1 TESTIMONY FOR THE 36TH LEGISLATURE COMMITTEE ON BUDGET, APPROPRIATIONS, AND FINANCE MONDAY, JUNE 21, 2025 DARYL GRIFFITH INTERIM EXECUTIVE DIRECTOR/CHIEF FINANCIAL OFFICER VIRGIN ISLANDS WASTE MANAGEMENT AUTHORITY 2 Good day, Honorable Senator Novelle E. Francis, Jr., Chairman, and other Committee 1 members of the 36th Legislature’s Committee on Budget, Appropriations, and Finance, 2 and members of the viewing and listening audience. I am Daryl Griffith, the Interim 3 Executive Director and Chief Financial Officer of the Virgin Islands Waste 4 Management Authority. 5 6 I am appearing before you today with the Authority’s Executive Leadership Team 7 consisting of Luz Bermudez, Comptroller Attorney Florence Kahugu, Chief Legal 8 Counsel, Erika Callwood, Human Resources Director, Alex Bruney, Wastewater 9 Engineering Manager, Keith Smith, Wastewater Technical Operations Manager, 10 Shena Esannason, Solid Waste Director, Lorna Nichols-Minkoff, Communications 11 Director, Juanita Iles, Territorial Lead Grant Administrator, and Eloise Brown, 12 Territorial Grant Administrator, and to provide testimony relevant to the Authority’s 13 proposed fiscal year 2026 budget. 14 15 The Government of the U.S. Virgin Islands has recommended an appropriation of 16 $42,852,000.00 to the Authority for Fiscal Year 2026. This is comprised of 17 $32,500,000.00 from the General Fund, $5 million from the Anti-Litter and 18 Beautification Fund, $1 million from the Tourism Advertising Revolving Fund, $2.5 19 3 million in Utility Expenses, and $1,852,000 Sewer Wastewater Fund. The Authority’s 20 2026 balanced budget is $53,619,240.00. The Authority expects to generate $3.5 21 million in Tipping Fees. In 2024, the Authority generated $2.7 million in tipping fees, 22 and as of June 2025, the year-to-date total was $2.3 million. The Authority’s current 23 tipping fee is $7.50 per cubic yard, which translates to $5.06 per ton (1 cubic yard = 24 0.675 tons). Tipping fees for waste disposal vary significantly by state, with the 25 Pacific and Northeast regions typically having the highest fees. In contrast, the South 26 Central and Southeast regions generally have the lowest. The national average for 27 municipal solid waste (MSW) landfill tipping fees was around $53.72 per ton in 2020. 28 The Virgin Islands fee is 90% lower than the National Average. 29 30 The Authority is submitting a formal request to the PSC for approval of a Solid Waste 31 Collection, Disposal & Maintenance Fee, which it projects will generate 32 $6,897,240.00. The Solid Waste Collection, Disposal & Maintenance Fee is designed 33 to cover the costs of house-to-house, bin site, convenience center, public housing, 34 government agency, and school garbage collection, as well as transportation to 35 landfills. The Fees are designed to cover the costs of solid waste garbage collection 36 throughout the Territory. 37 38 4 The VIWMA Solid Waste Collection, Disposal & Maintenance Fee will be charged to 39 property owners at the following rate: Residential units and residential vacant lots at a 40 rate of $180 per year (equivalent to $15 per month). Commercial Property and Central 41 Government units will be exempt from this fee. The fee will be charged to property 42 tax bills. Residential units account for 34,022 properties, while vacant lots comprise 43 20,718 parcels. 44 45 The fee will be charged to property tax bills: 46 Residential Properties: 34,022 properties X $180 = $6,123,960.00 47 Vacant Lots: 20,718 properties X $180 = $3,729,240.00 48 49 The grand total that can currently be collected from residential units is $6,123,960.00, 50 and from vacant lots is $3,729,240.00, totaling $9,853,200.00. The Authority 51 estimates an annual collection rate of 70% based on the evaluation of the Lt. 52 Governor’s Office data, which yields an estimated annual collection rate of 53 $6,897,240.00. In most jurisdictions, this fee is included in the utility bill; however, 54 due to WAPA's dire financial situation, the Authority is not comfortable with payments 55 being processed through them. 56 The VIWMA Solid Waste Collection, Disposal & Maintenance Fee Number of: Annual Fee Total Annual Fee Generated Residential Properties 34,022 180.00 $ 6,123,960.00 $ Vacant Lots 20,718 180.00 $ 3,729,240.00 $ Grand Total Annual Fees 9,853,200.00 $ 5 Expenses 57 The Authority’s Projected Expenditures & Capital Outlays' most significant expense 58 is Personnel Services at $20,039,495.00, which includes regular wages, fringe benefits, 59 overtime, vacation, and sick pay for 170 employees, as well as 48 vacant positions. 