DMHSA defends actions: Officials respond to motion for receivership
By Agnes E. Donato
Pacific Sunday News
September 20, 2009
Facing possible takeover by a federal receiver, local government officials yesterday defended their handling of mental health services on Guam.
The government of Guam, the officials said, has made strides in improving services to people with mental health and developmental disabilities over the past eight months,and said the government can do more, if given just a little more time.
A motion filed Friday night on behalf of three people with disabilities asks the District Court of Guam to appoint a receiver to run federally required services to people with mental health and developmental disabilities.
The motion follows years of the local government's failure to improve services to people with mental health and developmental disabilities, according to court papers filed Friday.
The local government, according to the court filing, has shown a "cycle of failure" to live up to a 7-year-old federal court order to improve mental health services on the island.
But David Shimizu, a former senator and now director of the Department of Mental Health and Substance Abuse, said he hopes the court will also recognize the agency's "cycle of improvement" since he took the helm in January.
He said the recent hiring of psychiatrists and psychologists has enhanced the care provided by Mental Health to patients.
Sen. Frank Aguon, chairman of the legislative committee that oversees health programs, also pointed to the "significant progress" made at Mental Health since the beginning of the year.
He said the agency recently added certified nurses to its staff and opened an in-house unit dedicated to providing mental health services for children.
The Legislature, he said, has shown its support for more improvements at Mental Health when it passed the fiscal 2010 budget, which grants the agency $5 million more that it previously got. The additional funding will become available to Mental Health on Oct. 1.
"I hope the judge will hold off on any drastic decision and recognize what Mental Health and the Legislature have done to get us out of the injunction," said Aguon.
If District Court Judge Consuelo Marshall grants the Justice Department's motion, the mental health agency would be the second government of Guam department to be placed under federal receivership.
District Court of Guam Chief Judge Frances Tydingco-Gatewood in March last year took trash management away from the local government and placed it in under the authority of a court-appointed receiver, after GovGuam continuously failed to meet court-ordered deadlines.
The mental health agency and the Department of Integrated Services for Individuals with Disabilities have been under a permanent injunction since 2004 to improve services and facilities for people with mental and developmental disabilities. The order follows a 2001 lawsuit filed against the government of Guam for failure to provide adequate mental health services.
Showing posts with label Gatewood. Show all posts
Showing posts with label Gatewood. Show all posts
Sunday, September 20, 2009
Wednesday, May 20, 2009
Legislature Approves Gatewood Lawsuit
MARIANAS VARIETY
Senators OK Lawsuit vs Gatewood
Wednesday, 20 May 2009 23:32 by Therese Hart
THE legislative committee on rules on Tuesday voted to adopt Vice Speaker B.J. Cruz’s resolution that endorses a legal action against federal court chief judge Frances Tydingco-Gatewood to challenge her March 20 contempt order against the government of Guam.
The adoption of Resolution 114 authorizes the legislature to move forward with filing the action in the Ninth Circuit against Tydingco-Gatewood.
Resolution 114 was adopted by eight affirmative votes, one more than the minimum number of votes required to make it the official position of the 30th Guam Legislature.
The Committee on Rules is the legislative standing committee authorized to act on behalf of the legislature when the body is not in session. This panel, chaired by Sen. Rory Respicio, has jurisdiction over matters relating to the defense or initiation of court action on behalf of the legislature.
The district court used the supremacy clause of the U.S. Constitution to make null and void Section 6 of Public Law 30-1.
Section 6, prohibition on payments without appropriations states that the legislature asserts its authority to appropriate funds and determine the conditions for expending such appropriations.
After the government was held in contempt, it paid out over $5 million in weekly cash payments to federal receiver Gershman, Bricker & Bratton to fund the consent decree projects.
Prior to the vote, Respicio wrote to his colleagues, saying that Cruz has commissioned legal work on the merits of bringing a case against the district court.
The issue centers on the powers of the legislature and “it is our duty and obligation to defend an institution to which we were elected, and tasked with upholding the laws of the Constitution of the United States,” Respicio wrote.
