AGP Executive Report

University of Guam Governance: The UOG Board of Regents elected Mike W. Naholowaa as chair and Dr. Janice P. Malilay as vice chair, effective June 1, as leadership transitions from outgoing chair Agapito “Pete” Diaz. Airport & Tourism Finance: Guam International Airport Authority lawmakers pressed GIAA over a $17.7M request tied to a projected revenue shortfall, warning airlines could face major fee hikes without the funding. Local Business & Community Giving: GTA Gives kicked off its annual Back-to-School Supply Drive for Sanctuary, Inc., with donation boxes at all GTA stores through July 31. Public Input for Fisheries: The Guam Coastal Fisheries Management Plan public comment period was extended to July 21, giving fishers and businesses more time to weigh in on reef fish recovery measures. New Guam Cannabis Step: Guam’s Cannabis Control Board approved the first operating permit for a cultivator, Real Deal LLC (Deep Green Guam), clearing a key licensing milestone after years of regulatory delays. Storm Watch: Tropical Storm Bavi (09W) shifted closer to Guam and could intensify to a Category 5 super typhoon, prompting emergency funding discussions and preparedness guidance for residents and businesses. Defense & Regional Economy Link: U.S. Marines deployed an Iron Dome-based MRIC system to Japan, with Guam’s recent MRIC appearance during Valiant Shield underscoring the island’s role in regional readiness. Workforce Policy in CNMI: CNMI received USDOL approval for its 2026 prevailing wage study for the CW-1 visa program, updating wage data that affects hiring costs and local labor planning. U.S. Military Moves: The Army is cutting thousands of PCS relocations to stabilize service members’ moves, a shift that can ripple into Guam’s household goods and support services. Real Estate/Resort Growth: Dusit Place announced new tenant openings, including dining, fitness, retail, and a revamped Aquarium of Guam, aiming to boost Guam’s lifestyle tourism draw.

Airport & Tourism Finance: Guam International Airport Authority asked senators for $17.7M after warning airlines could face fee hikes of 23% to nearly 50% if funding isn’t approved, as lawmakers scrutinize a $10.5M revenue shortfall and ongoing capital projects. Energy Costs: The Public Utilities Commission approved GPA’s Levelized Energy Adjustment Clause effective July 1, pushing the average residential bill up about $58 per month as fuel under-recovery and shipment costs flow through rates. Local Business & Community Support: GTA Gives kicked off its annual Back-to-School Supply Drive through July 31, collecting classroom essentials for Sanctuary, Inc. Civic Engagement: Micronesia Mall hosts a free “Meet the Candidates” event Sunday, July 5, with voter registration support from the Guam Election Commission. Regulation & Industry Growth: Guam’s Cannabis Control Board approved the island’s first operating permit for a cultivator, clearing a major step toward local production. Disaster Readiness: Tropical Storm 09W is forecast to intensify rapidly, with emergency managers urging residents and businesses to finalize 7–10 days of supplies and secure property. Defense & Regional Activity: Task Force Talon stood down as a newly reactivated air defense battalion takes over, expanding Guam’s air defense posture beyond a single THAAD battery.

Tourism & Airport Pressure: Guam lawmakers grilled Guam Visitors Bureau and airport officials over a bleak visitor outlook, with April’s passenger drop and concerns that a $10M airline incentive won’t fix results without clear accountability. Power Costs: The Public Utilities Commission approved GPA’s July 1 fuel surcharge via the LEAC, lifting the average residential bill by about $58 as under-recovery and fuel shipment costs bite. Childcare Funding Gap: Gov. Lou Leon Guerrero released $5M to keep licensed childcare providers paid while federal subsidies are delayed. Energy & Markets: PUC also approved a fuel surcharge increase tied to GPA’s LEAC adjustment, while broader business watchers flagged Guam’s fragile economy and the need for better tourism strategy. Cannabis Licensing: Guam issued its first cannabis cultivation operating permit—Real Deal LLC (Deep Green Guam)—clearing a major regulatory milestone. Fisheries Planning: Guam extended public comment on the Coastal Fisheries Management Plan draft to July 21. Community & Workforce: GTA Gives launched its Back-to-School Supply Drive for Sanctuary, Inc., and UOG recognized graduate award winners. Business Growth: Dusit Place announced new tenant openings, including dining, fitness, and a reimagined Aquarium of Guam. Defense/Tech (Local Impact): A B-2 from Andersen AFB conducted a live-fire LRASM anti-ship test north of the Marianas during Valiant Shield, underscoring Guam’s role in regional readiness.

