;4 CITY COUNCILCITYAND COUNTY OF HONOLULUHONOLULU, HAWAIINo22—1 3 4RESOLUTIONAPPROVING COLLECTIVE BARGAINING COST ITEMS FOR THE’STATE OFHAWAII ORGANIZATION OF POLICE OFFICERS BARGAINING UNIT 12 INCLUDED,EXCLUDED, AND EXCLUDED MANAGERIAL EMPLOYEES OF THE CITY AND
COUNTY OF HONOLULU.
WHEREAS, Chapter 89, Hawaii Revised Statutes (HRS), establishes a statewide
collective bargaining process for public employees; andWHEREAS, pursuant to Chapter 89, HRS, the employers and representatives ofBargaining Unit 12 (State of Hawaii Organization of Police Officers) began negotiations
on January 29, 2021, concerning a collective bargaining agreement for the employees inthe bargaining unit; andWHEREAS, negotiation and mediation efforts were unsuccessful and an
arbitrator appointed by the parties rendered an award on July 26, 2022; andWHEREAS, for civil service employees excluded from Bargaining Unit 12,
pursuant to Section 89C-2(4), HRS, “For excluded employees under the sameclassification systems as employees within collective bargaining units, adjustments shallbe not less than those provided under collective bargaining agreements for employees
hired on a comparable basis;” andWHEREAS, for civil service managers excluded from Bargaining Unit 12,
pursuant to Section 89C-3(b)(2), HRS, “Adjustments for excluded civil service
employees result in compensation and benefit packages that are at least equal to thecompensation and benefit packages provided under collective bargaining agreements
for counterparts and subordinates within the employer’s jurisdiction;” andWHEREAS, the new collective bargaining agreement makes adjustments towages and other non-wage cost items and is effective from July 1, 2021, to June 30,2025; andWHEREAS, pursuant to Section 89-11(g), HRS, the wage and non-wage cost
items are subject to appropriations by the respective legislative bodies; now, therefore,BE IT RESOLVED by the Council of the City and County of Honolulu that t
approve the collective bargaining cost items for the Bargaining Unit 12 included, civil
service excluded, and civil service excluded managerial employees of the City andCounty of Honolulu, a summary of which is attached as Exhibit A; andSHOPO12JULY2O221BUD

CI TY COUNCILCITY AND COUNTY OF HONOLULUHONOLULU, HAWAIINo.

22—184RESOLUTION
BE IT FINALLY RESOLVED that copies of this Resolution be transmitted to theMayor and Director of Human Resources of the City.
INTRODUC

BY:(br)r

DATE OF INTRODUCTION:AUG

82022

HonolUlu, Hawaii

SHOPO12JULY 2022

Ci5iihöiFmember2Exhibit A: Report to City Council (BU 12)

REPORT TO CITY COUNCILCOLLECTIVE BARGAINING AGREEMENT FOR BARGAINING UNIT 12 (SHOPO)
INCLUDED, EXCLUDED, AND EXCLUDED MANAGERIALBackgroundNegotiations with the State of Hawaii Organization of Police Officers (SHOPO)
began on January 29, 2021. The collective bargaining agreement for BU 12 expired onJune 30, 2021. On June 30, 2021, SHOPO and Employers (State of Hawaii, City andCounty of Honolulu, County of Kauai, County of Maui, and County of Hawaii) enteredinto a Memorandum of Agreement to extend the terms of the BU 12 collectivebargaining agreement from July 1, 2021 and until a new agreement was approved andimplemented. The Hawaii Labor Relations Board declared impasse on February 1,2021, and on October 27, 2021, the parties selected Arbitrator Russell Higa, Esq. as theneutral arbitrator and chairperson of the arbitration panel. A hearing was conducted inHonolulu, Hawaii, on May 23, 2022. A final and binding decision on the Bargaining Unit
12 interest arbitration was rendered on July 26, 2022. In addition, the parties reached
an agreement regarding the Artide on Hawaii Employer-Union Health Benefits TrustFund which was fully executed on July 26, 2022.
Positions Covered in the City and County of Honolulu (as of July 15, 2022)

I 12— Police Officers

1,825

I

33

I

49

1,907JDuration

The BU 12 Collective Bargaining Agreement is effecttve from July 1 2021, toJune 30, 2025.
Cost Items
A. Salaries
1.

