MCV Broadband now a part of DOCOMO Pacific

Posted: May 22, 2013 by Jason Salas kuam

Guam - It was a big day in telecommunications, as DOCOMO Pacific announced that MCV Broadband is now officially part of the DOCOMO Group, giving the new interest the most subscribers of any provider locally. This gives DOCOMO Pacific a solid footing in the very lucrative local markets for wireless communications, Internet access and cable television. DOCOMO won the bid to acquire MCV Broadband last year, a wholly-owned deal worth $129.8 million, and the transaction has been pending FCC approval, which it has now received.

As far as management structure, Craig Thompson, longtime CEO for MCV Broadband will stay on staff as a consultant, a company representative told KUAM News. The marketing will eventually be branded under DOCOMO Pacific.

Subscribers of Saipan will also be able to avail of any bundling and rates the expanded company comes out with.

Docomo Pacific-MCV Broadband merger finalized

Wednesday, 22 May 2013 03:00am

BY MAR-VIC CAGURANGAN | FOR VARIETY

JAPAN'S NTT Docomo and Seaport Capital last night closed a $129.8 million agreement that officially merges Docomo Pacific and MCV Broadband in a mega deal touted to result in lower rates, more digital service options for Guam and, eventually, expanded offerings for the CNMI market.

The merged carriers will officially be known as Docomo Pacific, with Jay Shedd remaining as the company president and Craig Thompson serving temporarily as the chief strategic advisor for Docomo Pacific during the transition period.

Shedd will announce the new executive team’s composition today as he assured employees the merger will not entail staff downsizing. “We are not firing anybody,” he said.

Transition

As the transition begins today, Shedd and Thompson assured subscribers there will be no system or service interruptions.

“We are merging two very large companies and making them one, so it will take a little time to complete the transition process,” Shedd said.

“We are still offering the same services. Eventually, we will talk about some new services, pricing plans and bundle packages that we will start providing. There’s a lot of work in progress right now and a lot of headaches to go through before we can offer the services and bundles that we are currently developing.”

MCV currently offers cable TV, Internet and wireless, while Docomo Pacific provides mobile and wireless services.

Shedd said the merger will allow them to be able to offer subscribers “more choices, more plans and multiservice packages” that will result in savings for its consumers.

“There’s a lot of synergies between the two companies,” Shedd said. “With MCV’s fiber optic all over Guam, we can use that to help back all broadband data to our switches.”

James Hoffman, corporate counsel for Docomo Pacific, said the merged companies will get the advantage of receiving a great deal of technical support from the $50 billion parent company in Japan.

Final step

The Federal Communications Commission approved NTT Docomo’s acquisition of MCV on May 3 after getting clearance from the Department of Justice. Guam’s Public Utilities Commission approved the transaction in December.

“This is the final step,” Thompson said of the agreement signing.

The succeeding phase, he added, involves overcoming the hurdles to providing contemporary technologies to the CNMI market.

Docomo Pacific and MCV currently offer limited products and services to the CNMI due to the high cost of installing undersea fiber optic cable. Docomo is selling 2G phones because its system can’t support the data, while MCV can’t provide live video stream and fast Internet service.

“We are offering 1990's services in the CNMI,” Thompson said.

IT&E is currently the only carrier with a pipe that links Guam and the CNMI.

Thompson said it costs $145,000 a month to transmit channels from California to Guam, and more than $500,000 a month to transmit from Guam to Saipan.

“To go 100 miles from Guam to Saipan is a lot more expensive than the 600-mile shot from California to Guam,” Thompson said.

“We are trying to get government help to get a lower tariff rate so we can offer more services to the CNMI,” Shedd said.

Phase II of Hagåtña Bridge Project to start

Thursday, 23 May 2013 03:00am

BY JOY WHITE | VARIETY NEWS STAFF

·         Carl Dominguez

Major Route 1 lane shift will begin this weekend

THE Department of Public Works announced yesterday that Phase I of the Hagåtña Bridge Project is almost complete and contractor Core Tech International will begin Phase II by the end of the week.

Carl Dominguez, DPW director, is quoted in a news release as saying, “We now look forward to an aggressive schedule for Phases II and III of this very important project, and we thank the public for their continued patience as we work to complete this project.”

The $16.4 million project funded by the Federal Highway Administration and the Department of Defense began in September 2011 and is expected to be completed by March next year.

The overall project goal is to strengthen the capacity of the bridges and the roads to meet anticipated growth in traffic flow.

The new phase will also entail a major lane shift for south-bound traffic on Route 1. Starting 5 a.m. on Saturday, the two most outermost lanes currently under construction will be opened up and the two center lanes of the roadway will be closed for refurbishment and reconstruction of that section of the bridge and roadway.

Click here to view a map of the expected lane shift.

The public is advised to proceed with caution through the area and observe all traffic signs and flagmen.

Phase I was the replacement of the section of the Hagåtña bridge closest to the ocean. It included the installation of Navy communications vaults and conduits, reconstruction of the roadway between Routes 4 and 8, new sidewalks, and new driveways to the commercial properties along the road.

Parts of the reconstruction of the Route 1 and Route 8 intersection, to add two new left-turn lanes from Route 8 onto Route 1, were also included in the first phase.

Contractors ran into various problems during Phase 1.

“The contractor ran into some weather delays, utility conflicts, unforeseen sub-surface conflicts during the sheet pile driving, the discovery of archaeological remains and artifacts, and equipment issues,” Dominguez said.

During Phase II, the center section of the Hagåtña bridge and the center section of the roadway between Routes 4 and 8 will be replaced.

There will also be more Route 1 and Route 8 intersection improvements.

According to Dominguez: “The contractor plans on completing this phase (bridge and Route 1 road improvements) by September before going on to Phase III. The contractor plans on completing the Routes 1 and 8 intersection improvements by November 2013.”

Overall the project makes improvements to the Route 1 and Route 8 intersection and replaces the Route 1 and Chalan Santo Papa bridges over the Agana River. The project includes pavement widening and strengthening, new curbs and gutters, improved drainage, driveways, signage, pavement markings, intersection lighting, and utility relocations, as well as traffic signal system improvements.

In addition, the old bridge was approximately 40 feet long and the new bridge will be approximately 100 feet long.

Other road projects

DPW will hold a ribbon-cutting ceremony today to celebrate the recent completion of the Taleyfak bridges in Agat.

Projects still in the works are the Ylig Bridge replacement, Route 11 improvement and traffic enforcement screening station, Route 11 shore protection, and Route 4 (from Ylig Bridge to Pågo Bay) resurfacing and widening.

GovGuam top delinquent in garbage fees

Thursday, 23 May 2013 03:00am

BY GINA TABONARES-REILLY | VARIETY NEWS STAFF

THE Guam solid waste receiver has reported a remarkable improvement in the collection of garbage fees but noted that as of March 31, the one with the highest outstanding collectible is the government of Guam.

From Oct. 1, 2011 to Sept. 30, 2012, $16.7 million was collected out of the $17.5 million billed, according to a report submitted by Gershman, Brickner & Bratton Inc. (GBB), the court-appointed receiver for Guam solid waste management.

The highest collection was from commercial customers at $10,305, followed by residential customers at $6,383.

The government was billed for $348,583 but only $52,801 was collected during the same period.

The Guam Waterworks Authority account balance on March 31 was more than $1 million but GWA only paid $125,000 for March and April.

Other government customers owed $90,458 as of March 31 and according to the receiver, it continues to work with the Department of Administration to address unpaid balances.

GBB also reported that large commercial accounts remain its highest priority in collection efforts and that one account, Lagu Sanitation, has requested modification of its settlement agreement which is now under the receiver’s review.

According to GBB, the other accounts of commercial customers are current and the delinquency rates among residential customers have been kept to a minimum level.

Because of the improved collection of garbage fees, the Guam Solid Waste Authority's cash position continues to improve.

From $3.424 million in March 2011, the GSWA fund is now $11.2 million.

The receiver also reported that GSWA expenditures was 20.2 percent below the approved budget.

The total budget of GSWA for fiscal year 2013 is $18.3 million with a surplus of $599,009.

GBB also mentioned in its quarterly report that residential trash collections is 99.72 percent on time.

Half of public schools to see new principals

Wednesday, 22 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

HALF of the island’s public schools will have new principals when the new school year opens this August.

Guam Department of Education Superintendent Jon Fernandez released his assignments of school administrators for School Year 2013-2014 with more than 20 of GDOE's 40 public schools having new school administrators.

Fernandez said the department took several factors into consideration, including choosing the right administrators to move each school forward.

GDOE, in particular, took note of each administrator's experience, the number of years spent at a particular site, strengths and weaknesses, teacher and parent feedback, school improvement progress, and school challenges.

Earlier this year, administrators were informed that reassignments were a possibility, especially for those administrators with five or more years at their school.

During the last 10 months, Fernandez had the opportunity to visit schools and gather feedback from parents, teachers and school officials, during which he got a good picture of what each school needs to move forward as well as the type of leadership that would benefit each school.

"I take a lot of factors into consideration and there are a number of them. What I wanted to do is choose administrators who can move the school forward. That really would involve administrators working with the teachers to implement the curriculum and see progress," Fernandez said in an interview with Variety.

Smooth transition

Reassignments are usually announced in the week or two before the school year starts. But this early announcement, Fernandez stressed, would give administrators enough time to work together on a smooth transition that will help all schools prepare for the school year.

The new assignments will take effect July 1 to give the administrators enough time to move into their new schools. With the earlier announcement, the school administrators have six weeks to close out their work at their current school and six weeks to transition into their new assignments.

Before releasing the list, Fernandez also met one-on-one with the principals and assistant principals to explain the process and discuss GDOE’s priorities.

Although the assignments had been finalized, Fernandez stressed the department will continue to monitor and revisit the progress of the administrators at each school.

Guide

Erika Cruz, deputy superintendent of Educational Support and Community Learning, will manage the overall transition and has developed a transition checklist that will serve as a guide.

"This is the first time we have made assignments this far in advance of the school year and met with each principal and assistant principal to discuss their roles," Cruz said. "It's a process that our administrators appreciate and an opportunity for the superintendent to discuss his priorities for each school. We look forward to a smooth transition."

In addition, Fernandez said in the coming weeks he will be sitting down with the principals to look at priorities such as school accreditation and program timelines.

"I am confident in the school leaders that will be in place at each of our schools this coming school year," Fernandez said. "Instead of pulling names out of a hat to make assignments, I took time to reflect on my visits to schools and my conversations with administrators, teachers, parents and students before making any decision about the teams to help each school move forward. I want to make sure that every school is positioned to succeed next year."

"Change is hard," Fernandez added. "But change can be good if it helps us to refocus our energies, use our experiences to solve new problems, and remind us that we are responsible, as GDOE school leaders, to help all of our public school students on Guam and not just the ones at our current school. I know my administrators are up to the challenge."

Joseph invokes Fifth Amendment during Wise Owl hearing

Thursday, 23 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

VETERINARIAN Dr. Joel Joseph rested his case yesterday in the evidentiary hearing before Superior Court Judge Vernon Perez concerning the Guam Board of Allied Health Examiners’ decision not to renew Joseph’s veterinary license. During cross examination that was completed yesterday, Joseph invoked his Fifth Amendment rights and declined to answer questions about controlled substances.

