New Layon Landfill now open

FRIDAY, 02 SEPTEMBER 2011 01:39 BY ZITA Y. TAITANO | VARIETY NEWS STAFF

TWO container trucks carrying trash became the first vehicles to make use of the new Layon Landfill yesterday morning following its official opening.

Prior to a ribbon-cutting ceremony at the front gate, District Court Judge Frances Tydingco-Gatewood commented on the site, stressing it’s not a dump, but a landfill. She also noted the years it took for the new landfill to become a reality.

“This is really a long road, a challenging road to get to the landfill,” said Gatewood. “It was with a heavy heart that I appointed a federal receiver.”

She is aware of the concerns of residents in Malojloj, especially Inarajan Mayor Franklin Taitague, who didn’t want a landfill in his village.

Department of Justice Assistant U.S. Attorney Robert Mullaney called the new landfill a world-class facility and said Guam can be an example for other communities.

Also speaking was Harvey Gershman, president of Gershman, Brickner & Bratton (GBB), who admitted they saw challenges in the system, but since taking over the Solid Waste Management Division of the Department of Public Works, have been able to implement change for the better.

“What we have accomplished in this receivership is everyone’s success, not just our success,” said Gershman. “It’s a success for the island’s future – an environmental succession.”

Lt. Governor Ray Tenorio also praised the new facility.

“It’s a far cry from Ordot Dump. Ordot Dump was an environmental disaster. Here there’s protection to ensure our water doesn’t get contaminated,” he said.

A little sad

Meanwhile, Taitague admits that up until an hour before the ceremony yesterday, he was still in a state of sadness.

“My emotions are with the people of Inarajan. I still feel the site should not have been Layon, but the laws have made it clear that it’s beyond the control of the residents,” Taitague said.

Inarajan resident Manny D. Afaisen, 79, is one of those residents concerned about the site. He took a tour of the facility and looked at where the trash would be disposed.

“It’s a good idea. The only problem is there is a lot of water here,” he said of the location, expressing his concern about possible pollution of the area.

The Inarajan resident, however, said he was assured by many people, especially Judge Gatewood, that safeguards are in place.

“My visit and tour of the place kind of changed my perception of the facility; and I saw that it’s going to be run properly,” he said.

Concern

However, there are concerns about the road leading to the site and the trucks transporting waste.

“That concern was expressed during our public hearings because of the spill from the trash going on to the road and the stench from the trucks,” Taitague said.

The mayor added he was given the impression during a recent hearing that the highway will be fixed to accommodate the trucks coming to and from the site.

“They are working on the bridges. As far as the highway, that’s not a reality yet,” he said, adding he was informed by GBB it’s just a matter of the Department of Public Works fixing the rights of way for the trucks.

The mayor noted Route 4 will be used for a majority of the transfer of trash, which includes the snake-like road and hills of the As-Alonso area between Talofofo Bay and the entrance into Malojloj proper.

The matter was brought up during a status hearing at District Court on Wednesday. In GBB’s report to Gatewood, the receiver noted the problems they encountered during a couple of dry runs, including the narrow roads which made it difficult for the trucks to navigate.

It seems the work is already happening along that particular street. DPW crews were already seen clearing vegetation and cutting down trees that made it difficult for trucks to go through.

GBB’s report also stressed that until a permanent solution is made, they are going to use “pilot vehicles” to escort the trucks. These vehicles will be used to warn motorists of an oncoming trash truck.

Military's use of landfill could benefit residents

Military's use of landfill could benefit residents

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

The military wants to be a customer of the new landfill when it is built, according to the draft Environmental Impact Statement for the military buildup, and that decision could help keep trash fees down for Guam residents, saving them about $20 a month.

The bad news is the current $10 monthly fee, which has been in place during the ongoing registration period, is scheduled to increase to $30 per month by April 2011, and will not decrease, even if the military commits to using the civilian landfill.

The good news is the military's use of the landfill is expected to shield residents from steep price increases during the next decade, so the monthly fee would remain about $30.

Solid waste receiver Gershman, Brickner & Bratton last summer calculated the monthly fee for residential trash collection, with and without the military's participation. The government's solid waste operations are in receivership because the government of Guam failed to close the Ordot dump and build a new landfill, as required in a 2003 consent decree.

Without the military, the monthly fee for residential trash collection would increase to $43 by 2015, then to $52.81 by 2017, according to the receiver's calculations. The $52.81 fee would hold steady for at least five years, through 2022.

And commercial customers would save as much as $118.60 per ton on commercial tipping fees if the military uses the landfill -- $156 instead of $274.60, according to the calculations for the year 2017.

According to the draft EIS for the buildup, the amount of trash that would be generated by the military is significant -- about 40 percent of the trash entering the new landfill would be put there by military customers. The entire island, including the military, is projected to produce 135,849 tons of waste per year, not including recyclable material.