Effective retroactively to July 1,2021:
a. No increase in the salary schedule.
b. Continuation of step movement plan.

2.

Effective July 1, 2022:
a. Five percent (5%) across-the-board increase to the salary schedule.
b. Continuation of step movement plan.
1

Exhibit A: Report to City Council (BU 12)
3.

Effective July 1, 2023:
a. Five percent (5%) across-the-board increase to the salary schedule.
b. Continuation of step movement plan.

4.

Effective July, 1. 2024:
a. Five percent (5%) across-the-board increase to the salary schedule.
b. Continuation of step movement plan.
c. One-time lump sum bonus for employees on salary ranges from P07 toP015:••••••••••

Step A
Step B
Step C
Step D
StepL-1
Step L-2
Step L-3
Step [-4Step L-5
Step L-6$1,800.00$1,825.00$1,850.00$1,875.00$1,900.00$1,925.00$1,950.00$1,975.00$2,000.00$2,00000

The following chart summarizes the City’s estimated salary costs for the four-year
contract period for Bargaining Unit 12:
SALARY COSTS FOR BARGAINING UNIT i2
FY 2022FY 2O23
FY 2024
FY 2025**
Included
Employees
Excluded/EM
Employees
TOTAL
*
**

TOTAL

$1,914,372$20,213,417$40,521,786$66,710,237 $129,359,812$98,764$1,060,237$2,362,061$3,826,763$7,347,825$2,013,136$21273654$42,883,847$70,537,000$136,707,637

Includes wage-related fringe benefits.
Includes rollover from previous year.

B. Employer-Union Health Benefits Trust Fund (EUTF)
1.

Effective August 1, 2022: The Employer will pay specific dollar amounts for
the PPO and HMO plans. These amounts will generally equate to 60
percent of the final premium rates of the HMSA 80-20 medical plan (withdrug and chiropractic care) established by the Trust Fund Board subject to a2

Exhibit A: Report to City Council (BU 12)
cap of 84.3 percent of the total premium for each plan. The Employer willpay specific monthly contributions which are generally equivalent to 60
percent of the premium cost and 60 percent of the administrative fees for allother plans except the life insurance plan (for which the Employer shall pay
100 percent of the premiums and fees).
There was no increase to EUTF costs for FY22 for included, excluded andexcluded managerial employees in BU 12. The City’s estimated increase to EUTF
costs for FY23 for included, excluded and excluded managerial employees in BU 12 is$745,191.

3

CITY COUNCILElY AND COUNTY OF HONOLULUHONOLULU, HAWAIICERTIFICATERESOLUTION 22-184
Introduced:Title:

08/08/22

By:

OMMY WATERS-BY REQUESTCommittee:

BUDGET (BUD)

APPROVING COLLECTIVE BARGAINING COST ITEMS FOR THE STATE OF HAWAII ORGANIZATION OF POLICE
OFFICERS BARGAINING UNIT 12 INCLUDED, EXCLUDED, AND EXCLUDED MANAGERIAL EMPLOYEES OF THE
CITY AND COUNTY OF HONOLULU.

Voting Legend: * = Aye w/Reservations
08/08/22

INTRO

Introduced.

C8/2/22

BUD

Reported out for adoption.
CR-21 2S AYES: CORDERO, ELEFANTE, KIA’AINA, SAY, TUPOLA
1 EXCUSED: TSUNEYOSHI

09/07/22

CCL

Committee report and Resolution were adopted.
9 AYES: CORDERO, ELEFANTE, FUKUNAGA, KIA’AINA, SAY, TSUNEYOSHI, TULBA,TUPOLA, WATERS

I hereby certify that the above is a true record of action by the Council of the City and County of Honolulu on thisRESOLUTION.

CITY CLERKTOMMY WATERS, CHAIR AND PRESIDING OFFICER