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Home My WebLink About2017-11-16 Ltr to Valerie Poindexter re: SHOPO BU 12 and Employees Excluded from that BUHarry Kim Mayor C�� 11U1 af,41afult`t Wil Okabe Managing Director Barbara J. Kossow Deputy Managing Director (Offir e of f4r4LVvr 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 9 Fax (808) 323-4440 November 16, 2017 Valerie Poindexter, Council Chair, and Members of the Hawaii County Council County of Hawaii 25 Aupuni Street Hilo, Hawaii 96720 Dear Chair Poindexter and Members of the County Council: SUBJECT: Cost Items, State of Hawaii Organization of Police Officers (SHOPO) Bargaining Unit 12 and Employees Excluded from that Bargaining Unit In accordance with Sections 89-11(e) and (g), HRS, 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 State of Hawaii Organization of Police Officers (SHOPO) for Bargaining Unit 12. The award covers the period from July 1, 2017 through June 30, 2021. Cost items presented for your consideration are across-the-board increases; step movements; one-time lump sum bonuses and an increase to the firearm maintenance allowance for bargaining unit 12 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 employees serve as a major resource for the County's ability to operate, their related collective bargaining unit increases also represent one of the major contributors to the County's rising cost to operate. As many of the cost items are retroactively effective from July 1, 2017, we ask that this resolution be waived from the Finance Committee to the full Council meeting scheduled for December 5, 2017. Sinc ely, arry Kim Mayor Attachment — Resolution and Exhibit County of Hawaii is an Equal Opportunity Provider and Employer. COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 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 Hawai'i Revised Statutes relating to collective 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, Hawai'i 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 Hawai'i is illustrated in the attached exhibits to this resolution; and WHEREAS, the estimated cost to the County of Hawai'i 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 Hawaii, 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 ROLL CALL VOTE AYES NOES ABS EX CHUNG DAVID EOFF KANUHA LEE LOY O'HARA POINDEXTER RICHARDS RUGGLES Reference COUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO. County of Hawaii 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 PO 15) 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 of 2.0% 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 PO 15) 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 FY18-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) Base pay at 6/30/17 FY2018: Across-the-board increase of 2.0% on July 1, 2017 WIRP 7/1/17 - 6/30/18 Total payroll cost in FY 2017-18 Base pay at 6/30/18 Base pay at 6/30/18 FY2019: Across-the-board increase of 2.25% on July 1, 2018 WIRP 7/1/18 - 6/30/19 Total payroll cost in FY 2018-19 Base pay at 6/30/19 Base pay at 6/30/19 FY2020: Across-the-board increase of 2.0% on July], 2019 WIRP 7/1/19 - 6/30/20 One-time lump sum bonus (P07 to PO 15) Total payroll cost in FY 2019-20 Base pay at 6/30/20 Base pay at 6/30/20 FY2021: Across-the-board increase of 2.0% on July 1, 2020 WIRP 7/1/20 - 6/30/21 One-time lump sum bonus (P07 to PO 15) One-time lump sum bonus (28 yrs & L5) Total payroll cost in FY 2020-21 Base pay at 6/30/21 Less base pay at 6/30/17 Increase to base pay over tern of contract 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 increase in regular pay Non -wage cost items: Increase firearm maintenance allowance from $500 to $1,000 per fiscal year, 7/01/17 Total increased cost subject to fringe benefits Certain fringe benefit costs (32.13%) Increased costs to be paid during fiscal years 2018 to 2021 Vacation, sick leave and holidays (21% of total increased cost subject Annual Effect on Payroll Cost Base Pay $ 2,289,276 $ 2,289,276 45,786 45,786 7,511 14,340 $ 2,342,573 $ 2,349,402 $ 2,349,402 $ 2,349,402 52,862 52,862 4,852 10,188 $ 2,407,116 $ 2,412,452 $ 2,412,452 $ 2,412,452 48,250 48,250 767 1,416 36,000 - $ 2,497,469 $ 2,462,118 $ 2,462,118 $ 2,462,118 49,243 49,243 2,526 4,524 36,000 - 7,000 - $ 2,556,887 2,515,885 (2,289,276) $ 226,609 FY18 FY19 FY20 FY21 Total (2017-18)(2018-19)(2019-20)(2020-21 ) FY18-FY21 $ 2,342,573 $ 2,407,116 $ 2,497,469 $ 2,556,887 2,289,276 2,349,402 2,412,452 2,462,118 53,297 57,714 85,017 94,769 $ 290,797 - 60,126 123,176 172,842 356,144 53,297 117,840 208,193 267,611 646,941 9,000 9,000 9,000 9,000 36,000 62,297 126,840 217,193 276,611 682,941 20,016 40,754 69,784 88,875 219,429 82,313 167,594 286,977 365,486 902,370 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) Base pay at 6/30/17 FY2018: Across-the-board increase of 2.0% on July 1, 2017 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 Base pay at 6/30/18 Base pay at 6/30/18 FY2019: Across-the-board increase of 2.25% on July 1, 2018 Step movements, 7/1/18 - 6/30/19 Total payroll cost in FY 2018-19 Base pay at 6/30/19 Base pay at 6/30/19 FY2020: Across-the-board increase of 2.0% on July 1, 2019 Step movements, 7/1/19 - 6/30/20 One-time lump sum bonus (P07 to PO 15) Total payroll cost in FY 2019-20 Base pay at 6/30/20 Base pay at 6/30/20 FY2021: Across-the-board increase of 2.0% on July 1, 2020 Step movements, 7/1/20 - 6/30/21 One-time lump sum bonus (P07 to PO 15) One-time lump sum bonus (28 yrs & L5) Total payroll cost in FY 2020-21 Base pay at 6/30/21 Less base pay at 6/30/17 Increase to base pay over term of contract 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 increase in regular pay Non -wage cost items: Increase firearm maintenance allowance from $500 to $1,000 per fiscal year, 7/01/17 Total increased cost subject to fringe benefits Certain fringe benefit costs (28.93%) Increased costs to be paid during fiscal years 2018 to 2021 Vacation, sick leave and holidays (21 % of total increased cost subject Annual Effect on Payroll Cost Base Pay $ 164,220 $ 164,220 3,285 3,285 $ 167,505 $ 167,505 $ 167,505 $ 167,505 3,769 3,769 2,040 4,080 $ 173,314 2019-20 $ 175,354 $ 175,354 $ 175,354 3,508 3,508 1,950 $ 180,812 $ 178,862 $ 178,862 $ 178,862 3,578 3,578 1,950 - $ 184,390 182,440 (164,220) $ 18,220 FY18 FY19 FY20 FY21 Total (2017-18)(2018-19) 2019-20 2020-21 FY18-FY21 $ 167,505 $ 173,314 $ 180,812 $ 184,390 164,220 167,505 175,354 178,862 3,285 5,809 5,458 5,528 $ 20,080 - 3,285 11,134 14,642 29,061 3,285 9,094 16,592 20,170 49,141 1,000 1,000 1,000 1,000 4,000 4,285 10,094 17,592 21,170 53,141 1,240 2,920 5,089 6,124 15,373 5,525 13,014 22,681 27,294 68,514 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.