But the projected life expectancy of the new landfill is expected to remain the same -- more than 30 years -- according to the receiver, because public works officials overestimated how much trash was being generated by Guam civilians. That's because there was no accurate way of measuring the trash going into Ordot dump when estimates were made for the new landfill. Trash entering Ordot dump now is weighed on a truck scale.

"It will certainly fill up faster with (the military) but the estimated life will still be well above 30 years," said David Manning, special principal associate for the solid waste receiver. "With the scale system in place, it is now clear that the total waste stream, even when the military is included, are at about the levels originally projected without the military."

In its latest quarterly report to the federal court, the receiver also noted that the military's use of the landfill could benefit the environment by reducing the number of landfills and by providing greater opportunities to work with the military on ways to recycle and minimize the amount of waste being generated here.

According to Manning, the military likely will collect and haul its own trash, even if it becomes a customer of the new landfill. In that respect, it would be similar to a commercial trash hauler.

The receiver has been negotiating with the military on behalf of the local government, and the military in July 2009 signed a letter of intent to use the new landfill.

"The military has consistently indicated that it will continue to handle its own waste collection," Manning said.

Residents not giving up on landfill issue

Residents not giving up on landfill issue

Posted: Nov 29, 2009 9:46 PM PST
by Mindy Aguon

It remains to be seen what impact, of any, a five-year-old civil suit in the Superior Court will have on the Ordot consent decree. The Attorney General's Office submitted a report to the District Court chief judge informing her of efforts in Guam's trial court to put an immediate stop to construction efforts at the new Layon landfill.

A handful of residents, led by former Ordot-Chalan Pago mayor Rossana San Miguel, aren't giving up their efforts to have the government put a landfill at Guatali or Mala'a instead of at Layon. It was something the Attorney General's Office was concerned about two years ago.

"If the Supreme Court should decide that Judge [Katherine] Maraman made a mistake and reverses (her decision) it what that would mean is that the law that said Guatali and Mala'a had to be considered as the landfill was applicable to the governor's action. If he had no authority to enter into the consent decree, the consent decree is null and void," said Alberto Tolentino in July 2007.

And apparently the issue is still a concern as Assistant Attorney General Phil Isaac filed a report with the District Court detailing the latest efforts in a taxpayer lawsuit, led by San Miguel seeking a temporary restraining order for the Layon landfill.

She said, "I'm not asking them to completely stop the project. I'm just asking to really look at it and like I said in the meantime by law there's a place and a company that can take care of it. So it's really up and you know the bottom line it's really up to our lawmakers how they want to handle this."

San Miguel, Jose Chargulaf, Angelo Gombar, Anthony Duenas Leon Guerrero, Lawrence Portela, Tony Quinata, Franklin Taitague and Jose Terlaje have been asking the Superior Court to force the Government of Guam to stop efforts to put a landfill anywhere other than where a public law enacted back in 1997 states it should be. The taxpayer lawsuit filed back in 2004, alleges the government broke the law by failing to work with Guatali and Mala'a as potential sites for the island's next landfill.

"The law says it's Guatali," said San Miguel. "I pushed that from the very beginning and I said it again. I keep saying it time and time again. Why are you inducing all the millions of dollars on the people of Guam, the taxpayers to pay for this project when they shouldn't even have to be the one to do it?"

She continued, "Guatali is in the books. It's local law. This new landfill where it's supposed to be, is not in the books and funding for this new landfill has never been there it's money that is now made that the Government of Guam now has to pay and that's the bottom line."

A hearing on San Miguel's motion for a TRO is scheduled for January 14. Federal receiver Gershman, Bricker & Bratton meanwhile says they are aware of the report filed with the court as well as the taxpayers' litigation. Receiver representative David Manning says, as the receiver it is not their role to ask the court to take any action on a purely legal question.

However he says they are confident that all matters with respect to the consent decree and the construction of the new landfill at Layon have been proper and are being handled in strict compliance with all applicable legal requirements.

Landfill project finally gets permit

Landfill project finally gets permit

Wednesday, 25 November 2009 01:44
by Therese Hart | Variety News Staff

FEDERAL receiver Gershman, Brickner & Bratton yesterday announced that the Guam Environmental Protection Agency has issued a permit for the Layon landfill project.

The permit, issued on Nov. 23, allows all activities related to the construction of the landfill to move forward in compliance with the consent decree.

In addition, GEPA issued the air pollution control permit at the same time.

The issuance of these permits is a major milestone in the 23-year-long process of closing the Ordot Dump and building an environmentally compliant waste disposal facility for the island's municipal solid waste.

“The design of the new landfill and the plans for operating it underwent a rigorous review by the Guam Environmental Protection Agency and the United States Environmental Protection Agency, passing all of the requirements to assure that Guam's environment is protected,” GBB representative David L. Manning.

