Sunday, June 18, 2006

Chinatminagahet yan Minagahet

Taitai este siha na punto siha, sa' gof impottante nu i mina'gasin isla-ta. Si Sabina Flores Perez tumuge' este, ya malate' gui' sa' ha komprende yan ha ekslipakyi hit sa' hafa na fihu taibali yan ti guailayi i fina'privatization i utilities giya Guahan. I CCU yan i Chamber of Commerce ya-niha fuma'privatize todu giya Guahan sa' ayugue i minalagon i Militat United States. Yanggen un atan i estorian privatization gi todu i tano' siha, gof baba para i meggaina na taotao (pi'ot i ti manriku na taotao siha), lao sen maolek para i didide' na taotao gi i tinakhilo'. Ya-niha i estrukturan i militat este ginefsaga' na "gap" ginnen i manakpappa' yan i manakhilo', sa' manmapepedde' i lugat siha i eriyan i bases. Put hemplo, este na fact mampos impottante na matungo' put i manmamaila na Marines siha, lao taya' sumasangan. Kao un tungo' na achokka' i mas militat gi todu Hapon gaige giya Okinawa, Guiya i mas popble na lugat giya Hapon? Kada nai hu taitai este, hinasso-ku, mangge' i magic i salapen i Militat ni' todu i tiempo ma promemeti? Lao para i militat, este maolek ha', in fact mas ki maolek ha', sa' i militat i mas metgot gi ayu na lugat, ya taya' mas sina chumanda.

Giya Guahan, este na estoria put "dependency," hunggan i United States todu tiempo pau ayuda i taotao Guahan, lao ti para u na'metgot Guahan para mo'na, mismo para u na'hihot todu tiempo Guahan para mo'na. Hihot gi dependency.

The Myths and Truths of the Proposed GWA Performance Management Contract (PMC)

Myth: Privatization through the PMC will save the ratepayers money/
Truth:
1. The PMC will increase the rates due to the “hidden” fees. Moreover, the PMC and the Revenue Bond legislation (Bill 220) is structured to allow the private manager to recover GRT and incurred and potential costs for operation and maintenance and capital improvements, that will be passed on to the ratepayers.
2. The PMC will divert interest bearing dollars from required capital improvement projects to pay high-priced management consultants. Thus, we will be increasing the debt to burden our children (30 year loan), because we need to borrow more money for the upgrades not covered by the first round of borrowing.

Myth: The PMC is necessary to fix the utility.
Truth:
1. GWA has made significant improvements without privatization. In just three years, GWA has come under compliance with the Safe Drinking Water Act. The Ugum treatment plant and many of GWA’s stations are operating at 100%. GWA has undergone major cost-cutting measures by reducing the workforce from 400 to 235 employees, and it has become more financially sound, which allowed the agency to float $103 million worth of revenue bonds.
2. With the influx of $103 million, projects, that were once stalled can and are now proceeding. Construction projects to upgrade the Northern and Agana outfalls are already in place. Distribution lines are being replaced to reduce the water loss, originally pegged close to 50%.
3. There is nothing that the PMC is supposed to do that the utility cannot do either by hiring more qualified personnel or by continuing to reform the system in place. Moreover, the PMC will creates redundancy at the management level, and does not address the shortage of critical position, DRCs, which serve as on-site managers.
4. The PMC does not also address the design flaws of the system and is not a panacea.

Myth: The PMC protects the public interest by holding the company accountable.
Truth:
1. According to IRS Proc. 97-13, the company can have built-in increases of various fees that is not linked to the output or efficiency of a facility, such as the Consumer Price Index and other external standards.
2. The company can charge an additional 20% to protect against catastrophic loss.

Myth: The PMC was promoted with the public interest in mind.
Truth: The CCU, who is bent on privatizing GWA, upon selling tax-exempt revenue bonds, became limited in its privatization options i.e. management contract privatization, under IRS Proc. 97-13.

Myth: The PMC will work for GWA, as it has had for GPA.
Truth:
1. GPA has several PMC contracts with different power producers. Hence, it can choose the cheapest energy producer, while saving the most expensive producer for back-up purposes. GWA has only one distributions system from source to the use, hence, consumers are stuck with one provider.
2. Water is vital to life, unlike power (for the most part). Disconnections due to delinquencies can have greater public health impacts.

Myth: Our water rights are ensured under a performance contract, in which companies have targets.
Truth:
1. Companies are less transparent than government, because they can be exempty from the Sunshine Law.
2. Due to the complexity of the system, a higher risk exists for companies to subcontract out function in order to meet targets. The potential ensuing array of contracts, which are not guarantees can be counterproductive in ensuring the efficiency of the system, and it can create barriers to ensuring the quality and service to the people.
3. The higher cost of water will burden those economically challenged and potentially limit their access to water.

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