table of contents - guam solid waste receivership · their carts repossessed for lack of payment...

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

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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



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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



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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


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




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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



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



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Phase I

Planned waste area to be covered

Construction - Primary Tasks (cont’d)



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



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Waste is relocated to shape side slopes



Soil Cover Foundation Layer is compacted



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Geo-composite and geo-membrane cover

is pulled into place


Ordot Dump Closure Progress Stormwater pipe installation - major effort



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Stormwater Management Ponds



Leachate Storage Tanks in Place



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Ordot Dump Closure Progress Interim Leachate Storage Pond



Landfill gas collection line is placed



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Relocated western channel takes shape



Sewer line installation on Dero Road



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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



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



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2. LAYON LANDFILL AND

CONSENT DECREE PROJECTS

October 1, 2013 – March 31, 2014

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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



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• 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)

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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



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Residential Transfer Stations (cont’d)

Harmon Construction

March 2014


• 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



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• 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)

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3. OPERATIONS OF THE GUAM

SOLID WASTE AUTHORITY October 2013 – March 2014



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Residential Trash Collection

Customer base increased about 1.4%,

averaging 16,858


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



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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


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



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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


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



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Layon Landfill

37

Note: Without the growth in GWA tonnage, the percent change total would have

been -4.9 percent.

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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



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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


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



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Curbside Recycling (cont’d)

41 Recycling Contamination

491.6 tons collected Oct. - March



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



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Cost of the Program

43

Note: Cost analysis is for March only because March is the

first full month of the program.



Cost of the Program

44

Note: Cost analysis is for March only because March is the

first full month of the program.



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4. CONTRACT MANAGEMENT

AND PROCUREMENT

October 2013 – March 2014

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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



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5. FINANCIAL ISSUES AND

CAPITAL FUNDING

October 2013 –March 2013

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Operating Results:

First 6 months of FY2014 Expenditures: .3% Below Approved Budget

Revenue: 3.2% Above Approved Budget



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FY2014

Revenue Billed and Collected


GSWA Revenue By Source

50



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GSWA Commercial Revenue

51


GSWA Fund Balance

52 52 52 52 52 52 52



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GSWA Cash Position

53

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The original estimate was fully funded by the 2009 Section

30 Bonds. Expenditures are as of March 31, 2014

Capital Funding



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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



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



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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.


Capital Funding : Additional

Projects (cont’d)

58

See Tab 10 and Tab 11 for detail.



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Projects (cont’d)

59 See tables 11 and 12 and Tab 11 for details supporting this graphic.


GSWA Reserves

60



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Layon Landfill Capacity

61

By 2020, Cells 1 and 2 will likely have reached capacity


6. TRANSITION ISSUES

62



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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


Transition Cost

64



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Transition Cost (cont’d)

65 See Tab 13 for detailed analysis


NEXT STEPS ARE INCLUDED IN

TAB 1 (Narrative Report)

66



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Si Yu’us Ma’ase

table of contents - guam solid waste receivership · their carts repossessed for lack of payment...

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