The CPA board on Friday approved a $130,000 supplemental budget for legal services to pursue claims against the contractor Leo A. Daly Company, the same company that designed the new hemodialysis center of the Commonwealth Health Center.
CPA Executive Director Edward M. Deleon Guerrero said they commissioned the services of the structural engineers to come in and conduct an evaluation that revealed several findings that the structure was not sound and requires retrofitting.
He added that CPA hired an architect to look at the deficiencies and see how the ports agency will proceed with retrofitting.
He said while the assessment is ongoing, CPA needs to pursue the regional designer so it can get the money to defray the cost of retrofitting.
CPA comptroller Derek Sasamoto said the requested $130,000 is for an agreement to retain attorneys to pursue claims against the contractor that worked at the departure terminals on Saipan and Tinian.
This retainer agreement, he said, calls for a total of $130,000 to pursue claims against the contractor.
He added that costs may go as far as $200,000.
“Any recovery that’s made from the case will cover that additional cost. Right now we are only asking for $130,000 because that’s all the retainer calls for in terms of the responsibility for CPA,” Sasamoto told the board.
CPA board member Fermin Sakisat inquired if there’s money to cover the expense, to which Sasamoto replied, “This will be supplemental request for FY 2012 budget and it will be funded through our savings account reserves.”
Sasamoto said CPA will still be in compliance with their bond indenture requirements and that’s mainly because of passenger facility charges or PFC coverage. But he expressed concern with monitoring the cash flow.
“We are closely monitoring our finances and to make sure it is not going to affect the operation,” he said.
For Sasamoto the pursuit of the claims is in the agency’s best interest that would likely lead to monetary compensation.
Sasamoto also said, “It seems likely that the potential damages will far exceed $130,000.”
He also said that it’s prudent to proceed with pursuing claims based on the research they conducted.
In other news, acting CPA Chairman Manny Villagomez said he was told by Senate Vice President Jude Hofschneider, R-Tinian, that the new terminal needed $250,000 for retrofitting and redesign. The Tinian legislative delegation told the CPA board the supplemental $250,000 budget would come from the Covenant funding.