Power Costs & Regulation: The Guam Public Utilities Commission approved GPA’s Levelized Energy Adjustment Clause effective July 1, lifting the average residential bill by about $58 as the fuel recovery charge rises from $0.135840 to $0.194150 per kWh for meters read through Jan. 31, 2027. Tourism Oversight: Lawmakers grilled Guam Visitors Bureau and airport officials at a joint hearing, with senators saying results are “pretty bleak,” citing a major April passenger drop and warning the $10 million airline incentive needs measurable accountability. Airport Financial Pressure: Guam International Airport Authority reported a $1.4M operating revenue shortfall in April while looking for a July rebound as seat capacity and flights are expected to improve. Public Finance Accountability: The public auditor said GovGuam’s FY2025 audit will miss the statutory deadline, with component units still finalizing statements over missing other post-employment benefits costs. Local Business & Jobs: A new medical oncology practice opened at Tumon Sands Plaza, while Guam’s bar sector is shrinking amid inflation and labor crunch, with active liquor licenses down to 801 from about 1,100 pre-pandemic. Community & Sports: Guam’s U18 beach volleyball pair Alessandra “Ally” Leon Guerrero and Erica Cassidy will represent the island at the FIVB World Championships in The Hague. Public Health: FDA recalled multiple moringa leaf powder supplements tied to salmonella illnesses reaching 119 cases across 37 states. Safety & Crime: A Guam Police sergeant was charged federally with sex trafficking of a 14-year-old girl and placed on administrative leave. Weather Watch: Invest 95W remains a medium chance for development, with no watches or warnings issued for Guam as the system lingers near the Marshalls.

Tourism Oversight: Guam Visitors Bureau and airport officials faced a tough Legislature grilling over a projected $10M+ shortfall and a bailout request tied to slower passenger recovery, with lawmakers pressing on how public funding is translating into visitor arrivals. Public Health & Schools: F.B. Leon Guerrero Middle School in Yigo cleared phase one of a health inspection, moving toward reopening after a 2023 closure. Local Business & Hospitality: Guam’s bar and entertainment sector is shrinking as inflation, labor shortages, and weaker military foot traffic squeeze liquor license activity and margins. Infrastructure & Transit: Dededo broke ground on a $9.5M Park & Ride Northern Terminal to anchor GRTA’s “Road to Education” route, supported by buses and vans. Legislation for Biosecurity: Bill 334-38 advanced to simplify Guam’s invasive species inspection fee collection, shifting costs to importers and carriers without raising port fees. Legal Trouble: A Guam Police sergeant was charged in federal court with sex trafficking of a 14-year-old girl and placed on administrative leave. Weather Watch: Invest 95W remains a medium development risk with a track that could shift toward Guam and the Marianas as the July 4 holiday nears.

Transit & Infrastructure: Guam Regional Transit Authority broke ground on the Dededo Park & Ride Northern Terminal, a three-acre hub tied to the “Road to Education” route, funded by a $9.5M federal grant, with plans for 10 stops and new buses/vans to connect residents to schools and health services. Tourism & Community: Tumon Night Market marked Pride Month with LGBTQ+ vendors and a parade, underscoring the island’s growing event-driven economy. Hospitality Under Pressure: Guam’s bar and entertainment sector is shrinking as inflation, labor shortages, and weaker military foot traffic squeeze alcohol license activity, with operators warning that rising costs are becoming unsustainable. Public Finance Oversight: A performance audit found oversight and monitoring gaps in Guam’s $10.8M Village Community Care childcare program, pointing to inconsistent recordkeeping across municipalities. Energy Costs: The Guam power bill is set to rise about $58 starting July 1, as the PUC approved a rate hike and residents weigh the impact. Business Development: Junior Achievement Guam is recruiting volunteers from business and professional circles to mentor students in entrepreneurship, financial literacy, and career readiness. Marine & Research: The E/V Nautilus launched deep-sea expeditions to map Mariana reserves and critical minerals, aiming to build scientific baselines across U.S. waters around Guam and the CNMI.

