Meeting at its St. Thomas headquarters Wednesday, the V.I. Port Authority board got a first glimpse of its fiscal year 2011 budget.
The board reviewed the personnel portion of the draft budget, which includes salaries and benefits totaling $8.2 million.
The board also reviewed a report of its financial standings as of June 30. Revenues for the first three quarters of the year were $35.4 million, with operating expenses at $40.5 million. In comparison with the same period for last year, operating expenses increased 4.32 percent. Expenditures increased 1.73 percent, from $39.8 million.
The report listed an uncollected amount of $8.7 million, which is owed to VIPA for wharfage and tonnage fees. These fees are collected from ships by U.S. Customs on behalf of the authority, which then extracts their operational costs before remitting the remainder to the V.I. government, which in turn takes an administrative fee before passing the remainder on to VIPA.
In a separate report, the board learned that the V.I. Taxi Association was finally billed in 2007 for eight years of water use and owes the authority more than $78,000. The taxi association uses the water for washing its vehicles, according to VIPA Executive Director Kenn Hobson.
Hobson explained that the problem was a result of Cyril E. King Airport operations staff not knowing how to read the meter for the association’s water use.
Clearly displeased with the news, acting chairperson Beverly Nicholson-Doty demanded a full explanation from Hobson how the oversight came about and how it will be rectified.
“This type of gross negligence causes our credibility to be taken into question, Nicholson-Doty said.
The board also reviewed several requests from Monsanto Marine Terminal tenants Millenium Racing Inc. and Costa Java.
The requests from each tenant asked for an assumption of Costa Java’s lease, which the board approved, but with two caveats: the transaction must be completed in 60 days, and “without regard to any demands or requests from the Millennium Racing letter of July 18.”
The letter contained language that the board regarded as an attempt to tie an approval of the assumption to changing the annual percentage increase in rent.
The sole dissent came from Yvonne E.L. Thraen.
“If you review the history of payment with Millennium, they have racked up bills,” Thraen said, reminding board members that the tenant had been the subject of discussion in previous board meetings.
“They don’t pay as they ought to pay," Thraen said, adding, "I do not think this is the kind of tenant to expand because of potential of further arrearage.”
The board also denied Millennium Racing’s request for interest earned on their cash security deposit.
However, the board approved a measure that will provide tenants at the center with the option of providing a qualified letter of credit in lieu of a cash security deposit.
In other actions, the board:
-approved a contract for replacing the roof on the general cargo building at the Wilfred Allick Port and Transhipment Center on St. Croix. The $200,670 award was made to Florida Welding West Indies Steel, Inc.
-approved extension of Diana Richardson to remain under contract as the Property Manager of the Austin “Babe” Monsanto Marine Terminal through Dec. 31.
-returned to committee a request from Derrick Callwood Sr. to install Wi-Fi at the Urman Victor Fredericks Marine Terminal in Red Hook. Callwood, doing business as Net View proposes a six-seat Internet/WiFi Station, according to plans drawn up by a British Virgin Islands drafting service.
-approved a five-year lease at King Airport for United Parcel Service; the 3,500-square-foot space was previously occupied by the now seemingly defunct Four Star Aviation.
-approved an application to lease additional office space at CEKA to the Transportation Security Administration.
-approved a lease to Klassique Jewelers in the Monsanto Marine Terminal, selling the existing improvements in the unit for $76,835.70, which was equal to the arrearage owed by the previous tenant, Aseck, Inc.
-approved a two-year lease to Lucky Jewelers for a cabana-style kiosk selling personal beauty items at the Monsanto terminal.
-approved a one-year lease of a 3,000-square-foot unit to the V.I. Bureau of Economic research for office space, with two six-month renewable options.
