The Virgin Islands Port Authority Board held its monthly meeting Friday, acknowledging the official opening of the newly constructed transportation center on St. Thomas and financial changes to ongoing projects.
The ribbon-cutting ceremony took place Thursday for the completion of the Dale A. Gregory Transportation Center.
“I have a board action here in front of me from August first of 2013, August first of 2013, when myself first presented to the board that we should do a $2 rental surcharge for the purposes of upgrading the facilities wherever, what the rental cars would have to use,” said Port Authority Director Carlton Dowe, placing emphasis that the 2013 discussion was the start of what would become the newly constructed transportation center.
“So when we see that ribbon cutting yesterday, approximately three to four million dollars were collected from that fee, not from the rental car company, but that’s what the public, who rented the vehicle paid to them, and by virtue transmits that to the authority,” he said. “That’s just the beginning of the transformation that we expect to modernize our facility,” Dowe added.
After his remarks, the board began their agenda with a poll vote to renew the liability coverage for the Virgin Islands Port Authority’s Property and Terrorism Insurance for $7,138,786.47. All members present voted unanimously to approve it.
All members also voted to approve a request to enter into a contract with Energy Efficient Builders, LLC, for the interior build out of the Air Alliance building located at the Cyril E. King Airport in the amount of $344,931. An interior portion will be built out due to the presence of black mold and mildew.
On March 28, bids were also received from Continental Construction and Engineering ($404,372.00), Hammerhead Construction, LLC ($580,163.65), Apex Construction, LLC ($594,035.00) and Custom Builders ($794,197.00).
Board members also unanimously voted to issue a professional services contract, on a sole-source basis, to Kimley-Horn & Associates to provide construction-phase services related to the St. Thomas Selective Slab Replacement Project on the airport apron, not to exceed $648,560.00.
“The funding source of this is 90 percent covered by a FAA grant with 10 percent coming from VIPA revenues as our local match,” said Preston Beyer, engineering director for the Port Authority.
The project will take place between April and September 30.
Beyer also requested that the board issue Change Order No. 8 to the existing contract between the Port Authority and AT Construction Solutions for the Gregory Transportation Center, not to exceed $488,215.76. Although Dowe appeared elated to have completed the ribbon-cutting ceremony less than 24 hours prior, extended overhead conditions needed to be addressed during the meeting.
“During the course of construction works, there have been numerous changes that have been made to the conformed construction documents that have resulted in additional scope of work items needed for the successful completion of the project,” said Beyer.
The board unanimously voted to approve the request.
Beyer added that the authority and it’s designer of record, Kimley-Horn & Associates, reviewed the “submitted time impact” and found the additional $488,215.76 would duly compensate the additional 135 days for the project (the contract’s period of performance end date changed from Oct. 14, 2024 to Feb. 28, 2025). This brings the project’s total cost to $33,706,465.41.
Additionally, Beyer noted the active projects in the territory. On St. Croix, the Port Authority has nine active projects totaling $44,690,965.08. They are the HERA Apron Rehabilitation, Gordon A. Finch Marine Cargo Building, HERA RWY 10-28 Shoulder & Electrical Vault, HERA TWY A&B Rehabilitation VI Paving, Frederiksted Tender Landing Pier, Frederiksted Pier Blow-out Panels, Wilfred “Bomba” Allick Transshipment Center Wall Partition Build Out, Wilfred “Bomba” Allick Transshipment Center Generator Modification, and Seaplane Long Term Environmental Monitoring projects.
On St. Thomas and St. John, the Port Authority has six active projects totaling $65,664,386.04. They are the CEKA Parking Garage & Transportation Center, CEKA Taxiway A West Reconstruction, St. John Ferry Dock Improvements, CEKA Airfield Pavement Markings, CEKA RWY 10-28 Keel Section Seal Coat, and Red Hook Restrooms Renovation projects.
During the board meeting, collection items were also addressed. Legal counsel Catherine Hendry noted that Silver Airways LLC and Seaborne are still under Chapter 11 bankruptcy.
“VIPA has done its part to submit its proof of claim,“ said Hendry.
Board Member Willard John, who inquired about the default of payments from Silver Airways, said, “We need to have a plan.”
“If they [the court] dismiss them from Chapter 11, then everybody can sue them,” responded Vincent Frazer, senior staff attorney for the Port Authority, who noted that the company owes approximately $600,000 to the Port Authority.
According to accounts receivable and collection records as of March 31, Silver Airways owes $319,462.82 on St. Thomas-St. John and $412,731.56 on St. Croix.
Board members Derek Gabriel, Willard John, Gordon Rhea, Kevin Rodriguez, and Leona Smith were present. Joseph Boschulte and Celetino White Sr. were absent.