by Mindy Aguon
Guam - Federal receiver Gershman, Brickner and Bratton has recommended the government take any actions necessary to eliminate the possibility of a second landfill. During today's quarterly status hearing, the receiver's representatives explained that while two landfills on the island may result in lower tipping fees for customers, it will cost GovGuam's General Fund $11.7 million each year in debt service because it won't be able to recover debt service through the tipping fees.
Receiver representative David Manning added that landfill rates will likely be higher than expected due to lower than expected military waste.
"We thought we'd be able to stabilize the rate at $170 per ton, but given where things are today that rate is probably going to be at $225 a ton," Manning said. "Residential side of things we think affects it by $5 it might go from 30 to 35. Of course, the whole thing is governed by what GovGuam does with Guam Resource Recovery Partners' landfill."
If Layon remains the island's only landfill, tipping fees will increase to $35 next year and $40 in Fiscal Year 2014. If GRRP is given the noticed to proceed, rates will be reduced to compete with the landfill at Atantano, which Manning says will create a major shortfall for GovGuam.