Great Debate saw final election push

by Sabrina Salas Matanane from KUAM.com

Guam - The final showdown between the two gubernatorial teams was much more structured and organized than their verbal scrap held the night before at the Hyatt and hosted by the Guam Medical Association.

University of Guam Field House was packed with supporters from both camps. They were asked a total of 18 questions. In his opening statements former Governor Carl T.C. Gutierrez talked about his experience and how the stakes are high with the military buildup. He added that the Guam needed a seasoned leader, someone with experience in crisis management and a leader than can pull the community together. His opponent Senator Eddie Baza Calvo began by thanking his supporters. The republican candidate for governor then began to attack his opponent's record reminding them about the Gutierrez Administration when there was "hanom taki", a 38% graduation rate for high school students and 10,000 people who were unemployed. Calvo's running-mate Senator Ray Tenorio then began to speak saying this election is about "character not charm".

When asked "If you are elected, how will your administration address critical issues and concerns in public K-12 education?" Gutierrez responded that he will work the Bureau of Budget Management and Research to ensure the Department of Education receives its timely allotments. Senator Calvo however reminded the public that Gutierrez transferred $2 million out of education when he came into office.

When asked "How will our administration work to preserve Guam's culture?' Calvo responded saying he would spend more money on the Department of Education to promote the Chamorro culture in school. He added that he would support the construction of a Chamorro museum, Gef Pago and the Hurao Academy. Calvo added that he would also work with village mayors to maintain their unique identity and would work to revitalize Hagatna. Democrat Gutierrez said "Language is the umbilical chord of our culture".

When asked "How will your administration work with these agencies or other stakeholders to improve law enforcement on Guam?" Gutierrez started by referring to public law that mandates law enforcement officers receive their 10% increments over the next four years. Gutierrez said he will work to make sure they get their necessary raises. The democrat gubernatorial candidate also said that if elected he would pull together Guam's law enforcement and the military's to be part of "community policing". Gutierrez also talked about how under his administration streetlights were put up for safety reasons but it was this administration that took them down. Republican Calvo responded by calling Gutierrez out, saying that when he was Governor he increased the number of police officers to watch him, that under his administration there was a record number of rapes and murders. Calvo said if elected "there will be more police officers". He added that he would work to improve technology, communication and interconnectivity with law enforcement. He added that he supports more neighborhood patrol programs and would open more police kobans.

During the set of questions for candidates for Lt. Governor, the first question posed was "if elected, how will your leadership team improve and support adult and higher education on Guam?" Senator Frank Aguon Jr, approached the podium with a copy of their policy platform, ASAP Guam". Holding it in the air Aguon said they will work collectively and collaboratively with the University of Guam and the Guam Community College to make sure they identify the opportunities and challenges to get good job for families. In Senator Ray Tenorio's response he said "he showed you a book, our platform is n our heart". Calvo added that under a Calvo Tenorio administration they will create new scholarships among other things. He added that Calvo helped put together the apprenticeship program and that together if elected they will help everyone, not a few.

When asked "How will your administration manage our precious lands and work with landowners?" Tenorio said their plan first would say Pagat is not sale. He added that they will protect Pagat and that the Department of Defense should stay within its existing blueprint. Senator Aguon talked about the Chamorro Land Trust Commission and that under a Gutierrez Aguon administration it would be a priority to ensure those properties are immediately surveyed.

When asked "How will your administration work to reduce crime?" Aguon responded by saying they would work with village mayors and law enforcement agencies to recognize what law enforcement heads have to do for the buildup. He added they would partner with military security forces to be part of the community. Senator Tenorio said you will have a Lt. Governor who was a cop. He added that former Governor Carl Gutierrez had more police officers protecting him than on the streets. He also responded to Gutierrez' earlier statements about streetlights, saying their were "chandeliers in Agana Heights". Tenorio ended saying more cops means more safety.