60 The Authority expects to fill 20 of the vacant positions by the end of 2026. In fiscal 61 year 2025, VIWMA welcomed 12 new team members and experienced 22 departures, 62 including four retirements. Professional Services make up the second largest expense 63 at $25,816,200.00. Garbage Collection Services account for $12.4 million of these 64 Professional Services expenses. Below is the current cost for Territorial Garbage 65 Collection Services. 66 67 Landfill Maintenance is the second largest professional service expense, at 68 $5,970,000.00. This covers both the Anguilla and Bovoni Landfill. The Wastewater 69 Service St. Croix Annual Fee House to House Garbage Collection 3,546,129.00 $ Three Bin Sites Collection 1,300,000.00 $ Public Housing Garbage Collection 369,900.00 $ Government Agencies Garbage Collection 215,460.00 $ Green Waste Disposal 500,000.00 $ Total STX 5,931,489.00 $ Service St. Thomas Annual Fee House to House Garbage Collection 146,800.00 $ Bin Sites Collection 2,626,298.00 $ One Convenience Center 215,280.00 $ Public Housing Garbage Collection 137,236.00 $ Government Agencies Garbage Collection 66,352.00 $ Green Waste Disposal 500,000.00 $ Total STT 3,691,966.00 $ Service St. John Annual Fee Removal of Bins from STJ to Bovoni Landfill 1,966,167.00 $ Barge Services 812,136.00 $ Port Fees 35,000.00 $ Total STJ 2,813,303.00 $ Grand Total 12,436,758.00 $ 6 Disposal Service fee is slightly over $5 million. It covers the annual cost of $2.5 70 million for wastewater treatment plant maintenance paid to VWNA, as well as $2.5 71 million in emergency repairs to the failing system. The Authority currently has an 72 Accounts Payable of over $20 million. As such, the annual budget includes a section 73 titled "Past Due Invoices," created to reduce the amount owed to contractors. 74 75 Federally Funded Solid Waste Management Initiatives 76 Under a subrecipient agreement between the Virgin Islands Housing Finance 77 Authority (VIHFA) and VIWMA, federal grant funding was awarded for the execution 78 of projects identified in the HUD-approved Tranche 2 Action Plan. These projects 79 address critical infrastructure needs stemming from damage caused by Hurricanes 80 Irma and Maria. VIWMA has submitted major applications for the convenience centers 81 and landfill projects in the amounts of $18,046,064.00 and $46,760,901.00, 82 respectively, totaling $64,806,965.00. 83 Convenience Centers – St. Thomas, St. Croix, and St. John - $ 18,046,064 84 Mon Bijou, Cotton Valley, and Concordia Convenience Centers (St. Croix) 85 The VIWMA received authority to Use Grant Funds (AUGF) from the Virgin Islands 86 Housing Finance Authority (VIHFA) to develop the Mon Bijou, Cotton Valley, and 87 Concordia Convenience Centers on St. Croix. This approval enabled VIWMA to 88 7 advertise, select, and contract a design-build firm for these centers. VIWMA has 89 completed its procurement process and selected Continental Construction & 90 Engineering LLC as the contractor, which has commenced the design phase for the 91 Mon Bijou, Cotton Valley, and Concordia Convenience Centers. Additionally, 92 VIWMA collaborated with the Department of Planning and Natural Resources, 93 Division of Coastal Zone Management (DPNR-CZM), and has secured approval of the 94 Federal Consistency Determination (FCD). 95 96 Red Hook Convenience Center Project 97 The Red Hook Center, located in a designated floodplain, is currently undergoing 98 HUD’s Eight-Step Environmental Review Process to ensure compliance with 99 Executive Orders 11988 and 11990. The review is anticipated to take 6–8 months. 100 This process assesses the project's potential environmental impact and involves 101 collaboration with federal and local agencies, interest groups, and the public. 102 103 Bournefield Convenience Center and Susannaberg Transfer Station Upgrades 104 VIHFA has approved the Bournefield Convenience Center and Susannaberg Transfer 105 Station upgrade applications. VIHFA is currently preparing Project Agreements and 106 the Notice to Proceed, which will allow for the initiation of environmental assessments. 107 8 Meanwhile, VIWMA is working with DPNR to obtain Federal Consistency 108 Determination (FCD) approval. VIWMA remains committed to advancing these 109 critical waste management projects, ensuring compliance with environmental 110 regulations while improving waste disposal infrastructure across the U.S. Virgin 111 Islands. 