Transit & Infrastructure: Dededo officials broke ground on a new 3-acre Park & Ride tied to the “Road to Education” route, funded by $9.5M in federal grants, with most money earmarked for buses and neighborhood feeder vans after an environmental assessment. Telecom & Business: The FCC wrapped Auction 113 for AWS-3 spectrum, with Verizon the biggest winner (82 licenses for $3.2B); EchoStar/Conundrum Wireless won two Guam markets for $1M. Tourism Watch: Guam Visitors Bureau reported May tourism tax collections at $2.756M (about 12% above budget) even as overall arrivals fell 24%, and approved a Tumon rescue-station infrastructure bid. Accountability in Public Spending: A performance audit found oversight and monitoring gaps in Guam’s $10.8M Village Community Care childcare program, with inconsistent recordkeeping across municipalities. Child Welfare Crisis: Guam’s foster system is short about 70 foster homes, leaving children waiting for placements and increasing reliance on shelters. Local Governance & Costs: A bill would double juror pay to $60 per day (or $70 if trials run over a month), aiming to better reflect lost wages for private workers. Community & Events: GCC opened vendor registration for its July 11 Christmas in July Bazaar, while Guam also marked Go Skateboarding Day at Dededo Skate Park.

Energy Costs & Utilities: The Guam Public Utilities Commission approved a Levelized Energy Adjustment Clause increase, pushing the average residential power bill up about $58 starting July 1, with the higher fuel costs tied to global shipping disruptions. Tourism Finance: Even as May visitor arrivals fell 24%, the Guam Visitors Bureau reported stronger-than-expected tourism tax collections, with May Tourist Attraction Fund cash about 12% above budget and year-to-date arrivals up versus last year. Public Safety Infrastructure: GVB moved forward with plans to build a Guam Fire Department rescue station in Tumon to reduce emergency response bottlenecks. Local Business & Community Events: Hotel Nikko Guam is promoting a Summer & Fall Meat & Beer banquet deal through Oct. 31, while GCC is hosting a Christmas in July Bazaar July 11 to raise scholarship funds for students. Civic & Governance: A bill would double daily juror pay in Superior Court, aiming to better match private-sector wage losses during jury duty. Healthcare & Housing Pressure: A foster care shortage is worsening, with dozens of children waiting for placements as the system strains under rising removals and meth-related impacts.

Power Costs: Guam’s Public Utilities Commission approved a Levelized Energy Adjustment Clause increase, pushing the rate to 19.4 cents per kWh starting July—about $58.31 more monthly for a typical 1,000 kWh customer—driven by fuel-cost spikes tied to the U.S.-Israel conflict and the Strait of Hormuz disruption. Port Accountability: The Port Authority of Guam received a clean, unmodified FY 2025 audit opinion, cutting operating expenses by $5.9M and ending the year with net position up to $40.9M. Hospital Site Lock-In: After years of debate, officials held a dedication for the new Mangilao hospital location, with Gov. Lou Leon Guerrero citing estimated costs of $743M for a new build versus $763M to repair the old facility. Renewables Roll Forward: The PUC approved renewable energy acquisition awards for four sites totaling 62 MW under GPA’s Phase 4 projects, including locations tied to the Guam International Country Club and near Andersen AFB. Military Buildup Scrutiny: Residents told lawmakers Guam is being repositioned as a forward offensive platform without civilian shelters or a seat at decision-making, as missile and related funding plans expand. Local Business & Community: McDonald’s of Guam & Saipan donated $1,500 to support the Saipan Chamber of Commerce golf tournament; in Guam, Tumon Night Market returns with a Pride theme Sunday. Civic Pay: A bill would double juror daily pay in Superior Court of Guam to $60, aiming to better reflect lost wages for private-sector workers.

Power Costs: The Guam Public Utilities Commission approved a Levelized Energy Adjustment Clause increase, pushing the average residential bill up about $58.31 starting July 1, with the new rate set through January 2027 as fuel costs remain volatile. Port Accountability: The Port Authority of Guam received a clean FY 2025 audit and cut operating expenses by $5.9M, ending the year with net position of $40.9M. Renewables: PUC also approved renewable energy acquisition awards for four projects totaling 62 MW, including sites on Chamorro Land Trust Commission property and near Andersen Air Force Base. Healthcare Infrastructure: After years of debate, officials dedicated the Mangilao site for Guam’s new hospital complex, aiming to consolidate Public Health and Behavioral Health services under one “whole Guam hospital” plan. Cannabis Industry: The Cannabis Control Board approved Guam’s first permit to operate a cannabis cultivation facility, a major step toward a regulated market 12 years after medical marijuana legalization. Civic Pay: A bill would double juror daily pay in Superior Court of Guam, from $30/$40 to $60/$70 depending on trial length. Tourism & Community: Tumon Night Market returns with a Pride theme Sunday, while registration is open for the Mall Ball 3x3 Adult/Open Tournament at Micronesia Mall July 17-19.

