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Home My WebLink AboutCOM 0334.002 1998-2000 sr ~r .s Stephen K. Yamashiro Richard Wurdeman Moyer Cerporolion Cornui er n~. CLIIlT2t~~J II~ f1tIITT OFFICE OF THE CORPORATION COUNSEL (Ol Aupuoi Street, Sulte 325 • Hllo, Haaa14 %720.4262 • (SOS) %I$2S[ • Pat (SOIL) %i•S6I2 CEO l7 L O~ _ June 25, 1999 ~ rv J:~ tr0 ~ (,I1 7,`~ 3 - The Honorable James Arakaki, Chairman, C~ and Members of the Hawaii County Council s - cO C County of Hawaii ~ ~ ~ cn Hilo, Hawaii 96720 Deaz Chairman Arakaki and Members of the County Council: SUBJECT: Negotiated Cost Items, United Public Workers Bargaining Unit Ol and Employees Excluded from that Bazgaining Unit In accordance with Section 89-10(b), HRS, attached for council action are the cost items agreed upon by the Employers and the United Public Workers (iIPW) for bazgaining unit Ol and employees excluded from that bazgaining unit. The settlement covers the period from July 1, 1995 through June 30, 1999. Cost items presented for your consideration include a lump sum salary supplement, increase in night differential pay, increased employer contributions for several fringe benefits, and a 10.46% across-the-board increase effective before midnight on June 30, ] 999. For your information, attached is a copy of a letter received from Davis Yogi, chief negotiator for the State, transmitting Gary Rodrigues' May 3, 19991etter in which he states that the employees in bargaining unit O1 have ratified this agreement. Also attached is a schedule showing the total cost of both the UPW and HGEA contracts for the fiscal year ending June 3Q 2000. Sincerely, CH ~EMAN Corporation Counsel Attachments 3.j DOZ Comm. Na File No. PDS _ Ref. To: SPEC. <'ovn~~l` Ref. Date_,~UN z 8 ~ .rr County of Hawaii Bargaining Unit 1 -Cost of Settlement (Period covered: 7/1/95-6/30/99) Fiscal Year 1999-2000 Prepaid legal premium is taxable Cost of proposed settlement to County of Hawaii in fiscal year 1999-00: Lump Sum Salary Supplement (EBBS) effective 6/30/99 $ 2,217,293 10.46% across-the-boazd (ATB) increase at 11:59 p.m., 6/30/99 1,145,090 Increase in night differential pay effective 7/1/98 40,090 New legal plan contributions, $7 per month effective 7/1/98 74,424 Total cost subject to fringe benefits 3,476,897 Certain fringe benefits (20.18%)* 701,638 Increase in Health Fund contributions, $7 per month effective 7/1/98 74,424 Licenses -Initial and renewal when required of position, eff. 7/1/95 21,000 Settlement costs to be paid during fiscal year 1999-00 4,273,959 Estimated cost of other fringe benefits: Employer's contribution to ERS (8.79% of total increased cost subject to fringe benefits)** 305,619 Vacation, sick leave and holidays (21% of increased cost subject to fringe benefits) 730,148 Total increased costs $ 5,309,726 Effect on base pay: Base pay $ 10,947,321 10.46% across-the-board (ATB) increase at 11:59 p.m., 6/30/99 1,145,090 Base pay at midnight, 6/30/99 $ 12,092,411 Annual effect on recumng costs: 10.46% across-the-board (ATB) increase at 11:59 p.m, 6/30/99 $ 1,145,090 Increase in night differential pay effective 7/1/98 20,045 New legal plan contributions, $7 per month effective 7/1/98 37,212 Taxable costs 1,202,347 Increase in Health Fund contributions, $7 per month effective 7/1/98 (NT) 37,212 Licenses -Initial and renewal when required of position, eff 7/1/95 4,200 Total increase in direct costs 1,243,759 Certain fringe benefits (20.18%)* 242,634 Total estimated increase in recurring costs $ 1,486,393 *Fringe benefits include estimates for overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, workers' compensation, and unemployment benefits. **Actuarially determined contribution rate for classes A and C per ERS annual actuarial valuation dated 6/30/98 (most recent available). However, changes made by the most recent legislative session will change this £gure, but the new rates are not available yet. In addition, the amount of the County's contribution for FY00 is already established and will not change because of this payroll increase. County of Hawaii Bargaining Unit 61 -Cost of Settlement (Period covered: 7/1/95-6/30/99) Fiscal Year 1999-2000 Prepaid leg¢l premium is taxable Cost of proposed settlement to County of Hawaii in fiscal year 1999-00: Lump Sum Salary Supplement (EBBS) effective 6/30/99 $ 31,146 10.46% across-the-boazd (ATB) increase at 11:59 p.m., 6/30/99 13,028 Increase in night differential pay effective 7/1/98 12 Total cost subject [o fringe benefits 44,186 Certain fringe benefits (20.18%)* 8,917 Settlement costs to