He also lost his composure briefly while being asked to explain his use of the peerage title “Sir” in front of his name. Joseph said it was a knighthood from Prince Michael of the Principality of Sealand bestowed on him by Thomas Hanson and the people of the Federated States of Micronesia for the work he had done there. Under questioning from Ben Abrams, assistant attorney general, he became emotional as he explained that his use of the title was a death-bed request from Hanson. At that point, Perez called the attorneys into chambers and the line of questioning did not resume.

When Abrams asked Joseph about dispensing controlled substances, Joseph’s attorney, Mitch Thompson, objected and said that in light of what he said was Abrams’ effort to build a criminal case against Joseph that Joseph should not answer. Attorney David Lujan, who has joined Joseph’s legal team, also objected and said he would advise Joseph not to answer any questions about controlled drugs.

Raid

Allegations that Joseph was dispensing controlled substances without being properly certified were the cause of a search warrant executed at Joseph’s Wise Owl Animal Hospital on May 8. During the all-night raid, about two dozen Department of Public Health and Social Services personnel and Guam Police officers seized drugs, medical files and computers.

Abrams called his first witness, Mamie Balajadia, a clinical psychologist and chairwoman of the GBAHE. She refuted allegations by Joseph that she prescribed psychotropic, or mind-altering, drugs. She said that while a psychologist might become certified to do so, she was not certified and neither did nor could prescribe drugs.

Abrams then began questioning Balajadia about the Dec. 28, 2012 GBAHE meeting during which it made the decision not to renew Joseph’s license. Joseph contends he was not notified about alleged deficiencies in his license application nor given a chance to respond to other issues leading to the board’s decision. Balajadia noted several times that she posted notices of GBAHE meetings in the Marianas Variety five days and again two days prior to the meetings.

Balajadia’s testimony will continue when the hearing resumes this afternoon.

GBB warns of funding shortfall

Wednesday, 22 May 2013 03:00am

BY GINA TABONARES-REILLY | VARIETY NEWS STAFF

Exit from receivership at stake

THE Ordot Dump closure, the final construction of the Layon Landfill, and the rest of the consent decree projects – including the timeline for the transfer of control from the receivership to Guam Solid Waster Authority board control – will only be on schedule if adequate capital funding will be available at all times and no delays result from any change in legal representation.

This was stressed yesterday by David L. Manning, representative of Gershman, Brickner & Bratton Inc. (GBB), the court-appointed solid waste receiver, during a status conference.

Unlike previous status reports, the latest report submitted by the receiver includes a transition period, with GSWA signifying the end of the receivership term.

The end of the receivership is contingent on the completion of the closure of Ordot Dump and the completion of all Layon Landfill projects. However, this can be delayed if funding is affected by the proposal to use the 2009 Section 30 bonds to pay $28 million as compensation for the land used in the Layon Landfill.

GBB stressed that although consent decree compliance is moving toward completion, the availability of funds and the issue of legal representation can affect the timetable.

GBB is projecting a shortfall in capital funding with the current estimates for the cost of all the receiver consent decree projects.

The receiver informed Chief Judge Frances Tydingco-Gatewood that the estimated total cost of the projects remains under seal while negotiations for contracts on consent decree projects are underway.

According to Manning, the Ordot Dump post-closure cost is estimated at $14.3 million. The dump must be maintained for 30 years for a cost of $18.6 million. The anticipated construction bid date for final closure plan is scheduled for July 1.

As for the Layon Landfill-related projects, GBB reported it is working on all the required permits, performing all sampling of Inarajan marine waters, and monitoring the landfill flow impacts.

The receiver also reported that residential transfer stations in Agat, Dededo, Harmon and Malojloj are now under construction and procurement for the operation of the household hazardous waste program is ongoing.

Despite having a surplus of $1 million, the receiver said this is still not enough to cover additional costs, including the $14 million needed to fully close Ordot Dump, the contract completion of the Ordot Dump design, construction of the Harmon Residential Transfer Station, various transfer stations upgrades, Dero Road upgrades, contingency measures for the Inarajan transfer station upgrades, and the safety enhancements of Route 4 road curbs.

Concern

The high cost of closing Ordor Dump had prompted Vice Speaker Benjamin J.F. Cruz to raise concerns and ask the receiver why the $14 million for the Ordot Dump closure, the $2 million for the enhancement of Route 4, and the $28 million payment for the Layon land compensation were never included when GovGuam negotiated the $200 million bond in 2009.

“I am very concerned because as I remember, during initial meetings, we had contractors who insisted that existing bridges are strong. Then, after two meetings, they started saying that the bridges need to be upgraded because the trucks are too heavy for the Ylig and Togcha bridges. Then, finally, they recognized that they need to replace them. I only hope that the enhancement of these 19 curbings will not turn out like the bridges,” Cruz said.

GBB, however, informed the Vice Speaker that during the negotiations for the bond, there were no estimates available and the post-closure costs could not be determined until all studies were completed.

‘GBB not responsible’

GBB also stated during yesterday’s status hearing that it is not responsible for payments demanded as compensation for the land used for the Layon Landfill.

GBB principal associate David L. Manning said the judgment on the Layon land compensation was made before GBB’s appointment as receiver and that there is no requirement that the 2009 Section 30 bonds be used to pay the former landowners.

“It is not a receiver responsibility. GovGuam has had more than enough time to have financed the payment to the former landowners but is instead attempting to divert the funds needed to close Ordot Dump. They should have set aside money but they did not,” Manning said.

Manning also reminded the parties that the court authorized the receiver to assist GovGuam in receiving more than $103 million in grants and loans from the U.S. Department of Agriculture but that GovGuam, during the last administration, turned the money down.

The Camacho administration did not pursue the $103 million loan from USDA to avoid more GovGuam debts. Manning, however, suggested that GovGuam can still revive the loan that was previously rejected.

“Payment of the land judgment from the remaining funds would seriously impair the ability of the receiver to complete the closure of Ordot Dump. It is certain that the government of Guam will need to produce additional capital funds to both complete the consent decree projects and pay the judgment,” GBB stressed.

The Governor's Office attempted to replace its representation by the Attorney General’s Office but the court did not allow it, recognizing the significant knowledge of the government counsels in the 11-year-old litigation.

The court’s decision was supported by the receiver who noted the Attorney General has been an important part of the progress made to date.

“Significant additional cost will also result from the request of the Governor’s Office to change legal counsel. If the receiver has to retain private counsel, it will significantly increase expenses. A change in legal representation would likely delay the final closure of Ordot Dump,” GBB told the court.

The receiver also noted that the AG’s Office is doing good progress in clearing up the landownership issues on lands affected by the closure of Ordot Dump.

Cruz hits unfunded solid waste projects

Thursday, 23 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

VICE Speaker Benjamin J.F. Cruz yesterday reacted to the latest status report released by the federal solid waste receiver and criticized the multimillion-dollar unfunded and “unanticipated” commitments faced by the government of Guam related to the completion of the solid waste consent decree projects.

Addressing the Rotary Club of Northern Guam’s luncheon meeting at the Hyatt yesterday, Cruz said Ordot Dump’s post-closure costs – approximately $15 million – had not been factored in when the government negotiated a $200 million bond to fund Layon Landfill-related projects.

On top of that amount, Cruz said the dump must be maintained for 30 years for a cost of $18.6 million.

Another unanticipated cost is the $26 million for the land.

Currently, Cruz said, the unpaid expenditure is running interest payments of $110,000 a month.

During his talk, the Vice Speaker also detailed the cost of construction projects along Route 4 – the road that has to be navigated by big trash trucks to get to the landfill.

Road enhancements for the As-Alonso curve, one of the critical spots along the route, would probably cost at least $5 million, according to Gershman, Brickner & Bratton Inc., the solid waste receiver.

Cruz said the receiver mentioned three options for the completion of the road projects along Route 4, including the closure of both lanes for six months or the closure of one lane for six months to put up a retaining wall – which he said would cost at least $5 million by itself.

In total, Cruz said, approximately $60 million to $70 million has to be borrowed to complete these consent decree-related projects.

Tourism from China discussed

Thursday, 23 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

·         Guo Ming, chief operating officer of HH Travel and executive chairman of TM Group, was one of the featured speakers at the Guam Visitors Bureau China Outbound Travel Market Symposium yesterday at the Hyatt Regency Guam. He spoke to about 125 attendees about ''The China High-end Tourism Industry – Characteristics and Preferences.'' Photo by Frank Whitman / Variety

ABOUT 125 people interested in Guam’s tourist industry and the potential of the Chinese market attended the Guam Visitors Bureau’s China Outbound Travel Market Symposium held yesterday at the Hyatt Regency Guam. They were updated on the characteristics of the market, what Guam can do to attract it, and the status of the island’s efforts to secure a Guam/CNMI visa waiver for Chinese visitors.

The keynote luncheon speaker was Jim Beighley, executive vice president of strategy and market development for DFS Group Ltd. He has been a lead proponent of the visa waiver for several years. He told symposium attendees that support in the U.S. Congress has increased as a number of states are also hoping to attract Chinese tourists. “There is a growing tourism caucus in Congress that has actually been made aware of the Guam issue and wants to get behind it,” he said. Defense and security agencies continue to have some concerns.

The visa waiver effort is likely to benefit from other congressional initiatives, Beighley said. “One of the biggest pieces of legislation going through Congress right now is comprehensive immigration reform,” he said. “That’s the perfect vehicle to deal with things like visa waiver programs.” Members of Congress are trying to include visa waiver programs for the United States in the immigration legislation. He said he and others are working with members of both parties on two Senate committees to include Guam in the legislation.

“If comprehensive immigration reform passes, I think we’re probably going to be sitting in a very good situation of [that legislation],” he said. “If that doesn’t pass, we go back to the path of pushing the Department of Homeland Security to do this.” The key to success will be to attract attention to Guam’s concerns in the face of the myriad issues DHS faces.

Key

Key to success with the visa waiver efforts, he said, is a regional approach. “This is a Guam/CNMI visa waiver program,” he said. “Like it or not, we are joined at the hip and that’s not going to change.” In January 2015, Customs and Immigration regulation of travel between Guam and the Northern Mariana Islands is slated to cease. If the federal government gets mixed signals, it may well stop moving forward with the effort. He added that both areas will likely benefit as travelers will see the region as a destination with more to offer.

Even without a visa waiver program, the island is benefitting from other ongoing visa reforms, he said. “Two years ago there were one million Chinese that held U.S. visas,” he said. “This year we think we will probably get that number up to 1.7 million and next year it goes to 2.5 million.” If other efforts are successful to ease the process by which Chinese citizens are able to get U.S. visas, the number could grow to 5 million to 7 million.

Beighley also addressed common misperceptions about China. “It’s not one big market; it’s a very big and very diverse market and it’s very complicated,” he said. “There is much more diversity within Chinese consumers than you will find in any nation in the world.”

He said that as the country develops, outbound travel is increasing. “International travel isn’t being driven by the GDP of China, because a lot of that is infrastructure investment,” he said. “International travel is being driven by urbanization and disposable income in urban cities.”

As evidenced by trends in the travel industry, travelers increasingly are coming from secondary Chinese markets adding to the diversity of the market. “For the first time ever we have started to see the number of travel agents in secondary cities grow faster than the number of travel agents in primary cities,” he said.

