Guam § 12116 - Water and Sewer System Development Charge.

§ 12116. Water and Sewer System Development Charge.

(a) The Guam Waterworks Authority (AGWA@) shall

establish and implement, subject to the prior approval of the

Commission in subsection (b), a water and sewer system

development charge schedule, which charges shall be assessed

on each user who is for the first time connecting property into

the Guam=s water or wastewater system, or to each builder if the

density of development on existing connection is increased. Such

charge schedule shall seek to recover the additional costs

associated with constructing, expanding, upgrading and repairing

water and wastewater facilities for such new users and

development, and shall take into account existing infrastructure

on the property, present and future user demands, requirements

for water and/or sewer services, and installation of infrastructure

to be done by the user or builder.

(b) Pursuant to its authority, the Commission shall

immediately begin proceedings to promptly establish and

approve the water and sewer system development charge

schedule for GWA.

(1) The Commission has the authority to adopt and

approve a charge schedule for GWA which complies with

Subsection (a) of this Section, including, a schedule which

shall be known as the Amortized System Development

Charge (ASDC) for residents who are constructing or

purchasing a single family dwelling intended for their

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personal residence and/or for immediate family members.

(A) Such charge shall be assessed at an initial

amount of no less than ten percent (10%) of the total

SDC charge due, and the remainder of the charge shall

be amortized over a period not to exceed fifteen (15)

years, in which the charge plus interest, at a rate

established by the Guam Public Utilities Commission,

is added to the monthly GWA billing for the dwelling

at a rate in which the total annually assessed charge

shall not exceed the initial charge; and provided, that

nothing herein shall limit the Commission’s authority

and jurisdiction to establish and approve General

Lifeline Rates for GWA, which may apply to the water

and sewer development charge schedule.

(B) The charge schedule shall be applied to users

and developers by GWA upon its adoption and

approval by the Commission, and no charges shall be

assessed prior to adoption and approval by the

Commission.

(2) ASDC Applicability. The ASDC shall not apply

to any commercial development involving the construction

of multiple residential units.

(3) ASDC Not Transferable. Should a homeowner

paying an ASDC decide to sell or transfer the property, on

which the ASDC applies, to a person who is not an

immediate family member or who qualifies for the ASDC

under this Chapter, then full payment of any balances owed

for the ASDC shall be paid prior to registration of the sale

and transfer of the property at the Department of Land

Management, and prior to the transfer of the original

owner’s water/wastewater account to the new owner and/or

occupant of the residence.

(c) Notwithstanding any other provision of law, all

revenues generated by the water and sewer system development

charge schedule will be deposited into the Island Water and

Sewer Infrastructure Development Fund. Such funds shall be

administered by GWA. However, GWA shall file annually for

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Commission review and approval a full accounting of the

receipts and expenditures into and from the Fund with

appropriate details of the sources and expenditures into and from

the Fund.

(d) The Island Water and Sewer Infrastructure Development

Fund shall only be expended for costs associated with the

construction, expansion, upgrade, and repair of water and

wastewater facilities for users who are for the first time

connecting property into the Guam=s water or wastewater

system, or for builders if the density of development on existing

connection is increased.

(e) Fees due under the water and sewer development charge

schedule adopted by the Commission shall be paid to GWA prior

to the issuance of a building construction permit. Subsequent to

the adoption and approval of the charge schedule by the

Commission, no building construction permit shall be issued

without a certificate issued by GWA that all fees due under the

charge schedule have been paid, except that the Commission

shall develop and adopt a schedule for GWA customers qualified

for the ASDC that shall allow for the building construction

permit to be issued subsequent to payment of the initial charge.

(f) Any person may contest any proposed assessment for the

water and sewer development charge schedule made or

determined by GWA by filing with GWA a written protest at any

time prior to the issuance of a building construction permit.

(1) All protests shall be prepared in the form and

contain such information as GWA shall reasonably require,

and shall include a summary statement of the grounds upon

which the person relies and that person=s reasons for

disputing the assessment of GWA.

(2) GWA shall make a determination with respect to

the protest and, if required, make an adjustment to the

assessment within thirty (30) days of receipt of such protest.

(3) Persons dissatisfied with GWA=s determination

may file a petition with the Commission to review such

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determination within thirty (30) days of GWA=s

determination.

