Privatization ruling
could bring
many changes
The state Supreme Court orders
Star-Bulletin staff
cancellation of landfill contractResidents of the west Hawaii community of Waikoloa could see fire insurance rates rise. Doors may be padlocked to restrooms at some Maui County parks.
And a $2.1 million Kona sewer project would be delayed.
Those are among the effects of a Supreme Court ruling yesterday that orders Hawaii County to cancel its contract with the operator of its West Hawaii landfill.
On the Big Island, Maui and Kauai, county officials were meeting today to decide what contracts they will cancel as a result of the ruling, which affirms the court's position that such contracts cannot displace public employee jobs.
Honolulu Mayor Jeremy Harris, who won't be canceling any contracts, reiterated his position that "the Supreme Court's original decision was faulty and very bad against privatization."
Harris maintains that the decision affects only the neighbor island counties and not Honolulu. The mayor said that's because the city's civil service system is governed by the City Charter while the other counties are under the purview of Hawaii Revised Statutes.
Gov. Ben Cayetano said neighbor island mayors - particularly Linda Crockett Lingle of Maui and Maryanne Kusaka of Kauai - have been overreacting. Cayetano sees overreaction
For the neighbor island mayors to continue to insist they must cancel all contracts with private businesses and agencies is irresponsible and would create chaos, Cayetano said yesterday.
"This sending of notices to automatically void the contacts will cause a severe disruption of services, which is totally unnecessary," Cayetano said.
Cayetano and House Speaker Joe Souki (D, Wailuku) said in separate interviews that there is no need for a special session to address the issue because no crisis exists.
Souki said a special session shouldn't be called unless the House and the Senate agree beforehand how to address the matter.
Cayetano said next year, the Legislature needs to develop clear guidelines for the state and counties for government contracts to privatize public services.
Cayetano added that the high court's ruling should be read very narrowly. "It is not pervasive from our point of view," he said.
"There are certain areas that may be exempted."
Cayetano also stressed: "If I were a mayor, I would watch what the chief justice did because (the Judiciary) has 800 (privatization) contracts. If the chief justice of the Supreme Court doesn't follow his own ruling and issues notices that all of those 800 contracts are invalid, then that might be a cue to (the mayors) to conduct themselves accordingly."
Cayetano also discounted the fears of the neighbor island mayors that they would be personally liable if they continue with any privatization contract that might conflict with the high court's ruling.
United Public Workers State Director Gary Rodrigues, whose union brought the Big Island lawsuit, said it plans to review every county contract to see which ones are exempt under present law from the Supreme Court ruling.
He plans to report to the 1998 Legislature on the findings, and may go to court to invalidate other contracts which are not exempt, he said.
Big Island Fire Chief Nelson Tsuji said the ruling may force the Fire Department to stop using volunteers at many fire stations, triggering higher insurance rates in areas with inadequate fire protection.
The county relies on 250 volunteer firefighters besides 280 paid firefighters, he said.
"You'll have a much longer arrival time (at fires)," he said. About175 regular firefighters wouldbe hired to replace volunteers at a cost of $9 million in salaries, with no benefits calculated.
Of 424 contracts with Hawaii County valued at $20.5 million, about 100 would have to be terminated, said Big Island Corporation Counsel Richard Wurdemann. "Others are in a gray area and we'd have to debate them." Many contracts in jeopardy
Among contracts to be terminated are road resurfacing, security guards at police holding cells, tree trimming, janitorial and courier services, and printing, he said.
The chief gray area is big construction projects.
Some say those traditionally have been contracted, while others say the county has design and construction staff and could be doing the work.
Humane Society enforcement of animals laws would probably have to be ended, Wurdemann said.
A few transitions would be relatively easy.
The private Hawaii Island Economic Opportunity Council now provides the county's Meals on Wheels program with food for 175 elderly in Hilo and 75 in Kona.
The county is ready to switch to getting those meals from the Department of Education, which would be permissible because that department's workers are civil service employees, said program head Joan Kawakone.
On Maui, county Managing Director Richard Haake yesterday said the administration plans to void 80 to 100 private parks maintenance contracts to individuals totaling an estimated $1.5 million. Park restrooms threatened
Haake said eliminating these contracts will affect parks in outlying locations such as Kihei and Lahaina and perhaps Hana.
County officials say they may have to padlock doors to restrooms at some parks.
Haake said as an alternative, the county may use portable bathrooms at certain parks.
Haake said the county is looking at ways to continue contracts with the Maui Humane Society, Maui Economic Opportunity and Ka Lima O Maui, which hires the handicapped to maintain park facilities.
Sylvia Silva, who earns $528 a month from contracts to maintain county restrooms, said voiding of the contracts will be hard on her family, including two children.
"It would be nice if we would have some kind of notice to give us some time to fill it in with something else," Silva said.
Star-Bulletin reporters Rod Thompson, Gary Kubota, Mike Yuen
and Gordon Y.K. Pang contributed to this report.Yamashiro tries to keep
By Rod Thompson
dump in private hands
Star-BulletinHILO -- Mayor Stephen Yamashiro is continuing to look for ways to keep the county from running its West Hawaii dump, despite a new state Supreme Court ruling that Hawaii County must take back the operation from a private company "as rapidly as possible." The revised high court ruling issued yesterday gives no guidance on whether the decision applies to millions of dollars in other county and state contracts.
United Public Workers union attorney Herbert Takahashi said Hawaii County workers could begin work at the landfill alongside workers of Waste Management Inc. as soon as today.
The Supreme Court ruling added some breathing space to the court's Feb. 28 ruling, which had been appealed by Hawaii County, but was basically turned down by the court yesterday except for an implied time extension.
The high court's ruling doesn't become official until Takahashi submits proposed wording and the court members sign it. Then the matter returns to the Circuit Judge Riki May Amano, who would hold further hearings on implementing it.
Yamashiro yesterday appeared to be waging a last-ditch effort to keep the landfill out of county hands.After a meeting in Honolulu yesterday with Gov. Benjamin Cayetano, Yamashiro said maybe private contractors can keep services going with no county involvement at all.
"We're going to look at all means available," he said.
The mayor had floated the idea of turning over the dump to a private company days earlier, but it seemed to directly contradict yesterday's high court ruling.
In place of previous language which said private operation of the landfill was barred, the Supreme Court substituted language adding that the landfill is to be transferred to the county.
Waste Management now operates the facility with seven workers. The county says it would need as many as 24 workers, a costly burden.
"That number just floored me," responded UPW state director Gary Rodrigues. "We don't know where they're getting that from. There's nothing in my contract that requires that."
Rodrigues says the county could operate the facility with seven of his union members.
"My ultimate goal is to see that accountability is established," he said.
The public can find out how much money is paid to county employees. But there is no accounting within a private contract for how much money goes for wages, materials, profits, and other financial aspects, he said.
Star-Bulletin reporter Harold Morse contributed to this report.
