5 Water and Sewer System Development Charge

(a)The Guam Waterworks Authority (AGWA@) shall establish and implement, subject to the prior approval of the Commission in subsection (b), a water and sewer system development charge schedule, which charges shall be assessed on each user who is for the first time connecting property into the Guam=s water or wastewater system, or to each builder if the density of development on existing connection is increased. Such charge schedule shall seek to recover the additional costs associated with constructing, expanding, upgrading and repairing water and wastewater facilities for such new users and development, and shall take into account existing infrastructure on the property, present and future user demands, requirements for water and/or sewer services, and installation of infrastructure to be done by the user or builder.

(b)Pursuant to its authority, the Commission shall immediately begin proceedings to promptly establish and approve the water and sewer system development charge schedule for GWA.

(1)The Commission has the authority to adopt and approve a charge schedule for GWA which complies with Subsection

(a)of this Section, including, a schedule which shall be known as the Amortized System Development Charge

(ASDC)for residents who are constructing or purchasing a single family dwelling intended for their COL6/24/2021 CH. 12 PUBLIC UTILITIES COMMISSION AND THE GUAM TELECOMMUNICATIONS ACT OF 2004 personal residence and/or for immediate family members.

(A)Such charge shall be assessed at an initial amount of no less than ten percent (10%) of the total SDC charge due, and the remainder of the charge shall be amortized over a period not to exceed fifteen

(15)years, in which the charge plus interest, at a rate established by the Guam Public Utilities Commission, is added to the monthly GWA billing for the dwelling at a rate in which the total annually assessed charge shall not exceed the initial charge; and provided, that nothing herein shall limit the Commission’s authority and jurisdiction to establish and approve General Lifeline Rates for GWA, which may apply to the water and sewer development charge schedule.

(B)The charge schedule shall be applied to users and developers by GWA upon its adoption and approval by the Commission, and no charges shall be assessed prior to adoption and approval by the Commission.

(2)ASDC Applicability. The ASDC shall not apply to any commercial development involving the construction of multiple residential units.

(3)ASDC Not Transferable. Should a homeowner paying an ASDC decide to sell or transfer the property, on which the ASDC applies, to a person who is not an immediate family member or who qualifies for the ASDC under this Chapter, then full payment of any balances owed for the ASDC shall be paid prior to registration of the sale and transfer of the property at the Department of Land Management, and prior to the transfer of the original owner’s water/wastewater account to the new owner and/or occupant of the residence.

(c)Notwithstanding any other provision of law, all revenues generated by the water and sewer system development charge schedule will be deposited into the Island Water and Sewer Infrastructure Development Fund. Such funds shall be administered by GWA. However, GWA shall file annually for COL6/24/2021 CH. 12 PUBLIC UTILITIES COMMISSION AND THE GUAM TELECOMMUNICATIONS ACT OF 2004 Commission review and approval a full accounting of the receipts and expenditures into and from the Fund with appropriate details of the sources and expenditures into and from the Fund.

(d)The Island Water and Sewer Infrastructure Development Fund shall only be expended for costs associated with the construction, expansion, upgrade, and repair of water and wastewater facilities for users who are for the first time connecting property into the Guam=s water or wastewater system, or for builders if the density of development on existing connection is increased.

(e)Fees due under the water and sewer development charge schedule adopted by the Commission shall be paid to GWA prior to the issuance of a building construction permit. Subsequent to the adoption and approval of the charge schedule by the Commission, no building construction permit shall be issued without a certificate issued by GWA that all fees due under the charge schedule have been paid, except that the Commission shall develop and adopt a schedule for GWA customers qualified for the ASDC that shall allow for the building construction permit to be issued subsequent to payment of the initial charge.

(f)Any person may contest any proposed assessment for the water and sewer development charge schedule made or determined by GWA by filing with GWA a written protest at any time prior to the issuance of a building construction permit.

(1)All protests shall be prepared in the form and contain such information as GWA shall reasonably require, and shall include a summary statement of the grounds upon which the person relies and that person=s reasons for disputing the assessment of GWA.

(2)GWA shall make a determination with respect to the protest and, if required, make an adjustment to the assessment within thirty

(30)days of receipt of such protest.

