Definitions

The following terms wherever used or referred to in this Article or in any indenture, lease or leaseback entered into pursuant hereto (except to the extent modified therein in accordance with this Article) shall have the following meanings, respectively, unless a different meaning appears from the context:

(a)“Contractor” means the authorized entity which shall be the signatory on the lease and the lease-back and shall be fully responsible for carrying out the construction, financing, operation and maintenance of the solid waste facility. The contractor may cooperate with another entity or entities in any manner the contractor deems appropriate to provide for the financing, construction, operation and maintenance of the solid waste facility.

(b)“Department” means the Department of Public Works, acting on behalf of the government of Guam.

(c)“Director” means the Director of the Department of Public Works.

(d)“Lease” means a ground or site lease of property from the Department, the Chamorro Land Trust Commission, or other government entity, as applicable, to the Contractor.

(e)“Lease-back” means the facilities lease or other lease of the property from the Contractor back to the Department, over the term of which the costs of the construction, financing, operation and maintenance of a solid waste facility are amortized, according to the terms agreed to between the Department and the Contractor.

(f)“Pledged revenue” means any revenue of the system pledged to secure lease-back payments.

(g)“Property” means any property on which a solid waste facility is located.

(h)“Revenue of the system” means all gross income and other amounts received by or on behalf of the Department as revenues of any kind from the ownership or operation of any part of the system, including all rates, fees and charges received by the Department, and all proceeds of insurance or grants covering business interruption loss (and related losses and expenses) relating to the system, and all other income and revenue howsoever derived by the Department from the ownership or operation of, or arising from, the system, together with all interest, profits or other income derived from the investment of amounts in the Solid Waste Operations Fund, to be deposited to the Solid Waste Operations Fund in accordance with § 51A833, Title 10, Guam Code Annotated.

(i)“Solid waste facility” means all or any portion of any landfills (whether closed or open and including Ordot Dump), transfer stations, recycling facilities, appurtenant equipment, and other capital facilities of the system.

(j)“Solid Waste Operations Fund” means the fund by that name established pursuant to § 51A301(f), Title 10, Guam Code Annotated.

(k)“System” means the solid waste management system, now or hereafter existing, owned and/or operated by the Department or its contractors, agents or subcontractors, including, but not limited to, landfills (whether closed or open), transfer stations, recycling facilities, collection trucks, appurtenant equipment such as scales, ground water monitoring equipment and pollution control equipment, and administrative facilities supporting the provision of solid waste management services, including facilities for payroll, billing and collections.

(l)“System operation and maintenance costs” means such reasonable and necessary current expenses of the Department, paid or accrued, for operation, maintenance and repair of the system, including, without limiting the generality of the foregoing: CH. 51A GUAM SOLID WASTE AUTHORITY

(1)legal and overhead expenses of the Department directly related and reasonably allocable to the administration of the system;

(2)fidelity bond and insurance premiums appertaining to the system or a reasonably allocable share of a premium of any blanket bond or policy pertaining to the system;

(3)contractual services, professional services, salaries, administrative expenses, and costs of labor appertaining to system; and

(4)the costs incurred in the collection of all or any part of the revenues. Notwithstanding this or any other provision of law, the authorization to enter into a privatization, partnership, or contract by the Department for the operation of the system shall require a cost benefit analysis, economic impact study, and legislative approval.