“This is the last major step in the approval process for the Layon Landfill and clears the way for a final closure of the Ordot Dump and an end to the environmental damage it has inflicted on Guam for many years,” Manning added.

Construction contracts have been awarded to various local companies. Core Tech International was awarded the contract for the construction of the access road and utilities.

Black Construction Corporation gets the contract for the landfill entrance facilities and landfill systems for Cells 1 & 2.

Construction is anticipated to commence soon and take about 500 days. Preconstruction earthwork has already been underway since February 2009 under a contract awarded to Maeda Pacific Corporation and is nearing completion.

There are 611 days of airspace remaining at the Ordot Dump.

Federal Receiver in Possible Violation at Layon

Federal receiver in possible violation
Tuesday, 30 June 2009
by Therese Hart
Marianas Variety News

THE Guam Environmental Protection Agency is conducting an investigation into the earthwork project at the Layon landfill site, after receiving aerial photos of the landscape, clearly showing some kind of drainage system or culvert where water is being diverted to.

Conchita Taitano, administrator of the Air and Land division, said yesterday that her administrator, Lorilee Crisostomo, passed on a letter sent by Sen. Rory Respicio addressing his concerns regarding recent activities at the landfill site.

Taitano said yesterday that she was very concerned and has contacted GEPA’s water division to investigate. She also e-mailed federal receiver, Gershman, Brickner & Bratton for a response and is awaiting word from the company representative, Chris Lund.

Variety asked Taitano, who had reviewed the photos, if she could tell by the photos whether the apparent water was just rain run-off settling into the new pond or if the groundwater had been reached during the earthmoving process and was now filling the depression.

The administrator of the Air and Land division at GEPA also stated that she could not comment, by “just looking at a photo,” but did say that GEPA is delving into the matter.

“Is that rain water or is that water that was dug up and is filling? I don’t know the answer at this point in time. The administrator gave me the letter last week. I scanned it. I emailed the letter to our water division to investigate this. I also emailed GBB to explain this,” a clearly concerned Taitano told Variety.

The aerial photos clearly show two huge pipes attached to an apparatus of some sort, as well as four excavators.

“Particularly odd is the need for excavators,” said Senator Respicio. The senator believes that such equipment is not required for the type of earthworks the federal receiver should be doing at the site at this point in time.

“There are many questions raised by this photograph,” he said. Taitano would seem to agree.

“It’s obvious in the photos that there are pipes down there. The question needs to be asked--is water being drained out of there? And where is the water coming from? Is the water coming down from higher ground or did someone hit the groundwater? I don’t know at this time,” said Taitano.

TG Engineers is clearing the earth for the construction of Cells 1 and 2 of the new landfill. The contractor is behind schedule, but that is not unusual during the early stages of such work, according to a report filed with the court by the federal receiver.

Speaker Judi Won Pat said that she had spoken to Taitano as well to express her concern about what is taking place in Inarajan.

“It was my understanding that as the earthwork is being done, there would be no contact with the groundwater. I don’t know what’s going on down there, but the concerns are valid and we must get clarification from the federal receiver about what’s happening,” said Won Pat.

Won Pat reiterated her feelings about groundwater that could possibly be used for residents in the south being contaminated because of the new landfill development.

“I don’t want to jump the gun, but every effort must be taken to address all these concerns. I await the response from Guam EPA,” said the speaker.

Respicio said that Guam EPA has the responsibility to ensure that the companies that have received permits perform only those functions that their permits allow.

The aerial photographs were attributed to local photographer Steve Hardy; however, Respicio said he did not commission the flight or engage the photographer. It is still unclear why the photos were taken in the first place.

Bond Sale Closed by June 17

Bond sale closed by June 17
Tuesday, 09 June 2009
by Therese Hart
Marianas Variety News Staff

THE sale of government of Guam bonds will be finalized by June 17 and the money will be in the government account the next day, according to Tony Blaz, administrator of the Guam Economic Development Authority, who just returned from New York after successfully marketing the landfill and general obligation bonds.

“I’m happy that the landfill bond sold, but I’m also happy that our manamko will finally receive their COLA money. They’ve waited so long for this and when they pass on without seeing that money, it’s a sad day. We have to remember that they built this government through their hard work and dedication,” said Blaz.

The government of Guam successfully sold $473.5 million of triple tax-exempt bonds in the municipal market last week in New York—historic bond sales—which marked two of the first large high-yield transactions since the global financial fallout of the municipal market in fall of last year.

The two bond issues included $270 million of general obligation bonds, rated “B+,” and $202.4 million limited obligation Section 30-backed bonds, rated “BBB-.”

The successful issuance of the $270 million debt service bonds will pay for overdue tax refunds, a court-ordered cost of living allowance and other government debts.