Respicio said Cruz “has expressed his strong belief that we have faithfully done just that, in spite of the Chief Judge’s statement that we “resorted to frivolous modes of self-help, such as enacting patently unconstitutional laws…”
Committee members who voted to adopt Resolution 114 were Cruz, Respicio, Speaker Judi Won Pat, Sens. Judi Gutherz, Tina Muna-Barnes, Frank Aguon Jr., Adolpho Palacios, and Frank Blas Jr.
Senators OK Lawsuit vs Gatewood
Wednesday, 20 May 2009 23:32 by Therese Hart
THE legislative committee on rules on Tuesday voted to adopt Vice Speaker B.J. Cruz’s resolution that endorses a legal action against federal court chief judge Frances Tydingco-Gatewood to challenge her March 20 contempt order against the government of Guam.
The adoption of Resolution 114 authorizes the legislature to move forward with filing the action in the Ninth Circuit against Tydingco-Gatewood.
Resolution 114 was adopted by eight affirmative votes, one more than the minimum number of votes required to make it the official position of the 30th Guam Legislature.
The Committee on Rules is the legislative standing committee authorized to act on behalf of the legislature when the body is not in session. This panel, chaired by Sen. Rory Respicio, has jurisdiction over matters relating to the defense or initiation of court action on behalf of the legislature.
The district court used the supremacy clause of the U.S. Constitution to make null and void Section 6 of Public Law 30-1.
Section 6, prohibition on payments without appropriations states that the legislature asserts its authority to appropriate funds and determine the conditions for expending such appropriations.
After the government was held in contempt, it paid out over $5 million in weekly cash payments to federal receiver Gershman, Bricker & Bratton to fund the consent decree projects.
Prior to the vote, Respicio wrote to his colleagues, saying that Cruz has commissioned legal work on the merits of bringing a case against the district court.
The issue centers on the powers of the legislature and “it is our duty and obligation to defend an institution to which we were elected, and tasked with upholding the laws of the Constitution of the United States,” Respicio wrote.
Respicio said Cruz “has expressed his strong belief that we have faithfully done just that, in spite of the Chief Judge’s statement that we “resorted to frivolous modes of self-help, such as enacting patently unconstitutional laws…”
Committee members who voted to adopt Resolution 114 were Cruz, Respicio, Speaker Judi Won Pat, Sens. Judi Gutherz, Tina Muna-Barnes, Frank Aguon Jr., Adolpho Palacios, and Frank Blas Jr.
Tuesday, May 12, 2009
Reclaim Guahan Rally Gathers Strength
"Reclaim Guahan Rally" Gathers Strength
By Jude Lizama
Marianas Variety
May 11th, 2009
THE Guåhan Youth, an umbrella group for the island’s youth and grassroots organizations, will hold a rally that will amplify their collective voice that has been muffled amid rapid changes resulting from the ongoing military buildup and what some people consider “federal interference.” The rally, billed “Reclaim Guåhan: Chule' Tatte Guåhan,” will be a venue for education, expression and empowerment, featuring honored speakers, poetry, art, film showings and local music among others.
The overall goal to teach those in attendance about the island’s critical issues and the ability to express various opinions will be highlighted throughout.
The rally is scheduled to be held from 2 to 8 p.m. on May 23 at Skinner’s Plaza in Hagåtña.
“It stems from the $1 million a week put forth by Judge [Frances] Tydingco-Gatewood, which we saw as federal interference on local governance,” stated primary event coordinator Victoria-Lola Leon Guerrero.
She cited such factors as the military buildup, land grabbing and lack of self determination as central reasons that prompted the Guåhan Youth to initiate a rally that centralizes on indigenous people’s self determination and other fundamental freedoms.
“It’s amazing that a lot of it is coming from the youth. People shouldn’t have to resign to hopelessness. The rally is intended to empower future generations to take leadership,” said Leon Guerrero, adding that the Guåhan Youth will show what they are “capable of as a community.”
“It’s frustrating to know that no one has spoken out,” said Leon Guerrero. “We need to focus on our language and culture in order to help stop all of this, and keep it as the land of the Chamorros. We don’t have power as a nation, but it is something that we are entitled to.”
I Nasion Chamoru’s Maga’ Håga, Debbie Quinata, said I Nasion Chamoru is a supporter and that in no way should I Nasion Chamoru take any credit for the upcoming Chule' Tatte Guåhan rally, which has been materialized and bolstered by the island’s youth movement.