Military Buildup & Local Impact: Residents told Sen. Telo Taitague’s briefing Guam is being repositioned as a forward offensive platform in a China conflict, with concerns about limited civilian input and possible NDAA changes that could speed deployment of microreactors by 2030. Education & School Planning: GDOE said no public schools will close or consolidate for 2026-27, though officials acknowledged the broader enrollment and facility debate isn’t over. Power Costs: The PUC approved a higher LEAC fuel charge starting July 1, pushing average residential bills up about $58 per month through Jan. 2027. Renewables: The PUC cleared the next round of renewable energy acquisition awards totaling 62 MW, including sites on Chamorro Land Trust property near a golf course and near Andersen AFB. Public Finance Watch: GDOE reported $82.1M cash but auditors flagged millions tied to old obligations and restricted funds; separately, the Port Authority posted a clean FY2025 audit and net position of $40.9M. Healthcare Infrastructure: A Mangilao dedication ceremony marked the selected site for Guam’s new hospital medical complex, ending the location fight. Tourism & Community: Tumon Night Market returns with a Pride theme Sunday, with road closures starting 7 a.m. Cannabis Industry Milestone: The Cannabis Control Board approved Guam’s first cultivation operating permit, clearing another step toward a regulated market.

Healthcare & Local Economy: Mangilao’s new hospital site was formally dedicated Friday, ending years of location debate; Gov. Lou Leon Guerrero said the plan is to build a full medical complex (including public health, behavioral health, veterans’ services) using about $743M for a new build, with possible additional land talks with the Navy. Energy Costs: The Public Utilities Commission approved a higher LEAC fuel adjustment for Guam Power Authority, lifting the rate to 19.4 cents per kWh starting July—about $58.31 more per month for a typical 1,000 kWh customer through Jan. 2027. Port Authority Finance: The Port Authority of Guam received a clean FY2025 audit, cut operating expenses by $5.9M, and posted net position of $40.9M; it’s also moving toward a proposed 17% tariff increase to offset revenue declines. Tourism & Events: Tumon Night Market returns Sunday with a Pride theme, with road closures starting 7 a.m. Regulation & Growth: Guam’s Cannabis Control Board approved its first permit to operate a cultivation facility, clearing another step toward a regulated local market. Renewables: Guam’s Hybrid Land Use Commission approved construction of a Yona solar farm as part of GPA’s Phase IV solar push.

Power Costs: Guam Power Authority’s fuel surcharge (LEAC) is set to jump from 13.58 to 19.4 cents per kWh starting July 1, pushing the average residential bill up about $58 a month through Jan. 31, 2027. Port Finance: The Port Authority of Guam posted a clean, unmodified audit and cut operating expenses by $5.9M, reporting a $40.9M year-end net position, while also moving toward a proposed 17% tariff increase to offset revenue pressure. Energy Projects: The Guam Hybrid Land Use Commission approved a conditional permit for Pacific Energy Corporation to start building a Yona solar farm as part of GPA’s Phase IV renewable push. Cannabis Industry: After 12 years since medical marijuana legalization, the Cannabis Control Board approved Guam’s first permit to operate a cultivation facility (Deep Green Guam), clearing a major step toward regulated production. Local Business & Tourism: Visitor arrivals fell 23.5% in May, with South Korea down sharply amid reduced flight schedules and higher travel costs. Scam Alert: DRT warned of a fake Facebook page promoting “shortcut” driver’s license services. Community & Sports: Micronesia Mall opened registration for a July 17-19 3x3 tournament, while Atkins Kroll donated $1,914 to Guam Little League for regional competition travel.