Exceptional service

One of the morning’s featured speakers of the symposium was Guo Ming, chief operating officer of HH Travel and executive chairman of the TM Group. He said that in order to attract high-end tourists to Guam, the island must provide exceptional service. “Like you are the king; or you are the queen,” he told Variety. “Compared to other islands the Chinese are familiar with ... the other areas have already been popularized. Just to increase the quality of hardware is not the key. Service is very important. Service has many different facets; for example if tourists come to the immigration area at the airport, they should give them smiles to help them get rid of apprehension about entering the United States. That is important.”

He also said that many destinations in Asia are crowded and not safe. “This is probably service by the government,” he said. “To provide a relaxing, safe environment for tourists.”

GVB China tourism symposium

Wednesday, 22 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

The Guam Visitors Bureau held a press conference yesterday to introduce the featured speakers for its China Outbound Travel Market Symposium being held today at the Hyatt Regency Guam. Participating were, from left, Karl Pangelinan, general manager, Guam Visitors Bureau; Kate Chang, regional director for China, Pacific Asia Travel Association; Guo Ming, chief operating officer, HH Travel and executive chairman, TM Group; and Xinjun Wang, CEO, Ivy Alliance Tourism Consulting Co. Ltd. Photo by Frank Whitman / Variety

EXPERTS in Chinese tourism will address participants today at the China Outbound Travel Market Symposium beginning 8 a.m. at the Hyatt Regency Guam. The symposium is hosted by the Guam Visitors Bureau and will include three featured speakers from China; keynote luncheon speaker Jim Beighley, executive vice president of strategy and market development for the DFS Group Ltd.; and two afternoon panels of local tourism experts.

“China represents the fastest growing outbound travel market in the world,” Karl Pangelinan, general manager of the Guam Visitors Bureau, said during a press conference yesterday. Chinese tourists have recently been named the biggest spenders and the World Tourism Organization has estimated that Chinese outbound travelers will number 100 million by 2015, he said.

“This obviously represents a wonderful opportunity not just for Guam and our tourism industry but across the board with our entire economy,” he said. “With these staggering numbers, capturing just a 1 percent market share will add what we estimate to be another $1 billion to our Guam GDP and increase employment opportunities for all of our people.”

The symposium will present experts that will help attendees better understand Chinese travelers, meet their needs, and gain maximum benefit from the market, Pangelinan said.

Kate Chang, regional director for China for the Pacific Asia Travel Association (PATA), is one of the morning’s featured speakers. She said she will update participants on PATA’s latest visitor forecast for Asia Pacific with specific focus on China and a new visa travel intention study. “I would like to close my presentation with my recommendation on how to engage with China through PATA’s network,” she said.

Another of the featured speakers is Guo Ming, chief operating officer of HH Travel and executive chairman of TM Group. “As one of the most high-end travel agencies in China I am looking forward to the chance to exchange with Guam travel trade,” he said. “I will talk about characteristics, features and traits of the Chinese high-end travel market.”

Xinjun Wang will be the first featured speaker at 9 a.m. He is the CEO of Ivy Alliance Tourism Consulting Co. Ltd. “I am looking forward to sharing my research with Guam travel colleagues,” he said. He plans to give his analysis of Guam as a destination, as well as an update of trends and characteristics in the Chinese outbound travel market.

Beighley will speak on the status of the efforts to secure a China visa waiver for Guam.

The afternoon panel discussions are entitled “Lessons Learned in Preparing for China Outbound Travel Markets” and “How Guam can Best Prepare for the Coming China Visitors.” Panelists will include George Chiu, executive vice president of Tan Holdings; Sam Shinohara, managing director of business development for Asia Pacific for United Airlines; Grace Donaldson, general manager of Pacific Human Resource Services Inc.; and Lynette Johnson, managing director MidPacific of the DFS Group Ltd.

Phase I of Hagatna Bridge completed

Posted: May 22, 2013 by Jolene Toves  kuam

Guam - It has been over a year and a half since construction first began on the Hagatna Bridge. Phase I of the project was met with several delays putting construction behind schedule by nearly eight months.

"This coming Saturday, May 25, early in the morning the contractor will start shifting travel lanes the southbound lanes in particular so the two south bound lanes that people are traveling on will shift over to the far right," said DPW director Carl Dominguez. The two new southbound lanes should open by noon on Saturday and will pass over the portion of the bridge that has just been completed ending Phase I construction. "I want to let the public know that they will be driving over concrete they will not be driving over asphalt the asphalt will not be added on 'til the entire project is complete," he added.

Dominguez says laying out the asphalt and adding the markings will be the last part of the project. He adds that the concrete surface has enough friction to prevent it from being slippery and will be monitored by DPW. Only now entering Phase II, the completion of the road way is far in sight, which means motorists will continue to face a disrupted traffic flow pattern. However motorists are not the only ones being affected by the project.

Businesses in the area have had to deal with the impacts and while complaints have not been brought to the attention of the DPW director a couple did express their concerns with KUAM News. One of those businesses has been in the area for 20 years, as Big Hook manager Jay Park said, "Greatly it really did it's been going on for almost a year and couple of months and our revenue has decreased by almost 50 percent. It is making a big impact on us and them switching lanes right now it's probably even going to be worst."

Despite a decrease in revenue park says they are going to wait it out and hope for the best, but not all business in the area can say the same, Affiliated Lifestyles co- owner and Small Fry owner Chrissy Taitano said, "It affected it greatly because in the beginning they were doing the sewer and that was a big problem because it kept getting backed up into our store and then now they fully took up the whole road way and so I did what I had to do for the business I didn't want it to affect anything in terms of people not wanting to come in and check out the shop."

Taitano says she relocated her two businesses to Tumon to get away from all the construction and keep her businesses thriving.

With about nine more months of construction businesses in the area have expressed concerns however they understand the importance of the road project. Meanwhile motorists are reminded to drive carefully as the two south bound lanes opening on Saturday will remain concrete until the project nears completion.

 

The EmpireState Building in NYC was completed in 1 year & 45 days with primitive tools compared to 2013 tools

Airport signs Lotte contract

Tuesday, 21 May 2013 03:30am

BY FRANK WHITMAN | VARIETY NEWS STAFF

DFS reiterates allegations

THE Guam International Airport Authority announced yesterday that it has entered into a specialty retail concession agreement with Lotte Duty Free Guam LLC, permitting Lotte to operate a duty free retail concession in the main terminal of the airport, according to a release from the airport.

The agreement is for an exclusive term of five years with an additional five-year term on a non-exclusive basis. The agreement increases the airport’s specialty retail concession guaranteed rental revenues from $4.5 million under the previous contract with DFS Guam to $15.4 million in minimum annual guaranteed rent to be paid by Lotte, according to the statement.

The agreement with Lotte represents a 242 percent increase in minimum annual guaranteed rent with the potential for further increased revenues based on percentage rent, which the airport expects to be substantial. Moreover, the airport was able to negotiate additional revenue of 1 percent of all non-airport sales made by Lotte on Guam, according to the release.

“This is an exciting time for the airport and we are eager to move forward with our agreement with Lotte,” said Chuck Ada, executive manager of the airport. “The airport will realize tremendous additional value from this contract with Lotte which will undoubtedly contribute to significant increased revenues for the airport.”

The agreement requires Lotte to invest no less than $23 million in capital improvements to the airport’s retail concession space, the release said.

Renovations

Lotte also committed to make additional renovations to the airport food court and restroom facilities at no additional cost to the airport. “In recent years, retail sales at the airport have not kept pace with the increased enplanement numbers,” Ada said. “This is a trend we would like to change and the Lotte agreement is a big step in that direction.”

Lotte issued a statement expressing its gratitude. “On behalf of the entire Lotte Team we wish to thank the Guam International Airport Authority for being awarded the retail concession,” said Gerry Perez, Lotte Guam transition director. Lotte is looking forward to a long-term partnership with the airport authority in improving the visitor experience at the airport, he said. 

“It has been a long and challenging bid process, but we are very excited to get to work for the Guam international airport, and the people of Guam,” he said. He added that the company was excited about moving forward, and the innovation and investment Lotte will be providing will help Guam improve its competitiveness as one of the most successful visitor destinations in Asia. Lotte will be discussing in more detail what it plans for the airport in the coming weeks.

The airport’s request for proposals last year resulted in bids from four international duty free retailers. The airport evaluation committee charged with reviewing and recommending the most qualified proposer unanimously ranked Lotte Duty Free the top bidder, the airport statement said.

On April 12, the airport board of directors unanimously approved the evaluation committee’s recommendation and Lotte was selected as the best proposer. Shortly thereafter, the airport began the negotiation process with Lotte.

Protest

On April 23, DFS, which held the previous contact, protested the Lotte award based on what it said were irregularities in the process and gifts given to airport board members, who subsequently did not vote on the award. Upon receipt of the protest, the airport delayed the negotiations with Lotte while the protest was being addressed.

On May 17, after an investigation, the airport dismissed the protest and subsequently concluded negotiations with Lotte.

Ada said it was important for the airport to finalize its negotiations and consummate the agreement. “The delay in entering into the new agreement was preventing the airport from receiving over $900,000 a month in additional minimum annual guarantee revenue. So it was in the best interest of the airport and its stakeholders to expedite negotiations and execute the duty free contract, and that’s what we did.”

DFS issued the following statement yesterday: “DFS received GIAA's response to our protest after close of business on Friday. This is the first time since we raised this issue in October that we have been provided with information relative to the internal investigation conducted. Unfortunately, the response we received raised more questions than it answered.

“The investigation determined that gifts were provided to the members of the delegation that visited Lotte and that they were given pre-planned tours of their facilities by Lotte senior management. After a series of contradictory and partially misleading statements in the press, it appears now that those gifts were not just nominal in value, but were in fact high value branded products as DFS has alleged. In addition, some of the central figures involved in these violations appear to be now changing their accounts of what transpired. We are greatly concerned about the circumstances surrounding these events, as we have always believed that these issues are not only clear violations of the RFP, but also a violation of the integrity of the process. The delegation contained several officials who were in a position to directly and indirectly influence the process. The visit to Lotte, the tour of their facilities and the transmission of these valuable gifts was part of a continued, coordinated effort to exclusively benefit one of 4 bidders in the process – all of which was clearly prohibited during the RFP process.

“We also note from GIAA's press release that Lotte was apparently given the opportunity to revise their financial offer to the airport following their selection as the first ranked proposer. This would be another advantage that other proposers have not been offered. DFS notes that its original annual guarantee offered to GIAA was $16.0 million per year, with additional spaces, and looks forward to Airport revealing the original financial proposal of Lotte which would have been the basis for the initial ranking determinations.

DFS is currently reviewing the response of GIAA relative to the facts we have acquired regarding the RFP process. We will make a determination on what, if any, further actions we will take in the coming days.”

The statement is from Evan Lewis, vice president of public relations, events and communication for DFS.

 

Liberation Carnival now open

Tuesday, 21 May 2013 03:30am

BY JOY WHITE | VARIETY NEWS STAFF

The Liberation Day Carnival opened its doors last night in Tiyan. Photo shows, from left, Eric Bamba, Marcie Bamba, Ein Bamba, Mikeila Bamba, and Mary Bamba playing the marble game at the Liberation Carnival. Photo by Matt Weiss / Variety

THE Liberation Day Carnival opened its doors last night in Tiyan. This is the second year in several years that the carnival will be held in Tiyan.