“It’s important for young people to take responsibility for what will be their future. I will not take credit for this ingenious movement,” Quinata said. “It’s a great way to get information out to the community.”
By Jude Lizama
Marianas Variety
May 11th, 2009
THE Guåhan Youth, an umbrella group for the island’s youth and grassroots organizations, will hold a rally that will amplify their collective voice that has been muffled amid rapid changes resulting from the ongoing military buildup and what some people consider “federal interference.” The rally, billed “Reclaim Guåhan: Chule' Tatte Guåhan,” will be a venue for education, expression and empowerment, featuring honored speakers, poetry, art, film showings and local music among others.
The overall goal to teach those in attendance about the island’s critical issues and the ability to express various opinions will be highlighted throughout.
The rally is scheduled to be held from 2 to 8 p.m. on May 23 at Skinner’s Plaza in Hagåtña.
“It stems from the $1 million a week put forth by Judge [Frances] Tydingco-Gatewood, which we saw as federal interference on local governance,” stated primary event coordinator Victoria-Lola Leon Guerrero.
She cited such factors as the military buildup, land grabbing and lack of self determination as central reasons that prompted the Guåhan Youth to initiate a rally that centralizes on indigenous people’s self determination and other fundamental freedoms.
“It’s amazing that a lot of it is coming from the youth. People shouldn’t have to resign to hopelessness. The rally is intended to empower future generations to take leadership,” said Leon Guerrero, adding that the Guåhan Youth will show what they are “capable of as a community.”
“It’s frustrating to know that no one has spoken out,” said Leon Guerrero. “We need to focus on our language and culture in order to help stop all of this, and keep it as the land of the Chamorros. We don’t have power as a nation, but it is something that we are entitled to.”
I Nasion Chamoru’s Maga’ Håga, Debbie Quinata, said I Nasion Chamoru is a supporter and that in no way should I Nasion Chamoru take any credit for the upcoming Chule' Tatte Guåhan rally, which has been materialized and bolstered by the island’s youth movement.
“It’s important for young people to take responsibility for what will be their future. I will not take credit for this ingenious movement,” Quinata said. “It’s a great way to get information out to the community.”
Monday, March 23, 2009
Ben's Pen
ben's Pen : Conspiracy theorists line up here
Tuesday, 24 March 2009 04:03
by Sen. Ben Pangelinan
Marianas Variety
LAST Friday, as it seems to be the practice of our esteemed federal court chief judge to release orders right before the weekend, found the government of Guam in contempt for the failure to deposit $993,700.00 as ordered by the court in its Feb. 13 order.
The court only cited this section of her order and did not even comment on the other aspects of Public Law 30-1, which was crafted by the Legislature after careful and deliberate and repeated reading of the entire order.
The court did order the payment of the $993,700.00 beginning on March 1. The court also encouraged the legislative and the executive branches to continue efforts to find “viable alternatives” means of financing the consent decree projects at a later time. Public Law 30-1 did not wait for a later time and instead gave the court a viable financing plan prior to March 1.
In the proceedings of the committee of the whole, prior to passing Bill 51 which became P.L. 30-1, I asked point blank the government of Guam’s financial advisor and the underwriter of the bond issue if the conditions for the security of the bond issuance in the bill was viable. These conditions are:
1. It authorized the issuance of the entire amount estimated by the receiver as what is needed to fund the consent decree projects, $202 million.
2. It pledged the full faith and credit of the general fund as a guarantee for the payment of the debt service.
3. It sets the maximum interest rate for the bonds at 9 percent.
4. It approves the terms and conditions and authorizes the Governor to issue the bonds
Both financial experts stated that this was a viable financing plan. Quoting from the same order: “Should this occur, the court will suspend the weekly payments provided the court is satisfied that at a minimum, authorized without the need for further legislative authorization or action, the maximum amount of bonds.” The Legislature clearly did that in the bill it passed.
The court also required that the “governor and the Guam Economic Development Authority in good faith and to the court’s satisfaction move to sell the first series of these bonds as soon as possible and such other bonds as soon as possible and such other bonds at a later date as required to keep the Consent Decree projects and on schedule.”
