15,421 34,530 49,951 Total increased costs $ 115,923 $ 259,565 $ 375,488 * Fringe benefits include estimates for overtime,premium pay,hazard pay, standby,temporary assignment, compensatory time,retirement system,workers'compensation, and unemployment compensation. Page 3 BU63 County of Hawaii g Bar ainin Unit 63 Settlement Costs Bargaining July 1,2017(FY18)through June 30,2019 (FY19) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/17 $ 2,591,157 $ 2,591,157 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 51,824 51,824 $150 One-time Bonus on July 1,2017 8,663 - 1.50%across-the-board(ATB)increase on January 1,2018 19,823 39,645 Total payroll cost in FY18 2,671,467 Base pay at 6/30/18 2,682,626 Base pay at 6/30/18 2,682,626 2,682,626 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 60,360 60,360 $150 One-time Bonus on July 1,2018 8,663 - 1.25%across-the-board(ATB)increase on January 1,2019 17,144 34,288 Drop Step A and move to Step B on January 1,2019 741 1,482 Total payroll cost in FY19 $ 2,769,534 Base pay at 6/30/19 $ 2,778,756 Less base pay at 6/30/17 (2,591,157) Increase to base pay due to this settlement $ 187,599 FY18 FY19 Total (2017-18) (2018-19) FY18-FY19 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 2,671,467 $ 2,769,534 Less base pay at beginning of fiscal year 2,591,157 2,682,626 Total additional cost _ 80,310 86,908 $ 167,218 Add affect of prior year increase in base pay - 91,469 91,469 Total increased cost subject to fringe benefits 80,310 178,377 258,687 Certain fringe benefit costs(28.64%)* 23,001 51,087 74,088 Increased costs to be paid during fiscal years 2018-19 103,311 229,464 332,775 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 16,865 37,459 54,324 Total increased costs $ 120,176 $ 266,923 $ 387,099 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation,and unemployment compensation. Page 4 BU84 County of Hawaii Bargaining Unit 84 Settlement Costs July 1,2017(FY18)through June 30,2019 (FY19) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/17 $ 53,028 $ 53,028 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 1,061 1,061 $150 One-time Bonus on July 1,2017 158 - 1.50%across-the-board(ATB)increase on January 1,2018 406 812 Total payroll cost in FY18 54,653 Base pay at 6/30/18 54,901 Base pay at 6/30/18 54,901 54,901 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 1,236 1,236 $150 One-time Bonus on July 1,2018 158 - 1.25%across-the-board(ATB)increase on January 1,2019 351 702 Drop Step A and move to Step B on January 1,2019 160 319 Total payroll cost in FY19 $ 56,806 Base pay at 6/30/19 $ 57,158 Less base pay at 6/30/17 (53,028) Increase to base pay due to this settlement $ 4,130 FY18 FY19 Total (2017-18) (2018-19) FY18-FY19 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 54,653 $ 56,806 Less base pay at beginning of fiscal year 53,028 54,901 Total additional cost 1,625 1,905 $ 3,530 Add affect of prior year increase in base pay - 1,873 1,873 Total increased cost subject to fringe benefits 1,625 3,778 5,403 Certain fringe benefit costs(32.62%)* 530 1,232 1,762 Increased costs to be paid during fiscal years 2018-19 2,155 5,010 7,165 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 341 793 1,134 Total increased costs $ 2,496 $ 5,803 $ 8,299 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation, and unemployment compensation. Page 5 BU31 County of Hawaii Bargaining Unit 31 Settlement Costs July 1,2017 (FY18)through June 30,2019 (FY19) Annual Affect on Payroll Cost Base Pay Effect on payroll: Base pay at 6/30/17 $ 67,752 $ 67,752 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 1,356 1,356 $150 One-time.Bonus on July 1,2017 450 - 1.50%across-the-board(ATB)increase on January 1,2018 519 1,037 Total payroll cost in FY18 70,077 Base pay at 6/30/18 70,145 Base pay at 6/30/18 70,145 70,145 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 1,579 1,579 $150 One-time Bonus on July 1,2018 450 - 1.25%across-the-board(ATB)increase on January 1,2019 449 897 Drop Step A and move to Step B on January 1,2019 - - Total payroll cost in FY19 $ 72,623 Base pay at 6/30/19 $ 72,621 Less base pay at 6/30/17 _ (67,752) Increase to base pay due to this settlement $ 4,869 FY18 FY19 Total (2017-18) (2018-19) FY18-FY19 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 70,077 $ 72,623 Less base pay at beginning of fiscal year 67,752 70,145. Total additional cost 2,325 2,478 $ 4,803 Add affect of prior year increase in base pay - 2,393 2,393 Total increased cost subject to fringe benefits 2,325 4,871 7,196 Certain fringe benefit costs(46.35%)* 1,078 2,258 3,336 Increased costs to be paid during fiscal years 2018-19 3,403 7,129 10,532 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 488 1,023 1,511 Total increased costs $ 3,891 $ 8,152 $ 12,043 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation, and unemployment compensation. Page 6