112 Anguilla Landfill Closure – St. Croix - ($46,760,901.00) 113 The Anguilla Landfill has been in operation since the 1960s and continues to face 114 significant environmental and compliance challenges. In response to a 2013 federal 115 consent decree (Case No. 3:10-cv-00048-CVG-RM), VIWMA is advancing a phased 116 closure approach, supported by CDBG-DR funds. Phases 1 through 6 will proceed 117 upon execution of a lease agreement with the Virgin Islands Port Authority. Planned 118 improvements include: 119 • Slope regrading 120 • Leachate and gas management systems 121 • Stormwater controls 122 • Perimeter roads and sedimentation ponds 123 The project is crucial in curbing frequent landfill fires and mitigating risks to 124 surrounding ecosystems, including critical mangrove wetlands. 125 9 CDBG-DR Tranche 3 Funding – $100,000,000 126 These mitigation funds, obligated under VIHFA’s CDBG-MIT Action Plan, are 127 earmarked for critical infrastructure projects, including: 128 • Bovoni Landfill Expansion 129 • Anguilla Landfill Closure (Phases 7 & 8) 130 • New Integrated Solid Waste Management Facility on St. Croix (Design, Site 131 Acquisition, and Permitting) 132 New St. Croix Landfill Siting 133 In partnership with the U.S. Department of Justice, VIWMA utilized a GIS-based site 134 analysis to identify potential locations for a new landfill on St. Croix. Sixty-six (66) 135 initial parcels were reviewed, and three (3) remain under consideration. Community 136 engagement meetings are scheduled to begin in October 2025. 137 138 Bovoni Landfill Expansion and Closure 139 With the Bovoni Landfill nearing capacity, expansion and partial closure are urgently 140 required. The project scope includes: 141 • Mechanically Stabilized Earth (MSE) wall installation 142 10 • Expansion of northern, western, and southwestern landfill sections 143 • Long-term monitoring and environmental controls 144 • Acquisition of surrounding land (title searches are underway) 145 These actions are crucial to maintaining a continued waste disposal capacity and 146 ensuring environmental compliance. 147 DPNR Waste Diversion Grant – $6,000,000 148 VIWMA has entered an MOA with DPNR to develop and implement an Integrated 149 Sustainable Materials Management Program (ISMMP) aimed at: 150 • Reducing landfill fires 151 • Conserving landfill capacity 152 • Enhancing recycling and reuse infrastructure 153 • Improving disaster debris management capacity 154 • Promoting circular economy practices 155 VIWMA has contracted the University of the Virgin Islands (UVI) to: 156 • Draft the ISMMP 157 • Conduct a Virgin Islands Recycling Data Management Study 158 • Identify commercially viable technologies for sustainable waste processing 159 11 This work will inform long-term strategies for reducing waste, increasing resiliency, 160 and ensuring environmental sustainability throughout the Territory. 161 Federal Grants Division - Wastewater 162 The Virgin Islands Waste Management Authority has been fortunate over the past few 163 years in securing funding from federal partners to support the future development of 164 the U.S. Virgin Islands' wastewater infrastructure. The funding supports upgrades and 165 maintenance to all wastewater infrastructure, to include pump stations, treatment 166 plants, force mains, gravity sewer lines, and the purchase of specialty equipment. They 167 are predominantly supported through the Federal Emergency Management Agency 168 (FEMA), the U.S. Environmental Protection Agency (EPA), and the U.S. Department 169 of the Interior (DOI). 170 FEMA – Federal Emergency Management Agency 171 Prudent Replacement has had a significant impact on the amount of funding the Virgin 172 Islands Waste Management Authority has been obligated for. The work has begun with 173 the Development of Architectural and Engineering Designs for the LBJ Sewershed and 174 the acquisition of pumps on St. Croix. 175 176 177 12 VIWMA Major FEMA Public Assistance Funding Federal Share (95%) VIWMA Share (5%) Total Cost A&E Costs Related to Prudent Replacement $ 28,500,000.00 $ 1,500,000.00 $ 30,000,000.00 Federal Share (98%) VIWMA Share (2%) Total Cost St. Croix Pump Station Repairs and Wastewater Treatment Plant $ 989,747,435.18 $ 20,198,927.25 $ 1,009,946,362.43 St. Thomas Wastewater System $ 2,144,882,835.57 $ 43,773,119.09 $ 2,188,655,954.66 St. John Wastewater System $ 81,917,395.68 $ 1,671,783.58 $ 83,589,179.26 Total Funding $ 3,245,047,666.43 $ 67,143,829.92 $ 3,312,191,496.35 178 Projects: 179 • STX North Central Horizontal Bundle is currently in the contract review stage. 