Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 1
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc.
Quarterly Report
of
Receivership for the Government of Guam
Guam Solid Waste Authority Pursuant to the Order of the
United States District Court of Guam
Presented by
Gershman, Brickner & Bratton, Inc.
June 25, 2014
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 2 2 2 2 2 2 2
Table of Contents
1. Ordot Dump Closure Progress
2. Layon Landfill and Consent Decree Projects
3. Operations of the Guam Solid Waste Authority
(GSWA)
4. Contract Management and Procurement
5. Financial Issues and Capital Funding
6. Transition Issues
2
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 2
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 3 3 3 3 3 3 3
1. ORDOT DUMP CLOSURE PROGRESS October 1, 2013 – March 31, 2014
Aerial View of the Ordot Construction Site
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 4
• Bid procurement
• Permitting and construction
approvals
• Project initiation and mobilization
• Construction
• Land acquisition
• Dero Road renovation design
Ordot Dump Closure Progress
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 3
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 5
Ordot Dump Closure Progress
Bid Procurement
Ordot Construction Contract
– Bid analyses in October, following a Sept. 20 bid date
– November 1st Notice of Award to lowest responsible
and responsive bidder – Black Construction
Corporation
Black Construction Corp. – well-qualified with long
history of successful projects, and its designated
superintendent for this project is a 2013 national award
winner for constructed facilities
– December 6th – Final Contract Approval
– December 10th – Issued Notice to Proceed
– Contractor initiates material procurement and
mobilization
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 6
Permitting and Construction Approvals
Permits issued to GSWA:
• DPW Building Permit
• U.S. Army Corps 404 Permit
‒ Issued November 20th
‒ Allows for construction in wetlands
‒ Allows for wetland restoration
• DPR Historic Preservation Office approval of
archaeological monitoring plan
Permits issued to Black Construction Corporation:
• GEPA stockpile permit for materials
• GEPA well abandonment permits
• DPW ROW encroachment permit for Dero Road
‒ Traffic management and safety
Ordot Dump Closure Progress
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 4
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 7
Ordot Dump Closure Progress
Project Initiation and Mobilization (Mid-December to early January)
Contractor initiated multiple activities to mobilize including:
– Material submittals and procurement
– Established construction facilities
– Construction office
– Material laydown/fabrication areas
– Equipment and tool yard
– Developed site safety program and staff training
– Executed subcontractor agreements
– Mobilized equipment to site
– Specialized equipment shipped in, including long-
arm excavators and trash compacting equipment
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 8
Ordot Dump Closure Progress
Construction – Primary Tasks
• Contractor initiated Phase I construction work
• Primary goals of this phase
• Placement of the cover over approximately one-half
of the waste pile
• Begin to collect leachate
• Begin to control landfill gas
• This work involves a number of significant and
challenging tasks
• The Receiver currently estimates that the work is 50 days
behind schedule
• Working with Contractor to make up the time in Phase II
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 5
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 9
Ordot Dump Closure Progress
Phase I
Planned waste area to be covered
Construction - Primary Tasks (cont’d)
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 10
Ordot Dump Closure Progress
Phase I
Planned waste area to be covered
Construction - Primary Tasks (cont’d)
Leachate Storage Tanks
Stormwater Management Ponds
Western Channel
Relocation
Interim Leachate
Storage Pond
Stormwater
Conveyance Pipes
Dero Road
Sewer
Placement - Cover
Foundation Layer
Waste Relocation
and Consolidation
Geocomposite and
Geomembrane –
Early June
Gas Collection
System
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 6
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 11
Ordot Dump Closure Progress
Waste is relocated to shape side slopes
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 12
Ordot Dump Closure Progress
Soil Cover Foundation Layer is compacted
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 7
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 13
Ordot Dump Closure Progress
Geo-composite and geo-membrane cover
is pulled into place
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 14
Ordot Dump Closure Progress Stormwater pipe installation - major effort
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 8
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 15
Ordot Dump Closure Progress
Stormwater Management Ponds
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 16
Ordot Dump Closure Progress
Leachate Storage Tanks in Place
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 9
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 17
Ordot Dump Closure Progress Interim Leachate Storage Pond
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 18
Ordot Dump Closure Progress
