Rota may face shortage of supply again

MONDAY, JANUARY 10, 2011 12:00AM BY JUNHAN B. TODENO - REPORTER for THE Marianas VARIETY

THERE could be a scarcity of commodities on Rota like what happened in Feb. 2010 if there is no shipment of goods due to the current weather condition.

Mayor Melchor Mendiola said the shipment didn’t arrive on Rota as scheduled on Saturday.

“It did not happen due to an increase in wave activity,” the mayor said in an email.

According to the National Weather Service on Guam yesterday, “a trade-wind disturbance in combination with a shear line will bring scattered showers and a slight chance of thunderstorms to portions of the Marianas through Monday.”

Currently, MV Super Shuttle and MV Tug Chamorro are the only vessels servicing Rota.

“This is one major reason Rota must provide an accessible sea port,” Mendiola said. “The health of the community must not be compromised. This is a priority among other priorities.”

‘Panic buying’

One of the advisers of the Rota mayor, Tomy Mendiola, told Variety that whenever there are no shipments of goods, “people worry.”

He said “panic buying” is inevitable and usually occurs every time there’s a weather disturbance.

“People tend to buy more than what they need,” he added.

Tomy Mendiola said the mayor already submitted a proposed development plan for the port of Rota.

He said Rota is seeking financial assistance from the American Recovery and Reinvestment Act through the U.S. Department of Transportation.

The administration of Gov. Benigno R. Fitial supports the development of Rota’s port, he added.

“The administration has been pushing for this project because the governor knows the situation and the needs of the people of Rota,” he said.

Mayor Mendiola said an accessible seaport will contribute to the development of Rota and will mean more economic activities there.

“I cry to our leaders not to wipe my people’s tears but to dry them with greater vision,” the mayor said.

He said the seaport project will also address the concerns regarding the high costs of commodities on Rota.

In Feb. 2010, the island experienced a shortage of food and other basic commodities after a 55-day delay in the shipment of goods due to bad weather conditions.

566 Million for Guam from DOD

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

Obama Waiting for $50 Million Approval for Guam's Port

Waiting for approval: Obama asks Pelosi's authority to shift $50M for Port
By Dionesis Tamondong
Pacific Daily News
April 9, 2010

Obama this week sent a letter to House Speaker Nancy Pelosi, asking for the authority to shift up to $50 million in his administration's budget request next fiscal year for critical improvements to the Port Authority of Guam.

"Modernization of the port is a critical prerequisite for the military construction program supporting the realignment of U.S. Marine Corps forces from Japan to Guam, a part of the overall U.S. strategy for military forces in the Pacific region," Obama said in the April 5 letter.

If approved, the Department of Defense will transfer funds to the Department of Transportation to finance the port improvements.

The letter from Obama, who has scheduled a Guam visit in June, was made after Guam officials questioned the federal government's intent to help GovGuam pay for the cost of hosting a much larger military presence.

The port had applied for an economic stimulus grant of almost $50 million through the Transportation Department, but that wasn't approved.

The port has plans for about $200 million worth of upgrades, with a large bulk of the funding from federal grants and loans.

Without those facility improvements, the port can become a chokepoint in the delivery of construction materials and commercial cargo throughout the region.

Port review unresolved

Port review unresolved

By Steve Limtiaco • Pacific Daily News • January 25, 2010

It took about five months for the governor's office to give a $350,000 port outreach job to contractor Parsons Brinckerhoff International -- from January 2008, when the military approved funding, to May 2008, when a $350,000 purchase order was issued.

It has taken federal and local officials longer than that to say whether procurement rules were followed.

Guam Assistant Attorney General John Weisenberger has completed his procurement review of the project, and his findings currently are with Chief Deputy Attorney General Phil Tydingco "for further review and final disposition," said attorney general's spokesman Eric Palacios.

The military also has not completed its review of the port project, according to a letter from the military to the Pacific Daily News last week.

AG review began Aug. 3
The attorney general's office started its procurement review Aug. 3. at the request of acting Gov. Mike Cruz, following a series of stories about the outreach project in the Pacific Daily News.

OEA announced its review a few days later and said it froze $350,000 in grant funding to the governor's office -- the value of the project -- pending completion of that review.

Governor's Chief of Staff George Bamba, who is the authorizing official for all OEA grants to the governor's office, approved funding for the port outreach project after the port's legal counsel raised concerns about first putting the job out to bid. The job never went out to bid and was paid for using a $350,000 sole-source purchase order from the governor's office.

The outreach work, which was paid for but never completed, was performed by subcontractor M2D2, which employs Bamba's daughter-in-law and the brother of the port general manager.