The $202.4 million Section 30 bonds will pay for the construction of the new landfill as well as the closure of the Ordot dump.

“These people did their part. I know many people have said, hey, we don’t need to take care of them. But these people helped build the government of Guam and we have to be grateful,” Blaz said, referring to the government retirees who are owed their COLA.

Blaz acknowledged that it was a long standing obligation that should have been addressed decades ago. “But we didn’t. And today, we delivered for the people of Guam. This governor made it happen,” he said.

Overwhelming investor interest led to adjusted bond yields downward on both transactions, saving over $100 million in debt service on the general obligation bonds and over $56 million in debt service on the Section 30 bonds, compared to estimates a few weeks, according to a Guam Economic Development Authority press release.

The final yields ranged from 6.20 percent to 7.18 percent for the general obligation bonds and 3.95 percent to 6 percent for the Section 30 bonds.

“This was well below the interest rates that the government anticipated even a few weeks ago, and below the interest rate caps set by the authorizing legislation,” said Blaz.

More Landfill BIll Fights

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

GovGuam Can't Afford $1,000,000 a Week for New Landfill

Cruz: We can't trim:
Camacho weighs cuts to pay for landfill
By Agnes Donato
Pacific Daily News
January 16, 2009

Acting Speaker Benjamin J. Cruz yesterday rejected a suggestion for the government to rein in spending so it can raise money for the dump closure and a new landfill.

According to Cruz, a cost-cutting plan isn't an option because the government of Guam is insufficiently funded as it is.

"Where do you want to start making the cuts? The police department? The last budget we passed is not even enough to run the government. We have not paid tax refunds in 15 years," said Cruz.

The administration of Gov. Felix Camacho said it is looking into the possibility of cuts.

"Austerity measures have always been important, and key members of our fiscal team are working to identify different options and their respective impacts," governor's spokesman Shawn Gumataotao said.

Time running out
Time is running out for GovGuam to close Ordot dump and open a new landfill. The solid waste receiver in a report Wednesday said the dump will be full in two and a half years, barely five months after the new landfill is scheduled to open. The receiver said GovGuam must pay $1 million a week, beginning in March, to finance the project.

Cruz said it would be impossible to come up with $52 million a year. The amount represents about 10 percent of GovGuam's budget for fiscal 2009.

"We're not like the federal government that has plenty of money. They can print money anytime they want to because they have credit to back it up. The government of Guam does not have that ability. GBB has to understand that," said Cruz, referring to solid waste receiver Gershman, Brickner & Bratton.

Cruz said he is glad the court recognizes the government's financial problems and is now willing to entertain alternative means of funding the landfill.

District Court of Guam Chief Judge Frances Tydingco-Gatewood has given the administration a week to respond to the receiver's demand and to present an alternative funding plan that GovGuam could afford.

Court order
But Cruz lashed out at the receiver for insisting that the government pay $993,700 a week, beginning in March, to replenish the initial $20 million deposit Gov. Felix Camacho made under court order earlier this month. Cruz said the demand is "unreasonable."

The acting speaker also said lawmakers shouldn't be blamed because they failed to pass the $160 million bond bill that Camacho submitted to the last Legislature. Even if the bill went through, he said, GovGuam would not be able to float the bond because of the global economic crisis.

"Even if we wanted to, we couldn't float the bond today. Almost nobody can float bonds. GBB has to understand that," he said.

Cruz added that the terms of the government's existing loans prohibit GovGuam from floating any further bonds.

GovGuam has three outstanding loans with Bank of Guam: a 2002 loan with an outstanding balance of $5 million, a 2008 loan with a balance of $13 million, and the $20 million entered on Jan. 2, 2009, to pay for the landfill deposit. Under the terms of the 2009 loan, the government cannot float a similar bond until these loans are paid.

A Look at Layon

A Look at Layon
By John Davis
Published Dec 16, 2008
KUAM News

A group of local contractors with their eye on the prize for winning the bid for beginning stages of construction to be done at Layon, Inarajan got their potential moneys worth today by embarking on a three-mile hike through the area. TG Engineers president Tor Gudmundsen gave contractors an outline of where the road, landfill cells and earthwork will be done.

"We hiked over to this corner, the southwest corner of Cell 1, so that they could see the full site of the area that would be worked on for cells 1 and 2 and again this operation road alignment," explained Gudmundsen. He demonstrated how just outside of Cell 1 will lie Pond 3A, a storm drainage basin, that will act as a monitoring point and catch drainage and runoff, which will assist in eliminating further environmental impacts to the area.

Gudmundsen says as the landfill expands based on future needs, other basins will be built around future cells. "We've studied how the rainfall runoff discharges from the site now in it's natural condition," he continued, "and we want it to runoff and discharge in a very similar fashion as the site is developed so that we don't really change the discharge of storm water around the site perimeter."

