HAGÅTÑA (The Guam Daily Post) — The Consolidated Commission on Utilities approved an amendment to proposed rule changes for the water utility’s Sewer Hookup Revolving Loan Fund, doubling the maximum loan amount approved for the program last year.
Proposed rule changes approved by the CCU in January 2023 would have raised the maximum loan amount per applicant to $25,000, from $9,000 initially.
However, as the Guam Waterworks Authority worked to get the amended rules adopted, the utility heard concerns that the proposed maximum loan amount would be insufficient, according to discussions Tuesday at the meeting of the CCU.
“The comments included concern that the maximum loan amount of $25,000 may not account for inflation and the increased costs since the onset of the COVID-19 pandemic, and really, the observed increased construction and labor costs that we see today,” GWA attorney Theresa Rojas said during the meeting.
Those concerns were brought back to the GWA team that created recommendations for the loan fund rules, and team members said they believed the maximum loan amount should be raised to $50,000, according to Rojas.
“That is because we have seen increased construction costs with the cost to install these sewer hookups and really just our general construction costs altogether with engineering projects,” she said.
The CCU on Tuesday unanimously adopted the increase to the maximum loan amount.
The sewer hookup loan program is intended to cover lateral connections, not main line extensions, according to GWA General Manager Miguel Bordallo.
“If you are within the required distance and you are supposed to hook up already under (the Guam Environmental Protection Agency’s) rules and regulations, this loan program provides you assistance in order to get that done. But it does not extend sewer mains out so that you can connect to it,” Bordallo said Tuesday at the CCU meeting.
The loan goes up to a ten-year term, but GWA can approve a 15-year term for those who qualify for a public assistance program, according to Rojas.
According to the presentation provided to the CCU at the meeting Tuesday, the remainder of the rulemaking process may take another three to four months to complete.
The initial funds for the sewer hookup loan program were provided by Guam EPA at an amount of $75,000. The fiscal 2023 budget law appropriated $2 million more for the program.
CCU member Simon Sanchez suggested sending a note to Sen. Sabina Perez, whose amendments provided the $2 million for the loan fund, notifying her about the rules and asking about any additional funding the Legislature may provide.
Guam Waterworks Authority General Manager Miguel C. Bordallo answers a question during the Consolidated Commission on Utilities regular monthly meeting with Guam Power Authority and Guam Waterworks Authority on Tuesday, Jan. 23, 2024, at the Gloria B. Nelson Public Service Building Conference Room in Mangilao.
