HAGÅTÑA (The Guam Daily Post) — The Guam Waterworks Authority is seeking approval from the Consolidated Commission on Utilities to charge off more than $887,000 in accounts receivable.
Residential customers constitute the majority of the receivables to be written off, but there is also one hotel that’s now in bankruptcy and one employee write-off related to retiree and health insurance collections, according to Taling Taitano, GWA chief financial officer.
“We’ve changed our procedures to require our retirees to sign up for automatic deductions to prevent that from reoccurring,” Taitano said Tuesday during a work session with the CCU.
The last time GWA performed a write-off was in August 2022.
CCU member Simon Sanchez, referring to the age of the accounts, remarked that they were four to eight years old. He added that over eight years, GWA would bill about $850 million to $900 million.
“This is barely a percent. I mean, that happens,” Sanchez said.
Credit cards
GWA and the Guam Power Authority, through a joint resolution, are also seeking to update their credit card policy. Taitano said the utilities have moved increasingly toward contactless policies since the COVID-19 pandemic.
The original GPA and GWA credit card policy was adopted in December 2008. According to the proposed resolution, a recent audit by the Office of Public Accountability recommended that the policy be updated to reflect current practices.
Mileage
The OPA also encouraged GPA and GWA to work with the Guam Department of Education on the Sen. Edward J. Cruz Medical Referral and Education Mileage Program, Taitano said. This program is outlined in law and requires GPA and GWA to use their accrued airline frequent flyer mileage to send students to off-island sports competitions.
“Currently, (GDOE) has not adopted any procedures with that regard. But both (utilities) have credit cards that accumulate miles and, as soon as DOE adopts procedures, we can start donating such,” Taitano said Tuesday.
Rehabilitation
Another major resolution up for CCU decision relates to the rehabilitation of the Ugum Surface Water Treatment Plant. The treatment plant processes water from the Ugum River and is GWA’s only surface water production facility. It services southern villages on Guam, from Ipan, Talo’fo’fo’, to Humåtak.
The rehabilitation project is urgently needed to provide efficient and reliable operation of the treatment plant, GWA stated in a proposed resolution.
Sumitomo Mitsui Construction Corp. Ltd. submitted the lowest responsive bid for the project. But the company submitted a bid of about $9.18 million, which was around $5 million above the previously authorized amount for the project.
“Construction costs have increased more than we anticipated. And we’re faced with a decision of having to reduce the scope of work to fit the budget or try to find additional funding. And management does not recommend reducing the scope of work because all of the improvements are critical … at Ugum. The impacts of Typhoon Mawar reinforced that,” GWA General Manager Miguel Bordallo said at Tuesday’s work session.
He added that the U.S. Environmental Protection Agency had approved about $3 million in unencumbered funding for the rehabilitation project. GWA also identified bond interest funding it could use, according to Bordallo.
GWA is now requesting a total funding authorization of about $10.1 million, which includes Sumitomo’s bid and a 10% contingency. The rehabilitation project is estimated to be completed in 425 days from the notice to proceed.
Taling Taitano, chief financial officer at the Guam Waterworks Authority, delivers a financial report during a working meeting Tuesday, Aug. 15, 2023.