Speaking of the need for future expansion, Layon will be able to hold more than just a pair of cells for solid waste disposal. The site actually provides for 11 cells to be constructed over the landfills projected 41-year lifespan.

But with no commitment from the federal government as to whether it will be a customer of GovGuam, Gudmundsen says although there's plenty of space at Layon for Uncle Sam's trash, the capacity plan might have to undergo some adjustments. "The sizing is based on information from 2004 and 2005 and that was before the military buildup was announced and we worked out a 41 years site capacity plan so that's subject to change now as the trash from the buildup and the Air Force and others might be also coming here," he told KUAM News.

Although we overheard certain contractors stating they might have some trouble submitting bids for the project within a short amount of time, those interested have until January 8 to submit their proposals.

Meanwhile, another field trip for interested bidders will be conducted next week.

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.

Governor of Guam Will Determine the Landfill Issue

Consultants Report 30% Decrease in Dump Waste

Consultants report 30% decrease in dump waste
By William B. Martin Jr.
Pacific Daily News
November 17, 2008

There's been a 30 percent drop in waste going to the Ordot dump as a result of the July materials ban on cardboard, green waste and construction debris, according to a progress report filed in federal court by the court-appointed federal receiver.


Solid waste managers Gershman, Brickner & Bratton also submitted invoices totalling $222,677.20 to be paid by the government of Guam for services provided in September.

The solid waste management consulting firm was given full authority by the court District Court of Guam to to close Ordot dump and build a new landfill in Dandan, Inarajan, as required by a 2003 consent decree between federal and local officials. Both projects were supposed to be completed last year, but it was expected to take GovGuam several more years to build the new landfill so the dump can be closed.

The materials ban has been one of the measures they implemented and enforced on all commercial and self-haulers going directly to the dump and the Agat and Dededo transfer stations.

Progress report
The latest progress report also states that emergency procurement orders authorized by Gov. Felix Camacho have been used on vehicle purchases, repairs and maintenance. Though invoices do not make clear exact dollar amounts set aside on emergency procurement, a July status report to the court estimates emergency procurement on "urgent" purchases to be around $1.66 million.

Through such measures, the receiver has reduced the Department of Public Works Solid Waste Division's dependence on equipment rentals from $11,000 daily to about $1,400 per day, the report states.

"(These vehicles) together with repairs to the older equipment allowed trash collection crews to complete their routes during one shift for the first time in several years," David Manning, GBB special principle associate, stated in the report.

The consultants also touted the implementation of new containers accepting glass, mixed paper and cardboard for recycling, located at the Agat and Dededo transfer stations and the Ordot dump.

Invoices
To date, GovGuam has paid $1,145,961.79 to Gershman, Brickner & Bratton, according to the latest invoice submitted on Oct. 31. Labor costs for the month of September total more than $173,000.

The firm's expense report consists mostly of per diem, lodging and transportation costs incurred among employees traveling to Guam in order to maintain the firm's constant presence on island.

Among the billable items purchased include a $134 vacuum cleaner and a $21 barbecue grill, according to receipts submitted to the court.

In an e-mail, Manning said the purchases, which are tracked and audited monthly by the court, were cost saving measures intended to bring down restaurant costs and cleaning services for employees' temporary residences.

'Cost-effective'
"This arrangement has been very cost-effective for Guam," he said.

Manning provided correspondence with the court in which detailed reports for the months of July through August indicate that the firm billed GovGuam $14,852.72, which he said is a little more than half the posted U.S. government rates for traveling contractors.

The funds shall be paid from a $2.8 million interest-bearing savings account that GovGuam is required to open in January, according to the order.

Court Has No Jurisdiction Over Layon Property

Layon property owners say district court has no jurisdiction
Tuesday, 11 November 2008 02:41
by Therese Hart
Variety News Staff

ATTORNEYS representing Layon property owners have filed a motion to dismiss the declaratory judgment and lift the temporary stay that U.S. District Court Judge Frances Tydingco-Gatewood issued Oct. 22 during a quarterly status hearing on the closure of the Ordot Dump and construction of the new landfill in Layon, Inarajan. Earlier, receiver Gershman, Brickner & Bratton had told the court of its concern about whether the government had title to the Layon site, which is where the new landfill will be built.

The court converted the receiver's oral statement into a motion for declaratory judgment under the Declaratory Judgment Act and issued an order staying any action by the Superior Court of Guam in the eminent domain proceeding pending the District Court's determination of whether the government of Guam has acquired legal title to the Layon site, according to court documents filed by Atty. Lee T. Camacho for Atty. Anita Arriola.

Arriola's lawfirm --- Arriola, Cowan & Arriola --- represents Layon property owners Oxford Properties & Finance Ltd., Joaquin C. Arriola and Douglas F. Cushnie.

