UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION RECEIVED WASHINGTON, DC
Star Marianas Air, Inc., SEP 012020 Complainant, PART 16 DOCKETS V. FAA Docket No. 16-18-01
Commonwealth Ports Authority,
Respondent.
STAR MARIANAS, INC.'S SURREPLY AND MOTION FOR LEAVE TO FILE SURREPLY BRIEF
I. INTRODUCTION
Pursuant to 14 C.F.R. § 16.33, Complainant, Star Marianas Air, Inc. ("Star Marianas"), respectfully requests leave to file this Surreply to Respondent Commonwealth Ports Authority's
("Ports Authority") Reply to Complainant's Appeal (the "Reply").
In compliance with 14 C.F.R. § 16.33(f), please find a petition requesting the entrance of new evidence which explains why the new issue or evidence was not presented to the Director.
(See the § 16.33(f) Petition attached as Exhibit "A").
The Ports Authority would have the Director's Determination stand as is. However, and as the Petition and accompanying affidavit by Robert F. Christian, Chairman of Star Marianas
(the "Affidavit"), will show, new events and evidence have transpired between Star Marianas' filing of the Amended Complaint on February 2, 2018, and the Director's Determination filed on
May 5, 2020. (See the Affidavit of Robert F. Christian attached as Exhibit "B").
Star Marianas' Appeal and Surreply are necessary for the Associate Administrator to properly assess the current situation between the parties. II. LEGAL STANDARD
On appeal, the Associate Administrator considers whether (1) the findings of fact in the
Director's Determination are not supported by a preponderance of reliable, probative, and substantial evidence contained in the record, (2) whether the conclusions in the Director's Determination were not made in accordance with law, precedent, and policy, (3) whether the questions on appeal are substantial, and (4) whether any prejudicial errors have occurred. 14 C.F.R. § 16.33(e).
Ill. ARGUMENT
Star Marianas appeals three issues in the Director's Determination: (1) whether the Ports
Authority violated Grant Assurance 1, General Federal Requirements; (2) whether the Ports
Authority Violated Grant Assurance 22, Economic Nondiscrimination; and (3) whether the Ports
Authority Violated Grant Assurance 23, Exclusive Rights.
These issues may be summarized by reviewing the following questions: (1) whether the
Ports Authority, by not following the requirements to determine rates and charges in the Airline
Use Agreement between the Ports Authority and the Star Marianas (the "AUA") violate the Anti -
Head Tax Act ("AHTA") or (2) the Ports Authority's obligation under Grant Assurance 22 to make the airport available on fair and reasonable terms and without unjust economic discrimination; and (3) whether the Ports Authority has denied a request for terminal space at
Rota Airport in violation of Grant Assurance 23.
A. Ports Authority's Excessive Rates and Charges
Ports Authority states that Star Marianas has not provided persuasive evidence showing how the Ports Authority rates and charges assessed for each cost center and common use areas was, or currently is, a violation ofAHTA.
2 However, the Associate Administrator will note that the Ports Authority has not provided
Star Marianas with the proper information, as dictated by Section 7.06 in the AUA, related to each of Ports Authority's cost centers, and therefore, not providing Star Marianas with the tools needed to present this persuasive evidence.
As confirmed in the Affidavit, there were a series of letter communications between Star
Marianas and the Ports Authority from June 22, 2020, to August 13, 2020, regarding the Ports
Authority's Fiscal Year 2021 Budget, and after various communications, Star Marianas could see that the Ports Authority had failed to apply Section 7.06 of the AUA to the creation of this budget.
On June 22, 2020, the Ports Authority sent a letter to all Signatory Air Carriers, which includes Star Marianas, regarding the Commonwealth Ports Authority's Fiscal Year 2021
Budget, in which the Ports Authority provided a one-page budget as a way to comply with
Section 7.08 of the AUA. (See "June 22, 2020, Ports Authority's Fiscal Year 2021 Budget
Letter" attached as Exhibit "C").
