Guam § 14241 - Approval of Financing and Construction Options to Alleviate Emergency Conditions in the

§ 14241. Approval of Financing and Construction Options to Alleviate Emergency Conditions in the

Guam Waterworks Authority’s Water and Wastewater System.

(a) Notwithstanding any other provision of law, in order to eliminate the emergency that currently

exists relative to the current Guam Waterworks Authority’s moratorium on sewer connections in Central

Guam, the Guam Waterworks Authority is hereby authorized to enter into long-term and short-term

financing agreements, credit facilities and other construction and procurement models which are necessary

to rapidly alleviate the moratorium in order to promote economic growth on Guam for the betterment of

all, provided, however, that said financing shall be issued subject to the terms and conditions of GWA’s

2005 Series Bond Indenture and any other supplemental indenture issued by the Authority under P.L. 28-

071.

(b) Financing agreements, credit facilities and procurement methods can include, but are not limited

to, the following:

(1) qualified public activity bonds;

(2) certificates of participation;

(3) design-build-finance agreements;

(4) build-operate-transfer agreements;

(5) build-lease agreements;

(6) lease-to-own agreements; and

(7) any other credit facility or financing agreement approved by the Consolidated Commission

on Utilities.

(c) All contracts for financing and construction entered into under this Section shall be subject to the

approval of the Guam Public Utilities Commission under the Contract Review Protocol.

(d) All financing entered into under this Section shall be subject to the approval of the Guam Economic

Development Authority (GEDA) and all fees due to GEDA under existing statutes to GEDA shall apply.

However, all other provisions of § 50103(k) of Title 12, Guam Code Annotated, shall not apply.

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(e) Prior to issuing any financing under this provision, the Guam Waterworks Authority shall obtain a

legal opinion from a licensed Bond Counsel designated by the Authority who possesses a national

reputation for expertise in matters relating to governmental obligations, the interest on which is excluded

from gross income for federal income tax purposes under Section 103 of the United States’ Internal Revenue

Code.

(f) In view of the urgency for the procurement in order to lift the moratorium in Central Guam and

only for the project as defined herein, the requirements of Chapter 5, Title 5, Guam Code Annotated, are

hereby waived and the Guam Waterworks Authority is hereby authorized to utilize such method of source

selection as it deems necessary, subject to the approval of the Guam Public Utilities Commission under the

Contract Review Protocol and with all financing to be approved by the Guam Economic Development

Authority. However, the following minimum limitations apply to the procurement for this project:

(1) A competitive selection request shall be published in a newspaper published on Guam for on

at least two (2) occasions at least thirty (30) days prior to the date set to select the best bid/proposal to

GWA based on the lowest overall life cycle costs and financing; and

(2) GWA shall not use sole source as a method of selecting the successful bidder/proposer.

(g) The “moratorium project” is defined to mean:

(1) Upgrades to the Mamajanao Sewage Pump Station (SPS): This will include an extension of

the force main down the hill to a new terminating manhole and will control the flows from the pumping

station.

(2) Route 16 Pump Station Operational Measures: Increase risk management measures at the

Route 16 sewage pump station and eliminate the flow split to the south.

(3) Route 4 Wastewater Piping: Pipe the flow from the New Chaot SPS directly to the Hagåtña

WWTP.

(4) Tamuning Pump Station: Build a new sewage pump station in Tamuning that will collect all

of the flow from Marine Corps Drive and pump it directly to the Hagåtña WWTP.

(5) Hagåtña Main Pump Station: Upgrade the Hagåtña Main SPS and provide a fat, oil, grease

and grit removal system at Hagåtña WWTP to enhance overall operability.

(6) Other works associated with the above scope as proposed or identified during the bidding

process.