Senators weigh-in on ASPA’s garbage collection contracts

Pago Pago, AMERICAN SAMOA — The Senate Energy, Power & Water Committee scrutinized the operations and services of the garbage and waste collection of the American Samoa Power Authority (ASPA) during the final hearing of the First Regular Session of the 39th Legislature, held on March 21, 2025, prior to the Fono's adjournment.

Chaired by Senator Ponausuia L. Poausuia, a former ASPA employee, the hearing primarily focused on ASPA's solid waste management and garbage collection services, which are contracted to the private sector.

The three top ASPA officials who testified at the hearing included CEO Wallon Young, Customer Service Manager Ryan Tuato'o and Manager of the Solid Waste and Waste Water Division, Talimatagi Elisara Su'a.

Senate President Tuaolo Manaia Fruean opened the discussion by addressing a request from his village's Paramount Chief, Mauga Tasi Asuega, to investigate why ASPA is not fully outsourcing garbage collection services to private companies. He raised concerns about the matter, particularly highlighting that Senators Utu Sila Poasa and Leatualevao S. Asifoa operate garbage collection businesses.

Talimatagi responded that private companies are invited to bid for contracts to provide garbage collection services, and Paramount Chief Mauga's company is one of the contracted local businesses currently operating.

Tuaolo then questioned why ASPA had decided to purchase its own garbage trucks.

In response, Talimatagi explained that during the COVID-19 lockdown in 2020, when some members of the public were afflicted by the virus, he made the decision to ensure the continuation of this critical service to maintain a clean environment.

He elaborated that halting garbage collection at the time would have led to overflowing trash bins in front of homes and neighborhoods, which could be overturned and scattered by dogs. This, he argued, would have contributed to the spread of the disease.

Talimatagi also recalled that, at the time, flatbed trucks were being used for garbage collection. Employees had to manually lift trash bins and containers to empty them onto the flatbed. A net was then placed over the collected waste to prevent it from spilling during transport. However, this method posed significant safety and health risks, as employees had to sit on the flatbed, which was neither safe nor sanitary.

The Solid Waste Division Manager stated that he had discussed the matter with the ASPA CEO, and together they decided to purchase standardized garbage trucks commonly used overseas. These trucks are equipped with specialized features that allow them to lift trash bins and empty their contents into a secure, enclosed compartment within the vehicle, where the collected waste is stored.

The introduction of these garbage trucks significantly relieved employees from the unpleasant and physically demanding task of lifting heavy trash bins and dumping their contents onto flatbeds. He revealed that one truck costs about $300,000. ASPA purchased the vehicles using a grant from the Department of Interior (DOI).

Talimatagi reminisced that, during the COVID-19 restrictions, many ASPA employees were staying home. However, his division continued working diligently, donning special protective suits to safeguard themselves from the virus.

He explained that ASPA had acquired the trucks to support local companies that might not have the resources to afford such equipment. As part of the initiative, ASPA supplies both the truck and a driver, while local contractors contribute the labor needed to collect any trash found on the ground.

He clarified that three types of trash are collected, each requiring a specific kind of vehicle:

The garbage trucks provided by ASPA are designated for collecting household waste; scrap metal is gathered using vehicles owned by Senator Leatualevao Asifoa's company; and the large metal dumpsters used by businesses across the island are emptied into vehicles operated by PC Mauga.

Tuaolo sought clarification from the Solid Waste Division Manager regarding PC Mauga's complaints, noting that Mauga's trucks were contracted to collect trash. In response, Talimatagi admitted uncertainty about the nature of Mauga's grievances but speculated that they may stem from instances where Mauga was not paid the full monthly amount due to incomplete fulfillment of the contracted service conditions.

Tuaolo then raised a critical question concerning liability, asking who would be held responsible if a contractor's employee were involved in an accident while performing their duties.

ASPA CEO Young explained that liability would depend on the circumstances. If the accident resulted from defective equipment provided by ASPA, then ASPA would be held liable. On the other hand, if negligence on the part of the contractor's employees caused the incident, the contractor would bear the responsibility.

To ensure thorough understanding, Tuaolo reiterated his inquiry, specifically focusing on the scenario where a contractor's employee sustained injuries while working on an ASPA-provided garbage truck. CEO Young responded that without doubt, ASPA would be liable in such a case.

The Senate President inquired whether ASPA could sell its vehicles to local companies. Talimatagi responded, stating that the Department of Interior prohibits such transactions.

