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Guam EPA board told DPW has requested $500,000 from recycling fund to clear impounded vehicles; agency says fund balance available
Summary
Board discussed a Department of Public Works request for $500,000 from Guam's Recycling Fund (RF) to cover impounding and related expenses; staff explained fund balances, rollover rules, and required expenditure reports and MOA before a vote
The Guam Environmental Protection Agency board discussed a request from the Department of Public Works for $500,000 in Recycling Fund (RF) money to support impoundment and processing of derelict vehicles.
Michelle (Administrator, Guam EPA) explained that DPW has approached Guam EPA because the statute allows the agency to enter into a memorandum of agreement with the Mayor's Council of Guam and DPW. DPW has collected impounded vehicles at its lot and has requested $500,000 from RF to process and dispose of them. Guam EPA will require DPW to submit an expenditure report and operational plan for board review and approval before any funds are released. Staff said no vote would be taken at the July meeting; a packet with the MOA and expenditure details is expected before the next meeting.
Fund availability and history
Staff described the RF as annual revenue that has rolled over in recent fiscal years. Michelle said the RF has accumulated funds from prior years and that, after prior allocations (including a legislatively appropriated $1.5 million to the Mayor's Council of Guam, MCOG), the RF balance was about $6,000,000 on staff spreadsheets. Staff said the law allows funds not encumbered by September 30 to be used in the following fiscal year and that the agency may use available RF balances for approved MOAs, subject to board approval and required reporting.
Board members questioned spending and oversight
Board members pressed for expenditure tracking and reconciliation with the Mayor's Council of Guam program, which had unspent amounts due to procurement timing. Staff explained MCOG delayed spending while awaiting a procurement solicitation that bundles vehicles to one vendor; that procurement approach aims to simplify administration but creates protest risk and spending delays.
Next steps and safeguards
Michelle said DPW and MCOG must provide an operational plan and expenditure report and that the MOA can include provisions to increase funding only after board review of receipts and progress. The agency will place the DPW request on a future agenda when the required documentation is received; staff indicated they expect to present it for a potential vote next meeting.
