United States of America vs. Government of Guam, et al,
Special Assistant US Attorney Ed Lynch

The Guam Waterworks Authority is due to make its first payment of Forty-Five Thousand Dollars ($45,000 per monthly) to the United States Department of Justice beginning today for an outstanding and disputed but compromised water bill of Nine Million Dollars, ($9,000,000) to the Navy for settlement in Civil Case No. 99-00102. The money is to be made by wire transfers on or before the 5th of each month.

Special Assistant US Attorney Ed Lynch:

Simon Sanchez, Chair of the Consolidated Commission on Utilities, (CCU) committed the monies to be gained by the 11% rate increase towards the Authority’s ability to pay it’s debt to the Navy. The Navy agreed to a lesser amount at the beginning of the payment schedule so GWA could pay its debt off to the Guam Power Authority sooner. After the GPA debt is paid, payment to the Navy will accelerate insuring GovGuam pay their debt off in 10 years.

Special Assistant US Attorney Ed Lynch:

The lawsuit was filed in 1999 in the interest of setting the dispute created when former Governor Carl Gutierrez instructed the Waterworks Authority to stop paying the water bill to the Navy. The Government of Guam counter sued claiming ownership of Fena Reservoir. The settlement in 2003 resolved the outstanding water bill issue, and ownership of Fena Reservoir. For the first time ever, GovGuam recognized fee title ownership of the Fena Reservoir and the whole watershed area to the Navy as part of the settlement.

Special Assistant US Attorney Ed Lynch:

Meanwhile, a public hearing on Bill 97 (COR), introduced by Senator Mark Forbes took place on Monday, September 29, which turned out to be an oversight hearing on the Consolidated Utilities Commission. Bill 97 proposes to repeal the 11% surcharge, potentially prohibiting the Waterworks Authority from raising rates for a two year period. That would seriously threaten the Authority’s ability to meet its obligation in the Consent Decree. Concern over passage of Bill 97, forced the US Attorney’s Office to file a request for status conference with Government of Guam officials last Friday, September 26.

Special Assistant US Attorney Ed Lynch:

The District Court of Guam will retain jurisdiction over the matter if a dispute should arise.

Special Assistant US Attorney
Cmdr Ed Lynch
 

Listen:
Full Interview
Special Assistant
US Attorney
Ed Lynch
September 29, 2003

Request for Status Conference:

The United States of America (Navy) plaintiff in Civil Case No. 99-00102, is concerned over the passage of Bill 97 which could potentially prevent the Waterworks Authority from paying its monthly debt of $45,000 outlined by the Consent Decree.

Parties Bound:

The Consent Decree binds jointly and severally the Government of Guam and Guam Waterworks Authority and their successors and assigns "GWA" collectively as the Government of Guam, Guam's Attorney General, the Guam Waterworks Authority, and the Consolidated Commission on Utilities.