GFD says NG9‑1‑1 contract paid after government transfer; committee seeks transfer documentation
January 12, 2026 | General Government Operations and Appropriations , Legislative, Guam
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Assistant Fire Chief Michael Nkanku told the oversight committee on Jan. 12 that the initial NG9‑1‑1 contract year cost about $3,000,000 and subsequent maintenance/upgrades were cited at roughly $2,790,000.
Nkanku said GFD initially used unused or unexpended funds under the NG9‑1‑1 surcharge system to pay early contract costs but that those reserves were exhausted. He said a government transfer of $2,790,000 was credited to the department’s account to complete payment of the NG9‑1‑1 contract, but he could not confirm the originating office that authorized the transfer.
"All we know is that they did gave us $2,790,000 to cover the cost for the NG9‑1‑1 system," Nkanku said, adding that he would need to consult BBMR (Bureau of Budget and Management Research) for the transfer paperwork.
Senator Kumatato pressed for records and asked GFD to provide the committee either the letter that confirmed the transfer or bank/transfer documentation showing funds reached GFD’s account. The senator noted statutory notification requirements when the governor makes transfers and requested the document for the committee’s audit work.
On whether GFD had engaged the Guam Public Utilities Commission (PUC) about adjusting the 9‑1‑1 surcharge, GFD leadership and Deputy Fire Chief Joey St. Nicholas said the PUC required a consultant to evaluate fee changes and that GFD lacks funding to hire a consultant; therefore a full petition and technical engagement with the PUC had not occurred.
The committee cited an earlier OPA report (2010‑06) that found administrative costs by local service providers exceeded comparable U.S. jurisdictions and asked whether GFD had recommended statutory limits on administrative charges being added to the surcharge. Deputy Chief St. Nicholas said legislative efforts had been discussed but he could not confirm whether a codified limit was enacted.
Senator Kumatato requested copies of all correspondence between GFD and the PUC, consultant scopes or bids (if any), and documentation of the receipt and source of the $2,790,000 transfer. The department committed to providing follow‑up documents.
Nkanku said GFD initially used unused or unexpended funds under the NG9‑1‑1 surcharge system to pay early contract costs but that those reserves were exhausted. He said a government transfer of $2,790,000 was credited to the department’s account to complete payment of the NG9‑1‑1 contract, but he could not confirm the originating office that authorized the transfer.
"All we know is that they did gave us $2,790,000 to cover the cost for the NG9‑1‑1 system," Nkanku said, adding that he would need to consult BBMR (Bureau of Budget and Management Research) for the transfer paperwork.
Senator Kumatato pressed for records and asked GFD to provide the committee either the letter that confirmed the transfer or bank/transfer documentation showing funds reached GFD’s account. The senator noted statutory notification requirements when the governor makes transfers and requested the document for the committee’s audit work.
On whether GFD had engaged the Guam Public Utilities Commission (PUC) about adjusting the 9‑1‑1 surcharge, GFD leadership and Deputy Fire Chief Joey St. Nicholas said the PUC required a consultant to evaluate fee changes and that GFD lacks funding to hire a consultant; therefore a full petition and technical engagement with the PUC had not occurred.
The committee cited an earlier OPA report (2010‑06) that found administrative costs by local service providers exceeded comparable U.S. jurisdictions and asked whether GFD had recommended statutory limits on administrative charges being added to the surcharge. Deputy Chief St. Nicholas said legislative efforts had been discussed but he could not confirm whether a codified limit was enacted.
Senator Kumatato requested copies of all correspondence between GFD and the PUC, consultant scopes or bids (if any), and documentation of the receipt and source of the $2,790,000 transfer. The department committed to providing follow‑up documents.
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