Arriola's filing states that the District Court lacks jurisdiction to interpret local law governing eminent domain and to determine whether GovGuam has complied with all statutory requirements.

Furthermore, the filing states that without an independent basis for subject matter jurisdiction, the declaratory judgment act standing alone does not grant the court jurisdiction to interpret Guam law governing the exercise of eminent domain.

No federal questions
Arriola's filing also states that the eminent domain case raises no federal questions. Without original jurisdiction over the claims raised in the eminent domain case, the court is prohibited from removing the case from Superior Court to District Court.

"Guam law provides that the Superior Court of Guam has original jurisdiction of eminent domain proceedings initiated by the Government of Guam concerning Guam real properties…. the Superior Court of Guam shall have jurisdiction over all actions for condemnation of private property for public use by the government of Guam."

The filing states that district courts shall have original jurisdiction of all civil actions arising under the Constitution, law, or treaties of the United States and that GovGuam filed the eminent domain action in the Superior Court of Guam pursuant to its authority to do so under Guam law.

The taking of the Dandan property is not a federal taking and is therefore not based upon the taking clause of the U.S. Constitution or/and U.S. laws.

Whether or not GovGuam has complied with the stringent statutory requirements under Guam's eminent domain law is a matter of purely local law, according to Arriola's filing, and the District Court should abstain from ruling on issues of local law that are currently pending before the Superior Court of Guam.

Owners
Oxford Properties & Finance holds a 50 percent undivided interest in all property originally designated as Lot B, Dandan, Inarajan.

Arriola owns five percent interest in the undivided one-half interest in Lot B owned by Calvo's Insurance Underwriters, Inc. (or 2.5 percent interest of the whole Lot B). After conveyance of the 5 percent interest to Arriola, Cushnie and Mitchell A. Stevens, the interest was further sold so that the current holders of the five percent are: Arriola with two-sixths interest; Cushnie at three-sixths interest; and Young Chull Kim at one-sixth interests. Many of the landowners acquired their interests in 1979, according to court documents.

Cunliffe
Atty. Randall Cunliffe of Cunliffe & Cook, filed a memorandum of points and authorities in support of the motion to dismiss. Cunliffe represents Calvo's Insurance Undewriters, Inc.; Valencia Investments Corporation; Henry Sy; Jones & Guerrero Company, Inc.; Alfred C. and Diane Z. Ysrael; and Lee M. and Joan S. Holmes.

Cunliffe's filing in District Court challenges Tydingco-Gatewood's issuance of a declaratory judgment, stating that 28 USC§2201 authorizes the "courts of the United States" upon the filing of an appropriate pleading, to declare the rights and other legal relations of any other interested parties seeking such declaration on cases of actual controversy within its jurisdiction."

According to Cunliffe's filing, "28 USC§1330 et. Seq., does not establish that the District Courts have jurisdiction over a condemnation proceeding between a state or territory and land within a state or territory. Therefore, this matter should be dismissed."

Cunliffe's filing also states that he, nor his clients, were not served by the Superior Court with any documents in the action and that his clients are not parties to the action.

Cunliffe also stated in his filing that he was concerned about the court's appearance of partiality.

Guatali Appeal Next Monday

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

First Solid Waste Status Hearing Set

First status hearing set for solid waste receiver
Guam News
Friday May 16, 2008
By Gina Tabonares, Variety News Staff

DISTRICT Court of Guam Chief Judge Frances Tydingco-Gatewood set a July 10 status hearing yesterday to discuss the progress of solid waste management since the court appointed a receiver two months ago.

The scheduled court date will be the first status hearing that will involve Gershman, Brickner & Bratton Inc., the Washington, D.C.-based firm appointed by the court to handle Guam's decade-old garbage problem.

The court also gave notice to the U.S. Attorney's Office and the Office of the Attorney General but did not mention whether the presence of the governor of Guam or the elected officials and department heads that concern solid waste management are needed or required for the next status hearing.

The last court activity made in relation to the Consent Decree compliance case was the GBB officers' on-site visits to Ordot Dump and Dandan on April 24 headed by the Chief Judge.

During the said visits, Dominic Muna, Department of Public Works Solid Waste Division superintendent, briefed the receiver on the daily operations of the Ordot Dump site and the installation of the new scale.

Project Engineer Kenneth Rekdahl of Duenas, Bordallo, and Camacho & Associates discussed property boundaries with GBB Vice President Tim Bratton, Special Principal Associate David Manning, Vice President Chace Anderson and Senior Project Engineer Chris Lund.

Tor Gudmussen of TG Engineering presented maps of the Dandan site while Cynthia Jackson of DPW provided information as to the temporary and permanent access roads of the new landfill site.

The Guam solid waste receiver initially briefed the media during its first press conference held on April 25 and outlined several objectives that revolve around Consent Decree compliance.