The carnival will run until July 28, and is open from 6 p.m. to midnight on weekdays and 6 p.m. to 2 a.m. on weekends and holidays.

Mayors’ Council of Guam President and Agana Heights Mayor Paul McDonald assured that the carnival will be better this year and the “glitches” from last year have been corrected.

McDonald said the Mayors’ Council was able to prepare the grounds earlier this year compared to last year.

In addition, the council had more funds available to spruce up.

“We could actually provide a walkway with black top in compliance with ADA. We tried to do it last year, but it was gravel this year so it’s a better solution,” McDonald said, adding the lighting is also better.

He said the new layout can accommodate more people and more booths. There are also several new rides this year.

For the first time, the Mayors' Council will be hosting the Islandwide Softball Tournament.

There are more than 50 teams registered. Schedule for the games will not be finalized until the registration closes by the end of today.

Any teams interested in competing in the tournament can contact Santa Rita Mayor Dale Alvarez or Barrigada Mayor June Blas.

The theme for this year’s Liberation is “Stories of Courage and Faith.”

‘No time limit on Guam THAAD missile deployment’

Friday, 17 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

THE commanding general of the U.S. Army Pacific told reporters at the Pentagon he thought the most recent bout of provocative rhetoric from North Korea was part of an ongoing cycle, though “tenuous” this time.

“For the first time, we deployed theater ballistic missile defense to Guam in protection of the homeland,” said Lt. Gen. Frank Wiercinski. He was taking the opportunity to brief reporters as he prepares for retirement.

Wiercinski began the session by outlining the history and scope of the Army Pacific command. That was followed by questions from media representatives, one of which concerned the threats from North Korea toward the U.S., according to a transcript of the session.

“I've seen this for 34 years – cyclical provocation with the grandfather, the father and now the son. It's nothing that I have not expected,” he said. “However, I would think that this time it was a tenuous situation. For the first time, we deployed theater ballistic missile defense to Guam in protection of the homeland. Later in the session, a member of the Japanese media asked Wiercinski whether the U.S. planned to bolster its missile defenses in response to North Korea. The general replied that the regional allies – Japan and South Korea – as well as all U.S. service branches “are constantly in coordination.” He added, “A [Terminal High Altitude Area Defense] battery deployed to Guam for the first time ever. That's a big change. But you're still seeing that integrated and synchronized defense. I believe that that will continue, if not get stronger. To get into the specifics of that, I can't really enter that discussion right now.”

He also said he was aware of only the one THAAD deployment to Guam, when asked if there might be more THAAD deployments to the Pacific Command region. He added there is no time limit on the Guam THAAD deployment. “It’s condition-based,” he said.

The North Koreans have a demonstrated capability to place a missile into space, he said. “We've seen that. They have a purported testing of nuclear weapons systems. And we take that very seriously. But it appears the rhetoric has died down in recent days and we're hoping that that cycle of provocation has come to its endpoint for this cycle.”

Amendment allows Medicaid coverage for all FAS citizens

Friday, 17 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

GUAM Delegate Madeleine Z. Bordallo on Wednesday issued a statement on the U.S. Senate Judiciary Committee’s vote to include Amendment No. 15 in S. 744, the Border Security, Economic Opportunity, and Immigration Modernization Act of 2013.

The amendment was offered by Sen. Mazie Hirono of Hawaii and would make Compacts of Free Association migrants eligible for Medicaid outside of Guam’s Medicaid cap. The bill still must be considered by the full Senate. The amendment is similar to H.R. 912 which was introduced by Rep. Colleen Hanabusa of Hawaii and of which Bordallo is an original co-sponsor. It is similar to legislation that Bordallo has sponsored in the past.

Bordallo joined her colleagues on the Congressional Asian Pacific American Caucus in sending a joint letter in support of the amendment to Chairman Patrick Leahy and Ranking Member Chuck Grassley of the judiciary committee. The efforts of CAPAC and Bordallo, the vice chairwoman of CAPAC, helped to ensure the amendment was adopted by voice vote and was generally supported on a bipartisan basis.

Longstanding issue

“I thank Sen. Hirono for offering this amendment and for working to address and fix this longstanding issue for our states and territories,” Bordallo said. “State and local governments continue to bear much of the financial burden of providing social services to COFA migrants as a result of the compacts. Sen. Hirono’s amendment restores Medicaid eligibility for these migrants and will allow the federal government to pay a percentage of the healthcare costs for eligible migrants, many of whom are currently covered by our local [Medically Indigent Program]. Should Congress maintain this provision and pass this comprehensive immigration bill, it will help to mitigate one of the most significant impacts of the Compacts of Free Association.

“I also want to thank my colleagues in CAPAC for their support of this amendment. This is a positive step forward in addressing Compact-impact issues, especially given current budget constraints. I will continue working with them to maintain this provision and push for the passage of comprehensive immigration reform. I remain committed to working with Gov. (Eddie) Calvo and the Legislature to look at other legislative measures to address and mitigate the financial burden from the Compacts

Fleet management system linked to smart grid generating savings

Friday, 17 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

SINCE piloting the program in November, the Guam Power Authority transportation division's fleet management program has generated fuel savings and improved fleet efficiency through its utilization of GPA’s smart log system attached to TrackMe!Guam.

For the past six months, the division has been implementing the program to manage, track and reduce fuel usage in GPA’s fleet of 272 vehicles. Each of the vehicles is equipped with the system which transmits data wirelessly.

GPA Communications Manager Art Perez said the wireless network is tied to the smart grid project.

GPA is a mobile organization reliant on the availability of a transportation fleet which includes sedans, utility trucks and heavy equipment. The annual fuel budget is approximately $330,000 for unleaded gasoline and $187,000 for diesel fuel, making this a significant part of the GPA transportation division’s operating expenses.

Jimmy Pangelinan, GPA fleet services manager, said since the program started, the utility has realized fuel savings of at least 25 percent by cutting back on maintenance and fuel costs as well as vehicle idling time.

"The program tracks everything – vehicle movement, fuel reports, alerts for management. All of these are tied to the smart log. Now if someone is speeding, we can pick it up," he said.

Idling

According to GPA, idling of vehicles accounts for approximately 30 percent of fuel costs. This is one metric the transportation division uses to measure fleet efficiency. Other metrics include traveling speed and fuel calibration of all vehicles.

By utilizing the system, Pangelinan said GPA’s aim is to minimize and eventually get rid of idling time to generate more fuel savings.

To help GPA more accurately measure fuel use, Pangelinan said all of their vehicles are currently undergoing fuel calibration. After this is completed, GPA can project the amount of fuel used for travel time, work, and distance to the job site.

"This information will be used to place better cost controls for managers to help reduce operating costs which in turn provides savings to our customers,” Pangelinan said.

Meanwhile, Perez said he is glad the transportation division is taking the lead in the initiative because this helps a lot in terms of facilitating efficient planning and savings.

"GPA is all about savings and I am glad that our transportation division is taking the lead in putting that out," Perez said.

Guam Museum launches Facebook page

Friday, 17 May 2013 03:00am

BY JOY WHITE | VARIETY NEWS STAFF

THE Department of Chamorro Affairs has announced that artifacts to be displayed in the Guam and Chamorro Educational Facility, or Guam Museum, can now be found on Facebook.

The Facebook page features photo albums that provide cultural and historical information about Guam and the museum’s artifacts.

In addition, viewers can access photos about the history of the Guam Museum and the previous homes of the exhibits including the Garden House at the Plaza De España in the 1970s and 1980s; Adelup from 1994 to 2002; the Guam Premier Outlets in 2003; and Micronesia Mall from 2004 to 2008.

Viewers can also keep track of the museum's progress with photos of the groundbreaking in February this year.

There will also be aerial photos of construction progress and information about dates and constructions phases.

The website can be found by clicking here.

The Guam Museum is located in Skinner Plaza in Hagåtña and is expected to be completed by December 2014.

GPA strategizing in earnest for conversion to LNG

Friday, 17 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

Consolidated Utilities Services General Manager John Benavente and several others attended an LNG conference from April 16 to 20 in Houston, Texas. Variety file photo

DURING the next several months, the Guam Power Authority will be embarking on efforts to shape the acquisition and financing strategy necessary to start the seven-year process of moving to liquefied natural gas, or LNG, for the island’s energy base load production.

“This year is going to be critical for us since we are trying to get up to speed with LNG technology. Some major decisions have to be made while heading toward there,” Consolidated Utilities Services General Manager John Benavente said.

LNG as a fuel diversification strategy is indicated in GPA's Integrated Resource Plan.

In preparation, Benavente and several others attended an LNG conference from April 16 to 20 in Houston, Texas.

Benavente, in his report to the Consolidated Commission on Utilities, said he is reviewing the information gathered at the conference in order to frame a recommendation consistent with the policy decision to convert to LNG approved in the current Integrated Resource Plan.

“The decisions we face as we move ahead to LNG are quite complex and important ones. I am encouraged that the industry ... is evolving and provides us with opportunities because of the industry’s growth and advancement,” Benavente said.

Seven years

Benavente said the island can look forward to the first LNG unit in seven years. Before this can be done, Benavente said the necessary infrastructure needs to be set up first.

According to a report submitted to the CCU, the LNG chain covers several essential processes including the drilling and transmission of gas to a liquefaction facility; shipping transportation to ship the gas to the destination; and storage and re-gasification infrastructure to store and convert the LNG for pipeline transmission, among others.

LNG is an energy source formed by “condensing natural gas to liquid by chilling it to about -260º F, reducing its volume by more than 600 times,” according to the U.S. Environmental Protection Agency.

As a result, according to the USEPA, “just one shipload of LNG can provide nearly 5 percent of the U.S. average daily demand for natural gas, or enough energy to heat more than 43,000 homes for an entire year.”

“Right now we want to have enough time to make the decisions since this is not something you do every day. This is the first time the island will convert completely from oil to gas,” Benavente said.

He added that with the recent technological developments, GPA has an opportunity to develop a system that would be best for the island with little technical constraints.

The conference touched on several key points about LNG which helped shaped the global industry as well as trends in power generation, including the discovery of substantial amounts of shale gas reserves necessary for LNG production – an amount that could be available for about 2000 years.

In addition, the United States and Australia have been emerging as major players in the LNG market and Benavente said this could be beneficial since pricing structures won’t be as volatile as oil.

Benavente reiterated the benefits of the decision to convert to LNG, stressing that maintaining current power facilities on Guam to meet stringent USEPA stack emission control regulations will cost $400 million.

In contrast, Benavente said converting the plants to LNG costs significantly lower and would generate around $1 billion in fuel savings over the next 30 years.

According to the current IRP, the steam-powered plants Cabras 1 and 2 and Tanguisson 1 and 2, as well as slow speed diesel plants Cabras 3 and Cabras 4 and MEC 8 and 9, can be converted to process the natural gas.

GPA has a year to come into compliance

Posted: May 16, 2013

Guam - The Consolidated Commission on Utilities has one year to bring their small generators into compliance with the Clean Air Act. CCU chairman Simon Sanchez said, "In order to come into to compliance, GPA is going to have to look at spending a lot of money to put in scrubbers or filters to clean up emissions from our oiled fired facilities."  