On July 23, 2020, Star Marianas replied to the Ports Authority noting that the one-page budget "does not comply with the specific requirements of Section 7.06 of the AUA because it fails to provide sufficient significant detail to allow for meaningful comment on the amounts stated in the document." (See "July 23, 2020, Star Marianas Letter" attached as Exhibit "D").
On July 29, 2020, the Ports Authority replied to the July 23, 2020, Star Marianas Letter reiterating that the document provided complied with the requirements of the AUA. However, despite that alleged compliance, the Ports Authority provided further details on the proposed
Fiscal Year 2021 budget. (See "July 29, 2020, Ports Authority to Star Marianas Letter" attached as Exhibit "E").
3 Upon further review though, the additional documents still did not provide the information that was needed by Star Marianas. The Supplemental Ports Authority's Fiscal Year
2021 Budget Documents provided did not divide the amounts by cost centers. (See "July 29,
2020, Supplemental Ports Authority's Fiscal Year 2021 Budget Documents as Exhibit "F").
On August 4, 2020, Star Marianas replied to the Ports Authority requesting more information on how their annual budget estimated the Airline Revenues at the various airports.
(See "August 4, 2020, Star Marianas Letter" attached as Exhibit "G"). Star Marianas would like to point out that if the estimates were not based on the cost recovery required by Section 7.06 of the AUA, the only other possible method was by applying a per passenger fee on airline transportation.
On August 13, 2020, the Ports Authority replied to the August 4, 2020, Star Marianas
Letter, however there was still no mention of Section 7.06 of the AUA. (See "August 13, 2020,
Ports Authority Letter" attached as Exhibit "H")
Under Sec. 7.06, the Ports Authority has a right to assess fees to cover the costs of operations and maintenance of the terminal buildings that have been allocated for Star Marianas' use at the Ports Authority's airports. It requires the budget to break out the following:
1. Direct and Indirect maintenance and operating expenses of the terminal buildings used by Star Marianas (as defined in Section 2 of the AUA). As provided for in Section 7.02 of the AUA, those expenses may not include the expenses resulting from the Ports Authority's requirements under 14 CFR Part 139 because Star Marianas only operates aircraft with eight (8) passenger seats or fewer. 2. The other costs must also be limited to "services or facilities which Ports
Authority is required or mandated to provide by any governmental entity (other than Ports
Authority acting within its proprietary capacity) having jurisdiction over the Airport."
3. The expenses allowable in item one (1) must be reduced by total amount of the
Terminal Cost and Revenue Center's Non-airline revenue.
Star Marianas would like to indicate that in 1994, the Ports Authority hired A.J. Parry and
Associates, Inc. to perform the Airline Traffic and Earnings Report in accordance with the requirements of the AUA and Section 7.06. Mr. Rex I Palacios, a CPA, made several recommendations to the Ports Authority, including the recommendation to provide accounting records that would segregate costs between the Main Terminal and the Commuter Terminal. On a report dated April 15, 1994, the Ports Authority purported to take the action recommended.
(See "April 15, 1994, A.J. Parry and Associates, Inc. Recommendations and Action Taken
Report" attached as Exhibit "I"). However, that action was never taken.
B. The airport has not been made available to Star Marianas on fair and reasonable terms and without unjust economic discrimination in accordance with Grant Assurance 22
The Director determined that the Ports Authority's rates and charges methodology is transparent and reasonable and that the Ports Authority had cured any alleged past violations.
Ports Authority also states that it is currently working to reconcile rates and charges for
Fiscal Years 2017 through 2020. The delay in the reconciliations was due to protracted delays in the completion of the Ports Authority's Fiscal Year 2017 annual audit, which was not completed
until January 2019. The Ports Authority states that it is committed to completing these reconciliations expeditiously.
5 Star Marianas would like to point out that the way the AUA is intended to function is as an agreement, entered by both parties wherein each party agrees to be bound by the provisions of the agreement. The Ports Authority is required to estimate its costs in a transparent manner and
Star Marianas is required to make its best guess regarding its estimated number of passengers.
Based on good faith estimates, the estimated allowable charges are divided by estimated number of passengers and an initial assessed amount is established on a "per-estimated-person" basis and is not therefore a "Head Tax" per se. Section 7.08 articulates the method to be used when making adjustments.
