On Aug. 4, CPA hired BST Associates of Kenmore, Washington to look into the agency’s current fee rates and submit recommendations.
BST personnel will be here on Monday to begin their study.
In his fourth interim bond indenture compliance report to the governor, Cabrera said CPA is reviewing the final report of Ricondo & Associates, the agency’s bond consultant, to make sure that the rate hike recommendations are accurate and sufficient to meet the debt service coverage ratio.
Cabrera said CPA’s fiscal year 2007 audit report, which has yet to be completed, will expand on the agency’s financial problems.
“We will work on incorporating the recommendations from the auditors to ensure fiscal integrity [and] fiscal stability within CPA,” he added.
Ricondo & Associates is also evaluating CPA’s operations, management and governance.
“One of the issues is CPA’s ongoing need to fill employee vacancies in management and in [the Aircraft Rescue & Fire Fighting department] and ports police for compliance with [federal] requirements,” Cabrera said in his report. “These costs are being considered and will ultimately determine the appropriate rates.”
CPA also needs to hire a new executive director, comptroller, airport manager and staff attorney.
CPA’s bond consultant has noted the importance of returning governance to the authority through its board of directors.
The governor has placed CPA under his control through a state of emergency declaration.
Cabrera, who will retire end of this month, said a full slate of CPA board directors can restore the agency’s “institutional stability” following the corrective measures implemented at the agency.
“The CPA management and its hard working employees have expressed their desire to have the return of a board of directors committed to moving CPA forward with its projects and mission serving the people of the commonwealth,” Cabrera said.
The confirmation of four CPA board nominees is still pending in the Senate.
Only one nominee has been confirmed — former Sen. Manuel P. Villagomez of TInian.