The court did not even ask the governor or GEDA if they “move to sell the first series of these bonds.” Why? It is clear that the court is not interested in what the Governor is not doing and it remains unknown to everyone, except the court. It is clear that she remains fixated on not only what the Legislature is doing, but on what it is not doing that displeases the court.
It appears that the court as well as the federal government wants a landfill built that serves the needs of someone else other than the people of Guam.
What is your theory?
ben pangelinan is a Senator in the 30th Guam Legislature and a former Speaker now serving his eighth term in the Guam Legislature. E-mail comments or suggestions to
senbenp@guam.net. ctzenben@ite.net
Tuesday, 24 March 2009 04:03
by Sen. Ben Pangelinan
Marianas Variety
LAST Friday, as it seems to be the practice of our esteemed federal court chief judge to release orders right before the weekend, found the government of Guam in contempt for the failure to deposit $993,700.00 as ordered by the court in its Feb. 13 order.
The court only cited this section of her order and did not even comment on the other aspects of Public Law 30-1, which was crafted by the Legislature after careful and deliberate and repeated reading of the entire order.
The court did order the payment of the $993,700.00 beginning on March 1. The court also encouraged the legislative and the executive branches to continue efforts to find “viable alternatives” means of financing the consent decree projects at a later time. Public Law 30-1 did not wait for a later time and instead gave the court a viable financing plan prior to March 1.
In the proceedings of the committee of the whole, prior to passing Bill 51 which became P.L. 30-1, I asked point blank the government of Guam’s financial advisor and the underwriter of the bond issue if the conditions for the security of the bond issuance in the bill was viable. These conditions are:
1. It authorized the issuance of the entire amount estimated by the receiver as what is needed to fund the consent decree projects, $202 million.
2. It pledged the full faith and credit of the general fund as a guarantee for the payment of the debt service.
3. It sets the maximum interest rate for the bonds at 9 percent.
4. It approves the terms and conditions and authorizes the Governor to issue the bonds
Both financial experts stated that this was a viable financing plan. Quoting from the same order: “Should this occur, the court will suspend the weekly payments provided the court is satisfied that at a minimum, authorized without the need for further legislative authorization or action, the maximum amount of bonds.” The Legislature clearly did that in the bill it passed.
The court also required that the “governor and the Guam Economic Development Authority in good faith and to the court’s satisfaction move to sell the first series of these bonds as soon as possible and such other bonds as soon as possible and such other bonds at a later date as required to keep the Consent Decree projects and on schedule.”
The court did not even ask the governor or GEDA if they “move to sell the first series of these bonds.” Why? It is clear that the court is not interested in what the Governor is not doing and it remains unknown to everyone, except the court. It is clear that she remains fixated on not only what the Legislature is doing, but on what it is not doing that displeases the court.
It appears that the court as well as the federal government wants a landfill built that serves the needs of someone else other than the people of Guam.
What is your theory?
ben pangelinan is a Senator in the 30th Guam Legislature and a former Speaker now serving his eighth term in the Guam Legislature. E-mail comments or suggestions to
senbenp@guam.net. ctzenben@ite.net
Sunday, March 22, 2009
GovGuam Found to Be in Civil Contempt
GovGuam found to be in civil contempt
By Mindy Aguon
Published Mar 20, 2009
KUAM News
Despite the Government of Guam's contention that Public Law 30-1 was a viable solution, District Court Chief Judge Frances Tydingco-Gatewood in a 16-page decision shot down every argument presented by the government. Not only did she hold the government in civil contempt and order the immediate payment of nearly $4 million by Monday, but the judge admonished lawmakers for passing legislation that she deemed unconstitutional.
It's clear in the chief judge's decision that the she wasn't buying GovGuam's argument that existing Guam policy was the answer to closing the dump and opening a new landfill. In fact, the judge contends lawmakers who voted for its passage violated their oath of office. Her order requires weekly one million dollar payments and compliance by the government otherwise stiff monetary penalties will be imposed.
Saying the court and the people of Guam have been more than patient in expecting Guam's leaders to jointly arrive at a solution to the Ordot Dump crisis, Tydingco-Gatewood made it clear Friday that inaction and obstacles will no longer be tolerated. She further reiterated her position by finding the government of Guam in civil contempt. Saying the government met both thresholds to be held in contempt, the judge first found that the government disobeyed a specific court order she handed down on February 13, mandating weekly cash payments beginning March 1.