Purchases larger than $15,000 normally have to be put out to bid, but the island's chief procurement officer said she approved the larger purchase order based on information provided by Bamba in a memo.

More than $11M in grants approved

The grant agreements signed by Bamba state the grant money must be spent according to federal and local procurement regulations. OEA has approved more than $11 million in grants to the governor's office to help the island prepare for the military buildup.

Bamba, during an interview on K-57 radio in late October, said OEA had completed its review and was waiting for the Guam attorney general's office to release its findings. He said he hoped it would happen within a week.

But OEA has not completed its review, according to the Defense Department.

The Pacific Daily News in November submitted a Freedom of Information request to the military, asking for a copy of the OEA procurement review.

According to the military, OEA Director Patrick O'Brien, who is the "initial denial authority" for his office, was unable to provide the requested documents.

"The OEA informed us that the record you seek is still in production and has not been completed," the military's Office of Freedom of Information stated in a Jan. 14 letter to the Pacific Daily News.

Attorney General Alicia Limtiaco last year recused herself from the review process. Her husband, Vincent Munoz, helped start subcontractor M2D2 in 2007, but Munoz sold his share in the company in April 2008 and did not work on the port outreach project, his attorney has said.

Guam Port News

Guam Designated Strategic Seaport

Guam designated strategic seaport
By Agnes E. Donato
Pacific Sunday News
September 20, 2009

As a result, the Department of Defense will include the use of the island's port facilities in its planning for cargo movement during times of military deployments.
While the designation doesn't guarantee federal funding for port projects, it does underscore the need for funding for infrastructure improvement, according to Gen. Duncan McNabb, commander of the U.S. Transportation Command.

"A modernized port will provide additional deployment options for our forces forward and greater flexibility to support humanitarian assistance and disaster relief missions in the Pacific theater," McNabb wrote in a Sept. 17 memorandum to key military officials. McNabb also asked the Department of Transportation consider Guam's expanding military role as it weighs grants and economic stimulus funding for critical transportation projects.

The Military Surface Deployment and Distribution Command made the decision two weeks after McNabb toured the Port of Guam, a news release from the office of Guam Delegate Madeleine Bordallo said yesterday. "Our community will benefit from the strategic port designation," Bordallo said in the release. "The military buildup will increase the volume of traffic at the port and resources will be needed to help the port meet future demand.... This designation will help the port to receive federal funding to modernize port infrastructure and cargo handling."

Monte Mesa, chairman of the port's board of directors, called the designation "a very good validation of our port master plan."

"It highlights the critical need for our port to be developed to a modern, world-class standards," said Mesa.

Gov. Felix Camacho also welcomed the military's decision.

"The recognition of our island's only port as a strategic designation brings great economic opportunities and benefits for Guam," Camacho said in a release. "This acknowledgment will help strengthen the administration, and port management's efforts when applying for funding that will modernize and expand the port in order to prepare it for the military buildup."

About 8,000 Marines, plus about 9,000 of their dependents, are expected to transfer to Guam from Okinawa, Japan, by 2014.

Tough Times

Tough times: military expansion budget tight
By Michele Catahay
Published Dec 21, 2008
KUAM

Funding for the military buildup continues to look dim, according to Civilian Military Task Force member Tony Lamorena. The former Guam senator says that despite Guam's 2010 request for funding, there's been no response from the feds.

Lamorena told KUAM News, "Obviously we're not too happy about idea that the budget we submitted has yet to be entertained. But the reality is that a lot of the things we submitted in the 2010 budget are specifically to meet the demands of the military buildup. There's substantial amount of money for the port, DPW, and for various agencies that need to beef up their infrastructure prior to the military beginning the construction. We're still pushing that the 2010 budget we submitted will be entertained, but as governor stated he is disappointed by the lack of interest or movement by the federal government."

CMTF members are now working on developing a five-year budget request to be submitted to the federal government's Office of Management and Budget.

Guam Port Discusses PMC

Guam port discusses public-private partnership
Wednesday, 15 October 2008
by Tessa Borja
Variety News Staff

IN a working session held yesterday afternoon, the Port Authority of Guam board and management discussed the costs and benefits of implementing a private partnership through a Performance Management Contract (PMC). Bringing up his experience as the general manager of Consolidated Utilities Services, which is now managed under a PMC, John Benavente gave a presentation on his analysis of how the port could benefit from outsourcing the management of the port.

"Workers are unproductive when they don't have the tools and equipment or the work order processes to make them more efficient," said Benavente.

"For the power entity, for example, the management group gets the parts they need right away. The PMC will have the power to procure, which is one of its advantages," Benavente said.