Tuaolo observed that ASPA was generating significant revenue from its various services yet contributing nothing to the government’s general fund. He remarked that it appeared as though ASPA was building its own empire within the government structure.

Senator Utu highlighted that based on the ASPA officials' testimonies, they had received numerous public complaints regarding poor service. He also pointed out that the Solid Waste Division Manager admitted cutting monthly payments of certain contractors due to their failure to meet the conditions outlined in their service agreements.

"If the service provided by these contractors has been unsatisfactory, why haven’t the contracts been opened for bids?" Senator Utu questioned.

CEO Young clarified that the contracts, which had already been renewed three times, would be rebid once they approached their expiration at the end of this year.

Utu then asked about ASPA's annual revenue from trash collection fees. Young reported earnings of approximately $3.6 million per year, noting that seven contractors are involved in waste collection. He added that they also had the landfill to maintain. He said there's not much funds in solid waste collection, so they try to stretch the dollar as much as possible to avoid increasing the rates and keep the public satisfied.

Young acknowledged that ASPA has received substantial feedback from the public, including stacks of written complaints and an even higher number of phone complaints, largely regarding dissatisfaction with trash collection services, particularly the dumpsters. He explained that when contractors fail to meet the conditions stipulated in their contracts, ASPA reduces their payments accordingly — a practice that has frequently angered contractors.

In response to Senator Utu’s question about the monthly cost of trash collection service contracts, the ASPA CEO revealed that ASPA spends $70,000 per month on dumpster collection. He emphasized that the contracts for dumpster collection explicitly requires service three times a week.

However, Young noted that contractors often fail to comply with these terms while still demanding full payment.

This recurring issue forced ASPA to purchase two garbage trucks designed for dumpster collection to ensure the service that local businesses pay for is properly delivered. These measures will remain in place until the current contracts expire.

Senator Utu reminded Young that his company had originally been contracted for three years, with the contract subsequently extended for another three years. Utu pointed out that during this period, his company was paid $1.3 million annually, while ASPA's annual revenue from trash collection fees exceeded $2 million. He suggested that the unsatisfactory service provided by the current contractor might be due to the significantly smaller contract amount compared to the one his company had received.

Utu revealed that his company had submitted a bid when its contract expired, but the bid was ultimately awarded to the current contractor. He speculated that the lower contract value might be contributing to the poor quality of service.

Young recalled that Senator Utu's company had been responsible for both dumpster and household trash collections, which accounted for the $1.3 million annual payment. In contrast, the current contractor is only responsible for dumpster trash collection and is paid $70,000 annually.

Reflecting on his company's operations, Utu recalled that they had two vehicles specifically for dumpster trash collection, along with additional equipment similar to what ASPA now uses for household collection. He noted that these vehicles had been left unused for five years and were eventually dismantled for scrap metal.

Senator Utu asserted that if ASPA expects quality service from its contractors, it must provide adequate compensation. He shared his frustration, explaining that he has repeatedly called ASPA to report instances where his trash was not collected, despite paying the agency monthly for this service. Utu emphasized that if contractors fail to deliver quality service, the contract should be reopened for bidding, allowing other local businesses the opportunity to compete.

He also addressed a concern previously raised by the Senate President regarding liability. Specifically, he highlighted the risks associated with the "half-half" arrangement in which a contractor's employee performs duties on an ASPA-owned garbage truck operated by an ASPA employee. Utu argued that such an arrangement exposes ASPA to potentially significant liability and financial risk.

Young explained that the trash collection service had been outsourced to the private sector in 2018, but there were so many complaints from the public about the service. This prompted ASPA to implement the changes currently in place.

A frustrated Senator Utu expressed his dissatisfaction, recounting his experience with ASPA's customer service.

"Wallon, when I call your office to report that my trash hasn’t been collected, I’m told to call the contractor," he said. "I don’t pay the contractor — I pay you. So you have to make sure the service is good.

"But don't give me this crap that I have to call the contractor because that's not the way things were done when I was the contractor. The customers called you but I was always on top of things. Whenever you called me, I always made sure that my employees would respond and get the job done."

CEO Young stated that he had never told Senator Utu to call the contractor and apologized if any of his employees had told him so.

Senator Leatualevao S. Asifoa, who also owns a trash collection company, proposed that ASPA impose a fee on local companies importing water and soda bottles and cans to help cover disposal and recycling costs. He emphasized that ASPA should determine an appropriate fee structure and present it to the Fono, enabling the creation of legislation to enforce this initiative.