When asked "How will your administration improve Guam's economy and provide for long term growth?" Calvo started by referring to Gutierrez record as Governor saying unemployment was at 15% and how 10,000 people were unemployed. Calvo added that under his administration they will take advantage of the buildup and implement the classroom to careers initiative. He said he will go to the Department of Education, University of Guam and the Guam Community College and ask them to build a curriculum so that our young people can take advantage of the new economy. Gutierrez responded to the question saying we need to get more Visa Waiver programs for Guam and work with the airlines. He says if you bring in more tourists it's guaranteed the economy will get better.

When asked "what will your administration do to improve Guam-Federal relations?' Gutierrez started by saying when he was Governor he doesn't believe any one had a better relationship, referring to how he was able to bring former President Bill Clinton to Guam. He said that we have been ignored in Washington D.C. and do not have a face there. He says its not Bordallo's job, he said it's the Governor of Guam's job to network," This face will be the face of Guam in the federal government," Gutierrez said. In response Senator Calvo said "his face is so great the federal government took their kids out of public school." Calvo added that he's friends with Congresswoman Madeleine Bordallo and would work with her.

When asked "how will your administration work to improve Guam's utilities?" Calvo was first to respond and again referred to when Gutierrez was Governor when GWA had "hanom taki". Calvo said children were drinking water that could kill them. The republican candidate then said under the Consolidated Commission on Utilities there has been vast improvements and that he would work with them and the federal government. He made reference to his bi-partisan trip to the nation's capitol and said that with the help of Congresswoman Bordallo they were able to secure millions in federal money for infrastructure improvements outside the fence. Gutierrez said that he would work with the legislature to allow the Governor to be able to appoint some of the members to the CCU. He also said he recalled when he was Governor that the Guam Environmental Protection Agency shutdown Tropicool which was run by Pepsi. He said while he was trying to fix hanom taki you were selling it to the people.

It was once again turn for the candidates to Lieutenant Governor to be asked questions. When asked "How will your administration work to improve relations with the judiciary?" Senator Aguon said his running mate knows almost everyone in the court by now despite detractors that have tried to take him down he stands here innocent. Aguon then said they need to provide more resources and expand the northern satellite court among other things. Tenorio said that the reason people in the court may know him is because of the number of times he's been indicted and the number of times his agency heads have been indicted. Tenorio added that they need to get the judiciary their resources and bring people and government officials to justice.

When asked "How will your administration work with the Guam legislature?" Calvo was first to answer and asked the crowd at the UOG Field House "How many democrats are here for Calvo Tenorio?", He followed up "I love both sides… that's so important to work with consensus." The republican candidate for governor said he will work with Delegate Bordallo and all sectors of the community he added that during his first week he will meet with the Legislature both minority and majority. He said "Now is the time to come together." Former Governor Carl Gutierrez took the podium and said the only problem when governor was working with the Legislature but come January 1^st he is ready and is already working with the Legislature. He cited how he and Senator Ben Pangelinan will work together, "there is no time for petty politics". He added that he has a great working relationship with all the democrats.

The debate ended with both teams coming together shaking hands. Residents are encouraged to read teams respective platforms. To view Gutierrez Aguon's ASAP Guam policy platform log on to voteforguam.com. To read the Calvo Tenorio team's Blueprint 2020 log to calvotenorio.com.

$1.75 Billion

Buildup utilities cost: $1.75B
By Brett Kelman
Pacific Daily News
March 24, 2010

It could cost as much as $1.75 billion to prepare Guam's utilities for the military buildup and the growth beyond, and the federal government must pay for the costs that local residents cannot afford, the island's highest utility official said yesterday.

Simon Sanchez, chairman of the Consolidated Commission on Utilities, explained this price tag during a closed-door briefing with President Obama's chief environmental adviser yesterday.

Sanchez said the island needs a commitment that the federal government is willing to pay to make Obama's "One Guam, Green Guam" vision a reality -- or delay the buildup.

"What we shared with the feds this morning was: Inside this $1.5 billion to $2 billion, we are going to find a number that is the most the people of Guam can afford to pay," Sanchez said.