He added that because the PMC terminates after 20 years or so, the asset always returns to the public. "And you can determine if you want to keep the modifications or developments," Benavente concluded.

Military Buildup Full Speed Ahead

Port Not Ready for Military

Port not ready for buildup
Businessman: Increase capacity, improve efficiency
By Gaynor Dumat-ol Daleno
Pacific Daily News
gdumat-ol @guampdn.com
May 22, 2007

A Defense Department representative has identified the local government-run seaport as a potential chokepoint in the upcoming massive military buildup on Guam, a member of the local business community said yesterday.

The military buildup -- and its ripple effect on the already robust housing market -- is expected to double the volume of cargo entering through the island's only civilian seaport, which is being run by the Port Authority of Guam.

How island officials will handle the port issue -- and whether their actions will be made in time for the buildup within the next several years -- has an effect on the standard of living of everyone on the island, businessman Carl Peterson said.

Peterson voiced his concern in light of what he called sincere and straightforward comments Friday by Gary Kuwabara from the Defense Department's Office of Economic Adjustment.

Kuwabara is the Office of Economic Adjustment's point man for military buildup issues on Guam and makes periodic visits to the island from Washington, D.C. He spoke Friday after subcommittee representatives of the governor's task force on military buildup gave status reports.

Peterson attended the meeting as a Guam Chamber of Commerce representative, but the comments he made for this story were not made on behalf of the Chamber.

Peterson said Kuwabara had mentioned the need for upgrades to the seaport.

A more efficiently run port ensures on-time delivery of goods for Guam consumers, businesses and government entities, but a major breakdown in cargo movement could lead to shortages and possibly more expensive goods, as was Guam's experience years ago.


Urgency
With the buildup's expected $10 billion to $15 billion cost, the local community also is expected to see substantial economic growth.
The reason for the urgency, said Peterson of the need to modernize the port's operations and expand its capacity, is that every Guam resident's standard of living will be adversely affected if the port stays stagnant.

All the construction related to the relocation of about 8,000 members of the Third Marine Expeditionary Force and their approximately 9,000 dependents from Okinawa must be done within the next several years.

Based on the agreement between the U.S. and Japan, the relocation must happen by 2014. Japan is picking up about 60 percent of the relocation cost.

According to Peterson, Kuwabara at Friday's meeting of the governor's task force on military buildup said when the buildup is at full blast, 72,500 military supply containers are expected to be shipped to Guam in the span of one year.

Kuwabara could not be reached for comment yesterday.

The port has handled an average of 84,000 containers annually, its management stated.

Based on Kuwabara's comment at the task force meeting, Peterson said the sense he got was that the local government must make enormous changes to bring the port up to speed with the anticipated surge in incoming cargo traffic.

In addition to military supplies, the island also is expected to see a surge in shipment of construction materials to meet the demands of a booming housing market.

Logistics and shipping companies last year said that if one gantry crane breaks down, even before the buildup occurs, the island economy could be held hostage by an equipment malfunction.

Peterson suggested that the Port Authority of Guam should invite the world's experts on running ports to submit proposals for how they can better run the seaport and how much it would cost for them to do so.

The port agency's attempt last year to hand over cargo handling operations to a private operator has failed.

And the port agency board "has not made any determination on what their next step will be" on the privation issue, according to a statement from port management yesterday.

The port management stated: "In the late '90s, when the island experienced its last military buildup, the port was able to handle the increased number of containers."

As for the port's years-long efforts to try to buy a new gantry crane, which moves containerized cargo on and off ships, it's likely the process will take about two more years.

The agency's evaluation committee is reviewing the proposal submitted by the lone bidder for the manufacture and installation of a new gantry crane, according to the port agency management.

The agency stated the estimated time from manufacturing to delivery of a new gantry crane: 18 months to two years.

In addition to trying to order a new gantry crane, the port management stated the agency is "in the process of acquiring new handling equipment to deal with the increase of cargo arriving on Guam."

"We are also currently reviewing our terminal infrastructure to determine the type of operations the port should implement to effectively off load/load cargo onto vessels," according to port management.

And the port agency yesterday stated it is hiring a consultant to update its master plan.


Labor shortages
Friday's meeting also discussed the labor needs for the buildup as well as the private sector's need for more construction workers.

Based on an informal estimate, Guam might need 25,000 additional construction workers to meet both the military and the private construction projects' needs, said David Dell'Isola, a Guam Department of Labor representative, said at Friday's meeting.

The military buildup-related projects will need between 12,000 to 15,000 workers, said Capt. Robert Lee, acting director of the U.S. government office on Guam that coordinates buildup efforts.