180 Person’s Services Corporation (PSC) was the winning firm that the evaluation 181 committee selected to enter into a contract for all underground utilities (water, 182 electric, sewer, and roads). The contract was prepared and submitted by ODR to 183 Persons for their review and signature. This bundle covers all STX North Central 184 (from Castle Burke East to Tide Village). The total VIWMA cost for the gravity 185 sewer line replacement under this bundle is $258,754,089.92. 186 187 • STX Southwest Horizontal Bundle under the Office of Disaster Recovery, the 188 request for proposal (RFP) review has been completed and should be released 189 13 for advertisement by the end of July 2025. This bundle covers underground 190 utilities from Castle Burke West to Sandy Point and Frederiksted Town. 191 192 • STX Small Pump Station Equipment Acquisition Project was approved by the 193 VIWMA Board of Directors on 6/7/2025. This would enable Caribbean Utility 194 Services, LLC (CuServ) to procure pump station equipment for all small pump 195 stations on the island of St. Croix through a purchase order, with a total cost not 196 exceeding $1,206,984.53. 197 198 • Fig Tree Pump Station Equipment Acquisition Project pending board approval 199 for the purchase, shipping, and installation of pump station equipment at the Fig 200 Tree Pump Station on the island of St. Croix. The recommended winning 201 vendor's cost shall not exceed $1,473,653.00. 202 • STT East Horizontal Bundle solicitation proposals were due July 10, 2025. 203 Proposals have been submitted to ODR. This bundle consists of underground 204 utilities from Raphune Hill to Red Hook. 205 206 207 208 14 Upcoming Projects: 209 1. St. Thomas Small Pump Station Equipment Acquisition Project – RFP out July 210 18, 2025 211 2. St. John Small Pump Station Equipment Acquisition Project – RFP out July 212 18, 2025 213 3. Cruz Bay Wastewater Treatment Plant – RFP out September 5, 2025 214 USEPA – Clean Water State Revolving Fund 215 The VIWMA has received funding for FY 2017 through 2023, totaling $27,794,772.00 216 for pump station upgrades, sewer line repairs, wastewater treatment plant upgrades, 217 and specialty equipment from the U.S. Environmental Protection Agency (USEPA) 218 through the Department of Planning and Natural Resources. Currently, we have two 219 active construction grants: the Christiansted Sewer System Rehabilitation and the 220 Krause Lagoon Interceptor rehabilitation project. 221 Current VIWMA CWSRF Major Projects: 222 • Christiansted Sewer System Rehabilitation: This project was awarded to Marco 223 St. Croix, Inc. The current contract totals $10,148,004.78. To date 224 $7,713,004.50 has been paid for completed work. The project is 81.1% 225 completed. 226 15 227 • Krause Lagoon Interceptor Rehabilitation (Catherine's Rest) – The Project was 228 awarded to SD& C, Inc. The current contract totals $10,121,396.65. To date 229 $5,964,116.49 has been paid for completed work. Rehabilitation of underground 230 sewer lines and manhole work is ongoing. The project is 65% completed. 231 232 • Mangrove Lagoon Wastewater Treatment Plant – EPA/DPNR approved the 233 facility plan. The architecture and engineering design is currently out for bid, 234 and the proposals are due August 15, 2025. This project will be funded by the 235 Bipartisan Infrastructure Law (BIL) funding through the EPA. The estimated 236 cost is approximately $25 million. 237 238 • Brassview Wastewater Treatment Plant – A request for quotations was done to 239 complete equipment supply and installation. Ten vendors were contacted. WMA 240 has received two quotes and is awaiting a third to execute the procurement 241 requirements. The estimated cost of this upgrade is $67,500.00 and is expected 242 to be completed within 30 days. 243 DOI – Capital Improvement Program 244 Through the Virgin Islands Office of Management and Budget, awarded by the U.S. 245 16 Department of Interior, VIWMA has been awarded $402,739.00 under the 2019 246 Capital Improvement Grant Program (CIP) and $705,977.00 under the 2021 funding 247 year. 248 2019 Grant Funding: 249 Pedrito A. Francois (Red Point) Wastewater Treatment Plant Emergency 250 Generator Project 251 The grant will allow VIWMA to significantly increase operational reliability and 252 reduce hazardous threats to the environment and public health in the event of a power 253 failure, as well as reduce non-compliance (wastewater overflow). The scope and cost 254 estimate have been submitted to the VIWMA Procurement Division, pending the 255 advertisement for a request for a quotation. 