The receiver also outlined its findings on the solid waste management crisis in Guam.

GBB to GovGuam: Acquire Landfill Land

Receiver to GovGuam: Acquire landfill land
By Gina Tabonares
Variety News Staff
Monday, April 7, 2008

THE Washington DC-based private company tasked to be the receiver for solid waste operations on Guam has advised GovGuam to work immediately on the acquisition of the land needed for the new landfill.

Gershman, Brickner & Bratton Inc. (GBB) wants GovGuam to get the landfill property including the required land for access roads as soon as possible.

The company has advised the Solid Waste Division of the Department of Public Works to halt additional work on the projects needed to achieve compliance with the Consent Decree, pending completion of their initial review.

In a March 18 letter to Gov. Felix Camacho, GBB said it plans to begin work on the landfill site by mid to late April and would like to meet the governor of Guam.

The letter was published in the new website created by GBB for the Guam project.

When GBB asked to acquire the needed land for the new landfill it did not mention whether it referred to the Dandan property which is still under litigation in the Guam Superior Court.

On March 25, Oxford Properties & Finance through its lawyer Anita Arriola, Joaquin C. Arriola and Douglas F. Cushnie filed a motion to dismiss the government's efforts to condemn the property and argued that the condemnation proceedings have to go through the Legislature or the federal government as required by Guam's eminent domain law. To date, no action has been taken and the 29th Guam Legislature is still looking into the issue as well as the spending of $10 million in Dandan without legislative authorization.

Meanwhile, the appointed receiver is now finishing its complete review of the work already performed by GovGuam to develop a plan that will achieve full compliance with the requirements of the Consent Decree.

Although it has already been appointed as receiver, GBB is still encouraging DPW workers to continue its daily services to the public.

The receiver also assured DPW staff that there is nothing to fear from the receivership.

"We want to work with you, to learn from you and to assure you that you have nothing to fear from the receivership," David L. Manning, GBB representative said.

The company now assumes all of the responsibilities, functions, duties, powers, and authority of GovGuam in solid waste operations.

The two major projects that the receiver needs to achieve are the closure of the Ordot Dump and the creation of a new municipal landfill as identified in a February 11, 2004 Consent Decree.

Governor Never Gave Budget for Dump Closure

Governor never gave budget for dump closure'
Tuesday March 18, 2008
By Therese Hart
Variety News Staff

SPEAKER Judi Won Pat (D-Inarajan) yesterday said the administration never submitted to the Legislature a budget request for the closure of the Ordot dump in the governor's 2005, 2006, and 2007 budgets.

"I don't know what the Governor is talking about… I checked with Senator (Eddie) Calvo and we have it on record that he never submitted a request for the closure of the landfill," Won Pat said.

Won Pat said that the request was only submitted in the governor's 2008 budget and even at that, he tapped into the Department of Education's funding.

Won Pat said she thought the governor would take 10 percent from other agencies to minimize the loss, but instead 100 percent of the funding was taken from the Department of Education.

"Clearly, this governor doesn't care about education," Won Pat said.

Won Pat also said that the governor and not the Legislature determines what the ceiling will be for his budget.

As for the controversy surrounding the Dandan site, Won Pat said that she and her colleagues were concerned about the process in which the Guam Economic Development Authority chose that particular site.

"We support the closure of the Ordot landfill, however, there are still many questions in terms of how Guam EPA went about selecting Dandan. We're still wondering whether that is truly where the new landfill should be," Won Pat said.

* Disappointed *

In a press release, Sen. Rory Respicio (D-Agana Heights) said that he was disappointed but not surprised with Chief Judge Tydingco-Gatewood's decision.

"This is the path from which the federal courts have never deviated since the beginning. The order appointing a receiver is full of assumptions that go against the facts in the issue. I believe the Chief Judge is following a direction that is wrong for Guam and our people, but is right for the federal government because it is the easiest path."

Respicio chided Tydingco-Gatewood's decision and said that the Chief Judge's decision shows a lack of caring about preserving the island's water resources.

"We've already seen reports that desalination plants might be necessary. I'm sure the Feds already have contractors lined up for those projects, just as they already had a contractor lined up to handle the receivership."

"By the judge's decision it is obvious that the federal government doesn't care how much a government-built landfill will cost the people of Guam. Our people are the ones that the federal government continues to shortchange every day... by not fully reimbursing Guam Compact Impact expenses, by not paying Guam the federal share for the Earned Income Tax Credit (EITC), and by making our people wait for more than 60 years for war reparations for pain and suffering in World War II.

"By the judge's decision it is obvious that the federal government doesn't care that the selection of Dandan violated the Consent Decree multiple times. This decision obviously has nothing to do with the Consent Decree at all. The Consent Decree is just an excuse to act unilaterally, to force us to do their bidding, and to bring in pre-selected private interests that will make millions from the federal government, while the people of Guam continue to suffer," the senator said.

