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Home My WebLink AboutRES 210 Draft 01 2016-2018 '4.•`� •. .ice . COUNTY OF HAWAI`I * !�! �%r=� STATE OF HAWAI`I ,TEOFN'� RESOLUTION NO. 210 17 A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AWARDED BY ARBITRATION TO HAWAII GOVERNMENT EMPLOYEES ASSOCIATION (HGEA) UNITS 02, 13 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]ll 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 Bargaining Units 02 and 13 HGEA; and WHEREAS, after hearing arguments from both the Union and the Employer, the arbitration panel concluded its hearings on February 17, 2017; and WHEREAS, the panel issued its majority decision on April 27, 2017 indicating the Union and Employer panel members' 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 $3,700,731. 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.roved. 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 , Hawaii, this 17th day of May , 2017. INTRODUCED BY: .A11. I I I - ',PA '°":444 WWI 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 adopted bythe COUNCIL of the County of Hawai'i on May 17, 2017 I{ANUHA X LEE LOY X O'HARA X ATTEST: POINDEXTER X RICHARDS X _72,/,240 gLieve63 RUGGLES X # 8 0 1 0 Reference: C-287/Waived FC COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER RESOLUTION NO. 210 17 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 02 $ 293,056 $ 115,435 $ 408,491 13 1,801,488 545,491 2,346,979 73 96,985 31,811 128,796 35 621,974 194,491 816,465 S. 2,813,503 $ 887,228 $ 3,700,731 Recap of Increase to Base Pay Due to Settlement Bargaining Increase to unit base(ITB) 02 $ 229,210 13 1,371,980 73 71,145 35 501,475 $ 2,173,810 Page 1 BUO2 County of Hawaii Bargaining Unit 02 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 $ 3,323,760 $ 3,323,760 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 66,476 66,476 Step movements from July 1,2017 to December 31,2017 - - 1.20%across-the-board(ATB)increase on January 1,2018 20,342 40,683 Step movements from January 1,2018 to June 30,2018 - - Total payroll cost in FY18 3,410,578 Base pay at 6/30/18 3,430,919 Base pay at 6/30/18 3,430,919 3,430,919 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 77,196 77,196 Step movements from July 1,2018 to December 31,2018 817 2,724 1.20%across-the-board(ATB)increase on January 1,2019 21,066 42,131 Step movements from January 1,2019 to June 30,2019 - - Total payroll cost in FY17 $ 3,529,998 Base pay at 6/30/19 $ 3,552,970 Less base pay at 6/30/17 (3,323,760) Increase to base pay due to this settlement $ 229,210 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 $ 3,410,578 $ 3,529,998 Less base pay at beginning of fiscal year 3,323,760 3,430,919 Total additional cost 86,818 99,079 $ 185,897 Add affect of prior year increase in base pay - 107,159 107,159 Total increased cost subject to fringe benefits 86,818 206,238 293,056 Certain fringe benefit costs(39.39%)* 34,198 81,237 115,435 Increased costs to be paid during fiscal years 2018-19 121,016 287,475 408,491 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 18,232 43,310 61,542 Total increased costs $ 139,248 $ 330,785 $ 470,033 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation,and unemployment compensation. Page 2 BU13 County of Hawaii Bargaining Unit 13 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 $ 20,073,180 $ 20,073,180 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 401,464 401,464 Step movements from July 1,2017 to June 30,2018 142,862 278,028 Total payroll cost in FY18 20,617,506 Base pay at 6/30/18 20,752,672 Base pay at 6/30/18 20,752,672 20,752,672 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 466,936 466,936 Step movements from July 1,2018 to June 30,2019 110,734 225,552 Total payroll cost in FY19 $ 21,330,342 Base pay at 6/30/19 $ 21,445,160 Less base pay at 6/30/17 (20,073,180) Increase to base pay due to this settlement $ 1,371,980 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 $ 20,617,506 $ 21,330,342 Less base pay at beginning of fiscal year _ 20,073,180 20,752,672 Total additional cost 544,326 577,670 $ 1,121,996 Add affect of prior year increase in base pay - 679,492 679,492 Total increased cost subject to fringe benefits 544,326 1,257,162 1,801,488 Certain fringe benefit costs(30.28%)* 164,822 380,669 545,491 Increased costs to be paid during fiscal years 2018-19 709,148 1,637,831 2,346,979 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 114,308 264,004 378,312 Total increased costs $ 823,456 $ 1,901,835 $ 2,725,291 * Fringe benefits include estimates for overtime,premium pay,hazard pay,standby,temporary assignment, compensatory time,retirement system,workers'compensation, and unemployment compensation. Page 3 BU73 County of Hawaii Bargaining Unit 73 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 - $ 1,081,404 $ 1,081,404 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 21,629 21,629 Step movements from July 1,2017 to June 30,2018 7,909 17,124 Total payroll cost in FY18 1,110,942 Base pay at 6/30/18 1,120,157 Base pay at 6/30/18 1,120,157 1,120,157 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 25,204 25,204 Step movements from July 1,2018 to June 30,2019 3,490 7,188 Total payroll cost in FY19 $ 1,148,851 Base pay at 6/30/19. $ 1,152,549 Less base pay at 6/30/17 (1,081,404) Increase to base pay due to this settlement $ 71,145 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 $ 1,110,942 $ 1,148,851 Less base pay at beginning of fiscal year 1,081,404 1,120,157 Total additional cost 29,538 28,694 $ 58,232 Add affect of prior year increase in base pay - 38,753 38,753 Total increased cost subject to fringe benefits 29,538 67,447 96,985 Certain fringe benefit costs(32.80%)* 9,688 22,123 31,811 Increased costs to be paid during fiscal years 2018-19 39,226 89,570 128,796 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 6,203 14,164 20,367 Total increased costs $ 45,429 $ 103,734 $ 149,163 * Fringe benefits include estimates for overtime,premium pay,hazard pay, standby,temporary assignment, compensatory time,retirement system,workers'compensation,and unemployment compensation. Page 4 BU35 County of Hawaii Bargaining Unit 35 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 $ 5,527,404 $ 5,527,404 FY18: 2.00%across-the-board(ATB)increase on July 1,2017 110,549 110,549 Within Range Progression(WIRP)July 1,2017 to June 30,2018 70,193 129,048 Total payroll cost in FY18 5,708,146 Base pay at 6/30/18 5,767,001 Base pay at 6/30/18 5,767,001 5,767,001 FY19: 2.25%across-the-board(ATB)increase on July 1,2018 129,758 129,758 Within Range Progression(WIRP)July 1,2018 to June 30,2019 71,877 132,120 Total payroll cost in FY19 $ 5,968,636 Base pay at 6/30/19 $ 6,028,879 Less base pay at 6/30/17 (5,527,404) Increase to base pay due to this settlement $ 501,475 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 $ 5,708,146 $ 5,968,636 Less base pay at beginning of fiscal year 5,527,404 5,767,001 Total additional cost 180,742 201,635 $ 382,377 Add affect of prior year increase in base pay - 239,597 239,597 Total increased cost subject to fringe benefits 180,742 441,232 621,974 Certain fringe benefit costs(31.27%)* 56,518 137,973 194,491 Increased costs to be paid during fiscal years 2018-19 237,260 , 579,205 816,465 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 37,956 92,659 130,615 Total increased costs $ 275,216 $ 671,864 $ 947,080 * 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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