Sanchez says GPA has both small and large generators, bringing the large generators into compliance will cost about $400 million and the small generators will cost about $100 million. He adds that GPA has worked out a timeline with the USEPA to come into compliance.

Henry Taitano re-nominated to as GEDA administrator

Posted: May 16, 2013 by Ken Quintanilla  KUAM

Guam - Hoping second time's the charm, the Guam Economic Development Authority's board of directors once again nominated Henry Taitano to lead their team.

"But I think that the board still feels strongly that he is our strongest candidate to be our permanent administrator. I think we need to send the message to the governor affirming our confidence in Mr. Taitano," said Ricardo Duenas. And with that the GEDA board of directors unanimously approved that a recommendation be sent down to the Governor's Office to nominate Taitano once again as its permanent administrator. It was earlier this month when Taitano's nomination went before the Legislature, and in just a week's time, had a confirmation hearing and vote before lawmakers. That however was rife with controversy over allegations of Taitano's previous business ventures specifically involvement with LLCs and LLPs raised by Vice Speaker B.J. Cruz.

And with Taitano falling one vote short of the confirmation, the GEDA board of directors questioned why the need for legislative approval in the first place. "Why would we have to get this position approved by the Legislature because the board members have all been confirmed by the Legislature," he said.

While director George Chiu questioned the redundancy, the board's legal counsel noted that under GEDA's enabling act it does provide that the Legislature have advising consent authority over the appointments. And with the board's vote of confidence along with Governor Eddie Calvo who had previously voiced his support behind Taitano saying he would re-nominate him again, Taitano, present during today's meeting, says he's feels humbled for the experience.

"I'm very honored that the governor and board have continued to support my nomination for this position. For me, it's definitely exciting and I look forward to working with the legislature to iron out the issues they've had in the previous vote," he said.

And to clear up any concern, Taitano plans on meeting with all the senators before his next confirmation hearing. "Like I stated before I don't have any business interest that will put me in any conflict and in fact right now I don't have any business interest, so I look forward to working with them," he said.

In the interim, the board appointed deputy administrator Mana Silva Taijeron as the acting administrator. 

Action demanded from Congress on Compact-impact

Posted: May 15, 2013 by Ken Quintanilla kuam

Guam - For decades, island leaders have raised concern over the shortfall of Compact impact reimbursements. And today is no different as a handful of senators again call for congressional action to help move the matter forward. Recognizing that the federal government has not met its obligation to offset the true financial impact of the Compacts of Free Association, island leaders are calling for some congressional action.

"Essentially what the resolution does is respectfully requests for the congresswoman introduce legislation on annual basis for reimbursement for the people of Guam of $50 million recognizing the long standing debt of over $500 million to the people of Guam for the excess requirements that are required to host the FSM community on Guam," said Senator Chris Duenas. And as this has been a long standing issue, as the senator says it's time to step up our game. "I wanted to make sure that we did everything we possibly could to have our story heard in congress and to say we tried every effort to show that the Compact impact costs is really causing to this point and today now really causing a devastating effect on our government's ability to provide services to our people," he explained.

Along with the annual appropriation, the resolution calls for a congressional hearing to be held on Guam.

Federated States of Micronesia acting consul general Robson Romolow meanwhile says about 18,000 citizens from the Freely Associated States have since migrated to Guam and can understand the toll placed on GovGuam. "Guam doesn't have anything to do with this because it's a treaty between the US and was agreed and discussed between the US and the FSM government, but the impact has impacted the Guam community and I strongly support the bill that Senator Duenas has put forward," he said.

And reiterating statements from FSM president Emmanuel Mori, Romolow hopes those who now call Guam their home will become productive citizens in the community. "If the numbers have increased of a productive citizen for our citizens it will also have a great impact in decreasing the expenses in the areas that are affected, so I would encourage each citizen from our Freely Associated States especially FSM and our sister states Palau and RMI to encourage our citizens to be productive and be a good, law abiding citizens in the community," he said.

The resolution is co-sponsored by Senators Tony Ada, Tommy Morrison, Vice Speaker B.J. Cruz, Michael Limtiaco and Brant McCreadie. 

Congresswoman Madeleine Bordallo said of the matter, "I look forward to meeting with local leaders during my next district work period to discuss the progress we have made on Compact impact and the political realities of moving this particular proposal through the Republican-controlled House in these fiscally austere times. Republicans continue to oppose all new spending measures. Despite this, I have joined Congresswomen Colleen Hanabusa and Tulsi Gabbard from Hawaii and Congressman Eni Faleomavaega from Samoa in introducing legislation that increases annual Compact-impact assistance to the affected jurisdictions from $30 million to $185 million. I also continue to work with my colleagues to pursue other legislative measures to address the Compact-impact issue."

Governor signs 10 bills into law

Wednesday, 15 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

Eddie Calvo

GOV. Eddie Calvo signed 10 bills into law last Friday, according to a release from the Governor’s Office. All of the bills had been passed by the 32nd Guam Legislature on April 30.

Bill 16-32, now Public Law 32-025, rezones land in Tiyan, Barrigada from Agricultural to Light Industrial.

Bill 53-32, now P.L. 32-026, changes Guam Community College’s current autonomous procurement process and brings them back under government of Guam procurement statutes, rules and regulations. This legislation came at the request of GCC, which wants to be held to the same procurement laws it teaches its students.

Bill 56-32, now P.L. 32-027, changes the category of traffic misdemeanors to violations, no longer requiring representation from the Attorney General’s Office in traffic court.

Bill 57-32, now P.L. 32-028, updates current fines on encroachment violations that obstruct roadways from $10 to $50. It holds individuals who violate the law responsible for costs incurred by DPW during the process of removing obstructions.

Bill 58-32, now P.L. 32-029, prohibits government agencies from publishing information about students under the age of 18 without prior consent from their parents or legal guardians. It also restricts student participation in certain surveys, analyses, assessments or evaluations administered by government agencies or schools without the authorization of their parents.

Bill 62-32, now P.L. 32-030, creates the Guam Council on Child Death Review and Prevention. The council will review suspicious deaths of children looking for common denominators, such as health hazards or physical abuse. Through its records and investigation, the council can be proactive in addressing potentially hazardous situations.

Bill 65-32, now P.L. 32-031, requires agencies to create educational programs for their oversight board members. Programs will educate board members about their agency’s operations and procedures. Failure to complete these programs will result in removal from the board.

Bill 67-32, now P.L. 32-032, identifies the new boundaries of the Guam Football Association soccer field in Dededo.

Bill 72-32, now P.L. 32-033, grants the administrators of estates of the deceased control of email, social networks and digital media accounts that belong to the deceased.

Bill 76-32, now P.L. 32-034, authorizes the Attorney General's Office to disperse the funds of the Criminal Injuries Compensation Fund pending the filling of vacancies on the commission to establish a quorum

Layon property controversy

Wednesday, 15 May 2013 03:00am

BY GINA TABONARES-REILLY | VARIETY NEWS STAFF

Value of landfill land questioned

ASIDE from the question of whether Section 30 bonds can be used to pay the former owners of properties where the Layon Landfill has been built, the value of the condemned 300-acre land also remains to be a subject of deliberation before the District Court of Guam.

When Superior Court Judge Alberto Lamorena III rendered a decision on Jan. 24, 2008, the court awarded more than $25 million plus interest.

The amount represented the “just compensation” for the condemned lands based on the appraisal made by Nicholas Captain, president of Captain Real Estate Group.

To date, approximately $7 million in interest has accrued on the $21.7 million balance owed. The interests continue to accrue in the amount of $110,000 per month until it is paid.

In his April 2008 appraisal report, Captain said the value of just compensation to be paid to the landowners was $3.39 million.

According to the AGO, GovGuam received a July 2010 report that Captain prepared for the trial. Without any prior warning or communication with the appraiser, the AGO learned that Captain raised his estimate of “just compensation” from $3.3 million to $5.9 million and doubled his opinion of damages to the remaining 2,700 acres from 25 percent to 50 percent.

In his April 2011 appraisal report, Captain further increased the value of just compensation from $5.9 million to $10 million and later $13.9 million. In the few days between the completion of his sworn testimony and the delivery of the April 2011 report, Captain’s just compensation figure increased by $4.5 million and by more than $10 million since his April 2008 report.

The court decided not to give weight to the bulk of Captain’s testimony due to the inconsistent figures in his multiple reports.

“The second appraisal report not only lacks many indicators of reliability relative to his revised conclusions ... [but it] also undermines the reliability of Mr. Captain’s methods and conclusions relating to his first report,” the court said, unconvinced with the explanation of the Calvo Insurance Underwriters expert.

When the former landowners – Joaquin C. Arriola, Leonard Calvo, Alfred Ysrael and Edward “Champ” Calvo – testified that just compensation should be between $185 million to $300 million, the court found that the landowners’ value estimates are high.

A professional condemnation expert, Randall Bell testified to an estimate of just compensation in the amount of $32 million.

The court has not indicated what amount or appraisal value it will consider for the just compensation.

The scheduled quarterly status conference on the consent decree compliance has been moved from May 17 to May 21 at 9:30 a.m.

Reported dolphin poaching on Guam being investigated

Wednesday, 15 May 2013 03:00am

BY MATT WEISS | VARIETY NEWS STAFF

PROMPTED by reports and allegations from eyewitness accounts, the National Oceanic and Atmospheric Administration has opened a criminal investigation into the illegal poaching of dolphins in Guam’s coastal waters. NOAA is looking for persons aboard a small boat off Guam’s southwestern coast, who were spotted harpooning dolphins last weekend.

NOAA Special Agent Charles Raterman stated: “It is illegal under the Marine Mammal Protection Act to harass or take, hunt, capture, collect or kill dolphins, or attempt to do so.”

With interviews not yet conducted, Raterman stressed there is still an ongoing investigation on the case and he cannot share information at this time.

In a plea for public help, Raterman said: “If anybody has any information of any poaching of dolphins, in the southwest part of Guam, please contact NOAA office of law enforcement, Special Agent Raterman at 472-7200. I would be happy to speak with them.”

While NOAA has ultimate jurisdiction over this investigation, Raterman said he will also be working with the Guam Division of Aquatic and Wildlife Resources.

When asked about criminal charges associated with dolphin poaching, Raterman, reciting code from the Marine Mammal Protection Act, said: “Any person who knowingly violates any provision of the subchapter or any permit or regulation shall be, upon conviction, fined not more than $20,000 for each violation and imprisoned for not more than one year.”

Educate

Charged with a mandate of not only seeking punishment and levying fines but also educating the public, Raterman concluded: “NOAA wants to work with communities. We’re not looking just to punish people but we would like to help people, educate them and do further outreach to assist into this matter.”

For her part, University of Guam Marine Lab Director Dr. Laurie Raymundo commented: “I am personally appalled by this shortsighted and careless incident. It reflects a lack of respect for laws that are designed to protect these animals and for Guam's natural resources. People on Guam derive a huge amount of satisfaction and enjoyment from having dolphins in our coastal waters that we can interact with in harmless ways. Living dolphins are much more valuable to the culture and economy here than are harpooned ones.”

Weare looking to make territorial rights a national issue

Wednesday, 15 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

NEIL Weare, president and founder of the We the People project, spoke to about 100 people in the CLASS Lecture Hall at the University of Guam yesterday about the project that seeks equal rights and political representation for all those living in the U.S., including residents of the U.S. territories and Washington, D.C. He will speak to members of the Guam Bar Association today at noon, and will hold a fundraiser at Club Denial tomorrow evening. He will also speak to the CNMI Bar Association and at the Northern Marianas College in Saipan.