Tydingco-Gatewood noted that the order could not be more specific and definite, writing, "It unequivocally told the government what it was to do, and when it was to do it. No reasonable person or entity could be confused as to what was required." While the government maintained that Public Law 30-1 represented its good faith effort to find a viable alternative to the weekly payment, the chief judge found that despite Governor Felix Camacho's cooperation through the introduction of Bill 51 and specific funding mechanisms, the legislature made "radical amendments" and "Cannot imagine how PL 30-1 could qualify as a reasonable step taken in compliance with the court's February 13 2009 order."
Senator B.J. Cruz introduced Section 6 of the public law prohibiting the government from making any payments for consent decree-related projects unless first receiving approval from the Guam Legislature. It's this particular section the judge says was clearly enacted in direct contravention of her order and it's this section that she declared null and void under the Supremacy Clause of the U.S. Constitution.
Tydingco-Gatewood added that every lawmaker who supported the enactment of Section 6 violated his or her oath of office, saying, "...not only have our island's officials wasted time and money by enacting patently unconstitutional legislation designed to frustrate compliance with a valid court order effecting federal law, they have 'warred against the Constitution', thereby violating their oath of office."
She also found that the government's force majeure argument was not only unfounded and frivolous but she warned that future attempts to use that argument would be cause for sanctions.
After finding the government in civil contempt the court ordered the government to immediately turn over the $3.9 million that has been set aside by the Camacho Administration by noon on Monday, March 23. The judge noted that the government may purge its contempt and avoid the actual payment of the coercive sanction by immediately coming into compliance reiterating the suggestion of using Section 30-backed revenue bonds. She even referred to the government's consultants that pointed out flaws in Public Law 30-1 that created uncertainties for the issuance of financing for consent decree projects.
Should the government fail to deposit the money on Monday, the court will immediately impose daily civil contempt sanctions beginning at $10,000 and doubling each day, up to a daily limit of $250,000. If no payment is made by April 1, the sanctions will accrue at a quarter-million dollars per day until the government comes into full compliance.
With a little more than two years of airspace left at the dump, the court is hopeful today's order will be the catalyst for officials to take action in compliance with the consent decree.
Voicing her own response to the order, Senator Judi Guthertz wrote, "I am disappointed in the District Court Judge's ruling. I am studying the ruling and I believe the repercussions on our community will be severe. I believe that the judge is not being reasonable and I believe the Legislature should consider whether it should challenge the judge’s interpretation of the Supremacy Clause.” As for acting speaker Tom Ada, he reacted by saying he was disappointed because he felt the Legislature provided viable options in the Public Law 30-1, however he understands the reality is those options may not be available as soon as the court may have wanted them. Ada added he is focusing his attention on how the million dollar weekly payments will affect the people of Guam.
By Mindy Aguon
Published Mar 20, 2009
KUAM News
Despite the Government of Guam's contention that Public Law 30-1 was a viable solution, District Court Chief Judge Frances Tydingco-Gatewood in a 16-page decision shot down every argument presented by the government. Not only did she hold the government in civil contempt and order the immediate payment of nearly $4 million by Monday, but the judge admonished lawmakers for passing legislation that she deemed unconstitutional.
It's clear in the chief judge's decision that the she wasn't buying GovGuam's argument that existing Guam policy was the answer to closing the dump and opening a new landfill. In fact, the judge contends lawmakers who voted for its passage violated their oath of office. Her order requires weekly one million dollar payments and compliance by the government otherwise stiff monetary penalties will be imposed.
Saying the court and the people of Guam have been more than patient in expecting Guam's leaders to jointly arrive at a solution to the Ordot Dump crisis, Tydingco-Gatewood made it clear Friday that inaction and obstacles will no longer be tolerated. She further reiterated her position by finding the government of Guam in civil contempt. Saying the government met both thresholds to be held in contempt, the judge first found that the government disobeyed a specific court order she handed down on February 13, mandating weekly cash payments beginning March 1.