That number is enough for only some of the upgrades Guam's power, water and wastewater systems need to prepare, Sanchez said. The buildup is expected to bring 80,000 more people to the island by 2014.

"If the federal government wants more than that to occur, they have to fill in the gap," Sanchez said.

Some of the sharpest expert criticism of the coming military buildup came from the U.S. Environmental Protection Agency in February. Like Sanchez, the U.S. EPA said the buildup's impact on drinking water and wastewater could threaten the island's aquifer and public health.

If these concerns aren't addressed, U.S. EPA will call on the White House Council on Environmental Quality, which acts as a referee when federal agencies disagree.
The council's chairwoman is Nancy Sutley -- whom Sanchez briefed yesterday morning.

Journalists weren't allowed to attend the briefing, which was held at the Naval Base admiral's office. Sanchez and Sutley spoke about their meeting during a tour of Guam's northern wastewater treatment plant yesterday afternoon.

Sutley said it was obvious that the island had many long-standing infrastructure needs and the buildup would add to those shortcomings. The puzzle of who pays for the solutions must be solved, she said.

"I know there are lots of discussions going on on costs and it is important information for us and this (is) clearly an issue we are going to have to resolve, about who pays and how," Sutley said. "... We have a lot to think about and a lot of work to do still."

Direct and indirect

Regardless of whether the buildup happens, many of these improvements would be unavoidable as Guam grows, Sanchez said. But the sudden spike in population in 2014 has forced some changes to happen sooner.

Some of these changes are direct impacts -- such as the increased power, water and sewage needs of the new Marine base -- for which the military has been more than willing to help pay, Sanchez said. One example is that the military has discussed paying as much as $50 million to make upgrades at the northern wastewater treatment plant that was toured yesterday, he said.

But indirect impacts are more difficult to plan for and pay for, so Guam needs even more money from the Department of Defense for these, Sanchez said.

For example: The Guam Power Authority had planned to build a new power plant in 2022, but because the buildup will increase power needs sooner, the plant is now needed in 2017, Sanchez said.

"So why should Ms. Cruz pay for debt service on the cost of another generator five years sooner than she would if (the Marines) didn't show up?" Sanchez said.
Closed doors

Sutley's two-day fact-finding trip ended yesterday, and much of her research about Guam has taken place behind closed doors.

Only hand-picked community groups were allowed in a stakeholders meeting on Monday afternoon, and journalists weren't allowed in the briefing held yesterday morning. Yesterday afternoon, Sutley met with local senators behind closed doors.

Sutley said the meetings were designed to create "frank and candid" conversations and she didn't know if journalists would get in the way of that.

Dave Lotz, president of the Guam Boonie Stompers, said he was insulted that the White House met with "cherry-picked" stakeholders on Monday.

The Boonie Stompers have worked to retain access to local hiking trails when the military expands it borders during the buildup. This group -- and anyone else who was interested -- should have been allowed in that stakeholders meeting with Sutley, Lotz said.

"Somebody was making a judgment that they thought these were the important groups," Lotz said. "The bigger picture, obviously, ... is why are these stakeholders meetings meant to exclude true community involvement?"

PNC :: GWA Supports Governor's Request for More Time To Prepare For Buildup

PNC :: GWA Supports Governor's Request for More Time To Prepare For Buildup

Friday, 29 January 2010

Guam - The Guam Waterworks Authority is supporting Governor Camacho's request for a delay in the military build up.

Yesterday during the utility hearing at the Legislature's DEIS hearing, GWA submitted a report to Senator Ada’s Committee on Utilities.

The reporty delt with the status of the GWA's preparation for the military buildup.

Click on the link below to view GWA's powerpoint presentation at the hearing:

www.guamwaterworks.org

Go to Divisions, click on Public Information. You will find the powerpoint there.

Written by : News Release

PNC :: Ada Says Feds Need to Pay for Infrastructure

PNC :: Ada Says Feds Need to Pay for Infrastructure

Friday, 29 January 2010

Guam - The Guam Economic Development Authority has issued a list outlining the major economic impacts to Guam as a result of the military buildup.