As per Sec. 7.08 of the AUA, "[i]f calculation of the new rates for rentals, fees, and charges is not completed by Authority and the notice provided in this Section 7.08 is not given on or prior to the end of the then current Fiscal Year, the rates for rentals, fees, and charges then in effect shall continue to be paid by Airline until such calculations are concluded and such notice is given. Upon the completion ofsuch calculations and the giving ofsuch notice,
Ports Authority shall determine the difference(s), if any, between the actual rentals, fees, and charges paid by Airline to date for the then current Fiscal Year and the rates for rentals, fees, and charges that would have been paid by Airline ifsaid rates have been in effect beginning on the first day of the Fiscal Year. Said differences shall be applied to the particular rentals, fees, or charges for which a difference(s) in rates resulted in an overpayment or under payment, and shall be remitted by Airline or credited or refunded by
Authority in the month immediately following the calculation of the new Fiscal Year's rates and the giving of written notice to Airline by Ports Authority"
The wording of Sec. 7.08 requires the Ports Authority to make its rates and charges annually. Sec. 7.08 is consistent with Section 7.05 which requires the Ports Authority to make
6 "[ajil rates and charges shall be at reasonable and non-discriminatory rates and adjusted annually based on Authority's cost, as defined in this Agreement, ofthe facility or service provided to and used by Airline." If during any year the Ports Authority cannot fulfill its obligations prior to the end of the Fiscal Year, this paragraph in Sec. 7.08 addresses what is allowable and what must be done when the Ports Authority is finally able to make its rate calculations available to the carriers. However, the AUA does not contemplate that the Ports Authority can wait several years to comply with its annual computation requirement. For Ports Authority to suggest that such an inordinate delay is permissible renders the requirements of 7.08 of the AUA untenable for Star
Marianas. If Ports Authority's computation is delayed a matter of less than one year, then the air carrier can make adjustments to its rates to compensate for any additional amount that it must pay. Conversely, with a delay of several years Star Marianas cannot retroactively charge a higher rate to its passengers. To interpret the AUA in such manner implies an abuse of power and an attempt to exploit the unequal bargaining position ofthe Ports Authority over Star Marianas.
C. Star Marianas Operating from a Temporary Storage Container
Star Marianas has been operating out of a temporary storage container since the former commuter terminal at the Saipan International Airport was damaged by Typhoon Yutu in
October 2018.
Star Marianas presents two issues: (1) that Ports Authority continues to charge Star
Marianas the exact same per passenger fees as when Star Marianas was operating within the
Commuter terminal, hence not modifying nor providing a breakout of costs as required under
Section 7.06 of the AUA, and (2) Ports Authority requested additional fees for Star Marianas to
occupy an additional empty 40' container, located at the temporary Commuter space in Saipan.
7 On November 25, 2019, Ports Authority sent a letter to Star Marianas in response to a letter sent by Star Marianas on November 5, 2019, in which Ports Authority approves Star
Marianas' request to occupy the 40' vacant office container under the conditions that its use be temporary and that Star Marianas will be charged for this space. (See the November 25, 2019,
Letter as Exhibit "J")
On December 2, 2019, Star Marianas replied to Ports Authority's November 25, 2019,
Letter agreeing to the terms and inquiring the costs/charges associated with the use of the area.
(See the December 2, 2019, Letter as Exhibit "K")
On January 21, 2020, the Ports Authority replied via email, stating that the rate for the
space would be $357.68 a month. (See the January 21, 2020, Email as Exhibit "L") This amount would be in addition to the per passenger amount charged by Ports Authority.
Therefore, though Star Marianas' operating conditions have declined considerably, the
Ports Authority has not adjusted its fees as required under Section 7.06 of the AUA. On the
contrary, Star Marianas is paying additional fees to the Ports Authority for the use of what was
an empty container in order to alleviate Star Marianas' grim circumstances.
D. Ports Authority Granting an Exclusive Right to Star Marianas' Competitors
Ports Authority has violated Grant Assurance No. 23, Exclusive Rights, by granting
special rights or privileges to other air carriers and denying this same right to Star Marianas.
