Virgin Islands Port Authority Marine Tariff Rate Amendments August 30, 2017 Public Hearing V I R G I N I S L A N D S P O R T A U T H O R I T Y S T. C R O I X S T. T H O M A S S T. J O H N U N I T E D S TAT E S V I R G I N I S L A N D S T E L : ( 3 4 0 ) 7 7 4-1629 FA X : ( 3 4 0 ) 7 7 4-0025 W E B S I T E : W W W.V I P O R T. C O M
Agenda Topic Page Number An Overview of the VI Port Authority 3 VIPA s Sources of Revenue 4 Marine Tariff Fee Amendments 5 Explanation of Tariff Amendments 6 Marine Division Capital Projects St. Thomas 7 Marine Division Capital Projects St. John 12 Marine Division Capital Projects St. Croix 13 Question & Answer / Notes 17 2
Overview About VIPA: The Virgin Islands Port Authority was created by Act No. 2375 of the Legislature of the Virgin Islands in 1968 as a body corporate of the territory of the US Virgin Islands. The Virgin Islands Port Authority has jurisdiction over the harbors and public marine facilities under its ownership or control. Most port authorities in the world manage either airports or seaports. The Virgin Islands Port Authority is one of the few port authorities that manages both air and seaports. 2 Airports: VIPA owns and manages the Cyril E. King Airport on St. Thomas and the Henry E. Rohlsen Airport on St. Croix. 14 Seaports: VIPA also owns and manages the majority of public seaports on St. Thomas, St. John and St. Croix, which includes cruise, cargo and ferry ports and seaplane facilities. Changes to Tariff: VIPA s Marine Tariff is published by the Authority pursuant to Section 543, Chapter 10, Title 29, V.I. Code. VIPA must conduct a public hearing before modifying the Marine Tariff or, where VIPA s Governing Board modifies the Marine Tariff and deems the immediate effectiveness thereof to be necessary, within a reasonable time after such modifications are made. See, 29 V.I.C. 543(12). 3
Sources of Revenue The VI Port Authority was created as a semi-autonomous, self-sustaining agency. We do not receive funds from the local government. VIPA S Main Funding Sources 1. Revenue from property rental and user fees per our aviation and marine tariff. 2. The financing of bonds must be approved by the VI Legislature. 3. Federal grants primarily from the Federal Aviation Administration & limited to FAAapproved projects. 4. The Passenger Facility Charge Program (PFC) also limited to FAA approved projects. 4
Marine Tariff Amendments In accordance with Section 543, Chapter 10 VI Code, VIPA is hosting public hearings throughout the territory to discuss the following proposed changes to its marine tariff: FEE OLD/EXISTING RATE NEW/PROPOSED RATE 1 Water Tour Operators Fee (implemented on 01 Oct 2016) $1.50 per pax with cruise line contract $5.00 per pax without cruise line contract Persons 16 and under free Removed from the tariff by VIPA s board effective 01 April 2017 2 The $0.25 St. Thomas/St. John passenger fee, which has never been charged to travelers $0.25 per passenger Removed from the tariff by VIPA s board effective 22 March 2017 3 Marine Facility Pre-Arranged/ Pre-Paid Taxi Operator Fee $7 per trip or $13 daily rate (current) Effective 01 April 2017 $10 flat rate (proposed) 5
Explanation of Tariff Amendments Title 29, Chapter 10 of the Virgin Islands Code states that VIPA has the right and power to determine, fix, alter, charge, and collect reasonable rates, fees, rentals, ship's dues and other charges for the use of the facilities of the Authority. See, 29 V.I.C. 543(12). The current fees being amended are being adjusted for the following reasons: 1. Removal of the Water Taxi Tour Operator Fee: VIPA s board authorized the removal of this fee from the marine tariff as it was found to be detrimental to the territory s cruise industry. 2. Removal of the $0.25 St. Thomas/St. John Passenger Fee: This fee had never been implemented and the board agreed that it should be removed from the tariff. 3. Amendment of the pre-paid, pre-arranged taxi tour rate at VIPA s seaports territorywide: The current rate is $7 per trip or a $13 daily rate. The taxi companies have approached VIPA and requested a $10 flat daily rate. 6