According to geda the potential economic impacts as outlined in the DEIS will exceed the economic benefits. GEDA does note however that these are potential impacts noted by the Department of Defense. One of the major impacts listed is the fact that Govguam can't afford to make the infrastructural upgrades needed for the military buildup.

Senator Tom Ada is the chairman of the committee on utilities. He says that after this weeks DEIS hearings the Consolidated Commission on Utilities made it clear that they will need money from the feds to make the necessary upgrades to the islands power water and wastewater systems. For example the Guam Power Authority will need at least 110 million dollars for it's upgrades while the Guam Waterworks Authority will need at least $50 million dollars. Senator Ada says that these upgrades are all achievable if the Federal Government provides the money needed to start on the projects.

Ada says that the CCU has worked with the Department of Defense to come up with solutions. Part of the solution is to identify the upgrades that are directly necessary as a result of the buildup and have the U.S. federal government pay for them. Ada says the bottom line is that the federal government will have to fund the improvements to infrastructure needed to support the buildup.

The senator also spoke about the indirect impacts to the island's utilities and how they are much harder to identify. In fact according to Ada DEIS fails to address the indirect impacts to the islands infrastructure.

The senator also wants to make it clear that the current bonds that GWA has secured are meant for upgrades that are needed without the buildup the agency still needs money to fund the upgrades necessary as a result of the buildup.

Utility upgrades: Who will foot the bill?

Utility upgrades: Who will foot the bill?

Friday, 29 January 2010 00:42
by Tiffany Sukola | Variety News Staff

PUBLIC utilities officials are ready to move forward with critical system upgrades in order to prepare the island’s infrastructure for the population spike associated with the military buildup; however, agencies are still unsure as to who will foot the bill.

“We know what needs to be done and now we just need to figure out where to get the money,” said Consolidated Commission of Utilities chairman Simon Sanchez during Wednesday’s hearing at the legislature on the draft environmental impact statement.

Officials from the Guam Power Authority and the Guam Waterworks Authority outlined the critical projects that must be completed before the thousands of marines and their families arrive on Guam.

Sanchez stressed the importance of moving forward with these projects because if the critical upgrades are not made before the realignment of the Marines and their dependents, then Guam’s utility and water systems face being overtaxed.

But although the military draft impact statement has identified where Guam’s power, water and wastewater companies should make repairs to their systems in order to handle an accelerated population growth, it doesn’t identify a funding source.

According to Sanchez, the utilities companies want the Department of Defense to absorb any direct or indirect upgrade costs because current users shouldn’t have to pay for the burden of upgrading systems because of new users.

Sanchez said that even though upgrades would have had to be made eventually, with or without the buildup, agencies have to deal with the pressure of upgrading its systems at an accelerated pace.

According to GPA general manager Kin Flores, an estimated $200 million in upgrades is needed in order to handle the increased demand on the island’s power systems.

Flores said that the impact statement recommended GPA recondition several power units, and refurbishes five of the island’s CTs, or current transformers, and make upgrades to the Orote plant.

He added that the study also identified long-term solutions to ensure the power authority will be able to sustain the island’s needs post-buildup.

GPA will determine whether it will pursue building a new plant, much like the one at Cabras, or build a plant at Potts Junction.

GWA faces similar problems, as the controversial document urges waterworks upgrades worth an estimated $300 million.

According to Julie Shae, of GWA, the company will have to make upgrades to waterlines near the marines’ housing units.

However, the environmental impact statement lists four different alternatives for where the marines might be housed.

She added that GWA will have to upgrade its systems in 2013, 2016 and again in 2021 to handle the demands of a bigger population.

GWA general manager John Benavente said the major flaw with the military plan is that they do not address funding for projects off base.

“DOD thinks that development fees will address the costs associated with the growth,” said Benavente. “But GWA does not agree.”

The two companies need to locate a combined $500 million in funding for the necessary projects before the buildup begins.