The Ports Authority claims that Star Marianas fails to show what exclusive rights has
been conferred on another airline which has been denied to Star Marianas. Also, Ports Authority
claims Star Marianas has not moved to the renovated Freedom Air location, which provides
counter-to-ramp access at the Benjamin T. Manglona International Airport ("BTMIA") on Rota, despite repeated communications from the Ports Authority's Rota Airports Manager that the office is ready to be occupied.
This is simply not true. Star Marianas had initially requested to remain in its current space at BTMIA since the Transportation Security Administration ("TSA") had vacated.
However, as per the November 25, 2019, Letter (Exhibit "J"), Ports Authority pointed out that the TSA's equipment still remained on location blocking Star Marianas' ramp access door and
Ports Authority was waiting for TSA to remove it from the premises. Ports Authority also notified Star Marianas that there is additional work and repairs that needed to be completed in order to address the concern that the new space does not have direct access to the airside.
Star Marianas's December 2, 2019, Letter (Exhibit "K") advised Port's Authority that it was in agreement with Ports Authority's recommendations and accepted the invitation to move into the readily available former Freedom Air space at BTMIA.
However, Star Marianas was stopped from moving into the renovated location until the
Ports Authority provided an amended AUA. (See the December 16, 2019, Email as Exhibit
The First Amendment to the AUA was not sent to Star Marianas until June 22, 2020, six
(6) months after Star Marianas had agreed to move to the renovated Freedom Air location. (See the June 22, 2020, Email as Exhibit "N").
On July 27, 2020, Star Marianas sent a letter to Ports Authority asking for clarification and pointing out the various inaccuracies between their agreed upon negotiations and what ultimately appeared on the First Amendment to the AUA. (See the July 27, 2020, Letter as
Exhibit "0"). Star Marianas requested the parties meet in good faith to negotiate more realistic terms, the First Amendment to the AUA also identified new "common area" that was not discussed and seems to be nothing was nothing more than an adhesion contract which Ports Authority wants to force Star Marianas to accept based on the unequal bargaining power of the parties.
As such, Star Marianas continues to be without direct airside access, which hinders Star
Marianas' operations. The two other Commuter Passenger Carriers were provided direct access from their check-in counters to the ramp for baggage loading, while Star Marianas has not, even now when Star Marianas is the only Commuter airline providing service to BTMIA.
IV. CONCLUSION
For the foregoing reasons, Respondent Commonwealth Ports Authority Reply should be
DENIED, Complainant Star Marianas, Inc.'s Surreply and Petition to Supplement the Record On
Appeal Pursuant to 14 C.F.R. § 16.33(F) should be GRANTED, as well as such other relief as the Associate Administrator deems just, equitable, and proper.
Dated: August 31, 2020 Respectfully submitted,
RICHARDS LEGAL GROUP Attorneysfor Star Marianas Air, Inc. 55 Miracle Mile, Suite 310 Coral Gables, Florida 33134 Telephone: (305) 448-2228 Facsimile: (305) 448-2229 Primary E-mail: [email protected] Secondary E-mail: [email protected] [email protected]
By: s/Richard L. Richards RICHARD L. RICHARDS Florida Bar No. 9415 ALEJANDRA MUIZ MARCIAL Florida Bar No.: 1019266
10 CERTIFICATE OF SERVICE
I hereby certify that I have this 31St day of August 2020 served the foregoing Part 16
Surreply on the following persons at the following address by electronic mail:
Robert T. Torres, Esq. Plata Drive, Whispering Palms (Chalan Kiya) P.O. Box 503758 CK Saipan, MP 96950 robert.torresrttlawgroup.com (by consent) [email protected]
FAA Part 16 Airport Proceedings Docket Clerk 9-AWA-AGC-Part- [email protected]
11 EXHIBIT "A" UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, DC
Star Marianas Air, Inc.,
Complainant, v. FAA Docket No. 16-18-01
Commonwealth Ports Authority,
Respondent.