Tydingco-Gatewood noted that the order could not be more specific and definite, writing, "It unequivocally told the government what it was to do, and when it was to do it. No reasonable person or entity could be confused as to what was required." While the government maintained that Public Law 30-1 represented its good faith effort to find a viable alternative to the weekly payment, the chief judge found that despite Governor Felix Camacho's cooperation through the introduction of Bill 51 and specific funding mechanisms, the legislature made "radical amendments" and "Cannot imagine how PL 30-1 could qualify as a reasonable step taken in compliance with the court's February 13 2009 order."
Senator B.J. Cruz introduced Section 6 of the public law prohibiting the government from making any payments for consent decree-related projects unless first receiving approval from the Guam Legislature. It's this particular section the judge says was clearly enacted in direct contravention of her order and it's this section that she declared null and void under the Supremacy Clause of the U.S. Constitution.
Tydingco-Gatewood added that every lawmaker who supported the enactment of Section 6 violated his or her oath of office, saying, "...not only have our island's officials wasted time and money by enacting patently unconstitutional legislation designed to frustrate compliance with a valid court order effecting federal law, they have 'warred against the Constitution', thereby violating their oath of office."
She also found that the government's force majeure argument was not only unfounded and frivolous but she warned that future attempts to use that argument would be cause for sanctions.
After finding the government in civil contempt the court ordered the government to immediately turn over the $3.9 million that has been set aside by the Camacho Administration by noon on Monday, March 23. The judge noted that the government may purge its contempt and avoid the actual payment of the coercive sanction by immediately coming into compliance reiterating the suggestion of using Section 30-backed revenue bonds. She even referred to the government's consultants that pointed out flaws in Public Law 30-1 that created uncertainties for the issuance of financing for consent decree projects.
Should the government fail to deposit the money on Monday, the court will immediately impose daily civil contempt sanctions beginning at $10,000 and doubling each day, up to a daily limit of $250,000. If no payment is made by April 1, the sanctions will accrue at a quarter-million dollars per day until the government comes into full compliance.
With a little more than two years of airspace left at the dump, the court is hopeful today's order will be the catalyst for officials to take action in compliance with the consent decree.
Voicing her own response to the order, Senator Judi Guthertz wrote, "I am disappointed in the District Court Judge's ruling. I am studying the ruling and I believe the repercussions on our community will be severe. I believe that the judge is not being reasonable and I believe the Legislature should consider whether it should challenge the judge’s interpretation of the Supremacy Clause.” As for acting speaker Tom Ada, he reacted by saying he was disappointed because he felt the Legislature provided viable options in the Public Law 30-1, however he understands the reality is those options may not be available as soon as the court may have wanted them. Ada added he is focusing his attention on how the million dollar weekly payments will affect the people of Guam.
Monday, December 15, 2008
Governor Optimistic About $20 Million Landfill Loan
Governor confident: Camacho upbeat on $20M landfill loan
By Dionesis Tamondong
Pacific Daily News
December 17, 2008
One local bank official said his bank is just not interested in lending the government $20 million for landfill construction. Another lender said it would consider the proposal if the repayment sources were more concrete.
With less than a week before the federal deadline for responses, the Camacho administration is sure some lending institutions will submit proposals to finance the Ordot dump closure and landfill construction projects.
"We remain confident that we will be able to secure the financing," said George Bamba, Gov. Felix Camacho's chief of staff. The government of Guam must deposit $20 million by Jan. 5, or some officials could face legal action from the federal government.
The Guam Economic Development and Commerce Authority has issued a request for proposals for financiers to lend GovGuam the money for the start-up projects.
BankPacific President Phil Flores said his bank won't respond to the financing request. "We're not interested. We're just not going to bid on this one."
While Flores didn't provide a specific reason for not responding to GovGuam's proposal, he said there's too much confusion over the dump situation.
"Is the Legislature wanting to build in Layon or to give the contract to (Guam Resource Recovery Partners)?" Flores asked. "So if you're lending money for a new landfill, there's always the concern that it's not going to be built."
Several lawmakers disagree with the local government's selection of Dandan, Inarajan, as the landfill site, arguing it is a potential freshwater source and is too remote for efficient use as a landfill. Senators passed a measure last month pushing for development of a privately operated landfill in the Guatali area of Piti and Santa Rita, on land being leased by GRRP, saying it is friendlier to the environment and less costly than floating bonds to develop the Inarajan site.