Legislature holds buildup hearings

Legislature holds buildup hearings

By Dionesis Tamondong • Pacific Daily News • January 22, 2010

The Legislature is holding public hearings all next week to allow more opportunities for the public to learn about and comment on the military buildup.

Residents have until Feb. 17 to submit comments on the draft Environmental Impact Statement. Their comments on the document could affect the actions the military carries out on the island.

"Don't be afraid to come because you're not familiar with the 11,000 pages. Just come and tell us what your thinking is, and we'll translate it into the proper format," said Sen. Judith Guthertz, chairwoman of the legislative Committee on the Guam Military Buildup.

Guthertz yesterday sent her Comment Paper on Land Issues to President Obama and other federal officials that calls on them to, among other things, modify the draft EIS to locate all the military's needs and activities on existing federal land on Guam, as the preferred alternative.

"The welcome mat could be eliminated over those months if no justice is provided," Guthertz said in the letter.

The Committee on Federal Affairs, Committee on the Military Buildup, and the Committee on Education have scheduled the following hearings:

•Jan. 25, at the Southern High School cafeteria in Santa Rita;

•Jan. 26, at the Yigo Senior Center; and

•Jan. 29, at the Sinajana Senior Center.

These meetings are scheduled from 4 to 9 p.m.

The Committee on Utilities, Transportation and Public Works has scheduled a couple of hearings in the Legislature's public hearing room.

The Jan. 27 hearing will focus on the buildup's impact to Guam's water, sewer and power utilities, while the Jan. 28 hearing will focus on the impact to road and solid waste capacities.

The hearings are scheduled from 6 to 9 p.m.

CCU: Military will pay its share

CCU: Military will pay its share

Thursday, 10 December 2009 23:40 by Jude Lizama | Variety News Staff

CONSOLIDATED Commission on Utilities commissioner Joseph Duenas said the Guam Power Authority and the Guam Waterworks Authority look forward to generating bigger revenues and expanding their customer base by having the military as a paying customer.

He described as “collaborative” and “fair” the dialogue with military buildup planners with respect to increasing demands and capacities of island utility services and the impact to ratepayers.

“Working with the military we have two sides. There is the power side and then there is the water-wastewater side. The military pays its fair share,” Duenas said. “We reflect the cost back to the ratepayer. Whatever cost to provide a service, we would like that back.”

Because of the buildup plans at the utility agencies will be accelerated to meet the increasing demands expected in the wake of a population explosion that will see up to one-third more new residents over the next few years.

According to Duenas, the military is a “full wholesale customer” with whom local utility commissioners have “reached very good agreements.”

Duenas said CCU is confident it will make some improvements to the system that will address some of their needs which allows GPA to expand its customer base. “In a business, when you get more customers you get more revenue, you get to do more things,” he added.

GWA currently purchases water from the Navy for redistribution in southern communities while in the north, “Andersen [Air Force Base] discharges its sewage into the northern treatment plant already, so we provide a service for them there,” Duenas said.

At present the military and GWA maintain separate water systems by the commissioner sees more integration as the military will “probably become a customer of ours in terms of the wastewater given the relationship we already have with Andersen.”

An important factor for consideration, according to Duenas, is the need to look at the aquifer with a holistic approach. With regard to protecting the northern lens aquifer, Duenas said that GWA and the military are “on the same page.”

“We’re one community. If we damage this aquifer, that’s it; everybody loses,” he said. “The long range plan is that hopefully they become our customer and we maintain all of the wells.”

Bice insists buildup good for Guam

Bice insists buildup good for Guam

Monday, 07 December 2009 04:00
by Jude Lizama | Variety News Staff

GUAM and the CNMI will experience economic growth and opportunity as a result of the massive military buildup on Guam, according to Joint Guam Program Office executive director David Bice.

“They will come here from far and wide and see the jewel that you have here,” Bice told island leaders during the 12th Micronesian Chief Executives’ Summit which concluded at Sheraton Laguna Guam Resort Friday.