“This is the public launch of We the People project,” he told Variety. “Really it involves all the territories.” The project addresses issues common to Guam, the Northern Mariana Islands, American Samoa, the Virgin Islands, Puerto Rico, and Washington, D.C.

We the People was formed in February. Its most immediate focus is its representation of eight plaintiffs from American Samoa in the case Tuaua v. United States. The plaintiffs claim that under the citizenship clause of the 14th Amendment to the United States, they should be citizens by virtue of being born in the U.S. territory. Residents of American Samoa are considered non-citizen nationals.

“The status of America Samoa is basically the same as it was in Guam before the Organic Act,” Weare said. “The issue and relevance for the other territories is: Is the citizenship of the residents of these areas based on federal statute which can change, or is it based upon the guarantees of the Constitution?”

Insular cases

If it is the former, Congress can remove citizenship by passing another law – the same way it granted it, Weare said.

“Then more broadly with that case as a vehicle for reconsidering the insular cases, this impact litigation (the Tuaua case) provides an opportunity to have a real national conversation about the status of these areas and revisiting those cases,” he said. “It creates an opportunity for different kinds of political discussion in Congress and in the territories about what the future of these areas is.”

The “insular cases” are a series of court decisions in the early part of the 20th century – shortly after the territories in question became part of the United States. They have been interpreted to mean that the full guarantees of the Constitution do not apply in the “unincorporated territories.”

“Under the insular cases ... we can keep these areas in this perpetual state without ever having to address issues of political representation,” he said. “If you change that, you can create some new opportunities for addressing these broader issues of rights and representation.”

At UOG, Weare told attendees how, as a high school student, he had been incensed at the unfairness of Guam’s territorial status and had carried that indignation through his higher education and into his career.

Weare is a former Guam resident and graduate of Southern High School. He worked as a staffer for the Guam Legislature and as press secretary for Guam Delegate Madeleine Bordallo. He holds his doctorate in law from the Yale Law School.

“The new approach that our organization is talking about is trying to bring these areas together,” he said. “So instead of it being a Guam issue or a D.C. issue or a Puerto Rican issue, it’s really an American issue. It’s a civil rights issue that affects almost 5 million Americans. Equal constitutional rights and representative government are really the core of what American democracy is about.”

He said the organization is trying to “create a new civil rights movement around rights and representation for all Americans.”

Banding together

The territories will more likely be successful by banding together. “In the last 50 years, it’s been an every-man-for-himself strategy in each of these areas,” he said. “It would be a much more powerful statement and movement if the residents of these areas worked toward a common solution. The voice of nearly 5 million Americans is much more powerful than the voice of any of these communities by themselves.”

The organization’s advisory board includes former Guam Delegate Ben Blaz and former Assistant Secretary of the Interior for Insular Affairs Tony Babauta.

The first task will be to build connections among the different communities, Weare said. “The timeline is the next two years. We’re going to be focusing on work in the territories and D.C. itself to really get this conversation going, then – a few years after that, leading up to the 2016 presidential election – really trying to make this a national conversation.”

GMH committee to discuss shortfall

Wednesday, 15 May 2013 03:00am

BY JOY WHITE | VARIETY NEWS STAFF

Alan Ulrich

THE Guam Memorial Hospital Authority’s finance committee will be meeting today to discuss the remaining fiscal year and what can be done with the current appropriations.

GMH is facing a $10 million shortfall, due to more than $20 million of debt and being under-budgeted for this fiscal year. The proposed budget for the hospital presented in 2012 was for $93 million. However, GMH’s debt to vendors and salaries for much-needed professionals were not included in the budget.

GMH Chief Financial Officer Alan Ulrich told the Variety the hospital has been working with the Governor’s Office and the GMHA board of trustees to determine what will happen with hospital operations with the appropriations available as the fiscal year comes to an end.

“We’re looking at what has to be done relative to cash flow,” Ulrich said.

GMH recently launched an incentive program offering half off on overdue hospital bills to increase cash flow. In addition, the hospital is in communication with insurance companies.

“We’re making sure we maximize all of our revenues,” Ulrich said.

Leaving no stone unturned, the hospital is also working with the Department of Administration to determine if there are any other available funding sources.

“The question is what funding is out there, what funding is still remaining that we haven’t appropriated by the fiscal year 2013 budget bill,” Ulrich said. “We know there are some funds relative to general obligation funds that I don’t believe we have received yet.”

Looking to the future, GMH will be presenting a budget of more than $140 million for the next fiscal year.

“We’re hoping the Legislature and the Governor’s Office will support the initiatives we are presenting,” Ulrich said.

If the budget is not approved, Ulrich said the budget will have to be re-evaluated and modified.

“But we’re hoping more than ever that the Governor’s Office and Legislature can help GMH reach its fiscal goals, which is to have a balanced budget in 2014,” Ulrich added.

March job total drops from December, but up from 2012

Tuesday, 14 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

ACCORDING to a release yesterday from the office of Gov. Eddie Calvo, Guam’s private sector included 1,000 more jobs in March than it did 12 months ago. “Over the year, the private sector gained 1,000 jobs in total, led by an increase of 590 jobs in construction, followed by a gain of 420 jobs in hotels and 220 in transportation and public utilities,” the release quoted Gary Hiles, chief economist of the Department of Labor's Bureau of Labor Statistics. However, the release also noted that total employment in March was down from December 2012.

The complete March 2013 Employment Report was not posted on the Department of Labor website as of press time.

According to the release, government of Guam employment dropped by 100 jobs from the same period last year, including a dip of 70 jobs over the last quarter. Federal government employment also dropped by 80 jobs from March 2012, including 60 since December 2012.

The decline in government jobs over the latest quarter – a decline of 130 total government jobs since December 2012 – is the biggest reason for the decline of total employment – 140 jobs – when comparing total employment in December 2012 to March 2013. Despite growth in several industries over the quarter, there was a seasonal drop in the retail industry. Retailers tend to hire more temporary workers in December to assist with the Christmas shopping season, according to the release.

The March 2013 report is a reversal from the March 2012 report, when there was a loss of more than 1,000 jobs in the construction industry alone, according to the release. The March 2012 report showed hotel jobs were slightly below the March 2011 levels of 5,410. Today’s job report shows tremendous growth in the hotel job market since that time, with 5,790 jobs in hotels. This follows consecutive months of news that tourist arrivals are at record levels.

“Private average hourly earnings, average weekly hours paid and average weekly earnings all decreased slightly in the latest quarter but remain above the comparable figures of one year ago,” Hiles is quoted in the release.

Wise Owl vet seeks to retain Lujan

Tuesday, 14 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

Dr. Joel Joseph stands outside his vet clinic after personnel from the Department of Public Health and Social Services Division of Environmental Health – assisted by about a dozen officers from the Guam Police Department – removed controlled substances, cartons of medical records, and clinic computers. Photo by Frank Whitman / Variety

JUDGE Vernon Perez granted Dr. Joel Joseph a continuance yesterday in the proceedings related to the validity of Joseph’s controlled substance registration and the renewal of his license to practice veterinary medicine.

Joseph’s attorney, Mitchell Thompson, requested a continuance of about a week in order to have the assistance of prominent Guam criminal defense attorney David Lujan to help prepare for the proceedings. Lujan is currently off-island, Thompson said.

Assistant Attorney General Ben Abrams did not oppose the continuance.

The evidentiary hearing got underway on Friday and several witnesses testified before it adjourned in the late afternoon with Joseph on the stand. Joseph was expected to return to the witness stand. With the continuance, the proceedings are scheduled to resume next Monday at 10:30 a.m.

The hearing began two days after the execution of an administrative inspection and search warrant at Joseph’s Wise Owl Animal Hospital on Wednesday, May 7. Personnel from the Department of Public Health and Social Services Division of Environmental Health – assisted by about a dozen officers from the Guam Police Department – removed controlled substances, cartons of medical records, and clinic computers.

According to DPHSS officials, the raid was authorized by the Attorney General’s Office and prompted by concerns that Joseph was dispensing controlled substances though his controlled substance registration was revoked by the Guam Board of Allied Health Examiners. Joseph said the registration remains valid.

Criminal

Joseph said he is planning to retain Lujan because of statements in documents related to the “illegal raid.” “They say they are going to pursue criminal charges,” Joseph said. “So in order to preserve my rights in criminal matters, I’ve got a criminal lawyer.”

Abrams said he was unaware of any plans by the Attorney General’s Office to pursue criminal charges against Joseph. “The first I heard of the possibility of this kind of thing was when Mr. Thompson talked about it,” he said.

He noted he is in the civil litigation division and criminal charges would not be pursued by that division. “Never since I have rejoined the AG’s Office in 2008 can I recall the criminal division picking up on any aspect of our civil cases that do involve criminal activity,” he said. “I’m nowhere near the level of being involved in decisions by the criminal division of the Attorney General’s Office that would result in the institution of criminal charges. ... They’re on the fifth floor; we’re on the sixth floor and almost never do we discuss our cases or our caseloads with each other.”

 

Secret’ meeting bill bashed

Tuesday, 14 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

A FORMER lawmaker yesterday criticized a measure that proposes to allow the Civil Service Commission to conduct deliberations on certain civil service cases behind closed doors.

Former Republican Sen. Robert Klitzkie, during yesterday’s public hearing on Bill 102, quoted the following during his testimony: “The Civil Service Commission cannot, must not, should not be allowed to contravene the expressed intent of the Open Government Law.”

The words, Klitzkie said, came from a decision authored by former judge and now Vice Speaker Benjamin J.F. Cruz in a decision rendered in December 1984 pertaining to the Open Government Law.

Vice Speaker Cruz is the sponsor of Bill 102.

“One of the things that pop in my mind when I read the bill is, 'What is the problem? We have been doing this for 30 years?' We haven’t had any problems. As a matter of fact, I would submit that it has worked pretty well,” Klitzkie said.

He added that the Legislature has consistently strengthened the Open Government Law during the last three decades.

“We’ve made it better and we’ve made it stronger over the years. But I’ve never seen a senator say we’ve got to restrict the Open Government Law now because the public is finding out too much,” Klitzkie said.

“The question that occurs to me when we are talking about this sneaky, secret deliberation in a public body is: Who is trying to hide what and from whom are they trying to hide it? If we are trying to do these things, we should do it in the open so that everyone can understand what’s going on."

Public safety

But the Civil Service Commission cited public safety as a reason for Bill 102, which amends portions of the current law relating to the meetings of the commission.

In particular, the bill proposes that meetings of the commission shall be conducted in accordance with the Open Government Law except that any and all deliberations may occur in a closed session and no transcript of such deliberation need be maintained, nor shall the commission be required to record such deliberation.

When conducting such closed deliberations, according to the bill, only members of the CSC board, along with the commission’s counsel and its executive director, may be present.

CSC commissioners, in accordance with the Open Government Law, currently deliberate publicly, according to CSC Director Tony Lamorena, a former senator.

Private deliberation, Lamorena said, will lend itself to improving the safety and security of the commissioners who will be free to discuss their views without fear that what is said is misconstrued and used as a motivator for parties or members of the public to harbor feelings of distress with the process.

