Guam gets $566M under ‘11 DoD budget .
Friday, 21 May 2010 06:14
by Mar-Vic Cagurangan
Marianas Variety News Staff
THE U.S. House Armed Services Committee has unanimously approved its version of the 2011 defense spending legislation that appropriates $566 million for 12 new military projects on Guam, Congresswoman Madeleine Z. Bordallo announced yesterday.
The bill also authorizes the Department of Defense to transfer operations and maintenance funding to Guam to bankroll local infrastructure projects to support the military expansion on island. If the appropriations measure is signed into law, the defense department would be authorized to transfer up to $500 million through fiscal year 2017.
“The bill will now move for full consideration on the floor of the House of Representatives next week,” according to a press release from Bordallo’s office.
The proposed allotment for Guam construction is a component of the $708 billion budget request for the Department of Defense’s ongoing contingency operations overseas outlined in the National Defense Authorization Act for Fiscal Year 2011, or H.R. 5136.
“The House Armed Services Committee renewed its commitment to ensuring that the military buildup on Guam is done right,” said Bordallo, who has sponsored several provisions that seek to address Guam’s infrastructure needs to support a population surge.
Another salient feature of the bill provides for the transfer control of Navy’s water, including Fena Reservoir, and wastewater system to the Guam Waterworks Authority.
“This authority will help to eliminate unnecessary redundancies and create economies of scales in our current water and wastewater system that could ultimately improve service across the island,” Bordallo said.
“More importantly, while GWA will have to ultimately pay a fair market value to convey the Navy’s system the total cost can be offset by the cost of unreimbursed Compact-Impact costs to Guam,” she added.
The water provision in the bill, Bordallo said, serves as the cue to start serious discussions over water issues and the possibility of an eventual transfer of Navy water assets to GWA.
Other highlights of the bill are as follows:
• Extends authority to provide travel and transportation allowances for inactive duty training outside of normal commuting distances for members of the Reserve Component. The authority directly supports the training and readiness requirements of the Guam National Guard and is critical for their recruiting of service members from locations outside of Guam;
• Requires the Secretary of Interior to prepare a report on civilian infrastructure needs for Guam. The report would detail the infrastructure improvements needed to directly and indirectly support and sustain the military build-up as well as outline potential funding sources for such improvements from other federal sources;
• Secured additional $635,000 in funding for the Navy Sea Cadet Corps to fully meet their funding requirements. The additional funding will help to lower the out-of-pocket costs for cadets across the United States including on Guam;
• Requires a report from the Secretary of Navy by December 31, 2010 on the methods that the Secretary will use to ensure common standards for workforce housing and medical care. The report is in response to concerns regarding the lack of a coherent and comprehensive framework from the federal government on their expectation of contractors regarding workforce housing and medical needs requirements. The report indicates Congressional preference to ensure appropriate oversight of these matters to avoid unnecessary negative impacts on the local community;
• The Comptroller General will review and assess the proposed design for the replacement Naval Hospital on Guam to ensure the size and scope of the new facility meets anticipated future mission requirements and increased retiree and veteran populations on Guam;
• Requires the Secretary of Defense to study the feasibility of establishing TRICARE Prime option for TRICARE beneficiaries in the territories including Guam. The report is due within 6 months of passage of the bill;
• Maintain $318 million for funding procurement of 8 C-27J “Joint Cargo Aircraft” as proposed in the President’s Budget; and
• Added $700 million for the National Guard and Reserve Equipment Account to improve readiness and preparedness for future missions. The increased funding for Guard and Reserve equipment begins to address nearly $42.5 billion in equipment shortages across all the Reserve Components.
box (if there is space)
Fiscal Year 2011 Military Construction Authorizations
Service Project Cost
Air Force Andersen AFB – Guam Strike Ops Group & Tanker Task Force $9,100,000
Air Force Andersen AFB – Guam Strike South Ramp Utilities, Phase 1 $12,200,000
Air Force Andersen AFB – PRTC – Combat Communications Operations Facility $9,200,000
Air Force Andersen AFB – PRTC – Red Horse HDQ/Engineering Facility $8,000,000
Air Force Andersen AFB – PRTC – Commando Warrior Open Bay Student Barracks $11,800,000
Army National Guard Combined Support Maintenance Ship Ph1 $19,000,000
Army National Guard Readiness Center (Assembly Hall/SRP) $778,000
Navy Marine Aviation - AAFB North Ramp Improvements Phase 1, Increment 2 $93,588,000
Navy Marine Aviation - AAFB North Ramp Utilities Phase 1, Increment 2 $79,350,000
Navy Apra Harbor Wharves Improvement Phase 1 $40,000,000
Navy Defense Access Road Improvements $66,730,000
Navy Finegayan Site Prep and Utilities $147,210,000
Defense Health Programs Hospital Replacement Increment 2 $70,000,000
Grand Total $566,956,000
Showing posts with label Fena. Show all posts
Showing posts with label Fena. Show all posts
Friday, May 21, 2010
Sunday, June 07, 2009
Navy Raises Water Rate
Navy raises water rate
Sunday, 07 June 2009
Marianas Variety News Staff
(Navy) – The Naval Facilities Engineering Command Marianas has notified the Consolidated Commission on Utilities that the Navy will charge $4.06 per 1,000 gallons of water supplied to the Guam Waterworks and Power Authorities beginning Oct. 1.
