Boards of Water Supply

Provides certain civil service related powers to boards of water
supply in counties with a population of more than 500,000.  (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  The legislature finds that providing clean and
 2 potable water to the people of this State is one of the most
 3 important services that government provides.  It is imperative
 4 that it be provided without interruption, efficiently, and
 5 effectively.
 6      The legislature finds that the cost of providing water to
 7 the citizens of this State has increased over the years and that
 8 attempts must be made to reduce this expense.  In other states,
 9 more and more government water suppliers are being privatized
10 and, the larger waterworks in Hawaii are a prime target.  The
11 legislature finds, however, that privatization is not the answer.
12 Privatization would mean private operation of a waterworks, and
13 operation for a profit which would be borne by the public.
14 Privatization may mean that only minimum water quality standards
15 will be met due to the need to maintain profits, instead of the
16 current policy of the various waterworks in Hawaii which is to
17 exceed minimum water quality standards wherever possible.
18      In order to forestall attempts to privatize, it is prudent
19 to become more efficient and flexible in the manner in which

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 1 functions are performed.  In order to be more efficient, for
 2 example, the board of water supply of the city and county of
 3 Honolulu has formed partnerships between the board, its
 4 employees, and employee unions called "quality utility employees
 5 succeeding together" (QUEST).  While this initiative has been
 6 quite effective, for example, it appears that more flexibility
 7 than can be found under the current administration of personnel
 8 laws and rules is needed.
 9      The legislature finds that in order to become more flexible
10 and efficient, and to avoid attempts from outside agencies to
11 privatize, a pilot program should be established for boards of
12 water supply in counties with a population of more than 500,000.
13 The pilot program should allow flexibility under chapters 76 and
14 77, Hawaii Revised Statutes, and existing civil service rules and
15 procedures, governing the classification and reclassification of
16 positions.  They should be able to reclassify their employees to
17 increase their efficiency and provide team bonus payments in
18 return for team efficiencies.
19      The legislature finds that the privatization of government
20 functions and the delivery of clean and potable water to the
21 citizens of this State are a matter of statewide concern.  In
22 order to address the privatization concern, the legislature
23 enacted Act 230, Session Laws of Hawaii 1998, to provide a

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 1 studied approach to this issue.  The legislature finds that
 2 establishing pilot programs, such as found in this Act, to allow
 3 flexibility from civil service laws will assist the state and
 4 county governments in meeting the issue of privatization by
 5 providing valuable information.  In addition, this program will
 6 assist in safeguarding the delivery of clean and potable water to
 7 our citizens.  If this program is successful, then it may be
 8 applied to all watersystems in the State and to other agencies in
 9 government.  The primary purpose of this Act is the testing of
10 proposed changes in the civil service system that, if proven
11 successful through the pilot program can be applied to other
12 agencies and, ultimately, throughout the system.  The choice of
13 boards of water supply in counties with a population of more than
14 500,000 is made because they are semi-autonomous agencies and
15 their size is sufficient to provide substantial data to determine
16 the success or failure of the program.
17      The purpose of this Act is to allow boards of water supply
18 in counties with a population of more than 500,000 to enter into
19 a pilot program to restructure and reorganize for the purposes of
20 efficiency and effectiveness and to provide a laboratory to test
21 proposed changes to the statewide civil service system. 
22      SECTION 2.  (a)  Any board of water supply in a county with
23 a population of more than 500,000 may establish a pilot program

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 1 to carry out the purposes of this Act.  In establishing the pilot
 2 program, the board of water supply may:
 3      (1)  Exercise all of the powers, functions, and duties
 4           relating to governing the classification and
 5           reclassification of positions found in chapters 76 and
 6           77, Hawaii Revised Statutes.  In exercising these
 7           powers, functions, and duties, the board of water
 8           supply shall not be subject to sections 76-3 and 77-4,
 9           Hawaii Revised Statutes;
10      (2)  Create flexible job descriptions in order to meet the
11           requirements of technology and efficiency.  In carrying
12           out this function:
13           (A)  The number of job classifications in use on the
14                effective date of this Act may be reduced and may
15                be rewritten partially or totally;
16           (B)  The minimum qualifications for jobs may be
17                changed;
18           (C)  Jobs requiring more than one skill may be combined
19                and reclassified; and
20           (D)  The appropriate salary ranges, salary schedules,
21                and compensation plans shall be established
22                through negotiations with the exclusive bargaining
23                representative; 

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 1           and
 2      (3)  Provide bonus monetary payments, in which the amounts
 3           of the bonus monetary payments shall be negotiated with
 4           the exclusive bargaining representative, to be shared
 5           by a team of employees for efficiencies or benchmarks
 6           developed by the board of water supply and the team
 7           where the attainment of that efficiency or benchmark
 8           reduces the cost to the board of water supply of the
 9           activity performed by the team.
10      (b)  In establishing the pilot program under subsection (a),
11 the board of water supply shall consult with the appropriate
12 exclusive representative of a bargaining unit on changes in job
13 descriptions and classifications under subsection (a)(2), and
14 shall negotiate pricing as appropriate.  No activity within the
15 pilot program shall waive or abridge any collective bargaining
16 agreements, equal employment opportunity rights or those statutes
17 or rules prohibiting discrimination based on race, sex, age,
18 religion, color, ancestry, politics, physical or mental
19 disability, marital status, or sexual orientation.
20      (c)  All powers, functions, and duties held by a county with
21 a population of more than 500,000 that apply to boards of water
22 supply in that county that are in conflict with this Act are
23 transferred to that county; provided that the authority granted

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 1 to a board of water supply by this Act shall supercede any county
 2 civil service provisions that conflict with such authority, it
 3 being the purpose of this grant of authority to address and
 4 resolve a matter of statewide concern and interest.
 5      (d)  The boards of water supply may enter into memorandum of
 6 agreements with the exclusive bargaining representatives on
 7 matters subject to negotiation that are unique to the board.  Any
 8 memorandum of agreements entered into with the exclusive
 9 bargaining representatives shall not require the approval of any
10 other employer jurisdiction, nor shall any other employer
11 jurisdiction be bound to any memorandum of agreements entered
12 pursuant to this Act.
13      SECTION 3.  Personnel classifications, salary ranges, salary
14 schedules, and compensation plans shall continue in effect until
15 superseded under the pilot program under this Act.
16      SECTION 4.  This Act shall take effect on July 1, 2000, and
17 shall be repealed on June 30, 2005.