PETITION OF STAR MARIANAS, INC. TO SUPPLEMENT THE RECORI ON APPEAL PURSUANT TO 14 C.F.R. 16.33(F)
Pursuant to 14 C.F.R. § 16.33(f), Star Marianas Air, Inc. ("Star Marianas") hereby submits that good cause exists for the Associate Administrator for Airports of the Federal
Aviation Administration ("FAA") to consider limited new evidence presented in Star Marianas'
Appeal from the Director's Determination and Surreply to Commonwealth Ports Authority
("Ports Authority") Reply, filed concurrently with this petition in the above captioned docket.
GOOD CAUSE EXISTS TO CONSIDER NEW EVIDENCE
The Director's Determination issued in this matter on May 5, 2020, held that Star
Marianas' Complaint against Ports Authority is dismissed and that all motions not expressly granted are denied.
The Director largely based his holding on Star Marianas' Amended Complaint, filed on
February 2, 2018, and Ports Authority Answer, filed on June 22, 2018. After this, the FAA filed multiple Notices of Extension of Time beginning on November 19, 2018, until providing the
Director's Determination on May 5, 2020.
During this time the situation between the parties persisted and continued to deteriorate.
New evidence was both discovered and generated to substantiate Star Marianas' grievances. Accordingly, Star Marianas now offers a verified affidavit, totaling 4 pages, by Robert F.
Christian, who is Star Marianas' Chairman and is knowledgeable of all matters pertaining to
Ports Authority.
Because Star Marianas is acting in good faith in bringing limited, new evidence to the attention of the Associate Administrator on appeal, it is appropriate pursuant to the goals of 14
C.F.R. § 16.33(0(3) for the Associate Administrator to allow admission of this evidence into the agency record.
CONCLUSION
For the foregoing reasons, Star Marianas respectfully request that the Associate
Administrator admit into the evidentiary record the affidavit from Robert F. Christian, attached hereto and included in Star Marianas' Surreply to Commonwealth Ports Authority, and fully consider the facts and arguments therein.
Dated: August 31, 2020 Respectfully submitted,
RICHARDS LEGAL GROUP Attorneysfor Star Marianas Air, Inc. 55 Miracle Mile, Suite 310 Coral Gables, Florida 33134 Telephone: (305) 448-2228 Facsimile: (305) 448-2229 Primary E-mail: [email protected] Secondary E-mail: [email protected] [email protected]
By: s/Richard L. Richards RICHARD L. RICHARDS Florida Bar No. 9415 ALEJANDRA MUIZ MARCIAL Florida Bar No.: 1019266
2 CERTIFICATE OF SERVICE
I hereby certify that I have this 31st day of August 2020 served the foregoing Part 16
Petition on the following persons at the following address by electronic mail:
Robert T. Tones, Esq. Plata Drive, Whispering Palms (Chalan Kiya) P.O. Box 503758 CK Saipan, MP 96950 [email protected] (by consent) [email protected]
&
FAA Part 16 Airport Proceedings Docket Clerk 9-AWA-AGC-Part- l6faa.gov EXHIBIT "B" UNITED STATES DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION WASHINGTON, DC
Star Marianas Air, Inc.,
Complainant,
V. FAA Docket No. 16-18-01
Commonwealth Ports Authority,
Respondent.
AFFIDAVIT OF ROBERT F. CHRISTIAN IN SUPPORT OF STAR MARIANAS, INC. APPEAL AND SURREPLY
I, Robert F. Christian, declare that the following is true and correct based upon my personal knowledge, except as to items on information and belief, and that, if called upon to testify as a witness in any legal proceeding, I could and would competently testify as set forth in this affidavit.
1. At present I am the Chairman at Star Marianas Air, Inc. ("Star Marianas").
2. As Chairman of Star Marianas Air, Inc. I am familiar with the business
interactions between Star Marianas Air, Inc., and the Commonwealth Ports Authority ("Ports
Authority")
3. In regard to the Ports Authority's excessive rates and charges, there were a series
of communications between Star Marianas and the Ports Authority from June 22, 2020, to
August 13, 2020, regarding the Ports Authority's Fiscal Year 2021 Budget.