This rate is consistent with the Navy’s promise toward graduated rate adjustments designed to minimize financial impact to GWA and GPA, and to bring the previously reduced water rate in line with the rate charged to Navy and other Department of Defense customers, according to a press release from the Navy.
The fiscal year 2009 rate of $3.80 for GWA and GPA was less than the rate paid by Navy and other DoD customers.
According to the Navy, the adjustment is based on the current cost of operations and maintenance to continue to produce reliable and safe drinking water to the Naval Base and other customers in the southern villages of Agat, Santa Rita, Piti, Nimitz Hill, parts of Asan and Maina, and the Apra Harbor area.
“The Navy operates, maintains and repairs its water production and distribution system through the Navy Working Capital Fund (NWCF) and not direct appropriated funds,” said Capt. Paul Fuligni, NAVFAC Marianas commanding officer. “As such, our rates are developed to cover the operation and maintenance of our water system,” he added.
In a letter to CCU chairman Simon Sanchez, Fuligini said the Navy’s current projection is for a water rate of approximately $4.12 per 1,000 gallons. “However,” he added, “this rate is subject to further review and adjustment.”
Sunday, 07 June 2009
Marianas Variety News Staff
(Navy) – The Naval Facilities Engineering Command Marianas has notified the Consolidated Commission on Utilities that the Navy will charge $4.06 per 1,000 gallons of water supplied to the Guam Waterworks and Power Authorities beginning Oct. 1.
This rate is consistent with the Navy’s promise toward graduated rate adjustments designed to minimize financial impact to GWA and GPA, and to bring the previously reduced water rate in line with the rate charged to Navy and other Department of Defense customers, according to a press release from the Navy.
The fiscal year 2009 rate of $3.80 for GWA and GPA was less than the rate paid by Navy and other DoD customers.
According to the Navy, the adjustment is based on the current cost of operations and maintenance to continue to produce reliable and safe drinking water to the Naval Base and other customers in the southern villages of Agat, Santa Rita, Piti, Nimitz Hill, parts of Asan and Maina, and the Apra Harbor area.
“The Navy operates, maintains and repairs its water production and distribution system through the Navy Working Capital Fund (NWCF) and not direct appropriated funds,” said Capt. Paul Fuligni, NAVFAC Marianas commanding officer. “As such, our rates are developed to cover the operation and maintenance of our water system,” he added.
In a letter to CCU chairman Simon Sanchez, Fuligini said the Navy’s current projection is for a water rate of approximately $4.12 per 1,000 gallons. “However,” he added, “this rate is subject to further review and adjustment.”
Thursday, August 14, 2008
CCU Opposes Navy's Water Increase from Fena
CCU opposes Navy's increase in water rates from Fena
by Sonya Artero, KUAM News
Thursday, August 14, 2008
The Guam Waterworks Authority could be heading to court as the Navy announced its intentions to increase the price it charges the water agency for water from Fena Lake. Starting October 1 the Navy is expected to increase its rates to $3.80 per 1,000 gallons which would result in an eventual increase for ratepayers.
The Consolidated Commission on Utilities is reviewing two options, to negotiate for a lower rate with the Navy or litigate to return Fena to the government of Guam. In September of last year, the Navy warned residents that it would raise the rate of water it supplied to GWA. Last night that warning turned into an official announcement as effective October 1, the Navy intends to raise its rate by an additional $0.55 thereby charging a total of $3.80 per 1,000 gallons of water.
The problem the CCU has with the increase is two fold. First, GWA currently produces water at a lower rate and two that charge is based on servicing several thousand customers. So since GWA is the Navy's only customer and its source of water only comes from Fena Lake, CCU Chairperson Simon Sanchez believes the rate should be lower.
"We're one account, they send us a bill once a month for all the water we take, so they don't have administrative expenses like GWA and we take the bulk of the water from Fena Lake so there is no distribution costs for the water we take at Fena Lake," he said. Sanchez added he believes the Navy is increasing its rates too much too fast.
"A year ago they had a 50% increase, this year they're proposing a 17% increase and in the 5–year since the CCU has taken office, there has only been 38% increase in water rates," Sanchez noted.
The CCU is now hoping the Navy will reconsider. If not it intends to take the legal route.
"Last night the commission agreed to push these 2 endeavors. To have the Navy justify and re–consider its recent adjustment and to explore the recent options with regard to re–visiting the Fena ownership issue."
Ideally the CCU would like to convert the Navy to a GWA customer and have one unified water system for the entire island instead of paying more for water. "Begin to convert the Navy as a customer to a customer of GWA, turn over all the water assets, just like they did at the airport and they did at GPA, to the government of guam, to GWA, and we'll sell them water for less than they've been charging themselves," Sanchez said.
Read the Navy's letter to Simon Sanchez
by Sonya Artero, KUAM News
Thursday, August 14, 2008
The Guam Waterworks Authority could be heading to court as the Navy announced its intentions to increase the price it charges the water agency for water from Fena Lake. Starting October 1 the Navy is expected to increase its rates to $3.80 per 1,000 gallons which would result in an eventual increase for ratepayers.