(g) Except as provided hereafter, each person who made a

voluntary contribution under Section 56119 of Title 5 of the

Guam Code Annotated shall be compensated to the extent the

amount contributed is greater than the charges that would apply

under the charge schedule approved by the Commission.

(1) Such persons shall be compensated the difference

through an abatement of business privilege taxes equal to

the differential.

(2) Persons seeking credits under this Subsection (g)

shall make an application to GWA within one (1) year of

the date of enactment of this Act, and GWA shall determine

the amount of any credit within ninety (90) days of its

receipt of the application.

(3) Persons dissatisfied with GWA=s determination

may file a petition with the Commission to review such

determination.

This Subsection shall not apply to persons who previously

received credits under Section 56119 of Title 5 of the Guam

Code Annotated.

(h) Except for voluntary contributions previously made, no

further assessments shall be collected or imposed by GWA or the

Commission under Section 56119 of Title 5 of the Guam Code

Annotated.

(i) Affordable Housing System Development Charge

(AHSDC).

(1) AHSDC For Persons Who Construct Their Own

Primary Residences. Any person who constructs, or causes

to construct, a home where said structure will be the

primary residence for themselves or an immediate family

member as defined by 4 GCA § 4108 (2) shall be charged

1.01% for water connections and 1.65% for sewer

connections of the actual cost to construct the home and

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purchase the land in the event the actual total cost is Two

Hundred Ten Thousand Dollars ($210,000) or less.

(A) GWA shall require reasonable proof to be

provided showing that the home will in fact be a

primary residence.

(B) The actual cost of a home includes the

purchase price of the land, if any, and all materials,

labor, and other amounts necessary for the single-

family dwelling that is constructed to fully comply

with the Guam Building Code.

(C) The AHSDC shall not apply to those persons

who construct, or cause to be constructed, homes that

do not meet the requirements of the Guam Building

Code, nor shall the charge apply to persons renovating

existing structures.

(D) GWA shall not provide water services to any

structure that does not fully comply with the Guam

Building Code.

(2) AHSDC For Persons Who Construct Affordable

Homes With Intent To Sell. Any person who constructs a

home which is to be sold, or is in fact sold, prior to initial

occupancy where the home costs Two Hundred Ten

Thousand Dollars ($210,000) or less, shall be charged

1.01% for water connections and 1.65% for sewer

connections of the value of the sale price of the home.

(A) The valuation shall include the purchase price

for the entire lot where the home is located.

(B) The valuation shall also include the actual

cost of a home, inclusive of all the materials, labor, and

other amounts necessary for a building to fully comply

with the Guam Building Code.

The AHSDC is not applicable to those persons or

developers who construct, or cause to be constructed, homes

that do not meet the requirements of the Guam Building

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Code, or where the total cost, pursuant to Subsection (3)

below, of the home and lot exceed $210,000.

(3) Proof of Cost/Valuation. In order to determine the

correct value of a home, the Guam Waterworks Authority

shall have the authority to require reasonable proof of such

value of the home, which includes, but is not limited to:

(A) a schedule of costs signed by an engineer,

contractor or architect licensed on Guam;

(B) purchase price of the land; and

(C) a complete breakdown of all costs involved in

the construction of the home to support the valuation

claimed, or proof of the purchase price of the home if

purchased.

An appraisal of the land is not required in the event the

land was not purchased. GWA may reject any claim not

reasonably founded or proven, or for failure to provide any

document requested by GWA in support of such claim of

valuation.

(4) Reevaluation. At least once every five years, the

Guam Waterworks Authority shall review the Median

Household Income for Guam, as published by the HUD

Median Income Statistic, and shall then adjust the total cost

threshold requirement of the AHSDC, set at $210,000,

accordingly.

2015 NOTE: Subsection designations in (b), (f), (g) and (i) were added

in accordance to the authority granted by 1 GCA § 1606.

(j) Timing of Payments Regarding System Development

Charges for Single Family Dwellings.

(1) Notwithstanding any other requirement of law, the

system development charge for all single family dwellings

may be paid at any time prior to initial occupancy.

(2) Developers of property who sell single family

dwellings are required to notify subsequent purchasers of

the need to pay system development charges prior to

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occupying the home, in the event an occupancy permit has

not issued or been applied for.

(3) GWA shall withhold water and sewer services

until the payment of any system development charge is paid

in full, aside from those persons who qualify for the

Amortized System Development Charge as described in §

12116.5(b).