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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: May 20, 2019 Re: Comm. No. 277/Res.No. 169-19 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 1:45 p.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Resolution No. 169-19, reports as follows: <br /> Resolution No. 169-19, transmitted by Mayor Harry Kim, via Communication No. 277 dated <br /> April 18, 2019, commits to funding the cost items awarded by Arbitration to Hawai`i Fire Fighters <br /> Association(HFFA) Unit 11 and employees excluded from Bargaining Unit 11 for the contract period - <br /> July 1, 2019 through June 30, 2021. <br /> This resolution authorizes the appropriation in future fiscal years which would include across-the-board <br /> increases, step movements, within range progressions, and one-time lump sum bonuses. The estimated <br /> cost over the two years of the contract would be$6,970,788. <br /> Council Member Valerie T. Poindexter asked for clarification on the one time lump sum bonuses and <br /> what they are actually for. She commented that for Bargaining Unit 11, it specifically says the bonuses <br /> are for SR 17-27,but for Bargaining Unit 34, it does not specify. She agrees with the two percent <br /> increase every year because that is like a cost-of-living increase but questioned the catch-up step <br /> movements. Ms. Poindexter stated there is no question that the Fire Department works hard,but the fact <br /> is the County is struggling by having to raise taxes and there is a lot being put onto the taxpayers. <br /> Another issue that came up is that of spiking, where workers are advanced prior to retiring, so they will <br /> be placed in a higher bracket. Finance Director Deanna Sako responded by saying that the catch-up step <br /> movement is to make sure that everyone is on their appropriate step, given the current salary schedule <br /> and the current steps. She stated that bonuses are based on the specific step the worker is on, and a <br /> specific dollar amount is assigned for each level, whereas with spiking, significant amounts go towards <br /> the Fire Department, relating to overtime and non-base pay amounts, This is a concern which is being <br /> monitored by the Finance Department. <br /> Council Member Matt Kaneali`i-Kleinfelder asked who does the bargaining on behalf of the County. <br /> Human Resources Director William Brilhante responded that in this case, the State and bargaining units <br /> were in discussion trying to come to a settlement agreement. During this time, the Fire Association <br /> determined there was an impasse, so they filed a Notice of Impasse, then this matter went to binding <br /> arbitration. All the jurisdictions met on O`ahu. There was a three member panel, a neutral arbitrator, <br /> Mr. Brilhante, representative for employers, and a representative of the union. The pay scale is based on <br /> all of the jurisdictions in the State. <br /> FC Report No. 38 <br />