The Public Finance Authority approved several expenditures quickly at its board of directors meeting Thursday, but there was some confusion about its largest expenditure, a contract with Ernst & Young, to allow for continued financial management support services.
Gov. Albert Bryan Jr. tried to clear up the confusion by indicating that the motion to amend the contract did not include dollar figures or dates.
Office of Disaster Recovery Director Adrienne Williams-Octalien, who made the proposal, said the contract had been $6 million a year and would now be $9 million yearly, not exceeding $27 million.
After attending to a couple of other agenda items, Kye Walker, PFA general counsel, suggested the board revisit the motion to note that the amount should not exceed $22 million. It appears the amendment covers the last two years of a three-year contract.
Costs will also rise for restoring the 99 Steps in Charlotte Amalie. The PFA had initially designated $175,000 for the project two years ago. Nathan Simmonds, director of Finance and Administration at the PFA, told the board that the only bid that came in was closer to $275,000 and recommended the board allow up to that amount to accommodate the bid. Simmonds said the steps were an important tourist attraction.
Bryan said adjacent areas were also in line to be spruced up.
The board approved payment of $16,500 for the architectural and engineering consulting services for the Fort Christian Food Truck Plaza design. This will be located near the bottom of the 99 Steps at the back of the vendor’s plaza. Bryan said this would allow for a pleasant eating spot instead of having food trucks sprinkled throughout the vendor’s plaza. He said, “We have done a good job already making that place look nice.”
The board also ratified a poll vote adopting the PFA 2025 budget, which now includes the Office of Disaster Recovery. Simmonds testified in June at the Senate that the authority’s budget for fiscal year 2025 was $27.42 million, a 40 percent increase, or $7.84 million, over fiscal year 2024. He said this was due primarily to increased funding required for the Office of Disaster Recovery, a PFA subsidiary division.
Williams-Octalien, also testified at that Committee on Budget, Appropriations and Finance hearing. She said ODR’s total operating expenses were just over $10 million and were funded by $2.5 million from the General Fund and $7.6 million from federal disaster grant programs.
PFA board member Dorothy Isaacs voted against ratifying the budget approval. She said she did not participate in the poll vote because she did not have enough information.
The board also approved negotiating a guarantee with Firstbank Puerto Rico and Banco Popular de Puerto Rico for outstanding credit owed by the Water and Power Authority and a $1.4 million contract with BDO USA, LLP to perform audits of the PFA and its subsidiaries.
Williams-Octalien told the board that Ernst & Young had been satisfactory in helping the government meet regulatory requirements for its many recovery grants and that its work would increase as major projects were set to come online soon.