The Consolidated Commission on Utilities is reviewing two options, to negotiate for a lower rate with the Navy or litigate to return Fena to the government of Guam. In September of last year, the Navy warned residents that it would raise the rate of water it supplied to GWA. Last night that warning turned into an official announcement as effective October 1, the Navy intends to raise its rate by an additional $0.55 thereby charging a total of $3.80 per 1,000 gallons of water.
The problem the CCU has with the increase is two fold. First, GWA currently produces water at a lower rate and two that charge is based on servicing several thousand customers. So since GWA is the Navy's only customer and its source of water only comes from Fena Lake, CCU Chairperson Simon Sanchez believes the rate should be lower.
"We're one account, they send us a bill once a month for all the water we take, so they don't have administrative expenses like GWA and we take the bulk of the water from Fena Lake so there is no distribution costs for the water we take at Fena Lake," he said. Sanchez added he believes the Navy is increasing its rates too much too fast.
"A year ago they had a 50% increase, this year they're proposing a 17% increase and in the 5–year since the CCU has taken office, there has only been 38% increase in water rates," Sanchez noted.
The CCU is now hoping the Navy will reconsider. If not it intends to take the legal route.
"Last night the commission agreed to push these 2 endeavors. To have the Navy justify and re–consider its recent adjustment and to explore the recent options with regard to re–visiting the Fena ownership issue."
Ideally the CCU would like to convert the Navy to a GWA customer and have one unified water system for the entire island instead of paying more for water. "Begin to convert the Navy as a customer to a customer of GWA, turn over all the water assets, just like they did at the airport and they did at GPA, to the government of guam, to GWA, and we'll sell them water for less than they've been charging themselves," Sanchez said.
Read the Navy's letter to Simon Sanchez
Thursday, November 01, 2007
Guam to Ask for the Return of Fena
Guam to ask Congress for return of Fena
Thursday, November 1, 2007
By Gerardo R. Partido
Variety News Staff
THE Consolidated Commission on Utilities will formally ask the U.S. Congress for the return of the Fena reservoir to Guam to settle once and for all the water issues that have been one of the thorns in the Navy’s relationship with the civilian population.
According to CCU chairman Simon Sanchez, a letter has already been sent to Congresswoman Madeleine Z. Bordallo, asking her to formally introduce a bill in Congress that would return Fena to Guam.
“We need to do this on the federal level because the Fena issue is a federal issue,” Sanchez said.
He added that there is already a precedent for this when Guam asked Congress for control of the Guam Power Authority.
In its letter, the CCU is asking Bordallo to draft and submit legislation that would enable the Guam Waterworks Authority to take over the running of the Navy’s Fena water treatment plant, which has been selling Fena water to GWA’s southern customers.
The Navy had planned to increase the rate for the Fena water that it sells to GWA, raising the rate from $2.09 per one thousand gallons (kgal) to $4.05/kgal, effective Oct. 1, 2007.
But because of strong protests lodged by both CCU and GWA, the Navy has agreed to postpone the increase until “higher authorities” can study the matter further.
According to Sanchez, the Navy is doing an internal analysis of its own after CCU pointed out that it can run the Fena water reservoir cheaper and more effectively than the Navy.
During the CCU’s last meeting Tuesday night, it was disclosed that GWA can run the Fena system for just $7 million a year, which is half the $14 million cost that the Navy incurs in running Fena.
Although the Navy has agreed to temporarily postpone its water rate increase and conduct a study of its Fena rate structure, the CCU wants to go one step further and has asked the Navy to submit to an independent study to be conducted by the Public Utilities Commission.
“We are asking the Navy to submit to a non-binding review by the PUC to have an independent evaluation of the Fena issue. It’s more fair that way because if the Navy conducts the study, we’ll be solely dependent on what the Navy states as fact. All the information will be coming from the Navy,” Sanchez said.
In addition, the CCU has also fired off a letter to the Attorney General’s Office, asking AG Alicia Limtiaco to revisit the Fena agreement signed by then AG Douglas Moylan.
In 2003, Sanchez said Moylan agreed to a provision that GovGuam can no longer sue the federal government over the Fena issue in return for lower rates charged to local residents using Fena water.
Before that, Sanchez said there were three other suits, all of which failed, that tried to reclaim Fena back to the government of Guam.
The Navy originally took over Fena as part of the provisions of the Organic Act and other agreements signed after World War II that gave large tracks of land, including Fena, to the military.
Sanchez said it is now time to revisit this and he has asked Limtiaco to determine whether GovGuam can continue to be bound by the agreement signed by Moylan in 2003.
Thursday, November 1, 2007
By Gerardo R. Partido
Variety News Staff
THE Consolidated Commission on Utilities will formally ask the U.S. Congress for the return of the Fena reservoir to Guam to settle once and for all the water issues that have been one of the thorns in the Navy’s relationship with the civilian population.
According to CCU chairman Simon Sanchez, a letter has already been sent to Congresswoman Madeleine Z. Bordallo, asking her to formally introduce a bill in Congress that would return Fena to Guam.