He stated that in the past, only big companies like GHC Reid imported glass and plastic water bottles as well as soda cans. However, he noted that today, nearly all local businesses — particularly those operated by Asian owners — are engaged in importing these items. He expressed deep concern about the environmental impact of discarded bottles and cans littering the island, emphasizing the challenges posed by limited land space for disposal.

Senator Leatualevao proposed implementing a 10-cent fee on every imported bottle and can. He explained that the revenue generated from this fee could be evenly split between ASPA and the government, with each receiving 5 cents. This arrangement would enable ASPA to cover disposal and recycling expenses while providing additional funds to support government operations, or serve as matching funds for federal grants.

ASPA Customer Services Manager Ryan Tuato'o voiced strong support for Senator Leatualevao's proposal, noting that a similar bill had previously been introduced by the Fono but faced significant opposition from importers.

Tuato'o further highlighted that the American Samoa Environmental Protection Agency (ASEPA) had proposed a similar initiative to impose fees on local companies importing cars and white goods waste, such as refrigerators, ovens, and other household appliances. He explained that the revenue generated from these fees would be allocated to pay scrap metal collection contractors and support recycling efforts.

He clarified that ASPA currently does not charge households for scrap metal and white goods waste disposal, only businesses and government agencies and departments. Tuato'o assured that the matter would be thoroughly discussed and a detailed report would be presented to the Fono.

Manu'a Senator Ma'o F. Gogo stressed the urgent need for a garbage truck similar to those recently purchased by ASPA for his constituency. He pointed out that trash in Manu'a is still being collected using flatbed trucks, with employees manually hauling heavy trash bins to unload their contents onto the vehicles. He firmly stated, "What is good for Tutuila is also good for Manu'a."

Senator Togiola T.A. Tulafono echoed this sentiment, underscoring the need for two garbage trucks to be allocated to Manu'a. He explained that one truck would serve the main island, while the other would be designated for the islands of Ofu and Olosega.

He commended ASPA officials for their efforts in managing utility services and other public services. However, he acknowledged that challenges persist. Togiola highlighted concerns regarding the joint trash collection arrangement between ASPA and its contractors, where ASPA provides the garbage trucks and drivers, while the contractors supply the labor. He suggested that this arrangement may require further evaluation to address existing issues effectively.

He inquired whether ASPA had considered leasing its garbage trucks to private contractors who expressed interest. CEO Young responded that he had raised the same question with the DOI. According to Young, the DOI did not endorse this option, reasoning that if leasing had been the original intention, ASPA would not have purchased the vehicles in the first place.

In response to Senator Togiola's inquiry regarding the bidding process for household trash collection, Young explained that the contracts are typically awarded for two years, with an option for renewal based on the contractor's performance. After three renewals, the contract is rebid.

Togiola pressed further, asking if contract renewals were granted without rebidding, provided the service had been satisfactory after the contract expired. Young clarified that renewals are approved before the expiration of the current contracts. He explained that many contractors invest in specialized equipment to fulfill their responsibilities, and frequent rebidding every two years could leave them with unused equipment if they lose the bid.

He highlighted that this scenario had occurred with Senator Utu's company in the past. He emphasized that renewing contracts helps contractors recoup their investment in the equipment purchased for the job.

While acknowledging ASPA's rationale, Senator Togiola raised concerns about the issues stemming from the joint trash collection arrangement, in which ASPA provides garbage trucks and drivers while contractors supply the labor.

He suggested that, rather than continuing this approach, ASPA should consider directly hiring the labor as ASPA employees to eliminate the need for monitoring contractor performance.

In response, the ASPA CEO pointed out that locals typically do not apply for this type of work. Additionally, ASPA prefers to allocate such tasks to contractors to avoid complaints from the public about ASPA handling all aspects of the work.

Senator Togiola countered that his constituents have expressed frustration, stating that when they lodge complaints with ASPA, they are redirected to the contractors. He argued that this practice is unfair, as ASPA is ultimately responsible for providing the service. He further remarked that outsourcing the service has introduced an additional layer of bureaucracy, complicating the process for residents.

Togiola noted that this service was previously managed directly by ASPA during Governor Lolo's administration but was privatized in 2013. He observed that public complaints began surfacing after the privatization, seemingly tied to the performance of the contractors' employees.

In response, Young acknowledged that this issue aligns with their own observations. He assured Togiola that the matter would be reviewed and that his suggestions would be taken into consideration.