As a body with a quasi-judicial function, the CSC handles cases involving decisions to demote, suspend or terminate classified employees, among other personnel issues which are sensitive in nature.

As such, Lamorena said members of the CSC should be free to engage in rigorous debate and to express their respective opinions so that all aspects of any particular decision may be weighed.

“[The] Open Government Law was instituted 30 years ago but we didn’t have to worry about our little children being kidnapped, we didn’t worry about workforce violence. ... I have had board members followed to their vehicles after a hearing – I wait in the parking lot after every hearing for all of my staff and commissioners to drive away before I leave,” he said.

He added: “We’ve had family members scream and shout and threaten our commissioners. And rightly so because we are dealing with their livelihood, with their jobs and with their capacity to feed their children, and their family.”

New bill offers compromise to water system fee

Posted: May 13, 2013 by Ken Quintanilla kuam

Guam - While there's been talk of removing a fee imposed on new customers that join the Guam Water and Wastewater System, others have argued it won't be fair to existing customers. But legislation has been introduced touted as a compromise to the system development charge.

In less than a month's time, a second piece of legislation has been introduced related to the Guam Waterworks Authority's system development charge.   "I think Senator Ada's bill is very good compromise in recognizing that existing ratepayers who have built this system need some help from new customers, new rate payers joining the system by building their new houses or their new structures," said Simon Sanchez, chairman of the Consolidated Commission on Utilities.

Bill 112 was introduced by Senators Tom Ada and Rory Respicio to create an affordable housing system development charge, which proposed to make the SDC less burdensome for those who are building low cost and affordable homes. "So what Bill 112 does is it takes what is roughly a $5,300 charge for system development charge for water and wastewater and it says for houses that cost below $180,000, the system development won't exceed more than 1.2% of your cost of your house for water and 1.8% of your cost for wastewater," he said.

Sanchez says it's a fair compromise to what others have proposed recently including Senator Tina Muna Barnes' Bill 93 introduced on April 17. "It eliminates the system development charge for the first time homeowners of affordable housing and it works with the medium income as statute by HUD," he said.

Barnes says while that bill came at the recommendation of the Affordable Housing Coordinating Council, she's open minded to all solutions. "I'm very hopeful that this added addition to this new bill that we can bring both bills up and have a good public hearing and come up with what's best for the community as a whole," she said.

Sanchez agrees. "My hope is that senator now has two bills that have been introduced to look at the issues and he can bring the community together we can talk to Senator Barnes, the Governor and Mr. Webb and say where is the balance," he said.

Bill 112 also proposes allowing the SDC to be paid when the occupancy permit is issued as opposed to the way it is now where one has to pay the SDC when the building permit is issued.

Meanwhile, it was just last week when concerned resident Rodney Webb proposed a flat or percentage SDC to all users of the water and waste water system as a more fair and equitable cost to ratepayers than the current SDC. Sanchez says while the math is correct, he still disagrees on having existing rate payer pick up the costs for growth and new rate payers wanting to join the system. Senator Ada's office meanwhile says they hope to have a public hearing for both bills together. 

Consent decree still costing taxpayers

Tuesday, 14 May 2013 03:00am

BY GINA TABONARES-REILLY | VARIETY NEWS STAFF

Lawyers from the Attorney General's Office who are representing the government in the case are not charging an hourly rate and other expenses as private lawyers do. Variety file photo

THE high cost of complying with the mandates of the solid waste consent decree continues to impose a burden on the island’s taxpayers.

The Ordot Dump’s discharge of leachate to Lonfit River has stopped, but the government of Guam needs to continue discharging financial resources to pay the receiver – Gershman, Brickner & Bratton (GBB) – to totally close the dump, complete the Layon Landfill, and pay the former landowners of 300 acres of condemned Inarajan property, where the solid waste facility has been built.

And if the Governor’s Office succeeds in replacing the Attorney General’s Office with private lawyers, the government will need to expend thousands of dollars to pay private law offices to represent the governor, the Department of Public Works’ Solid Waste Management Division, and GBB.

Lawyers from the AGO who are representing the government in the case are not charging an hourly rate and other expenses as private lawyers do.

On Jan. 24, 2008, GovGuam filed a condemnation case to acquire the properties owned by Calvo Insurance Underwriters, Jones and Guerrero Co. Inc., Alfred and Diane Ysrael, Lee M. and Joan S. Holmes, Valencia Investments Corp., Henry Sy, Joaquin C. Arriola, Douglas Cushnie, and Young Chull Kim.

Superior Court Judge Alberto Lamorena III awarded the landowners $25 million plus interest, including the $3.4 million deposited by GovGuam into the landfill account. The amount represented the “just compensation” for the condemned lands based on the appraisal made by Nicholas Captain, president of Captain Real Estate Group.

To date, approximately $7 million in interest has accrued on the $21.7 million balance owed. Interest continues to accrue in the amount of $110,000 per month until it is paid.

Ordot Dump and Layon Landfill costs

Ordot Dump was officially closed in August 2011. Closure and post-closure costs for Ordot Dump were pegged at $1.7 million in 2011. It is estimated to cost a total of $45 million to perform the closure and post-closure processes.

Expenditures for the opening of Layon Landfill reached $26.6 million in 2011 and $39.1 million in 2010, which brings the total cost for the new landfill to $65.7 million.

Since GBB was appointed as the receiver on March 17, 2008, its fees have reached $9.7 million. In 2010 and 2011, GBB received $2.8 million for each year.

According to the Office of Public Accountability's December 2012 audit, there have been increases in solid waste operations and the operating cost was $9.3 million and reached $11.1 million in 2011. Among other services, the top expenses were for receiver’s fees, government and contracted personnel costs, roll out carts, and repairs and maintenances.

Renewable power for schools urged

Tuesday, 14 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

John M. Benavente, general manager of Consolidated Utility Services, said CUS supports net metering projects, but added that Bill 74 needs to be clear on Guam procurement laws. Variety file photo

THE Guam Department of Education’s energy woes may be addressed by a bill allowing them to enter into a public-private renewable energy purchase agreement with a qualified provider – a partnership that could also potentially generate millions of savings for the department.

During the public hearing convened for Bill 74 yesterday, William Hagen of Pacific Solar & Photovoltaics Inc. said in his testimony that if passed, the measure will go a long way toward helping the Guam Power Authority meet its mandated goals while simultaneously saving the school system millions of dollars now and in the future.

Speaker Judith Won Pat and Sens. Aline Yamashita and Tina Muña-Barnes introduced the measure, which allows GDOE to enter into a renewable energy purchase agreement for a term of up to 25 years. As proposed by the bill, the selected renewable energy provider shall be responsible for all costs required to install and maintain such renewable energy technology at GDOE schools and facilities.

After conducting preliminary measurements at the George Washington High School in Mangilao, Hagen believes the campus alone could produce more than 1 million kilowatt hours (kwh) of renewable energy per year on their multiple roofs – an equivalent of 137 homes consuming 1,000 kwh per month.

The savings could be as high as $100,000 the first year, with cumulative savings of $12 million over 25 years.

“This system would be nine times larger than the one at St. Francis School in Yoña. Also, if GW were allowed to max out their roof with photovoltaic modules, Guam would save $343,000 in foreign fossil fuel payments the first year,” Hagen said.

However, he also said it is necessary to remove the size limitations on all net metering systems to allow for the aggregation of meter readings for a single customer, “so renewable energy would blossom on the island.”

Current law restricts the size of net metering facilities connected to GPA’s grid at 25 kw for residential and 100 kw for non-residential, and also prohibits a net metering customer from aggregating their meter readings.

Concerns

John M. Benavente, general manager of Consolidated Utility Services, said the CUS supports net metering projects as established by law, which are projects similar to those proposed in the bill.

However, he also said the legislation needs to be clear on the Guam procurement laws and regulations which apply to the transaction.

He also suggested having a threshold, wherein the transaction is only feasible if the purchase price of solar is less than 80 percent of GPA’s existing rates.

“GPA is constantly seeking opportunities to lower costs and it would be unfortunate if GPA’s costs were lowered and Guam taxpayers were burdened with higher costs than those charged by GPA,” Benavente said in his testimony.

CUS believes that within 90 days from the implementation of the new program, GDOE should provide a comprehensive report detailing the amounts paid to GPA, the amounts paid to the private provider, and the amounts saved on behalf of the taxpayers on Guam.

“This report should be provided to the Guam Legislature and GPA to help us make better informed decisions regarding future renewable energy projects,” he said.

Grow Guam $300K grant

Monday, 13 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

THE U.S. Department of Agriculture rural development program has approved a Value Added Producer Grant of $300,000 for Grow Guam LLC, according to a May 9 release from the Office of Guam Delegate Madeleine Z. Bordallo.

The grant award is the maximum amount allowable for working capital grants. Grow Guam competed for the grant with other applicants across the nation and is the first grantee for the program in the Western Pacific,

The grant funds will be used to promote and market the sales of Grow Guam’s hydroponically grown lettuce and tomatoes. The company will use the funds to build marketing initiatives to help build public awareness of the environmental, health and economic benefits of consuming and purchasing locally grown produce while simultaneously stimulating company sales.

“By supporting our local farmers, we are helping to grow our economy in a long-term sustainable way,” Bordallo said. “Moreover, ‘Buy Local’ efforts help small businesses and promote economic self-sufficiency for our island,” she added.

Grow Guam was founded in 2010 and operates a 4-acre hydroponic farm, according to Jon Cramer, vice president and general manager. It produces about 5,000 heads of lettuce a week, he said.

Monday, 13 May 2013 03:00am

A closer look at Guam’s emerging new market

IMAGINE Far East Russia, a region more than two-thirds the size of the United States, cold during the winter months of heavy snowfall and the occasional strong easterly wind.

Far East Russia encompasses part of the northernmost region of Eurasia between Lake Baikal in Eastern Siberian and the Pacific Ocean. Major cities include Vladivostok, Khabarovsk, Komsomolsk-on-Amur, and Yakutsk.

About 99 percent of the Russian tourists visiting Guam since the Russia visa waiver was approved last year are from Far East Russia. They seek sun, beaches, and relaxation.

From 2011 to 2012, the number of Russian tourists visiting Guam increased by more than 300 percent. According to visitor numbers in April, arrivals from Russia were up by 63 percent.

The numbers

According to the Guam Visitors Bureau’s Russia Visitor Tracker Exit Profile FY2013 first quarter report, the average overall expenditure of Russian tourists was $5,516.10, with the average per person expenditure at $2,746.96.

The exit poll, conducted by QMark Research, surveyed a random sample of 150 Russian tourists.

Guam is marketed as a high-end family destination. Survey showed 73 percent traveled to Guam with their family, while 19 percent traveled with a friend and 16 percent traveled alone.

The exit survey shows that 43 of the 150 surveyed had children, and of those who were visiting with children, 51 percent of those children were between 3 to 6 years old.

The vacation experience

“For them it’s a very easy destination; it’s a very user-friendly destination. The culture’s a little bit different and yet it’s very comfortable,” said Bart Jackson, chairperson of the Committee on Russia and New Markets for GVB.

Tourists Nadezda Vetric, Natalia Bochkaryova and Natalia Shalina came to Guam for various reasons, with relaxation and the beach as the main attractions.