Respicio also said that it is his belief that federal receivership will set back territorial-federal relations many years.

Private Firm Takes Over Dump

Firm takes over dump; Court says all remedies exhausted
Tuesday March 18, 2008
By Gina Tabonares
Variety News Staff

FED up with GovGuam's lack of leadership, planning, and vision, District Court of Guam Chief Judge Frances Tydingco-Gatewood yesterday ordered the appointment of a Virginia-based receiver that will handle the island's solid waste management.

The appointment of Gershman, Brickner & Bratton Inc. (GBB), a Fairfax, Virginia-based company, as receiver was not decided hastily, Chief Judge Tydingco-Gatewood said, emphasizing that "it was not made lightly or with relish."

In a 23-page order, the court said there is no more remedy left to resolve the island's garbage crisis, which the court described as "highly dysfunctional, largely mismanaged, overly bureaucratic and politically charged."

The court said the inherited problem is "beyond correction by conventional methods."

The selection of GBB, with Special Principal Associate David L. Manning as the signatory, displaces GovGuam's full power and authority in enforcing the terms of the Consent Decree.

The company now assumes all of the responsibilities, functions, duties, powers, and authority of the Solid Waste Management Division of the Department of Public Works "and any and all departments, or other divisions of the DPW in so far as they affect GovGuam compliance with the Consent Decree."

The receiver now has the authority to complete management and control of all Consent Decree projects including but not limited to the supervision of all GovGuam employees associated with the Consent Decree projects, performance of existing contracts, and entering into future contracts deemed necessary.

GBB is now also in charge of the facilitation of financing and borrowing of funds to carry the Consent Decree projects. It can modify the revised financial plan or methods of debt financing it deems appropriate.

The receiver will likewise take care of the application of the Consolidated Commission on Utilities for rate increases for residential waste collection services and tipping fees and will be in charge with hiring all consultants, professionals, contractors and engineering firms or counsel, which the receiver deems necessary for the performance of duties necessary in meeting the mandates of the Consent Decree.

* Fees *

The receiver, which is required to submit quarterly reports to the court regarding the progress made toward the compliance of the Consent Decree, will initially use the $2.8 million deposited by GovGuam to pay the penalties for missing Consent Decree deadlines.

Under the initial compensation rate GBB submitted, GovGuam taxpayers have started paying the company's president and special principal associate $250 per hour.

A fee of $225 per hour will also be paid for the executive vice president, $210 per hour for the senior vice president, $185 per hour for the vice president, and $165 per hour for the principal associate or principal engineer.

The firm's asking fee for senior project manager or senior project engineer or senior associate engineer is $160 per hour.

A fee of $140 per hour will be paid for project manager, $125 per hour for project engineer, $105 per hour for consultant II or contract administrator, $85 per hour for engineer I, $65 per hour for support manager, $60 per hour for administrative secretary, editor or staff accountant, and $45 per hour for clerical or support staff.

On top of the hourly fee for the receiver's staff, GovGuam will also pay for the staff travel expenses and the board and room arrangements of visiting GBB workers from Virginia.

* Exhausted remedies *

The court stressed that it considered drastic remedies to ensure that islandwide health and environmental hazards brought about by the Ordot Dump leachate does not continue.

The Chief Judge said that despite the passage of 22 years, the Ordot dump is still in operation and remedial measures that include the imposition of monetary damages, the appointment of a special master or court monitor, the imposition of a moratorium, and the immediate closure of the Ordot Dump did not resolve the continuing harm to the environment and the citizens of Guam.

According to the court, the history of the Consent Decree case demonstrates that the GovGuam is "paralyzed by an institutional and systematic quagmire that has prevented it from effectively complying with the Consent Decree."

The Chief Judge stated that GovGuam should not be surprised by the receivership order, saying the record reveals that the local government has been on notice of its violation of the Clean Water Act for 22 years.

She also mentioned that GovGuam lacked commitment towards financing the Consent Decree projects.

Despite being earlier advised by the Public Utilities Commission to improve its collection rate, DPW recently reported that it only improved its collection rate from 30 to 50 percent.

The Chief Judge said the lack of consistent revenue stream from collections is exacerbated by the Legislature's failure to provide funding for any of the Consent Decree projects.

"Without commitment to fund the necessary projects, there is little chance that the closing of the Ordot Dump and opening of the landfill at Dandan will occur at all," the court stated.

The court also pointed out the lack of cooperation between the executive and legislative branches to respond to the solid waste crisis.

The Chief Judge said the Legislature not only failed to provide any funding for Consent Decree projects but actively prohibited the expenditure of monies toward the development of the landfill in Dandan.

Until this time, the court noted that GovGuam has no tangible progress with DPW Director Larry Perez "undecided as to how best to proceed."