Landfill gas collection line is placed
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 10
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 19
Ordot Dump Closure Progress
Relocated western channel takes shape
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 20
Ordot Dump Closure Progress
Sewer line installation on Dero Road
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 11
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 21
Ordot Dump Closure Progress Construction – Primary Tasks (cont’d)
• Project Site Safety ‒ Unexploded ordnance (UXO) found onsite – at the
ground surface, not in the waste pile
‒ Indicates that site may have seen action in WWII ‒ UXO specialist required by BCC contract
‒ Navy Explosive Ordnance Specialist called to
safely remove the ordnance
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 22
Ordot Dump Closure Progress
Land Acquisition
• Final appraisal needed to complete the
acquisition (lot 450) is now complete
• Progress stalled on the needed legal work
when the Office of the Attorney General
stopped handling the matter
• Following the Court’s guidance, the Receiver
has now secured private counsel
• The new legal team will begin work in the next
reporting period to complete the acquisition
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 12
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 23 23 23 23 23 23
2. LAYON LANDFILL AND
CONSENT DECREE PROJECTS
October 1, 2013 – March 31, 2014
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 24 24 24 24 24 24 24 24
Environmental Monitoring and
Compliance • Continued bi-weekly GEPA/EPA/Receiver
coordination meetings for all regulatory and permit aspects of work
• Ensured ongoing compliance with all permits
• Ongoing Landfill Facility Permit compliance – Performed quarterly stormwater monitoring
– Performed semi-annual groundwater monitoring
– Performed quarterly landfill gas monitoring
– Began preparatory work for renewal of operating permits
As of May 23, 2014, both Operating and Title V renewal applications have been submitted to GEPA for review and renewal
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 13
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 25
• Inarajan WWTP monitoring – Monitored marine waters and wastewater throughout
period – Prepared quarterly monitoring reports (Sept. 2013 –
Nov. 2013) for submittal to GWA, GEPA and EPA – Results through May 2014: Plant is handling flows
from landfill; however, changes in the operations of the WWTP make a complete assessment of the plant impossible, but we see no indication that the leachate is having a negative effect
• Harmon Transfer Station ‒ Operations permit application submitted and under
review
Environmental Monitoring and
Compliance (cont’d)
Gershman, Brickner & Bratton, Inc. 26 26 26 26 26 26 26 26
Residential Transfer Stations Agat, Dededo, Harmon, Malojloj
• Permits now required as condition of Layon Landfill permit
• Harmon Transfer Station nearing completion – Facility includes Household Hazardous Waste
(HHW) facility, recycling drop-off containers, compactors for trash and cardboard, GSWA vehicle wash system, GSWA vehicle lot
– Project behind schedule – original completion date November 11, 2013
• Upgrades to other residential transfer stations on hold pending availability of funds
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 14
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 27
Residential Transfer Stations (cont’d)
Harmon Construction
March 2014
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 28
• Special Report to the Court, March 19,
2014
• Court Order, March 19, 2014, for
Government of Guam to provide a
response that shall:
‒ Advise the Court on how GovGuam plans to
proceed with mitigation
‒ State its position with regard to a western
expansion of the transfer station
• April 2, 2014 Government of Guam
responded
Dededo Contamination
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 15
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc. 29
• Government’s response was inconclusive ‒ Response on mitigation plans was that GovGuam “was not
comfortable” selecting a mitigation plan and that GovGuam will
reserve its opinion on how it will mitigate this issue
‒ States that further investigation is required to determine if partition
allowing expansion of the necessary amount of area to the North
can preserve the integrity of DSWTS's permit while protecting the
safety of workers in that area, given that these workers will then
be closer to the contamination as the DSWTS expands northward
‒ No further investigation is underway
• Without a meaningful response, the Receiver will be
required to
‒ Close the Dededo Transfer Station
‒ Direct its customers to the new Harmon facility
Dededo Contamination (cont’d)
Gershman, Brickner & Bratton, Inc. 30 30 30 30 30 30 30 30 30 30 30 30
3. OPERATIONS OF THE GUAM
SOLID WASTE AUTHORITY October 2013 – March 2014
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 16
Gershman, Brickner & Bratton, Inc. 31 31 31 31 31 31 31
Residential Trash Collection
Customer base increased about 1.4%,
averaging 16,858
Gershman, Brickner & Bratton, Inc.
Residential Trash Collection
• 438,247 residential trash collections
• 2 cart repairs needed during the quarter
32 32 32 32 32 32 32
99.65% On-Time
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 17
Gershman, Brickner & Bratton, Inc.