4. From the documents provided, Star Marianas could see that the Ports Authority
had not included details related to each cost center and failed to apply Section 7.06 of the Airline
Use Agreement ("AUA") to accurately estimate charges and fees. 5. In regard to the Ports Authority's unjust economic discrimination against Star
Marianas, Ports Authority continues to disregard its obligations to properly calculate rates for rentals, fees, and charges by not complying with the AUA.
6. The Ports Authority disregard for the AUA puts into question how they reach the fees and charges the Ports Authority bills Star Marianas and brings to light violations ofthe Anti -
Head Tax Act.
7. In regard to Star Marianas operations in Saipan, Star Marianas has been operating out of a temporary storage container since the former commuter terminal at the Saipan
International Airport was damaged by Typhoon Yutu in October 2018.
8. Star Marianas utilizes this container as an office, check in counter, baggage and cargo handling, and discovery flight staging.
9. Star Marianas frequently entertains between 250 to 450 passengers and works with thousands of pounds of cargo each day.
10. Two other 40' containers were also placed at the Commuter staging area; one for a helicopter tour operator and the third remained empty.
11. Star Marianas requested that the Ports Authority allow Star Marianas to use the empty container to help decongest the space allocated to Star Marianas. The Ports Authority approved under the conditions that the use be temporary, and that Star Marianas pay $357.68 per month in addition to the per head amount already charged to Star Marianas.
12. In regard to Star Marianas operations at the Benjamin T. Manglona International
Airport ("BTMIA") in Rota, Star Marianas had agreed with the Ports Authority to move Star
Marianas' operations to the renovated former Freedom Air location.
2 13. The renovated area has access from the check-in counters directly to the ramp for
baggage loading, which Star Marianas is still badly in need of.
14. Nevertheless, Ports Authority has conditioned Star Marianas' use of this renovated space to Star Marianas' agreement to the Ports Authority proposed First Amendment to the AUA.
15. The proposed First Amendment to the AUA was sent more than six (6) months
after Star Marianas and the Ports Authority agreed to Star Marianas relocation within the
BTMIA.
16. The proposed First Amendment to the AUA is lacking many of the previously
negotiated terms that were agreed upon by Star Marianas and the Ports Authority.
17. As such, the First Amendment to the AUA is nothing more than an adhesion
contract. Ports Authority wants Star Marianas to accept an unfavorable contract, solely based on the unequal bargaining power of the parties.
(Signatures on next page).
3 IN WITNESS WHEREOF, this Affidavit has been executed this 3O day of
2OOby ____
STAR MARIANAS AIR, INC. dñL fly: Robert F. Christian, Chairman
SS: l.1 ... A/it-r1,zt) cjq.-t
Sworn to, atlirmed. and subscribed before me by means of (' physical presence or ( ) online notarization, Day this of ______2020, h Robert F. Christian, Chairman of Star Marianas Air. Inc. who is personally known to me or who has produced 1ccas identification.
- (Signatur olNotary Public)
r- (Print Namc) DONNA K. CH)USTANl PU H 3i-H.I'Iimw MP'X'E (4/ Notary Pusbik I5t*. No. ! i:i ftY,NDIOK i1II.tOMMN'fu' .NflS (Print. 4* My Ipw'. Type. or Stamp Commissioned Name of Notary Public)
4 EXHIBIT "C" COMMONWEALTH PORTS AUTHORITY Maim Oe. FRANCISCO C DAL'AN RNAIONALAIRFORI P0. Rot 501055, Saipx, M} 96950-1055 P1,ome: (670) 37-6S00l FaL (670) 234-5962 F-nil Adth6s: qi&xbnin)ptkomcom Wrtitc x.wwcp&gut.mp
June 22, 2020
TO: cignatory Air Carriers
Re: Commonwealth Ports Authority - FIscal Year 2021 Budget
The Commonwealth Ports Authority (CPA) Board of Directors, Financial Affairs Committee, approved the draft fiscal year (FY) 2021 budget at the Board committee meeting held on June 18, 2020. The draft budget Is scheduled to be placed on the Board of Directors meeting agenda i,x July Z020 fut uf(k.ial dduptlufl.