Vetric, who is visiting Guam from Komsomolsk-on-Amur from May 5 to 19, told Variety through a translator that she came to Guam to try something new and to open herself to America.

She is enjoying the shopping experience, the beaches, and apparently being away from fellow Russians. “When more Russians come, poor Guam,” she said in jest.

Visiting from Khabarovsk from May 5 to 19, Bochkaryova said that in addition to the relaxing ambiance that Guam offers, the island’s unique culture interests her.

Shalina, from Kostroma, arrived on May 7 and is staying on Guam until May 17. She came to Guam because she wanted to visit an American island.

During their stay, the three said they feel safe on Guam and were relieved that they don’t encounter vendors approaching them and pushing their crafts or products – a scene typical in Asian destinations.

The Russia vacation experience on Guam is different from the typical Asia vacation experience.

Visitors from Japan, Korea and Taiwan make up a majority of Guam’s tourist market.

Russian tourists have to take long flights to Guam because there are no direct routes to the island.

A majority come to Guam through Seoul, Korea or Narita, Japan.

Unlike Asians, who typically stay for two or three days, Russian tourists stay for about two weeks.

“The typical Asian traveler will come in and they are busy the whole time. They’re jet skiing, they’re shopping, or they’re on a dolphin cruise. But Russians don’t want to vacation that way. They want to vacation like Europeans and Americans do. They want to go somewhere and relax,” Jackson said.

The average Russian tourists would prefer to spend time relaxing undisturbed on the beach or participating in the typical tour attractions at a leisurely pace.

Since Russian tourists stay longer, the Tumon attractions will all be explored within the first week or less.

Instead they may rent a car and explore the rest of the island, visit more out-of-the-way restaurants, and spend money in other shops.

The Russian vacation experience is also different in the way it is organized. Traditional travelers’ itinerary and arrangements are made by the same travel agents or organizations that book their flights.

The Russian travelers are assisted by Guam-based ground handlers, who book the hotels, make travel arrangements, and arrange airport pickup.

The ground handlers brief the Russian clients, advising them what they can do while on Guam, what to avoid, how to have a good experience, and how to stay out of trouble.

The ground handler is available 24/7 and offers translation services.

“They are an essential part of what’s going on because the hotels don’t have Russian speakers. If they do, they only have one or two and don’t have coverage 24 hours, which is what you need,” Jackson said.

Despite the influx of Russian tourists, the market still remains only a fraction of Guam’s tourist population.

GVB is continuing its efforts to market Guam by attending travel expos and networking with travel agents.

“Moving forward, we’re going to keep that going, but we’re going to begin to do more to go direct to the consumer,” Jackson said.

However, the industry doesn’t expect to see the Russian market grow as big as the Asian market anytime soon. The population of Far East Russia is spread wide, and others may find other closer and more convenient destinations.

“We’re never going to be full of Russians. I just don’t see it,” Jackson said, adding he does not anticipate more than 50,000 arrivals. But because of their extended stay, Russians will still make a considerable contribution to the economy.

Vice Speaker Cruz questions exemption of wholesale firms

Monday, 13 May 2013 03:00am

BY FRANK WHITMAN | VARIETY NEWS STAFF

Benjamin Cruz

VICE Speaker Benjamin J.F. Cruz is questioning whether the tax exemptions for wholesale companies “continue to be a worthy public investment,” according to a release from his office.

In order to gather information on the issue, his office last week delivered a Freedom of Information Act request to the director of the Department of Revenue and Taxation.

“I am attempting to discern the scale, scope and impact of Guam’s wholesale tax exemption law,” the request reads. It requests a list of all entities granted a wholesale tax exemption in 2009, 2010, 2011, and 2012. It also seeks the amount of taxable revenue lost through each exemption, according to the release.

“I remember a time when Guam had two or three wholesale companies; now I’m told that number is nearly 10 times larger,” he said. “Years ago, we knew that our community had to invest in the wholesale industry to help it grow – now we should ask if that investment can be returned to our community.”

In the release, Cruz said he was acting “in response to the outstanding performance audit of the Department of Revenue and Taxation conducted by Public Auditor Doris Flores Brooks and her staff.”

Cruz noted that the government allows 47 different tax exemptions. “Every time you hear that we don’t have money for more policemen or prosecutors, remember that we are giving away millions of dollars a year in taxes,” he said.

Monday, 13 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

Dr. Robert Underwood, center, poses with the Huaqiao University delegation, Henry Tan, members of Tan Holdings, Guam Chinese Association, Chinese Chamber of Commerce, United Chinese Association, Chinese School, and other University of Guam officials and dignitaries. Contributed photo

THE University of Guam has finalized plans for a student exchange program with Huaqiao University (HQU) for the Fall 2013 semester.

Up to five students will have the opportunity to gain international experience in tourism when they apply to take courses to attend each other’s institutions.

This program is in line with the Cooperation of Agreement for student exchange between HQU and UOG, which was signed in late 2012.

“This partnership with HQU provides UOG students with an excellent opportunity to gain an immersive learning experience in China,” UOG President Robert Underwood said in a statement. “HQU students will in turn experience what it’s like to live and learn in a U.S. university like UOG.”

Henry Tan – an alumnus of UOG and chief executive officer of Luen Thai Holdings Ltd. in Hong Kong, vice chairman of Tan Holdings Corporation USA, and council member of HQU – facilitated the exchange program.

“Mr. Henry Tan is a prime example of how our university alumni continue to contribute back to our island and our university,” Underwood said.

The student exchange program between UOG and HQU will begin in the Fall 2013 semester. For more information on UOG student exchange programs, contact Joan Swaddell at 735-2271 or email joanswaddell[at]gmail.com.

Senators launch tax initiatives

Monday, 13 May 2013 03:00am

BY LOUELLA LOSINIO | VARIETY NEWS STAFF

SENATORS from different sides of the political aisle have put forth tax-related proposals with the aim of helping streamline GovGuam’s finances.

Republican Sen. Mike Limtiaco is requesting that Speaker Judith Won Pat convene the Legislative Tax Review Commission so it can participate in the crafting of the budget for fiscal year 2014.

Limtiaco wants the Speaker to provide any information that may exist from prior legislative tax review commissions. If information does not exist, Limtiaco wants the Legislative Tax Review Commission to be convened as mandated in Title 2 Chapter 11 of the Guam Code Annotated.

The statute was set in January 2004 as the initial date for the appointment and convening of this commission with the next commission to be constituted in 2007 and every four years thereafter.

On the other hand, Democratic Sen. Michael San Nicolas, along with Vice Speaker Benjamin J.F. Cruz, introduced Bill 109-32 (COR), which would increase the amount of time that the Department of Revenue and Taxation has to pursue and collect business privilege taxes owed to the government of Guam. Currently, the statute of limitations to collect business privilege taxes stands at seven years. Bill 109-32, if passed, would extend that timeframe to 10 years, giving DRT an additional three years to collect those taxes. The seven-year statute of limitations was signed into law by then-Gov. Joseph Ada in 1987 and no statute previously existed.

“Not only does Bill 109-32 create a more standardized statute of limitations for collecting unpaid taxes; it will enable the department to pursue those amounts that are owed to the people’s government,” San Nicolas said.

Oversight hearings on DRT recently conducted by San Nicolas and the recent findings of an audit released by the Office of Public Accountability have brought to light issues pertaining to the collection and waiving of penalties for business privilege taxes. Bill 109-32 takes into account and recognizes the department's difficulty in monitoring, reporting and collecting the taxes.

“Recent events have underscored the need to increase the statute of limitations,” San Nicolas said. “This improvement in the tax collection process for business privilege taxes helps ensure that the process is fair and evenly applied to everyone.”

Monday, 13 May 2013 03:00am

BY GINA TABONARES-REILLY | VARIETY NEWS STAFF

THE beleaguered veterinarian who has been fighting to get his license renewed will be back in court before Judge Vernon Perez this afternoon for an evidentiary hearing against the Guam Board of Allied Health Examiners.

Dr. Joel Joseph, owner of Wise Owl Animal Hospital – which was temporarily shut down following a police raid last week – will continue his presentation of evidence to show that GBAHE failed to follow proper procedures when it denied his license.

The case stemmed from the board’s revocation and non-renewal of Joseph’s license to practice veterinary medicine on Guam.

Through his counsel Mitch Thompson, Joseph filed his petition before the Superior Court of Guam on Jan. 3.

Represented by its legal counsel, Benjamin Abrams, the board issued a subpoena to compel the veterinarian to produce the documents supporting his complaint.

When Joseph moved to quash the subpoena, Perez disagreed and ordered the petitioner to provide the respondent with all of the veterinarian's permits and applications issued by the Drug Enforcement Agency and the Department of Public Health and Social Services.

Abrams also asked Joseph to submit all controlled substances stored in the clinic, along with records indicating use, dispensation, and distribution of prescription of controlled substances from May 2012 to present date.

Joseph argued that the animals and their owners have rights of privileges to the release of private information.

Perez told Joseph that the court will order the redaction of confidential information in the documents. The judge said he anticipates only relevant documents relating to applications for certificates of drug distribution and X-ray machine operation, previous certificates, evidence of usage, and other pertinent information.

Abrams told the court that the subpoena was an attempt to see if Joseph was complying with the board and the court’s earlier orders to desist from using certain drugs and an X-ray machine until proper certification is ascertained.

While agreeing with Abrams, the court recognized that the respondent failed to follow proper procedures when it subpoenaed the petitioner.

The court did not grant the petitioner’s move to sanction the respondent but allowed Joseph to provide ample time to provide the documents sought by the respondents.

The evidentiary hearing will resume at 2 p.m. today.

 

Cost of goods coming through Port could increase

Posted: May 09, 2013 by Ken Quintanilla kuam

Guam - Goods coming through the Port Authority of Guam could increase following action taken today by the agency's board of directors. The board today approved a request by management to petition the Public Utilities Commission for a tariff increase of 5.65%.

Port vice chairwoman Christine Baleto told KUAM News, "There were concerns brought up at the last meeting relative to what that was going to fund, so I believe that were we able to allay some of our concerns. And so today was really to give the approval for them to move forward and to petition the PUC for that increase."

Baleto adds while it's not a significant increase, any increase is a huge impact to consumers. "Any increase that we put on goods coming into the Port affect every single person living on Guam because of course that's a higher amount that the importers have to pay, which translates to higher costs of goods, it affects cars coming in, it affects food coming in," she said.

The increase namely is to help fund a $10 million loan the Port secured from the Bank of Guam for the Service Life Extension for the Port's wharfs. Port general manager Joanne Brown tells KUAM News that the loan was needed to address the repair work for a critically needed project. Of the $10 million, $6.5 million would go directly for the SLE with $2.5 million for a financial management system and one million for cargo handling equipment.

Brown adds in order to keep the Port viable and operational, the repairs and ultimately the increase was necessary adding these things cannot take care of themselves. Baleto meanwhile says with the reality of the repairs, there's no way around it. "So the board doesn't take lightly these increases and we want to make sure that they're justified and they're going towards projects that are going to improve the Port," she explained.

Baleto adds while millions in federal funding has been provided to the Port, that has been earmarked already and does not include repairs to the waterfront. While it could take several months for the process to go through which includes the Port submitting a packet to the PUC along with public notices and hearings, Baleto expects it to take effect in possibly six months.