Administration
• Customer Service staff assisted 3,575 walk-in
customers
• Made 7,602 courtesy phone calls to customers who
were late paying their bills and in jeopardy of having
their carts repossessed for lack of payment
• 9,152 courtesy letters sent to customers who were 60
and over 90 days behind on their payments
• 57 Full-time employees, a reduction of 42% from the
99 FTE the SWMD had in 2008
33
Gershman, Brickner & Bratton, Inc.
Administration (cont’d)
• Residential delinquency rates low
but increased to 2.9 percent
• Growth in use of online billing and
payment
– 6,533 customers now
registered, with 3,372 paying
their bills online and 2,968
using paperless billing
34
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 18
Gershman, Brickner & Bratton, Inc.
Residential Bulky Waste
Collection The Program:
• 2 free appointments for GSWA customers; $25 for more
• $25 for each appointment for non-GSWA customers
• Program temporarily suspended to deliver recycling carts
During this reporting period:
• 482 appointments
• 1,374 items collected
35
Gershman, Brickner & Bratton, Inc.
Hauler-only Transfer Station
Hauler-only Transfer Station
In operation for over two years; used by commercial customers, large waste generators
Total waste: 40,747 tons (down 4% from previous 6 months)
36 36
30,000.00
32,000.00
34,000.00
36,000.00
38,000.00
40,000.00
42,000.00
44,000.00
Mar-13 Sep-13 Mar-14
Oct-12 Apr-13 Oct-13
Hauler-only Transfer Station Tons
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 19
Gershman, Brickner & Bratton, Inc.
Layon Landfill
37
Note: Without the growth in GWA tonnage, the percent change total would have
been -4.9 percent.
Gershman, Brickner & Bratton, Inc. 38 38
Residential Transfer Stations
• Customer use of 3 residential transfer stations increased
• Dededo continues to be used most, but use declined slightly
• Tonnage declined by 228.7 tons
Customers using transfer stations
Tonnage hauled from transfer stations
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 20
Gershman, Brickner & Bratton, Inc.
GSWA Board of Directors
• Five meetings during
reporting period: – October 31, 2013
Discussion of federal funding
– November 27, 2013 Presentation on Hauler-only
Transfer Station
– December 11, 2013 Informal meeting and lunch with
GSWA employees
– January 9, 2014 Presentation on environmental
closure of Ordot Dump
– February 20, 2014 Discussion of contract employee
transition
At each meeting the Receiver presented
a report on the preceding month’s
tonnage and revenues
39
Gershman, Brickner & Bratton, Inc.
Curbside Recycling
• GSWA continues to analyze new collection
routes to improve collection efficiencies for
recycling and trash collection
• Oct. 2013 - March 2014. Recycling carts
delivered to GSWA customers who receive trash
collection in large compactor trucks
• This is about 88 percent of all customers
• Customers serviced with non-compacting Baby
Packer trucks do not receive curbside recycling
collection
• GSWA exploring options that would allow
recycling services to be provided on these
routes
40
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 21
Gershman, Brickner & Bratton, Inc.
Curbside Recycling (cont’d)
41 Recycling Contamination
491.6 tons collected Oct. - March
Gershman, Brickner & Bratton, Inc.
Curbside Recycling (cont’d)
Cost of the Program
• Recycling adds some costs
– Vehicle maintenance and fuel
– Staff overtime, training
– Amortized cost of recycling carts
– Processing costs of $93/ton
• Avoids other costs
– Landfill avoidance: landfilling
491.62 tons would have cost
$171.60/ton
– Waste transport from Hauler-only
Transfer Station to landfill
– Fee paid to landfill operator
• Generates some revenue
– Total revenue to GSWA, Nov. 2013
to March 2014: $5,321.08
– $10.83/ton
42
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 22
Gershman, Brickner & Bratton, Inc.
Curbside Recycling (cont’d)
Cost of the Program
43
Note: Cost analysis is for March only because March is the
first full month of the program.
Gershman, Brickner & Bratton, Inc.
Curbside Recycling (cont’d)
Cost of the Program
44
Note: Cost analysis is for March only because March is the
first full month of the program.
