Ricondo & Associates, which looked into CPA’s operations, management and rates, has already submitted its draft report to the agency.
Acting CPA Executive Director Lee Cabrera yesterday said the draft report will be shared with stakeholders who will be directly affected by the looming rate “adjustments.”
Cabrera said CPA has 30 days to “agree” or “disagree” with the report’s recommendations.
He admitted that the “rates can be expected to increase” so that CPA can generate revenue and comply with its bond payments.
The increase in fee rates will apply to airlines and “other areas” that can produce additional revenue for CPA, he said.
“It is from net revenues that we derived the payment for the bonds,” he added. “The draft report involves methodologies on the rates that would have to be charged in order to change the net revenue and make it adequate to service the bond payments.”
But Cabrera said the “comments” from CPA’s tenants and stakeholders will be considered before the agency submits its response to Ricondo & Associates.
“There are several rates that will be affected…and not just airline rates,” he added.
CPA’s airline incentive program, which was terminated by the board in January, has a “dim chance” to be considered at this time, he said.
According to Cabrera, because of the six-month, 100 percent discount on airline rates previously implemented by CPA, it failed to meet all its obligations, including service bonds.
CPA remains under the control of the governor who declared a state of emergency for the agency in May.