be paid during fiscal year 1999-00 53,103 Estimated cost of other fringe benefits: Employer's contribution to ERS (8.79% of total increased cost subject to fringe benefits)** 3,884 Vacation, sick leave and holidays (21% of increased cost subject to fringe benefits) 9,279 Total increased costs $ 66,266 Effect on base pay: Base pay $ 124,549 10.46% across-the-board (ATB) increase at 11:59 p.m., 6/30/99 13,028 Base pay at midnight, 6/30/99 $ 137,577 Annual effect on recurring costs: 10.46% across-the-board (ATB) increase at 11:59 p.m, 6/30/99 $ 13,028 Increase in night differential pay effective 7/1/98 6 Total increase in direct costs 13,034 Certain fringe benefits (20.18%)* 2,630 Total estimated increase in recurring costs $ 15,664 *Fringe benefits include estimates for overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, workers' compensation, and unemployment benefits. **Actuarially determined contribution rate for classes A and C per ERS annual actuarial valuation dated 6/30/98 (most recent available). However, changes made by the most recent legislative session will change this figure, but the new rates are not available yet. In addition, the amount of the County's contribution for FY00 is already established and will no[ change because of this payroll increase. Fact Sheet Recapitulation of Costs of UPW and HGEA Settlements All of the below costs would be paid in FY2000. These contracts cover the period of time from 7/1/95 through 6130/99. However, the contracts also impact annual recurring costs, and these costs for FY2000 are included below also. UPW settlement costs:* /TB: BU01: Costs for period 7/1/95 through 6/30/99 $ 2,787,566 Increase in FY2000 costs 1,486,393 4,273,959 $ 1,145,090 BU61: Costs for period 7/1/95 through 6/30/99 37,438 Increase in FY2000 costs 15,665 53,103 13, 028 Total UPW settlement costs in FY2000 4,327,062 1,158,118 HGEA settlement costs:* Costs for period 7/1/97 through 6/30/99: BU02 144,223 91,228 BU03 1,079,574 663,453 BU04 105,229 59,761 BU13 484,464 378,956 BU63 (excluded from BU03) 126,244 81,109 BU73 (excluded from BU13) 21,024 15,209 BU84 (excluded from BU04) 4,569 2,330 1,965, 327 1, 292, 046 Increase in FY2000 costs: BU02 112,486 BU03 758,260 BU04 67,727 BU 13 424, 772 BU63 (excluded from BU03) 91,588 BU73 (excluded from BU13) 17,554 BU84 (excluded from BU04) 2,505 1,474,892 Total HGEA settlement costs in FY2000 3,440,219 Total settlement costs: $ 7,767,281 $ 2,450,164 * Includes certain fringe benefits. Does not include ERS contributions or vacation/sick leave/holidays. Increase to base pay as a result of these settlements. Does not include $74,088 in annual additional payments for medical and legal plans for UPW members. JJN ~q gg 1320 No.UU1 r.vi OFFICE COLLEC?IUE BHRG ID~58bU166 . . ~.~.,.,w a,~... +a~,~ cavEnNO~~ i f r~K. Ncaan~ioq 1 1F'[hNaNF ND. STATE OF HAWAII ' orrac of cot.~:~~ ruppAaaivc FJ(ECUTNF Ohh~Ci OF THC GOVEANpA I~ 2v5 t. BERFTdNN pTAE6`, SU~ 1 [ 1 NI7 i HONOLJ~U. NAwnu ung7l Junc 2A, 1999 i Vis Facsiwte • (84R) 9Gl•A~53 (Hard Copy to follow) ~ I The Honornblo Stcphim Yamashrrn ~ Mayor, County ol'7lawxi9 ()Rica of the Mayor ' 25 Auryini Street, Room 215 ~ Hilb. Hawaii 9tS~2G Dear Msynr Ymuashiro: I Mlievad the Ainy 3, 19`)9 Memorandum n1',4grcemcnt signori by the Chicf F.xeautives of the Stair, Mwii County, and the City and County o? Honoluhi +o include Suflic;ent nrnific~ tion of the UI'W',~ ratifi~:adon ofrheluly 1, 19+15 to Junc air, ; X199 agr~mern by the employees in~Unit 01. At the request ofthe Hawaii Cvunry Council, 1 am Torwm ding the attaehcd May 1999 letter from lir. Crary Rodrigues, Slare lliiccuv of Ule UPW, to me chat the aforcmennQnral contract was ratiGcd. Sincerely, ~ f ~ Davis k. Y ~i,_ Chief Negotlaror ~I I Attathntan ~ o: Jamrs Makaki, Clwintum i Iiawaii County Council ` (SOS)9G1-3291 I AN Mf~gMarivt n(:7(ON AND GpUAL OPa:ira i VNItt EMt'LOYER ,;E HRRG ?D 586+)166 _..,„JUN 24 ~ 99 13 ~ 21 No .002 F .02 rl I c~aY w anr,Hruuxs 1 ~ I, LtiNCto., Uv~ .I~tlitl7l Penel, APSCMI AFSCME ~ LDCAL 846 AF4CID HAWAII lKaBwt~ Pare. May 3.1 ggg Mr. Davis Yogi ~I Chlef NogoGVtor OFFICE OF COLLtG I IVk BARGAINING 3tata of Hawali Lrir,paps A Knmehameha k3uilding 23~ 8.8~1vgnia Streot, Room 1201 Hunufuiu, Hawall 9t1e13 li RE; X171 RA FITi CATION D®ar Mr. Yogi: ~ I, Thla k M advise you that the t Lul 1 Agroomer>tforthe period of J41y 1, 1 G06 to Jur>G 30,1988 has been ratified by the Employees of Unit 1, SlnCerety, Aary W. Radrig e State dirvclar GWR/to 11 I I li` I ~ t 1426 t`~ Sctluol Strter ~ Hnneluh~, HO+vai~ 9GH IT ~ (80878A7-~'J 1 h