Energy Costs Hit Home: The Public Utilities Commission approved Guam Power Authority’s fuel surcharge hike effective July 1, raising the Levelized Energy Adjustment Clause from $0.135840 to $0.194150 per kWh—about a $58 jump for an average residential bill, with rates set through Jan. 31, 2027. Port Authority Watch: The Port Authority of Guam posted a clean FY2025 audit and a net position of $40.9 million, but is moving toward a phased 17% tariff increase starting FY2026 as operating margins narrow. Renewables Move Forward: The Guam Hybrid Land Use Commission approved a conditional use permit for Pacific Energy Corporation to build a Yona solar farm (27 acres) as part of GPA’s Phase IV, after concerns about cultural and environmental impacts were addressed. Local Business & Workforce: UOG signed an MoU with Goodwind Development Corporation to expand internships and career pathways for students and graduates. Cannabis Milestone: The Cannabis Control Board approved Guam’s first permit to operate for Real Deal LLC (Deep Green Guam), clearing the way for future production and sales steps. Tourism Pressure: May visitor arrivals fell 23.5% year over year, driven largely by South Korea’s reduced flight capacity and higher travel costs. Governance & Schools: Education leaders told senators no public school closures or consolidations are planned for 2026-27, though consolidation options remain under review. Community Spotlight: Atkins Kroll donated $1,914 to Guam Little League to support travel for the 2026 regional tournament in Korea.

Power Costs: The PUC approved GPA’s Levelized Energy Adjustment Clause, lifting the average residential power bill by about $58 a month starting July 1 (from $260.37 to $318.67), with the surcharge set through Jan. 31, 2027. Energy & Infrastructure: In the CNMI, Commonwealth Utilities says long-delayed power materials are arriving for Saipan restoration, with transformers and poles now on the ground as FEMA generators are phased out. Cannabis Regulation: Guam’s Cannabis Control Board approved the island’s first permit to operate for Real Deal LLC (Deep Green Guam), clearing a major hurdle after years of regulatory delays since legalization. Legal Access: Guam and CNMI Supreme Courts signed reciprocity agreements allowing licensed lawyers to practice across the Marianas without an extra bar exam, aiming to ease the lawyer shortage. Education Contract Dispute: GDOE and contractor Core Tech are at odds over nearly $20M in unpaid school repair work, with senators questioning whether payment is legal after an expired contract. Public Safety/Environment: Public Health is investigating violations of Guam’s banned coral-hurting sunscreen chemicals, coordinating with customs for enforcement. Business & Community: Micronesia Mall opened registration for the Mall Ball 3x3 tournament (July 17-19) with cash prizes and giveaways. Labor/Immigration: A Saipan case ended with an 82-year-old sentenced to 12 months home detention for visa fraud tied to the CNMI-only transitional worker program.

Public Health Enforcement: Guam’s Department of Public Health is investigating violations of the ban on coral-hurting sunscreen chemicals (oxybenzone, octinoxate, octocrylene), working with Customs to flag shipments and ordering removal from commerce plus civil fines of $100 to $5,000 per violation. Education & Procurement: A GDOE oversight hearing zeroed in on a nearly $20M dispute with Core Tech International over unpaid school repair work, with GDOE arguing the contractor performed outside an expired contract and payment could violate procurement rules. Energy Costs & Household Impact: Residents weighed in on GPA’s proposed rate hike that could add about $58 per month starting July 1, ahead of a Thursday Public Utilities Commission decision. Cannabis Market Milestone: Guam’s Cannabis Control Board approved the first permit to operate for Deep Green Guam (Real Deal LLC), clearing a major hurdle for local production and sales after years of regulatory delays. Workforce Pipeline: UOG signed an MOU with Goodwind Development Corporation to expand internships, experiential learning, and workforce development for students and graduates. Military & Local Economy: Boeing’s MQ-28 Ghost Bat will join the US-led Valiant Shield exercise in the Pacific near Guam and the CNMI, signaling continued defense-linked activity. Tourism Recovery Watch: The Marianas Visitors Authority reported May arrivals down 82% year-over-year amid ongoing recovery from Super Typhoon Sinlaku. Local Business & Courts: Max’s Restaurant may avoid eviction if it makes an initial $50,000 settlement payment by June 30, with court follow-up set for July 8. Governance & Election: Republican gubernatorial teams faced Chamber questions on fiscal discipline, education funding, and modernization as Guam’s election season heats up.