As per Section 7.08 of the Airline Use Agreement, a copy of the draft fiscal year 2021 budget is attached for your review and comments. S1ould you have any comments, please provide your written comments via postal mail or email by July 24, 2020 to the following:
Commonwealth Ports Authority Attn: Skye Aldan Hofschneider P0 Box 501055 Salpan, MP 96950
Email: Ipooyj
Should you have any questions or concerns, please do not hesitate to contact me at (670) 237- 6500
Sincerely,
CHR PHER TENORIO Executive Director
cc. CPA Accounting CPA ECO
asC AbA. MERNATh)SAL AIRPORT SlVJ43v E44,I64NCW3L4L%tUVAflOALAJRp0RT 1itL4Ni1Vx41705I4L4jjJORT Ponqf&r RWøiH.S PwiThi,x P0 &i 506053, 3xx, RI!' 96950 P.o Bax 561, Ra*a ?Jr 96656 PU M 235, 1W. AlP 96952 Cornrnanwath Portt Authorty.consatidatad Alrporta
Fitcal Year 2921 Budget
5afprt Rota ilr,In TOTAt 0pemtingRevenie Aittlon $ 2000.0o $ 77,550.00 $ 201,250.00 $ 3,238810.0o Non-Aviation $ 3,860294.23 S 48,216.72 $ 674,378.04 $ 4,682,885.99 Total 0p8rat1ng Revenue $ 6,820,294.23 $ 125,766.72 $ 875,638.04 $ 7,821,698.99
Personnel: SaIre&Wtea $ 3784,56257 $ 645,059.26 $ 672,429.37 5 5,102,151.19 Boneftts S 704,993.48 $ 169,615,03 $ 166,373.65 S 1,040,982.17 Total Personnel $4 48965605 $ 81467428 $ 638,50303 $ 6 343 13336
Operating Oudgeti Staff TraInIng $ 7,500.00 $ . $ $ 7,S00.0Q 40FF TraInIng Factitr S 508,050,00 $ - $ $ 105,000.00 Contractual Servicea $ 1,201,810.00 $ $ $ 1,291,810.00 Insurance $ 1,690,192,61 $ ' $ - $ 1,690,192,61 Trtvei E.xpense $ 85,000,00 $ 39,500.00 $ 15,150.00 S 139,650.00 Board TravelfExpenle $ 54,500.00 $ 14,200,00 5 7,000.00 5 35,700,00 Promotion S 20000.00 S S - 5 20,00000 Rep rsandMalrttenance 5 383,500.00 5 98,150.00 $ 47,500.00 $ 528150.00 Supplias & Materials 5 487400.00 S 60,750.00 $ 52,500.00 5 600,350,90 5 247,800.00 $ 23,000.00 $ 28,090.00 $ 298,800.00 Legal SeMces $ 153,00000 $ - S - 5 150,000.00 SubscrIption 5 1,000.00 5 $ 400.oa $ 1.400,00 MembershIp Dues $ 4,500_SQ $ . Advertising $ 25,000.00 S - S $ 25,000.00 CommunIcation 5 76,090.00 5 10,300.00 $ 6,500.00 $ 92,890.00 PostagO 5 2,000.00 $ . $ 5 2,090.00 Mlncellansous S - S - $ $ - Utilities $ 2,600,900.00 5 110,000.00 5 100,000.00 5 2,980,000.00 Professional Strvlces $ 80,000.00 $ 2,000.00 $ . $ 82,000.00 OPA. 1% 5 117,505,59 5 11,725,74 $ 11,558,53 5 141,089.60 Total OperatIng xpanae 5 1,375,408,20 $ 369,625.74 5 358,008,53 $ 5,106,342.47
Total Operating arid Personnel expenneSli 868 06425 $ 1 154 300 02 $ 1 197 71156 5 14 25007583 0peraingIncoma (Loss) 5(5,347,770.92) $ (1,0S8,539) $ (322,073.52) $ (6,428,376,84) EXHIBIT "D" P.O. Box 520461, San Jose ViLlage, Tinian, MP 96952046l
July 23. 2020
Commonwealth Ports Authority Atm: Skye Aldan Hofschneider P0 Box 501055 Saipan, MP 96950
Dear Ms. Hofschneider:
SMA appreciates the cover letter dated June 22, 2020 ("Letter") from Mr. Christopher Tenorio, Executive Director ofCPA and the one page proposed Fiscal Year 2021 CPA Budget ("Proposed Budget") which was provided to the "Signatory Air Carriers" including Star Marianas Air ("Star"). As acknowledged in the Letter, this is a contractual requirement pursuant to the Airport Use Agreement ("AUA") specifically Section 7.08. The letter does not specify the exact date when the CPA Board of Directors ("Authority") meeting in July will be to adopt the proposed budget. However, if