The Commonwealth Utilities Corp. sought the federal court’s approval yesterday to deposit $300,000 in court and allow Gilbane Federal to manage the construction of CUC’s Tank 102.
Gilbane Federal is a California-based full service construction company recently selected by the federal court as Engineering and Environmental Management Company, which will have the power to expeditiously complete some CUC projects.
The Tank 102 project involves a 500,000-gallon diesel fuel tank that will replace Tank 010, which has been found to be a source of pollution and is non-repairable.
The U.S. government, the U.S. Environmental Protection Agency, and the CNMI government did not object to CUC’s request to allow Gilbane Federal to perform Tank 102 activities.
CUC counsel James Sirok stated in their request that the utilities agency shall be solely responsible for funding Gilbane’s activities.
Last Jan. 12, U.S. District Court for the NMI designated judge David O. Carter clarified that Tank 102 remains the responsibility of CUC, including CUC’s obligation to fund and build the tank.
Sirok said within five days of the court’s approval of their request or stipulation, CUC shall place $300,000 into the court registry to fund Gilbane Federal for task order activities.
Sirok said the $300,000 will be withdrawn from the contingency fund being maintained by CUC.
Sirok said upon completion of task orders and after full payment is made to Gilbane, funds remaining from CUC’s $300,000 court registry deposit shall be returned to CUC.
Last September, the Commonwealth Public Utilities Commission approved a $1.602-million contract for the Tank 102 project.