Powers

The Authority shall have, in accordance with the laws applicable to it and its annual budget, the following powers:

(a)to produce, treat, transmit, store, distribute and sell water on Guam, and collect, treat and dispose of waste water on Guam;

(b)to acquire, in accordance with 12 GCA § 14505, 5 GCA Chapter 5 (Procurement Law) and all applicable laws, by grant, purchase, gift, devise or lease, or by the exercise of the right of eminent domain in accordance with the provisions of 21 GCA Chapter 15, and hold and use any real or personal property necessary or convenient for the carrying on any of these enumerated powers;

(c)to establish its own internal organization and management, and adopt regulations for the administration of its operations;

(d)to establish and modify from time to time, with the approval of the Public Utilities Commission, reasonable rates and charges for the water and waste water services adequate to recover the full cost of providing such services, and to collect money from customers using such services (The Authority shall establish and modify from time to time, with the approval of the Public Utilities Commission, reasonable rates and charges for servicing of debt obtained to undertake capital improvements of water and wastewater facilities.);

(e)to enter into contracts which have been awarded under the relevant procurement laws and are appropriately budgeted for in its annual budget, and to execute all instruments necessary for the exercise of its powers, adopt a seal and to sue and be sued in its own corporate name;

(f)to construct works along or across any street or public highway or watercourse or public utility easement, or over any of the lands which are the property of the government of Guam; and with respect to Federal lands, the Authority shall have the same powers with respect to the construction of such works as are possessed by the government of Guam (The Authority shall restore any such street or highway to its former state and shall not impair its usefulness.);

(g)from time to time, to incur indebtedness with the approval of I Liheslaturan Guåhan;

(h)to enter into contracts with the government of Guam or with the United States for loans or grants;

(i)to employ, retain or contract, in accordance with all applicable procurement laws and its annual budget, the services of qualified persons, businesses or entities to act as specialists and experts to advise and assist its Board of Directors and employees; CH. 14 GUAM WATERWORKS AUTHORITY

(j)to adopt such rules and regulations as may be necessary for the exercise of these enumerated powers;

(k)to control, operate, improve, equip, maintain, repair, renew, replace, reconstruct, alter and redesign the water and waste water disposal systems of Guam in accordance with applicable zoning, building and health regulations of Guam and the United States; and

(l)do all things necessary to the full and convenient exercise of its powers.

(m)Adopt rules and regulations governing selection, compensation, promotion, performance evaluation, disciplinary action and other terms and conditions of employment affecting certified, technical and professional personnel, subject to the provisions of the Administrative Adjudication Act. Such rules and regulations shall provide for the employment and retention of persons on the basis of merit, and shall include an orderly and systematic method of recruitment and the establishment of a list of qualified applicants. “Certified, technical and professional personnel” are defined as personnel employed by GWA who are professional engineers, attorneys, and other licensed professionals, or who are highly skilled employees with certificates such as plant operators and other similar engineering and technical personnel, including, but not limited to, those jobs listed in Attachment B. Compensation for all other personnel shall remain consistent with compensation plans and pay scales as determined by law.

(n)The Guam Waterworks Authority may enter into long term contracts for a period up to and not exceeding thirty

(30)years for refurbish-operate-maintain contracts, and build-operate-transfer contracts that cost Thirty Million Dollars ($30,000,000) or more related to the Guam Waterworks Authority’s wastewater treatment facilities and the construction of water wells. Nothing herein shall repeal, limit, or otherwise prohibit any law or regulation authorizing the Authority to enter into any contract for a longer period.

(o)The Guam Waterworks Authority may enter into performance management contracts to manage any part of Guam’s Drinking Water or Wastewater Systems with a base period up to five

(5)years and no more than two five

(5)year option periods, not exceeding a total of fifteen

(15)years, including the base period and all option periods. Nothing herein shall repeal, limit, or otherwise prohibit any law or regulation authorizing the Authority to enter into any contract for a longer period. The Office of the Attorney General shall hereby oversee the process for bidding and negotiation of any performance management contract to be entered into under the provisions of this Section and shall certify, in writing, that this process was conducted in compliance with any applicable laws, rules and regulations prior to approval.

(p)Customer Assistance Program.

(1)The Guam Waterworks Authority shall establish a Water and Sewer Assistance Fund for the purpose of providing financial assistance and incentives to residential customers.

(2)The Guam Waterworks Authority shall establish a Customer Assistance Program (CAP), pursuant to rules and regulations promulgated through the Administrative Adjudication Law (Chapter 9, Title 5, Guam Code Annotated) to provide financial and other assistance to eligible ratepayers that shall be funded through grants and/or Legislative appropriation deposited into the Water and Sewer Assistance Fund. Ratepayer revenue shall not be used by GWA to fund the CAP program without the express prior approval of the PUC.

(3)The Guam Waterworks Authority shall establish income eligibility standards for a residential class ratepayer to receive financial assistance under this Subsection that also includes providing discounts or credits for hard-to-reach low-income customers and/or their landlords. CH. 14 GUAM WATERWORKS AUTHORITY

(4)Financial assistance provided under this Subsection shall include:

(A)a volumetric discount for water and wastewater services;

(B)leak detection and repair services;

(C)supplemental bill assistance for hardship; and

(D)the reduction or waiver of fees, including late fees.

(5)Other assistance provided under this Subsection shall include:

(A)water conservation inspection and assessment services;

(B)rebates or discounts for the use of water conserving fixtures; and

(C)education and information on water conservation practices and resource management.

(6)The Guam Waterworks Authority shall submit an annual report to I Liheslaturan Guåhan on the CAP program’s performance, including the number of beneficiaries, the amount of assistance provided, and an assessment of the program’s impact on water conservation and financial relief for low-income households.

(q)The Guam Waterworks Authority shall share customer information with the Guam Solid Waste Authority as necessary to be used for establishing solid waste collection services. The Guam Waterworks Authority shall not be held liable for any damages or disputes resulting from the sharing of customer information.