'22AUG05 AM 7:54 CITY CLERKOFFICE OF THE MAYOR
CITY AND COUNTY OF HONOLULU
530 SOUTH KING STREET, ROOM 300 HONOLULU, HAWAII 96813
PHONE: (808) 768-4141
FAX: (808) 768-4242 INTERNET: www.honolulu.pov

RICK BLANGIARDI

MICHAEL D. FORMBYMANAGING DIRECTOR

MAYOR

KRISHNA F. JAYARAM
DEPUTY MANAGING DIRECTOR

August 1, 2022

The Honorable Tommy Waters
Chair and Presiding Officerand Members
Honolulu City Council
530 South King Street, Room 202
Honolulu, Hawaii 96813
Dear Chair Waters and Councilmembers:
SUBJECT: Cost Items State of Hawaii Organization of Police Officers,Bargaining Unit 12(Included, Excluded, & Excluded Managerial)
July 1, 2021 June 30, 2025
—Pursuant to Section 89-11(g), Hawaii Revised Statutes (HRS), I am submitting
for your action the cost items as contained in the final and binding arbitration award for
Bargaining Unit 12 issued on July 26, 2022. The Collective Bargaining Agreement iseffective from July 1, 2021, to June 30, 2025.
According to Chapter 89, HRS, cost items require City Council action.
Section 89-11(g), HRS, provides that,‘All items requiring any moneys for implementation shall be subject toappropriations by the appropriate legislative bodies and the employer shallsubmit all such items within ten days after the date on which the agreement isentered into as provided herein, to the appropriate legislative bodies.”
Section 89C, HRS, also requires Council action for cost items for excluded
employees. Section 89C-2(4), HRS, provides that,“For excluded employees under the same classification systems as employees
within collective bargaining units, adjustments shall be not less than those
provided under collective bargaining agreements for employees hired on acomparable basis.”

MAYOR'S MESSAGE 135

The Honorable Tommy Waters
Chair and Presiding Officerand Members
August 1,2022
Page 2Furthermore, in accordance with HRS Section 89C-3(b)(2), civil service
managers excluded from Bargaining Unit 12 shall be provided adjustments that result incompensation and benefit packages that are at least equal to the compensation andbenefit packages provided under collective bargaining agreements for counterparts andsubordinates within the employer’s jurisdiction.
Attached is a proposed resolution for your favorable consideration and Exhibit A,
which is a summary of the cost items for Bargaining Unit 12 included, civil service
excluded, and civil service excluded managerial employees.
Should you have any questions, please contact Nola N. Miyasaki, Director of theDepartment of Human Resources, the City’s representative for collective bargaining, at768-8500.
Sincerely,

Rick Blangiardi
Mayor
Attachments: Exhibit A (Report to City Council)
Proposed Resolution
cc: Department of Budget and Fiscal Services(wI Attachments)
Department of Human Resources(wi Attachments)CITY COUNCILNoCITY AND COUNTY OF HONOLULUHONOLULU, HAWAIIRESOLUTIONAPPROVING 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 anarbitrator 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 it
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; andSHOPO1 2JULY2022

1MM-135(22)CITY COUNCILCITY AND COUNTY OF HONOLULUHONOLULU, HAWAIINo.

RESOLUTION
BE IT FINALLY RESOLVED that copies of this Resolution be transmitted to theMayor and Director of Human Resources of the City.
INTRODUCED BY:DATE OF INTRODUCTION:Cou nci Imembers

Honolulu, Hawaii

SHOPO12JULY 20222Exhibit A: Report to City Council (BU 12)

REPORT TO CITY COUNCILCOLLECTIVE BARGAINING AGREEMENT FOR BARGAINING UNIT 12 (SHOPO)
INCLUDED, EXCLUDED, AND EXCLUDED MANAGERIALBackground
Negotiations 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 Article 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)

Duration
The BU 12 Collective Bargaining Agreement is effective 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.
I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.

EffectiveJuly,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:•••••••
•
•
•

StepA
Step B
Step C
StepD
Step L-1
StepL-2
StepL-3
StepL-4
Step 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$2,000.00

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 12*
FY 2022
FY 2023~
FY 2024~
FY 2025**
Included
Employees
Excluded/EMEmployees
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$2,013,136$21,273,654$42,883,847$70,537,000 $136,707,637$7,347,825

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 will
pay 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