“We need to do this on the federal level because the Fena issue is a federal issue,” Sanchez said.
He added that there is already a precedent for this when Guam asked Congress for control of the Guam Power Authority.
In its letter, the CCU is asking Bordallo to draft and submit legislation that would enable the Guam Waterworks Authority to take over the running of the Navy’s Fena water treatment plant, which has been selling Fena water to GWA’s southern customers.
The Navy had planned to increase the rate for the Fena water that it sells to GWA, raising the rate from $2.09 per one thousand gallons (kgal) to $4.05/kgal, effective Oct. 1, 2007.
But because of strong protests lodged by both CCU and GWA, the Navy has agreed to postpone the increase until “higher authorities” can study the matter further.
According to Sanchez, the Navy is doing an internal analysis of its own after CCU pointed out that it can run the Fena water reservoir cheaper and more effectively than the Navy.
During the CCU’s last meeting Tuesday night, it was disclosed that GWA can run the Fena system for just $7 million a year, which is half the $14 million cost that the Navy incurs in running Fena.
Although the Navy has agreed to temporarily postpone its water rate increase and conduct a study of its Fena rate structure, the CCU wants to go one step further and has asked the Navy to submit to an independent study to be conducted by the Public Utilities Commission.
“We are asking the Navy to submit to a non-binding review by the PUC to have an independent evaluation of the Fena issue. It’s more fair that way because if the Navy conducts the study, we’ll be solely dependent on what the Navy states as fact. All the information will be coming from the Navy,” Sanchez said.
In addition, the CCU has also fired off a letter to the Attorney General’s Office, asking AG Alicia Limtiaco to revisit the Fena agreement signed by then AG Douglas Moylan.
In 2003, Sanchez said Moylan agreed to a provision that GovGuam can no longer sue the federal government over the Fena issue in return for lower rates charged to local residents using Fena water.
Before that, Sanchez said there were three other suits, all of which failed, that tried to reclaim Fena back to the government of Guam.
The Navy originally took over Fena as part of the provisions of the Organic Act and other agreements signed after World War II that gave large tracks of land, including Fena, to the military.
Sanchez said it is now time to revisit this and he has asked Limtiaco to determine whether GovGuam can continue to be bound by the agreement signed by Moylan in 2003.
Wednesday, October 10, 2007
Bring Fena to the Table
Editorial: Bring Fena to the table
The Marianas Variety
Wednesday, October 10, 2007
The 4th Conference on Business Opportunities in the Islands concluded yesterday with promises by federal and military officials that the U.S. would be doing all it can to help out Guam as it prepares for the coming buildup.
The Joint Guam Program Office stressed that the military aims to take into consideration the welfare of the local community at all times and consult with the people to make sure that its land use planning does not adversely affect residents.
And yet, the Navy decided at the beginning of this month to proceed with its Fena water rate hike without as much as a “by your leave” and despite strong opposition from the government of Guam.
The Navy’s attitude was very cavalier and high-handed. Is the Fena water rate hike a sign of things to come when it comes to the military’s actions on Guam?
The rate hike was a unilateral decision on the Navy’s part, and the Consolidated Commission on Utilities and the Guam Waterworks Authority were not even given a chance to influence the Navy decision.
The Navy has said it needs to increase rates because its cost of producing water from Fena has gone up.
But CCU studies have shown that GWA can do a better job of managing the Fena plant and produce water at a lower rate.
Yet, when the GovGuam agencies brought this up with the military, the Navy virtually thumbed its nose and arrogantly went on with the increase, haughtily informing everybody that it will increase the Fena water rate further next year.
Understandably, this action by the Navy has caught the ire of the Legislature.
Sen. Tony Unpingco, a true son of the south, has expressed disappointment in the Navy’s decision and is asking for the suspension of the water rate hike plan.
He pointed out that the Navy decision may become the linchpin in whether the proposed military buildup continues to receive widespread community support.
We believe the island’s water belongs to the people of Guam and that the local government has the right to use all the island’s water resources.
We need to renew our bid to reclaim Fena and now is the best time to do it while the military needs Guam for its expansion.
This may be the only time that we have a big bargaining chip in the negotiating table and we must try to get every concession that we can from the military.
We say bring Fena to the table so that we won’t suffer the ignominy of paying higher rates for our own water.
And let’s support CCU, which says it plans to bring the Fena issue to the attention of federal authorities in Washington, D.C.
If this is how the military treats us now, when the buildup has hardly begun, imagine what they would do when the military expansion is in earnest.
The time to bargain with the military is now.
The Marianas Variety
Wednesday, October 10, 2007
The 4th Conference on Business Opportunities in the Islands concluded yesterday with promises by federal and military officials that the U.S. would be doing all it can to help out Guam as it prepares for the coming buildup.
The Joint Guam Program Office stressed that the military aims to take into consideration the welfare of the local community at all times and consult with the people to make sure that its land use planning does not adversely affect residents.
And yet, the Navy decided at the beginning of this month to proceed with its Fena water rate hike without as much as a “by your leave” and despite strong opposition from the government of Guam.
The Navy’s attitude was very cavalier and high-handed. Is the Fena water rate hike a sign of things to come when it comes to the military’s actions on Guam?
