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Home My WebLink About2017-08-24 Letter to Chairwoman Poindexter and Members of the County Council re Cost Items, United Public WorkersHarry Kim Mayor AT %L1,0UUN of Wil Okabe Managing Director Barbara J. Kossow Deputy Managing Director Offirr of f4r,�Hapr 25 Aupuni Street, Suite 2603 • Hilo, 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 August 24, 2017 Valerie Poindexter, Chairwoman, and Members of the Hawaii County Council County of Hawaii 25 Aupuni Street ' Hilo, Hawaii 96720 Dear Chairwoman Poindexter and Members of the County Council: SUBJECT: Cost Items, United Public Workers Bargaining Unit 01 and Employees Excluded from BUO I In accordance with Section 89-10(b), HRS, attached for Council action is a resolution authorizing the appropriation in future fiscal years of funds to cover the cost items agreed to between the employers and the United Public Workers (UPW) for Bargaining Unit I and employees excluded from Bargaining Unit 1. The agreement covers the period from July 1, 2017 through June 30, 2021. Cost items presented for your consideration are across-the-board increases and one-time bonuses for bargaining unit 01 and employees excluded from that bargaining unit. Attached as an exhibit to the resolution is a schedule showing the total cost of these various adjustments over the four years of the contract. As our costs to operate the County continue to rise, we have to control all of our costs, including collective bargaining unit agreements. We do understand that these are some of our lower paid employees and some are included in our at risk population. Due to the statewide implications of this matter and the lead time needed to implement these changes, we ask that this resolution be waived from the Finance Committee to the full Council meeting scheduled for September 20, 2017. Sincere 1�y Harry Kim Mayor Attachment — Resolution and Exhibit County of Hawaii is an Equal Opportunity Provider and Employer. COUNTY OF HAWAII RESOLUTION NO. STATE OF HAWAII A RESOLUTION COMMITTING TO FUNDING THE COST ITEMS AGREED UPON BY THE EMPLOYERS AND THE UNITED PUBLIC WORKERS (UPW) UNIT 01 AND EMPLOYEES EXCLUDED FROM BARGAINING UNIT 01 FOR THE CONTRACT PERIOD JULY 1, 2017 THROUGH JUNE 30, 2021. WHEREAS, Section 89-10(b) of the Hawai'i Revised Statutes relating to collective bargaining require that "[a]II cost items shall be subject to appropriations by the appropriate legislative bodies"; and WHEREAS, this section further requires that "the employer shall submit within ten days of the date on which the agreement is ratified by the employees concerned all cost items contained therein to the appropriate legislative bodies"; and WHEREAS, pursuant to provisions of Section 89-10, Hawai'i Revised Statutes, after good -faith negotiations a settlement was reached between the employers and the UPW on behalf of Bargaining Unit 01, and the settlement was ratified by the membership of the bargaining unit; 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 $11,651,117. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI`1 that the cost items as negotiated and ratified with UPW, 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 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 , Hawai'i, this day of , 2017. INTRODUCED BY: COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL County of Hawaii Hilo, Hawaii I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the County of Hawaii on ATTEST: COUNTY CLERK CHAIRPERSON & PRESIDING OFFICER ROLL CALL VOTF, AYES NOES ABS EX CHUNG DAVID EOFF KANUHA LEE LOY O'HARA POINDEXTER RICHARDS RUGGLES Reference: RESOLUTION NO. County of Hawaii Bargaining Unit 01 Settlement Costs July 1, 2017 (FY18) through June 30, 2021 (FY21) Effect on payroll: Base pay at 6/30/17 FY18: $1,000 Lump Sum effective November 1, 2017 3.20% across-the-board (ATB) increase effective June 1, 2018 Total payroll cost in FY18 Base pay at 6/30/18 Base pay at 6/30/18 FYI 9: $1,000 Lump Sum