Pete Sgro Jr., co-counsel to Barclay's Capital, said his firm would be interested only if the repayment terms were solidified with Section 30 funds as collateral for the loan. Barclay's Capital is a division of Barclay's Bank, which has offices worldwide.
"We are seriously considering submitting a response, and if we do so, however, the response will contain terms that would include not continuing with a subordination of the Section 30 money," Sgro said. "Otherwise there is no value in the collateral."
Sgro said lawmakers made "damaging amendments" to the governor's original short-term borrowing bill.
The administration had pledged Section 30 money -- taxes paid by federal and military employees on Guam and remitted to GovGuam --to pay back the $20 million.
But lawmakers instead required tipping fees be used as the main repayment source, and a variety of funding sources -- including compact-impact money, Section 30 money and the General Fund -- as additional security, Sen. Ben Pangelinan said.
By doing so, Section 30 funds could continue to be used for other obligations, such as the overdue tax refunds and COLA payments.
"These payments are also ordered by the court and on par with the landfill issue," Pangelinan said.
Pangelinan said the amendments were made in consultation with the administration's fiscal policy team after lawmakers realized there wasn't enough support to pass the governor's original bill.
Sgro said lawmakers should go back and approve the original version of the governor's bill, which is in line with the intent of the federal receiver and the District Court of Guam.
"How can anyone ignore the consistent position taken by (Chief Judge Frances Tydingco-) Gatewood and create an amendment that will not accomplish the necessary financing because of the vagueness and lack of value of the collateral created by an amendment?" Sgro asked.
By Dionesis Tamondong
Pacific Daily News
December 17, 2008
One local bank official said his bank is just not interested in lending the government $20 million for landfill construction. Another lender said it would consider the proposal if the repayment sources were more concrete.
With less than a week before the federal deadline for responses, the Camacho administration is sure some lending institutions will submit proposals to finance the Ordot dump closure and landfill construction projects.
"We remain confident that we will be able to secure the financing," said George Bamba, Gov. Felix Camacho's chief of staff. The government of Guam must deposit $20 million by Jan. 5, or some officials could face legal action from the federal government.
The Guam Economic Development and Commerce Authority has issued a request for proposals for financiers to lend GovGuam the money for the start-up projects.
BankPacific President Phil Flores said his bank won't respond to the financing request. "We're not interested. We're just not going to bid on this one."
While Flores didn't provide a specific reason for not responding to GovGuam's proposal, he said there's too much confusion over the dump situation.
"Is the Legislature wanting to build in Layon or to give the contract to (Guam Resource Recovery Partners)?" Flores asked. "So if you're lending money for a new landfill, there's always the concern that it's not going to be built."
Several lawmakers disagree with the local government's selection of Dandan, Inarajan, as the landfill site, arguing it is a potential freshwater source and is too remote for efficient use as a landfill. Senators passed a measure last month pushing for development of a privately operated landfill in the Guatali area of Piti and Santa Rita, on land being leased by GRRP, saying it is friendlier to the environment and less costly than floating bonds to develop the Inarajan site.
Pete Sgro Jr., co-counsel to Barclay's Capital, said his firm would be interested only if the repayment terms were solidified with Section 30 funds as collateral for the loan. Barclay's Capital is a division of Barclay's Bank, which has offices worldwide.
"We are seriously considering submitting a response, and if we do so, however, the response will contain terms that would include not continuing with a subordination of the Section 30 money," Sgro said. "Otherwise there is no value in the collateral."
Sgro said lawmakers made "damaging amendments" to the governor's original short-term borrowing bill.
The administration had pledged Section 30 money -- taxes paid by federal and military employees on Guam and remitted to GovGuam --to pay back the $20 million.
But lawmakers instead required tipping fees be used as the main repayment source, and a variety of funding sources -- including compact-impact money, Section 30 money and the General Fund -- as additional security, Sen. Ben Pangelinan said.
By doing so, Section 30 funds could continue to be used for other obligations, such as the overdue tax refunds and COLA payments.
"These payments are also ordered by the court and on par with the landfill issue," Pangelinan said.
Pangelinan said the amendments were made in consultation with the administration's fiscal policy team after lawmakers realized there wasn't enough support to pass the governor's original bill.
