The Commonwealth Ports Authority disclosed that it continues to incur huge operating losses at its seaport parking lot, with a monthly deficit of over $2,000.
CPA comptroller Skye Aldan and board finance committee chair Frances Mafnas reported this to the board Friday, pointing out that if current situation continues, the ports authority will sustain greater losses in coming months.
Saipan Tribune learned that CPA contracted out the operation of the parking lot to POI Aviation, paying it $32,709 a year or roughly $3,200 each month. In return, POI Aviation remits the revenue from the parking lot to CPA each month. However, revenue generated from the parking fees amounts to only $900 to $1,000 each month this fiscal year.
As of July 31 this year, board officials disclosed that CPA had an actual collection of only $14,098 from the seaport parking lot. This is an $18,611 deficit based on the annual contract of $32,709 for the project.
The actual parking collections monthly are: October 2012, $2,916; November, $1,422; December, $1,106; January, $2,416; February, $1,033; March, $1,157; April, $821; May, $989; June, $915; and July, $1,323.
It was also learned that fiscal year 2013’s operating loss from the parking project is much higher compared to fiscal year 2012 when the shortfall was only at $10,085. In fiscal year 2012, the contract for the project was at $39,251, compared to actual yearly revenue of only $29,166.
In fiscal year 2011, the seaport parking also posted a loss amounting to $15,679. POI Aviation’s contract at that time was at $39,251 versus actual revenue of just $23,572. In fiscal year 2010, operating loss was at $14,548 after CPA only collected $24,703.
As project contractor, POI Aviation operates the parking booth inside the seaport where it issues parking IDs for corresponding fees. In return, CPA pays the company $3,200 each month for this service.
During Friday’s meeting, board members expressed concern about the continued operating losses being incurred by this project.
Board seaport facilities chair Benigno Sablan said that CPA cannot afford to sustain these losses.
“It’s a big loss and I am very concerned on our bond indenture agreement [for seaport]. We’re a revenue generating agency and we cannot afford not to collect or generate [revenues),” said Sablan, adding that it is best for now to open the parking space than to continue incurring deficits.
According to CPA executive director MaryAnn Lizama, once the parking space is opened up, taxicabs and buses that use the facility will continue to pay through their permits issued by the ports authority. For guests, CPA will not charge parking fees but will monitor their entry and exit.
A policy on parking will also be implemented, including towing a vehicle at the owner’s expense if found violating the regulations.
The board unanimously voted to issue a 90-day termination notice to POI Aviation’s contract that will stop its services at the parking lot.