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Home My WebLink About2017-04-27 Letter to Val Poindexter re Cost Items, Hawaii Fire Fighters Association, Bargaining Unit 11 tp; +�� . ��'• Wil Okabe iw;, Managing Director Harry Kim -- Mayor _ Barbara J.Kossow oi'ir�'+J,- Deputy Managing Director Count of r .ainat`t Mitt of flit Alarm 25 Aupum Street,Suite 2603 • Hila,Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA. 74-5044 Ane Keohokalole Hwy.,Bldg C • Kailua-Kona,Hawaii 96740 (808)323-4444 • Fax(808)323-4440 April 27, 2017 Valerie Poindexter, Chairwoman, and Members of the Hawai`i County Council County of Hawai`i 25 Aupuni Street Hilo, Hawaii 96720 Dear Chairwoman Poindexter and Members of the County Council: SUBJECT: Cost Items, Hawai`i Fire Fighters Association Bargaining Unit 11 In accordance with Sections 89-11(e) and (g), FIRS, attached for council action is a resolution authorizing the appropriation in future fiscal years of funds to cover the cost items awarded by the arbitration panel to resolve the impasse between the employers and the Hawaii Fire Fighters Association(HFFA) for Bargaining Unit 11. The award covers the period from July 1, 2017 through June 30, 2019. Cost items presented for your consideration are across-the-board increases; step movements; and within range progressions for bargaining unit 11 and employees excluded from this bargaining unit. Attached as an exhibit to the resolution is a schedule showing the total cost of these various adjustments over the two years of the contract. After careful consideration, I feel that I cannot support the arbitration decision at this time. It has been my stated position to the arbitration panel and other county Mayors, that I cannot support any raises for HFFA at this time. As our costs to operate the County continue to rise, we have to control all of our costs, including collective bargaining unit agreements. This is not about whether or not the employees are deserving of the raises, but rather it is about whether or not we can afford the pay increases. As many of the cost items are effective on July 1, 2017, we ask that this resolution be waived from the Finance Committee to the full Council meeting scheduled for May 17, 2017. Sincerely, Harry Mayor Attachment—Resolution and Exhibit County of Hawaii is an Equal Opportunity Provider and Employer. COUNTY OF HAWAI`I • �` `' /:•- STATE OF HAWAII aN RESOLUTION NO. A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AWARDED BY ARBITRATION TO HAWAII FIRE FIGHTERS ASSOCIATION (HFFA) UNIT 11 AND EMPLOYEES EXCLUDED FROM BARGAINING UNIT 11 FOR THE CONTRACT PERIOD JULY 1, 2017 THROUGH JUNE 30, 2019. 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, "[ajll 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 February 3, 2017; and WHEREAS, the panel issued its majority decision on April 17, 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 $3,753,349. 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 budgets in FY2018 and FY2019. BE IT FURTHER RESOLVED that copies of this resolution be forwarded to the Department of Human Resources and the Department of Finance. Dated at , Hawai'i, this day of , 2017. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawai`i AYES NOES ABS EX Hilo, Hawaii CHUNG DAVID I hereby certify that the foregoing RESOLUTION was by EOFF the vote indicated to the right hereof adopted by the COUNCIL of the KANUHA County of Hawai'i on LEE LOY O'HARA ATTEST: POINDEXTER RICHARDS RUGGLES Reference: COUNTY CLERK CHAIRPERSON& PRESIDING OFFICER RESOLUTION NO. County of Hawaii HFFA Bargaining Unit 11 - Cost Increases July 1, 2017 (FY2018) through June 30,2019 (FY2019) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/17 $ 26,839,272 $ 26,839,272 FY2018: Across-the-board increase of 2.00%on July 1, 2017 $ 536,786 $ 536,786 Catch up step movements, 7/1/17 - 6/30/18 $ 31,174 $ 47,460 Continue step movements, 7/1/17- 6/30/18 153,399 304,200 Total payroll cost in FY 2017-18 $ 27,560,631 Base pay at 6/30/I8 $ 27,727,718 Base pay at 6/30/18 $ 27,727,718 $ 27,727,718 FY2019: Across-the-board increase of 2.25%on July 1, 2018 $ 623,874 $ 623,874 Catch up step movements, 7/1/18 -6/30/19 $ 31,209 $ 34,320 Continue step movements, 7/1/18 -6/30/19 76,012 189,672 Total payroll cost in FY 2018-19 $ 28,458,813 Base pay at 6/30/19 $ 28,575,584 Less base pay at 6/30/17 (26,839,272) Increase to base pay over term of contract $ 1,736,312 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 $ 27,560,631 $ 28,458,813 Less base pay at beginning of fiscal year 26,839,272 27,727,718 Total additional cost 721,359 731,095 $ 1,452,454 Add affect of prior year increase in base pay - 888,446 888,446 Total increased cost subject to fringe benefits 721,359 1,619,541 2,340,900 Certain fringe benefit costs(54.57%) 393,646 883,784 1,277,430 Increased costs to be paid during fiscal years 2018 to 2019 1,115,005 2,503,325 3,618,330 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 151,485 340,104 491,589 Total increased costs 1,266,490 2,843,429 4,109,919 *Fringe benefits included are overtime, premium pay,hazard pay, standby,temporary assignment, compensatory time, retirement system, workers' compensation, and unemployment compensation. County of Hawaii HFFA Bargaining Unit 34- Cost Increases July 1,2018 (FY2018) through June 30,2019 (FY2019) Annual Effect on Payroll Cost Base Pay Base pay at 6/30/17 $ 1,111,183 $ 1,111,183 FY2018: Across-the-board increase of 2.00%on July 1,2017 $ 22,224 $ 22,224 Continue Within Range Progression (WIRP)7/1/17- 6/30/18 2,856 4,896 Total payroll cost in FY 2017-18 $ 1,136,263 Base pay at 6/30/18 $ 1,138,303 Base pay at 6/30/18 $ 1,138,303 $ 1,138,303 FY2018: Across-the-board increase of 2.25%on July 1,2018 $ 25,612 $ 25,612 Continue Within Range Progression (WIRP) 7/1/18-6/30/19 2,912 4,992 Total payroll cost in FY 2018-19 $ 1,166,827 Base pay at 6/30/19 $ 1,168,907 Less base pay at 6/30/17 (1,111,183) Increase to base pay over term of contract $ 57,724 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 $ 1,136,263 $ 1,166,827 Less base pay at beginning of fiscal year 1,111,183 1,138,303 Total additional cost 25,080 28,524 $ 53,604 Add affect of prior year increase in base pay - 27,120 27,120 Total increased cost subject to fringe benefits 25,080 55,644 80,724 Certain fringe benefit costs(67.26%) 16,869 37,426 54,295 Increased costs to be paid during fiscal years 2018 to 2019 41,949 93,070 135,019 Vacation, sick leave and holidays(21%of total increased cost subject to fringe benefits) 5,267 11,685 16,952 Total increased costs 47,216 104,755 151,971 *Fringe benefits included are overtime,premium pay,hazard pay, standby,temporary assignment,compensatory time, retirement system,workers' compensation, and unemployment compensation.