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Home My WebLink AboutRES 423 Draft 01 2016-2018 SY OF N COUNTY OF HAWAII !,{' 'k:'s* STATE OF HAWAII RESOLUTION NO. 423 1.'? A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AWARDED BY ARBITRATION TO SHOPO BARGAINING UNIT 12 AND EMPLOYEES EXCLUDED FROM BARGAINING UNIT 12 FOR THE CONTRACT PERIOD JULY 1, 2017 THROUGH JUNE 30, 2021. WHEREAS, Sections 89-11(e) and (g) of the Hawaii Revised Statutes relating to collective ctive 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 is 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 12, SHOPO; and WHEREAS, after hearing arguments from both employer and employee representatives, the arbitration panel concluded its hearings and on November 7, 2017, issued its decision; 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 four years of the new contract' as shown in the exhibits attached to this resolution will be $19,895,686. 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 the funds necessary to pay the obligations under this agreement will be included in the operating budget in FY2019, FY2020 and FY2021. BE IT FURTHER RESOLVED that copies of this resolution be forwarded to the Department of Human Resources and the Department of Finance. Dated at Kona , Hawai`i, this 20th day of December , 2017. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i Hilo,Hawai`i AYES NOES ABS EX CHUNG X I hereby certify that the foregoing RESOLUTION was by the DAVID X vote indicated to the right hereof adopted by the COUNCIL of EOFF X the County of Hawai`i on December 20, 2017 KANUHA X LEE LOY X ATTEST O'HARA X POINDEXTER X RICHARDS X RUGGLES X 9 0 0 0 Reference 0-620/Waived FC ,74) COUNTY CLERK CHAIRMAN&PRESIDING OFFICER RESOLUTION NO. 423 17 County of Hawaii 1 SHOPO Bargaining Unit 12-Cost Increases July 1,2017(FY2018)through June 30,2021 (FY2021) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/17 $ 36,328,896 $ 36,328,896 FY2018: Across-the-board increase of 2.0%on July 1,2017 726,578 726,578 Catch Up Step movements,7/1/17-6/30/18 808 3,876 Continue Step movements,7/1/17-6/30/18 268,065 464,448 Total payroll cost in FY 2017-18 $ 37,324,347 Base pay at 6/30/18 $ 37,523,798 Base pay at 6/30/18 $ 37,523,798 $ 37,523,798 FY2019: Across-the-board increase of 2.25%on July 1,2018 844,286 844,286 Step movements,7/1/18-6/30/19 248,109 477,336 Total payroll cost in FY 2018-19 $ 38,616,193 Base pay at 6/30/19 $ 38,845,420 Base pay at 6/30/19 $ 38,845,420 $ 38,845,420 FY2020: Across-the-board increase of 2.0%on July 1,2019 776,909 776,909 Step movements,7/1/19-6/30/20 244,180 427,656 One-time lump sum bonus(P07 to P015) 450,725 - Total payroll cost in FY 2019-20 $ 40,317,234 Base pay at 6/30/20 $ 40,049,985 Base pay at 6/30/20 $ 40,049,985 $ 40,049,985 FY2021: Across-the-board increase of2.0%on July 1,2020 801,000 801,000 Step movements,7/1/20-6/30/21 282,439 488,820 One-time lump sum bonus(P07 to P015) 455,525 - One-time lump sum bonus(28 yrs&L5) 11,000 - Total payroll cost in FY 2020-21 $ 41,599,949 Base pay at 6/30/21 41,339,805 Less base pay at 6/30/17 (36,328,896) Increase to base pay over term of contract $ 5,010,909 FY18 FY19 FY20 FY21 Total (2017-18) (2018-19) (2019-20) (2020-21) FYI8-FY21 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 37,324,347 $ 38,616,193 $ 40,317,234 $ 41,599,949 Less base pay at beginning of fiscal year 36,328,896 37,523,798 38,845,420 40,049,985 Total additional cost 995,451 1,092,395 1,471,814 1,549,964 $ 5,109,624 Add affect of prior year increase in base pay - 1,194,902 2,516,524 3,721,089 7,432,515 Total increase in regular pay 995,451 2,287,297 3,988,338 5,271,053 12,542,139 Non-wage cost items: Increase firearm maintenance allowance from $500 to$1,000 per fiscal year,7/01/17 241,000 241,000 241,000 241,000 964,000 Total increased cost subject to fringe benefits 1,236,451 2,528,297 4,229,338 5,512,053 13,506,139 Certain fringe benefit costs(40.12%) 496,064 1,014,353 1,696,810 2,211,436 5,418,663 Increased costs to be paid during fiscal years 2018 to 2021 1,732,515 3,542,650 5,926,148 7,723,489 18,924,802 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 259,655 530,942 888,161 1,157,531 2,836,289 Total increased costs 1,992,170 4,073,592 6,814,309 8,881,020 21,761,091 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation. County of Hawaii SHOPO Bargaining Unit 36-Cost Increases July 1,2017(FY2018)through June 30,2021 (FY2021) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/17 $ 2,289,276 $ 2,289,276 FY2018: Across-the-board increase of 