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 23
Gershman, Brickner & Bratton, Inc. 45 45 45 45 45
4. CONTRACT MANAGEMENT
AND PROCUREMENT
October 2013 – March 2014
Gershman, Brickner & Bratton, Inc. 46 46 46 46 46
Procurement Activities
• Awarded construction contract to Black Construction for environmental closure of Ordot Dump
• Awarded construction management contract to GHD, Inc. for environmental closure of Ordot Dump
• Awarded contract for trustee and custodian services to Bank of Guam
• Continued to evaluate proposals for operation of HHW facility
• Continued effort to issue RFP for legal services to assist GSWA Board
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 24
Gershman, Brickner & Bratton, Inc. 47 47 47 47
5. FINANCIAL ISSUES AND
CAPITAL FUNDING
October 2013 –March 2013
Gershman, Brickner & Bratton, Inc. 48
Operating Results:
First 6 months of FY2014 Expenditures: .3% Below Approved Budget
Revenue: 3.2% Above Approved Budget
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 25
Gershman, Brickner & Bratton, Inc. 49 49 49 49 49 49 49 49
FY2014
Revenue Billed and Collected
Gershman, Brickner & Bratton, Inc.
GSWA Revenue By Source
50
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 26
Gershman, Brickner & Bratton, Inc.
GSWA Commercial Revenue
51
Gershman, Brickner & Bratton, Inc.
GSWA Fund Balance
52 52 52 52 52 52 52
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 27
Gershman, Brickner & Bratton, Inc.
GSWA Cash Position
53
Gershman, Brickner & Bratton, Inc. 54
The original estimate was fully funded by the 2009 Section
30 Bonds. Expenditures are as of March 31, 2014
Capital Funding
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 28
Gershman, Brickner & Bratton, Inc.
Capital Funding: Additional
Projects
• Original bond issue is not sufficient to cover
estimated $21 million in costs of additional
projects imposed by GovGuam:
– Upgrades to residential transfer stations
– Dero Road improvement
– Route 4 safety enhancements
• Funding Options
1. Additional capital funds from GovGuam
2. Funded by accumulating funds previously used to
reimburse GovGuam for debt service
55
Gershman, Brickner & Bratton, Inc.
Capital Funding: Additional
Projects (cont’d)
• At the Receiver’s request, a meeting was held on April 30,
2014, with Governor’s representatives to explore funding
options, with no tangible results
• Receiver has begun to withhold debt service reimbursement
to accumulate funds for the additional projects – and
requests Court approval to establish a separate account with
Bank of Guam
• If GovGuam provides needed capital funds, funds in the
account will be released to GovGuam
• If additional capital funds are not provided, these funds will
be used to pay for the additional projects, legal expenses
and other future GSWA capital needs
56
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 29
Gershman, Brickner & Bratton, Inc.
Capital Funding : Additional
Projects (cont’d)
57
Note: The total estimated cost of additional projects is $21,000,000.
Savings from the 2009 bond issue will be applied to reduce the additional
amount needed. See Tab 9.
Gershman, Brickner & Bratton, Inc.
Capital Funding : Additional
Projects (cont’d)
58
See Tab 10 and Tab 11 for detail.
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 30
Gershman, Brickner & Bratton, Inc.
Capital Funding: Additional
Projects (cont’d)
59 See tables 11 and 12 and Tab 11 for details supporting this graphic.
Gershman, Brickner & Bratton, Inc.
GSWA Reserves
60
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 31
Gershman, Brickner & Bratton, Inc.
Layon Landfill Capacity
61
By 2020, Cells 1 and 2 will likely have reached capacity
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc.
6. TRANSITION ISSUES
62
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 32
Gershman, Brickner & Bratton, Inc.
Transition Issues
63
• Transition Timeline Uncertainty Board request to accelerate the timeline
GovGuam failure to fund additional projects and
Ordot post-closure
• Transition will add operating cost to GSWA
Cost to transition contract employees
Cost to add management staff required by law
creating GSWA
Contract employee transition cost driven by cost of
GovGuam benefits – 35 percent of payroll cost
Required management staff and contact employee
transition exceed the Receiver’s operating cost
Additional cost should be deferred as long as
possible
Gershman, Brickner & Bratton, Inc.
Transition Cost
64
Status Hearing Quarterly Report
Solid Waste Receiver
6/25/14
www.guamsolidwastereceiver.org 33
Gershman, Brickner & Bratton, Inc.
Transition Cost (cont’d)
65 See Tab 13 for detailed analysis
Gershman, Brickner & Bratton, Inc. Gershman, Brickner & Bratton, Inc.
NEXT STEPS ARE INCLUDED IN
TAB 1 (Narrative Report)
66