Despite hints in the draft environmental impact statement that Guam does not have much to expect from the military buildup, Bice maintained the future will be “very bright” for small business as a result of the Marine relocation and buildup.

According to the JGPO director, Marines will take advantage of the regional tourism industry and regional tourism will benefit from allied forces that will frequently come to Guam and the CNMI for training.

Because of a number of factors, the draft impact study indicates the island will not be able to “capture” any significant pools of the billions of dollars that are expected to flow into numerous military projects.

With a plan to use upwards of 30,000 foreign workers who will send most earnings off-island and no recirculation in the local economy and other factors, the low capture rate will mean Guam government coffers, employment and small businesses will be shorted the lion’s share of the billions targeted for preparing for the military’s increasing footprint.

Local turmoil

“Our program is going to maximize the use of workers from Guam and neighboring islands before we seek other labor sources,” Bice said.

The program director, however, weighed that assessment by saying the local labor market will “probably remain in turmoil for the next 10 years or so, if not longer.

He said there will be only 1,700 civilian workers supporting the Marine relocation.

Bice recounted his dialogue with Guam labor director Maria Connelly, and hopes for a collaborative effort to host a symposium geared toward ensuring “NAVFAC, the Guam Department of Labor, and the U.S. Department of Labor are all speaking as one voice.”

Water too

In addition to the economics of the military realignment, Bice sought to assuage concerns over natural resources and utilities.

The retired major general spoke about Guam Waterworks Authority’s lack of capacity to provide sufficiently for the requirements of the projected buildup construction workforce.

“They are operating at near capacity in terms of water production, at this point,” Bice explained on the military’s plan to bring online 22 additional wells to support their needs.

Moreover, Bice believes an interim solution could be achieved to assist in improving the island’s water and wastewater systems. “There is a lot of unaccounted for water loss,” he said.

In the end

Curiously, Bice addressed upgrades at the Port Authority of Guam which he claimed will “not only help the needs of our construction effort,” but will also help to transform the port into a “viable, integral conduit for goods and services.”

The military impact study leaves open the possibility that the Navy may actually repossess the Guam Shipyard facilities and loading equipment Sen. Ben Pangelinan claims to have observed at Navy docks suggest the military will handle off-loading and cargo movement from their own ports.

Military Expansion Will Tax Guam's Infrastructure

GAO Says Military Expansion Will Tax Guam's Infrastructure
Walter Pincus
Washington Post
Sunday, April 12, 2009; Page A02

The infrastructure and social services on Guam in the next five years will not meet the needs of the more than 8,000 Marines and their 9,000 dependents expected to relocate there, even as other U.S. military facilities on the Pacific island are expanding, according to the Government Accountability Office.

Under a 2005 agreement with Japan, the Marines will transfer from Okinawa to Guam by 2014. At the same time, a $13 billion expansion is planned for Air Force bases and Navy port facilities on the island. Together, the changes will increase Guam's population by almost 15 percent and "substantially" tax the island's infrastructure, the GAO said in a report sent to Congress on Friday.

Guam's water and wastewater systems "are near capacity and demand may increase by 25 percent," the GAO said. The island's solid-waste facilities have "reached the end of their projected useful life," and the military construction demands "will exceed local capacity and the availability of workers on Guam," the GAO added. As a result, outside workers will need to move to the island, the report said.

Also citing what could be an inadequate electric grid capacity and an overload for Guam's only two major highways, the GAO called on Defense Secretary Robert M. Gates to urge that other government agencies make the island's problems a higher priority in their budgets.

Although the Defense Department is expected to pay for infrastructure projects directly related to the military buildup and contribute toward utilities and roads, the Guam government "is largely responsible for obtaining funding for civilian requirements related to the buildup," the GAO said.

At a May Senate hearing, Gov. Felix P. Camacho (R) said Guam would need $6.1 billion for fiscal 2010 to support the military buildup. Guam's revenue for fiscal 2010 is projected at $532 million.

GPA Bills May Increase

Power bills may increase:
GPA wants another fuel surcharge hike
By William B. Martin Jr.
Pacific Daily News • July 18, 2008

Plan to find a way to reduce your spending in the next few months so you can pay higher power bills.