The rate hike was a unilateral decision on the Navy’s part, and the Consolidated Commission on Utilities and the Guam Waterworks Authority were not even given a chance to influence the Navy decision.
The Navy has said it needs to increase rates because its cost of producing water from Fena has gone up.
But CCU studies have shown that GWA can do a better job of managing the Fena plant and produce water at a lower rate.
Yet, when the GovGuam agencies brought this up with the military, the Navy virtually thumbed its nose and arrogantly went on with the increase, haughtily informing everybody that it will increase the Fena water rate further next year.
Understandably, this action by the Navy has caught the ire of the Legislature.
Sen. Tony Unpingco, a true son of the south, has expressed disappointment in the Navy’s decision and is asking for the suspension of the water rate hike plan.
He pointed out that the Navy decision may become the linchpin in whether the proposed military buildup continues to receive widespread community support.
We believe the island’s water belongs to the people of Guam and that the local government has the right to use all the island’s water resources.
We need to renew our bid to reclaim Fena and now is the best time to do it while the military needs Guam for its expansion.
This may be the only time that we have a big bargaining chip in the negotiating table and we must try to get every concession that we can from the military.
We say bring Fena to the table so that we won’t suffer the ignominy of paying higher rates for our own water.
And let’s support CCU, which says it plans to bring the Fena issue to the attention of federal authorities in Washington, D.C.
If this is how the military treats us now, when the buildup has hardly begun, imagine what they would do when the military expansion is in earnest.
The time to bargain with the military is now.
Thursday, October 04, 2007
Navy: Rate Hike Had to Be Done
Navy: rate hike had to be done
by John Davis,
KUAM News
Thursday, October 04, 2007
Despite an outpouring of opposition to increased water rates from the production of water from the Fena Reservoir, the Navy today announced the completion of a $19 million upgrade to the treatment plant. Upgrades to the 51-year-old Fena Water Treatment Plant in Santa Rita will reduce chlorinated organics, lead and copper in water and improve plant performance by providing a redundant treatment unit.
This means if one treatment unit were to go down during a typhoon or heavy rains like today's, the Navy would be able to take a unit down without impacting treatment, even during power outages. Water from the Fena Reservoir has been at the center of discontent with local government officials and the military after the Navy decided to double the amount it charges the Guam Waterworks Authority for water produced at the plant.
While many residents feel an increase to water rates from the federal government is not warranted, Navy spokesperson Lieutenant Donnell Evans says the general misconception of operations, maintenance and production being federally funded must be cleared up. He says there were two separate sources of funding for the upgrades. The military construction part of the upgrade is funded through Congress, while operating costs for the treatment plant come from somewhere else. Lt. Evans pinpointed this as being "directly from the revenues generated from the customers."
Evans does confirm that the Navy will also be using revenue generated from the 100% increase to pay off prior year losses, he does say however that once the Navy has collected money lost over the last several years, there could be a chance for rate relief. "There may be some decreases or we may have to adjust the actual cost structure from the plant based on inflation and based on being able to recover some past year losses," the officer explained. "That is definitely something we can consider."
And for the many residents against rate increases from the Navy because they feel it plays a part in the massive military relocation of military personnel and feel the Navy should foot the bill, Evans says the increase in the water rates have nothing to do with the 8,000 U.S. Marines and their families who will be calling Guam home within the next five to ten years. He adds that the increase is strictly related to the past and current operating costs for the water treatment plant, explaining, "We clearly understand that there is opposition to this increase and it's an emotional issue, but we understand that. But it doesn't rally change the fact that it cost money to operate the water treatment plant...we are stewards of government resources and as stewards of resources, we have to make sure that we don't operate this plant at a loss."
Operating costs aside, members of the Consolidated Commission on Utilities maintain that Navy water should still be cheaper than GWA water because the Navy does not take out loans for upgrades, have debt service responsibilities and their capitol improvement projects are federally funded. CCU chairman Simon Sanchez even suggested that the utility agency handle the operations of the water treatment plant, since there is a possibility it would cost them less.
by John Davis,
KUAM News
Thursday, October 04, 2007
Despite an outpouring of opposition to increased water rates from the production of water from the Fena Reservoir, the Navy today announced the completion of a $19 million upgrade to the treatment plant. Upgrades to the 51-year-old Fena Water Treatment Plant in Santa Rita will reduce chlorinated organics, lead and copper in water and improve plant performance by providing a redundant treatment unit.
This means if one treatment unit were to go down during a typhoon or heavy rains like today's, the Navy would be able to take a unit down without impacting treatment, even during power outages. Water from the Fena Reservoir has been at the center of discontent with local government officials and the military after the Navy decided to double the amount it charges the Guam Waterworks Authority for water produced at the plant.
While many residents feel an increase to water rates from the federal government is not warranted, Navy spokesperson Lieutenant Donnell Evans says the general misconception of operations, maintenance and production being federally funded must be cleared up. He says there were two separate sources of funding for the upgrades. The military construction part of the upgrade is funded through Congress, while operating costs for the treatment plant come from somewhere else. Lt. Evans pinpointed this as being "directly from the revenues generated from the customers."