Sgro said lawmakers should go back and approve the original version of the governor's bill, which is in line with the intent of the federal receiver and the District Court of Guam.
"How can anyone ignore the consistent position taken by (Chief Judge Frances Tydingco-) Gatewood and create an amendment that will not accomplish the necessary financing because of the vagueness and lack of value of the collateral created by an amendment?" Sgro asked.
Thursday, October 23, 2008
District Court Assumes Dandan Ownership Issue
District Court to assume Dandan ownership issue
Friday, 24 October 2008
by Therese Hart
Marianas Variety News Staff
US District Court Judge Frances Tydingco-Gatewood has ordered a stay in the Superior Court proceedings involving the ownership issuJudge Frances Tydingco
e of the Dandan property where the next landfill will be constructed. The judge said this issue will now be decided by the District Court.
During its quarterly meeting, David Manning of receiver Gershman, Brickner & Bratton informed the court that because of the pending litigation in the Superior Court, it would be impossible to obtain debt financing for consent decree projects.
"There is an urgent need to clarify that the government of Guam has lawfully obtained title to the Layon site," Manning said.
Under GBB's timetable, construction of the new landfill is scheduled to begin in January, 2009, with the government of Guam required to deposit $20 million with a trustee.
Since the court's adoption of the receiver's timeline, it requires that financing be in place for the consent decree projects.
GBB advised the court that the cloud over the title to the Layon site must be cleared immediately or financing will be almost impossible to obtain.
Attorney General Alicia Limtiaco informed the court that the Dandan site has pending litigation in the Superior Court and that this issue should be resolved first.
There are court cases pending in the Superior Court regarding the title and the proper legal acquisition of the Dandan property.
One case involves a challenge to the government by the private property owners who claim that the government violated the eminent domain law and the land acquisition process.
Another pending case is between property owners regarding their interests in the distribution of property that has yet to be divided.
The order states that the District Court will not make any determination of property value and should the court find that the government of Guam has acquired legal title to the Layon site, the temporary stay will be lifted so that the Superior Court of Guam may address valuation issues.
Pleadings and briefs for a declaratory judgment must be filed by Oct. 27.
Briefs concerning legal rights or interests pertaining to the Layon site must be filed by other interested parties or landowners no later than Oct. 30.
A hearing is scheduled Nov. 6 at 9 a.m., at the U.S. District Court
Friday, 24 October 2008
by Therese Hart
Marianas Variety News Staff
US District Court Judge Frances Tydingco-Gatewood has ordered a stay in the Superior Court proceedings involving the ownership issuJudge Frances Tydingco
e of the Dandan property where the next landfill will be constructed. The judge said this issue will now be decided by the District Court.
During its quarterly meeting, David Manning of receiver Gershman, Brickner & Bratton informed the court that because of the pending litigation in the Superior Court, it would be impossible to obtain debt financing for consent decree projects.
"There is an urgent need to clarify that the government of Guam has lawfully obtained title to the Layon site," Manning said.
Under GBB's timetable, construction of the new landfill is scheduled to begin in January, 2009, with the government of Guam required to deposit $20 million with a trustee.
Since the court's adoption of the receiver's timeline, it requires that financing be in place for the consent decree projects.
GBB advised the court that the cloud over the title to the Layon site must be cleared immediately or financing will be almost impossible to obtain.
Attorney General Alicia Limtiaco informed the court that the Dandan site has pending litigation in the Superior Court and that this issue should be resolved first.
There are court cases pending in the Superior Court regarding the title and the proper legal acquisition of the Dandan property.
One case involves a challenge to the government by the private property owners who claim that the government violated the eminent domain law and the land acquisition process.
Another pending case is between property owners regarding their interests in the distribution of property that has yet to be divided.
The order states that the District Court will not make any determination of property value and should the court find that the government of Guam has acquired legal title to the Layon site, the temporary stay will be lifted so that the Superior Court of Guam may address valuation issues.
Pleadings and briefs for a declaratory judgment must be filed by Oct. 27.
Briefs concerning legal rights or interests pertaining to the Layon site must be filed by other interested parties or landowners no later than Oct. 30.
A hearing is scheduled Nov. 6 at 9 a.m., at the U.S. District Court
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