effective November 1, 2018 3.45% across-the-board (ATB) increase effective May 1, 2019 Total payroll cost in FYI Base pay at 6/30/19 Base pay at 6/30/19 FY20: 2.00% across-the-board (ATB) increase effective July 1, 2019 Total payroll cost in FY20 Base pay at 6/30/20 Base pay at 6/30/20 FY21: 2.00% across-the-board (ATB) increase effective July 1, 2020 Total payroll cost in FY21 Base pay at 6/30/21 Less base pay at 6/30/17 Increase to base pay due to this settlement Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations Less base pay at beginning of fiscal year Total additional cost Add affect of prior year increase in base pay Total increased cost subject to fringe benefits Certain fringe benefit costs (41.84%)* Increased costs to be paid during fiscal years 2018-21 Vacation, sick leave and holidays (21% oftotal increased cost subject 2018-21 BW Annual Affect on Payroll Cost Base Pay $ 28,608,876 $ 28,608,876 610,100 - 76,291 915,485 29,295,267 29,524,361 29,524,361 29,524,361 610,100 - 169,766 1,018,591 $ 30,304,227 $ 30,542,952 30,542,952 30,542,952 610,860 610,860 $ 31,153,812 $ 31,153,812 31,153,812 31,153,812 623,077 623,077 $ 31,776,889 $ 31,776,889 (28,608,876) $ 3,168,013 FY18 FY19 FY20 FY21 Total (2017-18)(2018-19) FY18-FY21 $ 29,295,267 $ 30,304,227 $ 31,153,812 $ 31,776,889 28,608,876 29,524,361 30,542,952 31,153,812 686,391 779,866 610,860 623,077 $ 2,700,194 915,485 1,934,076 2,544,936 5,394,497 686,391 1,695,351 2,544,936 3,168,013 8,094,691 287,186 709,335 1,064,801 1,325,497 3,386,819 973,577 2,404,686 3,609,737 4,493,510 11,481,510 to fringe benefits) 204,451 504,984 758,045 943,637 2,411,117 Total increased costs $ 1,178,028 $ 2,909,670 $ 4,367,782 $ 5,437,147 $ 13,892,627 * Fringe benefits include estimates for overtime, premium pay, hazard pay, standby, temporary assignment, compensatory time, retirement system, workers' compensation, and unemployment compensation. Page 1 County of Hawaii Bargaining Unit 61 Settlement Costs July 1, 2017 (FY18) through June 30, 2021 (FY21) Effect on payroll: Base pay at 6/30/17 FY18: $1,000 Lump Sum effective November 1, 2017 3.20% across-the-board (ATB) increase effective June 1, 2018 Total payroll cost in FYI 8 Base pay at 6/30/18 Base pay at 6/30/18 FY 19: $1,000 Lump Sum effective November 1, 2018 3.45% across-the-board (ATB) increase effective May 1, 2019 Total payroll cost in FYI Base pay at 6/30/19 Base pay at 6/30/19 FY20: 2.00% across-the-board (ATB) increase effective July 1, 2019 Total payroll cost in FY20 Base pay at 6/30/20 Base pay at 6/30/20 FY21: 2.00% across-the-board (ATB) increase effective July 1, 2020 Total payroll cost in FY21 Base pay at 6/30/21 Less base pay at 6/30/17 Increase to base pay due to this settlement Determination of total increase in cost due to proposed contract: Total payroll cost for fiscal year as per above calculations Less base pay at beginning of fiscal year Total additional cost Add affect of prior year increase in base pay Total increased cost subject to fringe benefits Certain fringe benefit costs (32.33%)* Increased costs to be paid during fiscal years 2018-21 Vacation, sick leave and holidays (21 % of total increased cost subject 2018-21 BU61 Annual Affect on Payroll Cost Base Pay $ 450,144 $ 450,144 10,000 - 1,201 14,405 461,345 464,549 464,549 464,549 10,000 - 2,672 16,027 $ 477,221 $ 480,576 480,576 480,576 9,612 9,612 $ 490,188 $ 490,188 490,188 490,188 9,804 9,804 $ 499,992 $ 499,992 (450,144) $ 49,848 FY18 FY19 FV20 FY21 Total 2017-18 2018-19 2019-20 20( 20-21) FY18-FY21 $ 461,345 $ 477,221 $ 490,188 $ 499,992 450,144 464,549 480,576 490,188 11,201 12,672 9,612 9,804 $ 43,289 - 14,405 30,432 40,044 $ 84,881 11,201 27,077 40,044 49,848 $ 128,170 3,621 8,754 12,946 16,116 41,437 14,822 35,831 52,990 65,964 169,607 to fringe benefits) 3,113 7,525 11,128 13,852 35,617 Total increased costs $ 17,935 $ 43,356 $ 64,118 $ 79,816 $ 205,225 * 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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