Evans does confirm that the Navy will also be using revenue generated from the 100% increase to pay off prior year losses, he does say however that once the Navy has collected money lost over the last several years, there could be a chance for rate relief. "There may be some decreases or we may have to adjust the actual cost structure from the plant based on inflation and based on being able to recover some past year losses," the officer explained. "That is definitely something we can consider."
And for the many residents against rate increases from the Navy because they feel it plays a part in the massive military relocation of military personnel and feel the Navy should foot the bill, Evans says the increase in the water rates have nothing to do with the 8,000 U.S. Marines and their families who will be calling Guam home within the next five to ten years. He adds that the increase is strictly related to the past and current operating costs for the water treatment plant, explaining, "We clearly understand that there is opposition to this increase and it's an emotional issue, but we understand that. But it doesn't rally change the fact that it cost money to operate the water treatment plant...we are stewards of government resources and as stewards of resources, we have to make sure that we don't operate this plant at a loss."
Operating costs aside, members of the Consolidated Commission on Utilities maintain that Navy water should still be cheaper than GWA water because the Navy does not take out loans for upgrades, have debt service responsibilities and their capitol improvement projects are federally funded. CCU chairman Simon Sanchez even suggested that the utility agency handle the operations of the water treatment plant, since there is a possibility it would cost them less.
Thursday, September 27, 2007
Rate Hike Will Double Rates in Guam's South
Navy will nearly double water rates for southern Guam
By Jennifer H. Svan, Stars and Stripes
Pacific edition, Thursday, September 27, 2007
The Navy’s plan to double water rates for its southern Guam customers starting next month is drawing sharp criticism from island officials.
The rate for fiscal year 2008 will increase from $2.09 per 1,000 gallons to $4.05, effective Oct. 1, according to a U.S. Naval Forces Marianas news release issued Monday night.
A further increase, to $4.16, also is projected for fiscal 2009, the release stated.
Navy officials said the rate increase was needed to cover ongoing operating and maintenance costs and applies to all water customers equally, not just the local community.
The Navy provides water through its Fena Reservoir water plant to Defense Department customers on southern Guam — including Naval Base Guam and tenant commands — as well as to Guam Waterworks Authority.
“We’ve been operating the plant at a loss,” said Lt. Donnell Evans, U.S. Naval Forces Marianas spokesman, in a phone interview Tuesday.
But Simon Sanchez, chairman of the Consolidated Commission on Utilities, a governing board of elected officials for GWA and Guam Power Authority, said the sudden, steep rate increase appears to signal that the Navy is not as cost efficient as it needs to be with its water system.
“Maybe it’s time to get the Navy out of the water business,” he said.
The Navy’s doubling of water rates “is a significant impact to the civilian side of the community,” he said in a phone interview from Hawaii, while traveling Tuesday. “It’s not a good way to do business together, to just offload a 100 percent increase all at once.”
The rate increase will cost GWA about $2 million, Sanchez said.
While the CCU had informal notice about a month ago that there may be a rate increase, the official written notice came Monday, he said.
“We’re very disappointed in the decision,” Sanchez said.
Naval Facilities Engineering Command Marianas is responsible for engineering, construction, maintenance, utilities and environmental programs for Navy installations on Guam.
Evans said the Navy produces about 8 million gallons per day — 4 million of which goes to GWA.
GWA buys water from the Navy for the villages of Santa Rita, Agat and part of Nimitz, supplying water to about 17,000 residents in those areas, according to GWA spokeswoman Heidi Ballendorf. She didn’t know how many of those residents were U.S. military members.
But Ballendorf, in an e-mail to Stars and Stripes, said GWA has no immediate plans to pass on the rate increase to consumers.
The company, however, will have to cut its operating budget and continue to reduce dependency on Navy water purchases, she said.
Navy officials, in the news release, said the Navy rate for water had increased only 7 percent since 2003. During that period, revenue generated from annual rates fell short of operating costs by more than $9 million, Evans said.
“We are stewards of government resources,” Evan said. “We can’t operate government systems and resources at a loss. As we move forward from here, our goal is to make sure we have better communication with all our customers.”
Sanchez said another concern was the effect the move could have on planned military expansion on Guam.
“Opponents of further military expansion on Guam could use this as further proof that DOD isn’t a good partner,” charging that the Navy made a unilateral move without much consultation, he said.
GWA has raised its rates for the past four years, but in increments that have totaled about 38 percent, Sanchez said.
The Navy noted the 2008 fiscal increase is less than the new GWA residential rate of $4.14 per 1,000 gallons, and the new GWA commercial rate of $5.15 per 1,000 gallons, but also stated those rates are not comparable due to the differences in Navy and GWA water systems and financing.
Ballendorf said GWA charges $2.40 to customers that use from one gallon to 4,999. The average monthly water bill on Guam is about $35 to $40, which includes a $22 sewer fee, she said.
By Jennifer H. Svan, Stars and Stripes
Pacific edition, Thursday, September 27, 2007
The Navy’s plan to double water rates for its southern Guam customers starting next month is drawing sharp criticism from island officials.
The rate for fiscal year 2008 will increase from $2.09 per 1,000 gallons to $4.05, effective Oct. 1, according to a U.S. Naval Forces Marianas news release issued Monday night.