The Guam Power Authority asked the Public Utilities Commission in June to approve an increase to the Levelized Energy Adjustment Clause, or fuel surcharge, portion of customer bills. It once again cited rising fuel costs as the reason behind the increase.

If approved, Guam residents can expect to pay an additional 7.3 percent of their total bill, or about $17.33 on an average 1,000 kilowatt-hour monthly consumption rate, the commission docket states.

Simon Sanchez, chairman of the Consolidated Commission on Utilities, said that, if passed, the increase would push the fuel portion of power bills to about 75 percent.

"We all see the prices at the pump," GPA General Manager Joaquin Flores said. "We must all be aware of how volatile (the oil market) is right now."

The adjustment proposal comes a little over a month after an emergency LEAC adjustment hit islanders' wallets to the tune of a 10 percent increase.

Flores said the June adjustment was an emergency measure to recover fuel costs lost over the previous LEAC cycle, while the proposed increase is the result of a "mechanical" review process that takes place every six months.

Sanchez said the adjustment is designed to account for another six months of fuel purchases.

"The hope is when you make these fuel cost projections," he said, "it will hold six months, unless the (fuel) market goes crazy again."

Streetlights
Acting Gov. Michael Cruz yesterday signed a loan document for the government of Guam to settle its $13.8 million streetlight debt to the Guam Power Authority.

The debt caused the power authority to begin disconnecting village streetlights earlier this year, prompting the Guam Legislature and administration to pass legislation to borrow money to pay off the debt.

"We're closing a chapter -- hopefully -- in our history that really needs to be closed," said Cruz.

The payment will offset a 2- to 6-percent base rate increase to customer power bills that would have gone into effect last month. If the debt hadn't been paid, the increase would have gone into effect this year instead of next year.

Sanchez said the payment also will take some $5.3 million off the top of fuel costs, which, if not recovered, would require an even higher fuel surcharge increase.

Flores reminded Cruz and other government officials that a shortfall still exists in the payment of current streetlight operations and will need to be addressed or the problem will arise again.

Bureau of Budget and Management Research Director Bertha Duenas said there is a provision in Public Law 29-85 that allows General Fund money to be used for this fiscal year's shortfall -- around $1.2 million -- but questioned why lawmakers didn't allow the provision for future years.

"Why don't we just do everything as we should in one bill?" she asked.

Condos Create Infrastructure Worries

Main sewage line at capacity
Planned condos raise infrastructure worries
By Gaynor Dumat-ol Daleno
Pacific Daily News
May 20, 2008

When manhole covers pop open and wastewater overflows onto busy Marine Corps Drive in Tamuning, it calls attention to a broader problem Guam faces amid a flurry of proposed high-rise condominiums.The main sewage line in the area has reached its limit, Simon Sanchez, Consolidated Commission on Utilities chairman, said yesterday.

"We have a major chokepoint," Sanchez said of the wastewater transmission line from Gov. Carlos Camacho Road in Tamuning to the Hagåtña sewage treatment plant near the marina.

With the line's capacity reaching its limit, GWA is at a point where it could refuse wastewater connections to new customers in the area served by the main line, Sanchez said.

The main wastewater line transmits sewage from areas beyond Tamuning. Its reach starts from the Pacific Islands Club in Tumon, to all of Tamuning, including Airport Road, and then East Hagåtña, according to GWA. The main wastewater line also services some areas of Barrigada, Sanchez said.

The main line serves the area in Tamuning and Tumon where at least three luxury condo high-rise projects are proposed for a total of almost 1,000 additional units.
The northern half of hotel row in Tumon Bay, from the Guam Marriott Resort to the proposed 700-unit condo project in Gun Beach, also faces wastewater capacity challenges that GWA has previously acknowledged.

"We don't want to stop development, but our growth has surpassed the current infrastructure capacity," Sanchez said.

He said about 20 to 30 condominium building projects are in various stages of planning by developers.