Marine Division Projects St. Thomas Crown Bay Cruise Pier Mooring Dolphin VIPA has installed a mooring dolphin to secure larger cruise ships that berth at the Austin Babe Monsanto Marine Terminal in Crown Bay, St. Thomas. This project should be completed by the end of September 2017. Cost: $2,627,500 contract awarded to American Bridge (funded by VIPA) 7
Marine Division Projects St. Thomas Crowley Bulkhead Repairs, Crown Bay There is a large depression on the bulkhead apron used by Crowley. VIPA will provide fill material and repair the surface along the length of the bulkhead to level the paved area. Anticipated start date for repairs: Jan. 2018 8
Marine Division Projects St. Thomas E. W. Blyden IV Terminal ADA Compliance Soon Completed: Our contractor installed an elevator to bring the facility into compliance with the Americans with Disabilities Act. ($634K contract awarded to Custom Builders. Work will be completed by Oct. 2017.) Additional Repairs Needed: Fendering repairs are needed along other areas of the bulkhead. Major repairs to the building are needed especially the portion facing the sea. 9
Marine Division Projects St. Thomas Red Hook Parking Lot & US Customs Building A two-level parking garage is under construction at the Urman V. Fredericks Terminal to alleviate some of the parking congestion at this busy port. $5.3 million contract awarded to Eleven Construction. Completion expected by Jan. 2018. The design to construct a US Customs & Border Protection building to reduce travel time between the USVI and BVI ports is in the permitting phase. 10
Marine Division Projects St. Thomas Red Hook Barge Ramp Maintenance Dredging The area at the face of the bulkhead at the cargo dock in Red Hook was dredged last in 2017. However, we have had reports from the barge companies that additional maintenance dredging is needed to prevent damage to the propellers of the barges that use this facility. 11
Marine Division Projects St. John Enighed Pond and The Creek, Cruz Bay A paid parking lot system will be installed at the Moorehead facility in Enighed Pond, and at the Victor Sewer Marine Facility in Cruz Bay (The Creek). 12
Marine Division Projects St. Croix Ann E. Abramson Marine Facility Catwalk and bollard replacement (design only) Upgrade the pier s lighting system South tender landing replacement 13
Marine Division Projects St. Croix Wilfred Allick Port & Transshipment Center Installation of 100-ton bollard on the south pier Pavement resurfacing Installation of a new perimeter security fence Upgrade lighting system Structural repairs to the pier Fire protection system (design only) 14
Marine Division Projects St. Croix Gordon A. Finch Molasses Pier Upland Improvements Bids came in over budget. Consultants will perform value engineering and re-bid this project. For the first time in the history of the VI Port Authority, we have been awarded funding from the US Department of Transportation s TIGER Discretionary Grant program in the amount of $10.6 million to relocate all cargo activities to the Gordon A. Finch Molasses Pier on the south shore of St. Croix. VIPA will construct a 19,000 sq. ft. multi-use facility for cargo storage, and office space for US Customs & Border Protection, VI Bureau of Internal Revenue and VIPA s dock masters in addition to other improvements. Cost: $13.3 million - Federal share 80%: $10,66,878 - VIPA share 20%: $2,666,720 15
Marine Division Projects St. Croix Gallows Bay, Christiansted Schooner Bay Channel: dredging permit pending approval by the US Army Corps of Engineers Upland Improvements: Pavement resurfacing and shoreline revetment needed. VIPA also plans to upgrade the dual-purpose arrival facility. 16
Question & Answer/Notes 17
Question & Answer/Notes 18
BOARD OF GOVERNORS Laurel Hewitt-Sewer Chairperson St. John Representative Connecting our Islands to the World Gateways to the USVI Economy www.viport.com Dr. Yvonne Thraen Vice Chairperson St. Thomas Representative Claude E. Walker, Esq. Secretary of the Board USVI Attorney General José A. Penn Chairman of the Economic Development Authority Board Marvin Forbes St. Croix Representative Nelson Petty Acting Commissioner of Public Works Beverly Nicholson-Doty Commissioner of Tourism David W. Mapp, Sr. Executive Director Damian Cartwright Assistant Executive Director/ Director of Engineering 19