A further increase, to $4.16, also is projected for fiscal 2009, the release stated.
Navy officials said the rate increase was needed to cover ongoing operating and maintenance costs and applies to all water customers equally, not just the local community.
The Navy provides water through its Fena Reservoir water plant to Defense Department customers on southern Guam — including Naval Base Guam and tenant commands — as well as to Guam Waterworks Authority.
“We’ve been operating the plant at a loss,” said Lt. Donnell Evans, U.S. Naval Forces Marianas spokesman, in a phone interview Tuesday.
But Simon Sanchez, chairman of the Consolidated Commission on Utilities, a governing board of elected officials for GWA and Guam Power Authority, said the sudden, steep rate increase appears to signal that the Navy is not as cost efficient as it needs to be with its water system.
“Maybe it’s time to get the Navy out of the water business,” he said.
The Navy’s doubling of water rates “is a significant impact to the civilian side of the community,” he said in a phone interview from Hawaii, while traveling Tuesday. “It’s not a good way to do business together, to just offload a 100 percent increase all at once.”
The rate increase will cost GWA about $2 million, Sanchez said.
While the CCU had informal notice about a month ago that there may be a rate increase, the official written notice came Monday, he said.
“We’re very disappointed in the decision,” Sanchez said.
Naval Facilities Engineering Command Marianas is responsible for engineering, construction, maintenance, utilities and environmental programs for Navy installations on Guam.
Evans said the Navy produces about 8 million gallons per day — 4 million of which goes to GWA.
GWA buys water from the Navy for the villages of Santa Rita, Agat and part of Nimitz, supplying water to about 17,000 residents in those areas, according to GWA spokeswoman Heidi Ballendorf. She didn’t know how many of those residents were U.S. military members.
But Ballendorf, in an e-mail to Stars and Stripes, said GWA has no immediate plans to pass on the rate increase to consumers.
The company, however, will have to cut its operating budget and continue to reduce dependency on Navy water purchases, she said.
Navy officials, in the news release, said the Navy rate for water had increased only 7 percent since 2003. During that period, revenue generated from annual rates fell short of operating costs by more than $9 million, Evans said.
“We are stewards of government resources,” Evan said. “We can’t operate government systems and resources at a loss. As we move forward from here, our goal is to make sure we have better communication with all our customers.”
Sanchez said another concern was the effect the move could have on planned military expansion on Guam.
“Opponents of further military expansion on Guam could use this as further proof that DOD isn’t a good partner,” charging that the Navy made a unilateral move without much consultation, he said.
GWA has raised its rates for the past four years, but in increments that have totaled about 38 percent, Sanchez said.
The Navy noted the 2008 fiscal increase is less than the new GWA residential rate of $4.14 per 1,000 gallons, and the new GWA commercial rate of $5.15 per 1,000 gallons, but also stated those rates are not comparable due to the differences in Navy and GWA water systems and financing.
Ballendorf said GWA charges $2.40 to customers that use from one gallon to 4,999. The average monthly water bill on Guam is about $35 to $40, which includes a $22 sewer fee, she said.
Sunday, August 19, 2007
Navy May Increase Price of Water
Navy may increase water rate to GWA
by Clynt Ridgell, KUAM News
Wednesday, August 15, 2007
It's quite possible the Navy could up the rate it's charging the Guam Waterworks Authority water from Fena. Currently GWA buys about $3 million a year of water from the Navy to supply southern residents with H2O, about $2 per every thousand gallons. According to Consolidated Commission on Utilities chairperson Simon Sanchez, he's heard the Navy plans to bump that up to $4.
Sanchez maintains the answer is to integrate the systems, telling KUAM News, "One of there concerns is that they don't have the economies of scale, which forces their costs to be higher. We offer to them GWA has economies of scale we run a bigger system we service more ratepayers and maybe it's time to do what we've done with the airport and with the Guam Power Authority is to begin to merge these systems because it's clearly too expensive when you have separate systems, especially if the Navy's charging as much as they are."
by Clynt Ridgell, KUAM News
Wednesday, August 15, 2007
It's quite possible the Navy could up the rate it's charging the Guam Waterworks Authority water from Fena. Currently GWA buys about $3 million a year of water from the Navy to supply southern residents with H2O, about $2 per every thousand gallons. According to Consolidated Commission on Utilities chairperson Simon Sanchez, he's heard the Navy plans to bump that up to $4.
Sanchez maintains the answer is to integrate the systems, telling KUAM News, "One of there concerns is that they don't have the economies of scale, which forces their costs to be higher. We offer to them GWA has economies of scale we run a bigger system we service more ratepayers and maybe it's time to do what we've done with the airport and with the Guam Power Authority is to begin to merge these systems because it's clearly too expensive when you have separate systems, especially if the Navy's charging as much as they are."
Thursday, August 16, 2007
Unpingco Hits Navy Fena Plan
Unpingco hits Navy Fena plan
Thursday, August 16, 2007
By Gerardo R. Partido
Variety News Staff
SENATOR Antonio Unpingco, R-Santa Rita, has criticized the Navy’s plan to increase the rate it charges for water processed at its Fena treatment plant.