There's a consortium of luxury condominium developers that's working out a way to pay for upgrades to GWA infrastructure to allow their developments to get off the ground.

Upgrades

But the filled-to-capacity main wastewater line from Tamuning to Hagåtña is an example of what Sanchez called a "fundamental project that you can't just assign to one particular developer."

The cost to add a main sewage line from Tamuning to Hagåtña is about $25 million, Sanchez said.

GWA doesn't have an extra $25 million in its bank account to pay for the main line upgrade, but the agency has a plan to borrow about $100 million to $150 million from the bond market next year to pay for projects such as upgrading the main sewage line from Tamuning to Hagåtña.

But what's to be done until then, Sanchez asked.

"What do you do in the meantime? Are we at a point where we can't permit the next projects if we don't have the capacity?"

Wastewater capacity for Tumon Bay in general -- from Oka Point to Gun Beach -- is at capacity or has exceeded its load, according to GWA.

"Tumon Bay's sewer collection system is currently at maximum capacity and additional capacity will need to be added before it can take any additional wastewater loading," GWA officials said.

The agency is working "in partnership with a consortium of developers to create this capacity," officials said. Duenas, Bordallo, Camacho and Associates conducted an engineering study, and its analysis showed the sewer system in Tumon "is at or above capacity," according to GWA.

The study identified about $4 million in projects that will add enough capacity to central Tumon and the Ypao Beach area to allow the consortium's member-developers to proceed with their projects.

The developers' money, however, does not address what the CCU chairman calls the fundamental improvement that's needed for the main wastewater line.
The northern half of Tumon Bay hotels send their wastewater to the Fujita pump station, which has needed capacity upgrades because of its history of break-downs that has caused sewage to flow into Tumon Bay in previous years.

New charge

In addition to bond borrowing, part of the GWA plan to pay for upgrades to its infrastructure is its proposed system development charge.

The charge will require a new home construction to pay $4,000 for water and $4,000 for wastewater. Hotel and condo projects would have to pay $1 million.

Money collected from the charge will fund infrastructure upgrades for water and wastewater, Sanchez said. The charge also will pay for water and wastewater plants and other general infrastructure upgrades that may not necessarily be in the developer's area, he said.

Questioned

But while some developers are talking about helping to pay for increased wastewater capacity, one developer, Michael Ysrael of Tanota Partners, questioned the GWA move to let developers "pony up" for more wastewater system upgrades.

Ysrael said when he reviewed GWA reports, he concluded that the capacity issue for wastewater in Tumon "has nothing to do with the system."

"It's not that the system is over capacity; it's not being run right," Ysrael said.
His family owns Tanota Partners, which owns the 600-room Outrigger Guam resort, a few other Guam hotels and is building the luxury hotel resort The Bayview 5 next to the Outrigger.

GWA, in response, stated it "routinely performs preventative maintenance on sewer lines in Tumon and on all sewage pump stations and wastewater treatment plants."
Ysrael also said in 1999, sewer lines were installed in Tumon Bay as part of the multimillion-dollar Tumon Redevelopment project, which was funded with borrowed money from the bond market.

But the Department of Public Works has previously acknowledged those lines, which have almost double the capacity of current sewer lines in Tumon, have not been in use because they're not connected to a pump station.

"The new station would pump sewage to another never-built pump station at Gun Beach, which would pump the sewage out of Tumon. These two stations were never built," according to GWA.

At least $8 million of the $53 million the local government borrowed from the bond market to fund the Tumon Redevelopment project, which started in 1998, was for wastewater lines, according to Pacific Daily News files.

Public Works Director Larry Perez said in an interview in December there was $2 million available for Tumon Redevelopment's phase 3, which would include a sewage pump station. But when DPW put the project out for bid, the price tag came to $6.9 million, Perez said at the time.

DPW did have an additional $4 million available from the Territorial Highway Fund, but lawmakers authorized use of that money for the partial payment of the local government retirees' cost-of-living-allowance back payment, Perez has said.