2.0%on July 1,2017 45,786 45,786 WIRP 7/1/17-6/30/18 7,511 14,340 Total payroll cost in FY 2017-18 $ 2,342,573 Base pay at 6/30/18 $ 2,349,402 Base pay at 6/30/18 $ 2,349,402 $ 2,349,402 FY2019: Across-the-board increase of 2.25%on July 1,2018 52,862 52,862 WIRP 7/1/18-6/30/19 4,852 10,188 Total payroll cost in FY 2018-19 $ 2,407,116 Base pay at 6/30/19 $ 2,412,452 Base pay at 6/30/19 $ 2,412,452 $ 2,412,452 FY2020: Across-the-board increase of 2.0%on July 1,2019 48,250 48,250 WIRP 7/1/19-6/30/20 767 1,416 One-time lump sum bonus(P07 to P015) 36,000 - Total payroll cost in FY 2019-20 $ 2,497,469 Base pay at 6/30/20 $ 2,462,118 Base pay at 6/30/20 $ 2,462,118 $ 2,462,118 FY2021: Across-the-board increase of 2.0%on July 1,2020 49,243 49,243 WIRP 7/1/20-6/30/21 2,526 4,524 One-time lump sum bonus(P07 to P015) 36,000 - One-time lump sum bonus(28 yrs&L5) 7,000 - Total payroll cost in FY 2020-21 $ 2,556,887 Base pay at 6/30/21 2,515,885 Less base pay at 6/30/17 (2,289,276) Increase to base pay over term of contract $ 226,609 FY18 FY19 FY20 FY21 Total (2017-18) (2018-19) (2019-20) (2020-21) FY18-FY21 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations $ 2,342,573 $ 2,407,116 $ 2,497,469 $ 2,556,887 Less base pay at beginning of fiscal year 2,289,276 2,349,402 2,412,452 2,462,118 Total additional cost 53,297 57,714 85,017 94,769 $ 290,797 Add affect of prior year increase in base pay - 60,126 123,176 172,842 356,144 Total increase in regular pay 53,297 117,840 208,193 267,611 646,941 Non-wage cost items: Increase firearm maintenance allowance from $500 to$1,000 per fiscal year,7/01/17 9,000 9,000 9,000 9,000 36,000 Total increased cost subject to fringe benefits 62,297 126,840 217,193 276,611 682,941 Certain fringe benefit costs(32.13%) 20,016 40,754 69,784 88,875 219,429 Increased costs to be paid during fiscal years 2018 to 2021 82,313 167,594 286,977 365,486 902,370 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 13,082 26,636 45,611 58,088 143,417 Total increased costs 95,395 194,230 332,588 423,574 1,045,787 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation. County of Hawaii SHOPO Bargaining Unit 92-Cost Increases July 1,2017(FY2018)through June 30,2021 (FY2021) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/17 $ 164,220 $ 164,220 FY2018: Across-the-board increase of 2.0%on July 1,2017 3,285 3,285 Catch Up Step movements,7/1/17-6/30/18 - - Continue Step movements,7/1/17-6/30/18 - - Total payroll cost in FY 2017-18 $ 167,505 Base pay at 6/30/18 $ 167,505 Base pay at 6/30/18 $ 167,505 $ 167,505 FY2019: Across-the-board increase of 2.25%on July 1,2018 3,769 3,769 Step movements,7/1/18-6/30/19 2,040 4,080 Total payroll cost in FY 2018-19 $ 173,314 Base pay at 6/30/19 $ 175,354 Base pay at 6/30/19 $ 175,354 $ 175,354 FY2020: Across-the-board increase of 2.0%on July 1,2019 3,508 3,508 Step movements,7/1/19-6/30/20 - - One-time lump sum bonus(P07 to P015) 1,950 - Total payroll cost in FY 2019-20 $ 180,812 Base pay at 6/30/20 $ 178,862 Base pay at 6/30/20 $ 178,862 $ 178,862 FY2021: Across-the-board increase of 2.0%on July 1,2020 3,578 3,578 Step movements,7/1/20-6/30/21 - - One-time lump sum bonus(P07 to P015) 1,950 - One-time lump sum bonus(28 yrs&L5) - - Total payroll cost in FY 2020-21 $ 184,390 Base pay at 6/30/21 182,440 Less base pay at 6/30/17 (164,220) Increase to base pay over term of contract $ 18,220 FY18 FY19 FY20 FY21 Total (2017-18) (2018-19) (2019-20) (2020-21) FY18-FY21 Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations .$ 167,505 $ 173,314 $ 180,812 $ 184,390 Less base pay at beginning of fiscal year 164,220 167,505 175,354 178,862 Total additional cost 3,285 5,809 5,458 5,528 $ 20,080 Add affect of prior year increase in base pay - 3,285 11,134 14,642 29,061 Total increase in regular pay 3,285 9,094 16,592 20,170 49,141 Non-wage cost items: Increase firearm maintenance allowance from $500 to$1,000 per fiscal year,7/01/17 1,000 1,000 1,000 1,000 4,000 Total increased cost subject to fringe benefits 4,285 10,094 17,592 21,170 53,141 Certain fringe benefit costs(28.93%) 1,240 2,920 5,089 6,124 15,373 Increased costs to be paid during fiscal years 2018 to 2021 5,525 13,014 22,681 27,294 68,514 Vacation,sick leave and holidays(21%of total increased cost subject to fringe benefits) 900 2,120 3,694 4,446 11,160 Total increased costs 6,425 15,134 26,375 31,740 79,674 *Fringe benefits included are overtime,premium pay,hazard pay,standby,temporary assignment,compensatory time, retirement system,workers'compensation,and unemployment compensation.