Unpingco, who heads the Legislature’s military committee, described the Navy plan as “a shocking blow,” coming as it does when all other prices are also rising for such items as gasoline and power.
“Contrary to what the Navy says, the plan to increase rates will not just affect three villages but also other areas in the south,” said Unpingco, who hails from Santa Rita.
The Navy currently sells water to the Guam Waterworks Authority to supply the villages of Santa Rita, Agat and Piti.
According to the Consolidated Commission on Utilities, the Navy plans to double its rate from $2 to $4 per thousand gallons starting Oct. 1.
If the increase is implemented, CCU estimates this would result in a cost increase to GWA of $3 million.
The Navy, however, maintains that the impact of an increase would be minimal since only three villages will be affected.
Lt. Donnell Evans, public affairs officer of the U.S. Naval Forces Marianas, said this will not have a significant effect on GWA’s bottom line.
He also said the Navy’s costs to operate Fena have increased, necessitating an increase in rates.
Unpingco, however, said the whole island will be affected by the increase implemented by the Navy for its Fena water.
“In the end, GWA’s cost will increase and GWA will have to pass on its increased costs to all of its customers. The whole island will end up paying to defray the cost,” the senator said.
In light of this development, Unpingco said his committee is looking at all avenues to see how the impact of a Navy rate increase could be mitigated.
“Perhaps we should revisit the plan to reclaim Fena. This should have been done a long time ago,” Unpingco said.
CCU chairman Simon Sanchez had said that it may be time to merge the Navy and GWA water systems and take over Fena.
Sanchez said GWA may be able to run Fena better and achieve economies of scale because GWA has a bigger customer base.
Thursday, August 16, 2007
By Gerardo R. Partido
Variety News Staff
SENATOR Antonio Unpingco, R-Santa Rita, has criticized the Navy’s plan to increase the rate it charges for water processed at its Fena treatment plant.
Unpingco, who heads the Legislature’s military committee, described the Navy plan as “a shocking blow,” coming as it does when all other prices are also rising for such items as gasoline and power.
“Contrary to what the Navy says, the plan to increase rates will not just affect three villages but also other areas in the south,” said Unpingco, who hails from Santa Rita.
The Navy currently sells water to the Guam Waterworks Authority to supply the villages of Santa Rita, Agat and Piti.
According to the Consolidated Commission on Utilities, the Navy plans to double its rate from $2 to $4 per thousand gallons starting Oct. 1.
If the increase is implemented, CCU estimates this would result in a cost increase to GWA of $3 million.
The Navy, however, maintains that the impact of an increase would be minimal since only three villages will be affected.
Lt. Donnell Evans, public affairs officer of the U.S. Naval Forces Marianas, said this will not have a significant effect on GWA’s bottom line.
He also said the Navy’s costs to operate Fena have increased, necessitating an increase in rates.
Unpingco, however, said the whole island will be affected by the increase implemented by the Navy for its Fena water.
“In the end, GWA’s cost will increase and GWA will have to pass on its increased costs to all of its customers. The whole island will end up paying to defray the cost,” the senator said.
In light of this development, Unpingco said his committee is looking at all avenues to see how the impact of a Navy rate increase could be mitigated.
“Perhaps we should revisit the plan to reclaim Fena. This should have been done a long time ago,” Unpingco said.
CCU chairman Simon Sanchez had said that it may be time to merge the Navy and GWA water systems and take over Fena.
Sanchez said GWA may be able to run Fena better and achieve economies of scale because GWA has a bigger customer base.
Wednesday, August 15, 2007
Navy May Increase Water Rate to GWA
Navy may increase water rate to GWA
by Clynt Ridgell, KUAM News
Wednesday, August 15, 2007
It's quite possible the Navy could up the rate it's charging the Guam Waterworks Authority water from Fena. Currently GWA buys about $3 million a year of water from the Navy to supply southern residents with H2O, about $2 per every thousand gallons. According to Consolidated Commission on Utilities chairperson Simon Sanchez, he's heard the Navy plans to bump that up to $4.
Sanchez maintains the answer is to integrate the systems, telling KUAM News, "One of there concerns is that they don't have the economies of scale, which forces their costs to be higher. We offer to them GWA has economies of scale we run a bigger system we service more ratepayers and maybe it's time to do what we've done with the airport and with the Guam Power Authority is to begin to merge these systems because it's clearly too expensive when you have separate systems, especially if the Navy's charging as much as they are."
by Clynt Ridgell, KUAM News
Wednesday, August 15, 2007
It's quite possible the Navy could up the rate it's charging the Guam Waterworks Authority water from Fena. Currently GWA buys about $3 million a year of water from the Navy to supply southern residents with H2O, about $2 per every thousand gallons. According to Consolidated Commission on Utilities chairperson Simon Sanchez, he's heard the Navy plans to bump that up to $4.
Sanchez maintains the answer is to integrate the systems, telling KUAM News, "One of there concerns is that they don't have the economies of scale, which forces their costs to be higher. We offer to them GWA has economies of scale we run a bigger system we service more ratepayers and maybe it's time to do what we've done with the airport and with the Guam Power Authority is to begin to merge these systems because it's clearly too expensive when you have separate systems, especially if the Navy's charging as much as they are."
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