256 2019 Project Budget Pedrito A. Francois (Red Point) Emergency Generator - 1000 KW $ 391,989.00 Generator Shipping $ 10,750.00 CIP 2019 Grant Funding $ 402,739.00 257 2021 Grant Funding: 258 Harold G. Thompson Wastewater Treatment Plant UV system upgrade. The UVI 259 system upgrade scope of work and cost estimate were completed by the Engineering 260 17 team. The documents have been submitted to the VIWMA procurement division. The 261 RFP is currently pending advertisement. The work is estimated to be completed within 262 eight months after the contract is awarded. 263 2021 Project Budget Ultraviolet Modules (All 5 Banks) $ 594,449.00 Cleaning the Equalization Basin $ 15,383.00 Install a permanent Bypass around the EQ Basin $ 96,145.00 CIP 2021 Grant Funding $ 705,977.00 264 DOI – Maintenance Assistance Program 265 U.S. Department of Interior awarded funding to the VIWMA for the purchase of 266 specialty wastewater equipment and wastewater technical staff training under the 2020 267 and 2021 Maintenance Assistance Program (MAP). The equipment will support the 268 wastewater team in their daily wastewater operations. 269 2020 and 2021 Grant Funding: 270 2020 Grant Funding: Funding under the 2020 MAP is for the purchase of two CCTV 271 Camera Trucks. This project was resolicited after approval from the DOI for the 272 purchase of two small CCTV Camera trucks. Bidders submitted questions for 273 clarification from Engineering, and our Engineers responded to all questions. This 274 project is currently in procurement to finalize the purchase of the camera trucks. 275 18 2020 Project Cost Parts Shipping Budget Closed Circuit TV Camera Truck - STX $ 226,500.00 $ 1,000.00 $ 10,000.00 $ 237,500.00 Closed Circuit TV Camera Truck - STT/STJ $ 226,500.00 $ 1,000.00 $ 10,000.00 $ 237,500.00 VIWMA Wastewater Technical Staff Training $ 60,000.00 $ 60,000.00 DOI MAP 2020 Grant Total $ 535,000.00 276 2021 Grant Funding: The VIWMA Evaluation Committee selected Briggs 277 Equipment Inc. as the vendor to purchase mini excavators. The mini excavators were 278 purchased in September 2024 for a cost of $236,600.00. The mini excavators are 279 currently being used on St. Croix and St. Thomas for all wastewater needs. The 280 VIWMA's ultimate goal is to successfully execute all federally funded projects, 281 including those preeminent projects funded through FEMA’s Prudent Replacement. 282 This will improve our wastewater system, allowing VIWMA to protect public health 283 and produce better-quality effluent water from the treatment plants while eliminating 284 ground or stormwater infiltration into the system. 285 Impact: 286 Better management of the wastewater system. 287 Lessen the number of overflows. 288 Reduce odor. 289 Reduce blockages. 290 19 Produce higher-quality effluent water from the treatment plant. 291 292 The VIWMA is deeply committed to executing these vital projects efficiently and 293 transparently. We recognize the urgency of our mission—to protect public health, 294 conserve natural resources, and create a more sustainable waste management system 295 in the U.S. Virgin Islands. With continued support from federal and territorial partners, 296 we are confident that these projects will deliver lasting benefits to the environment, 297 economy, and communities. 298 299 Mr. Chairman, and honorable members of the Senate, thank you for the opportunity to 300 speak before you today. As we conclude, I would like to take a moment to extend my 301 deepest gratitude to the hardworking men and women of the Virgin Islands Waste 302 Management Authority. Your tireless efforts in maintaining the health, safety, and 303 cleanliness of our islands are the foundation upon which our communities thrive. Your 304 dedication does not go unnoticed, and it is because of your commitment that we can 305 envision a cleaner, more sustainable future for the Virgin Islands. To the Senate, thank 306 you again for your time, your questions, and your continued support as we work 307 together to build a stronger, more resilient territory for all. This concludes my 308 testimony. 309