(3)Persons dissatisfied with GWA=s determination may file a petition with the Commission to review such COL6/24/2021 CH. 12 PUBLIC UTILITIES COMMISSION AND THE GUAM TELECOMMUNICATIONS ACT OF 2004 determination within determination. thirty

(30)days of GWA=s

(g)Except as provided hereafter, each person who made a voluntary contribution under Section 56119 of Title 5 of the Guam Code Annotated shall be compensated to the extent the amount contributed is greater than the charges that would apply under the charge schedule approved by the Commission.

(1)Such persons shall be compensated the difference through an abatement of business privilege taxes equal to the differential.

(2)Persons seeking credits under this Subsection

(g)shall make an application to GWA within one

(1)year of the date of enactment of this Act, and GWA shall determine the amount of any credit within ninety

(90)days of its receipt of the application.

(3)Persons dissatisfied with GWA=s determination may file a petition with the Commission to review such determination. This Subsection shall not apply to persons who previously received credits under Section 56119 of Title 5 of the Guam Code Annotated.

(h)Except for voluntary contributions previously made, no further assessments shall be collected or imposed by GWA or the Commission under Section 56119 of Title 5 of the Guam Code Annotated.

(i)Affordable Housing System Development Charge (AHSDC).

(1)AHSDC For Persons Who Construct Their Own Primary Residences. Any person who constructs, or causes to construct, a home where said structure will be the primary residence for themselves or an immediate family member as defined by 4 GCA § 4108

(2)shall be charged 1.01% for water connections and 1.65% for sewer connections of the actual cost to construct the home and COL6/24/2021 CH. 12 PUBLIC UTILITIES COMMISSION AND THE GUAM TELECOMMUNICATIONS ACT OF 2004 purchase the land in the event the actual total cost is Two Hundred Ten Thousand Dollars ($210,000) or less.

(A)GWA shall require reasonable proof to be provided showing that the home will in fact be a primary residence.

(B)The actual cost of a home includes the purchase price of the land, if any, and all materials, labor, and other amounts necessary for the singlefamily dwelling that is constructed to fully comply with the Guam Building Code.

(C)The AHSDC shall not apply to those persons who construct, or cause to be constructed, homes that do not meet the requirements of the Guam Building Code, nor shall the charge apply to persons renovating existing structures.

(D)GWA shall not provide water services to any structure that does not fully comply with the Guam Building Code.

(2)AHSDC For Persons Who Construct Affordable Homes With Intent To Sell. Any person who constructs a home which is to be sold, or is in fact sold, prior to initial occupancy where the home costs Two Hundred Ten Thousand Dollars ($210,000) or less, shall be charged 1.01% for water connections and 1.65% for sewer connections of the value of the sale price of the home.

(A)The valuation shall include the purchase price for the entire lot where the home is located.

(B)The valuation shall also include the actual cost of a home, inclusive of all the materials, labor, and other amounts necessary for a building to fully comply with the Guam Building Code. The AHSDC is not applicable to those persons or developers who construct, or cause to be constructed, homes that do not meet the requirements of the Guam Building COL6/24/2021 CH. 12 PUBLIC UTILITIES COMMISSION AND THE GUAM TELECOMMUNICATIONS ACT OF 2004 Code, or where the total cost, pursuant to Subsection

(3)below, of the home and lot exceed $210,000.

(3)Proof of Cost/Valuation. In order to determine the correct value of a home, the Guam Waterworks Authority shall have the authority to require reasonable proof of such value of the home, which includes, but is not limited to:

(A)a schedule of costs signed by an engineer, contractor or architect licensed on Guam;

(B)purchase price of the land; and

(C)a complete breakdown of all costs involved in the construction of the home to support the valuation claimed, or proof of the purchase price of the home if purchased. An appraisal of the land is not required in the event the land was not purchased. GWA may reject any claim not reasonably founded or proven, or for failure to provide any document requested by GWA in support of such claim of valuation.

(4)Reevaluation. At least once every five years, the Guam Waterworks Authority shall review the Median Household Income for Guam, as published by the HUD Median Income Statistic, and shall then adjust the total cost threshold requirement of the AHSDC, set at $210,000, accordingly.