Section 7.08 is consulted, you will note that it specifies that the Authority "shall" give the Airlines ".. at least forty-five (45) days..." notice prior to adoption ofthe budget in order to comment on the Proposed Budget. Under the described circumstances such a 45 day minimum notice would not expire until August 5a, 2020 assuming that the notice was effective June 23w, 2020. Therefore, while the deadline of July 24, 2020 does not comport with this AUA minimum notice we submit the enclosed comments in conformance with the deadline set by the Letter.
SMA has reviewed the Proposed Budget and feels that the document submitted is presumptively inadequate. The Authority is tasked with the management ofcritical CNMI resources and infrastructure which concern the CNMI's main source ofrevenue, tourism. Furthermore, the Proposed Budget proposes a budget in excess of $14,250,000, This is a significant amount, when compared to the CNMI annual budget for all other operations. Yet such a significant operational budget is surprisingly reduced to a one page document.
This cursory document, does not comply with the specific requirements of Section 7.06 ofthe AUA because it fails to provide sufficient significant detail to allow for meaningful comment on the amounts stated in the document. This insufficiency is further compounded by the dire economic circumstances that exist in the CNML this year.
For example, althougi total operating revenues are projected to decline by 55% from ($17,213,296) in 2018 to ($7,821,698) in 2021. employee costs are only minimally adjusted from $6.52 1,095 in 2018; to $6,143,133) in 2021. Thus, by comparing total current operating revenue against employee compensation, the cost of personnel has increased from 38% ofthe annual budget to 79%. In 2016, as well, with total Operating revenue of$14,350,256, the total employee expenses were only $4,976,263 or 35%.
670433 999819989 TeL Fax.: 670.433-9990 Web stte: w.starmaripnasalr.com Star Comments 202/ Proposed CP4 /3udgc: July 22, 2020 Pagc 2
Furthermore, since Rota and Tinian are served by aircrafl which do not require any airport services as defined under 14 CFR Part 139, maintaining employee costs which are 648% greater than the projected revenue for Rota and 96% ofthe Tinian airport projected revenue seems very extravagant.
When comparing the CPA's employee expenses to total operating revenues with other small hub airports, the CPA's employee expenses are consistently higher than the average ofother airports which are between 32% to 34%. In this pandemic timeframe, when the CNMI Government has reduced its personnel costs by approximately Fitly percent (50%) the reduction of personnel costs in the Proposed Budget by a mere $377,962 or Six percent (6%) seems inappropriate.
Thank you for the opportunity to provide our input as mandated by the AUA.
Sincerely,
Shaun R Christian President
cc: Robert Christian - Chairman Donna Cabrera Gcneral Manager Timothy BeHas - Legal Counsel
TeL.: 670-433-9998/9989 Fax.: 670-433-9990 Wb lte: www.starniarianarair.com EXHIBIT "E" COMMONWEALTH PORTS AUTHORITY Mâi 0: FRANOS0ADAI3A]PMJD1NAT1ONALA1RP01tt P.O. Box 501055, Sópan. MP96950 4055 (1(t427 I't Posie (67 237.45L I Fax. (670)234-5962 EaIA0dtsss: c .admioptiom corn w qiagosrrp
July 29,2020
Shaun It. thristian President Star Marlanas Air PC Box 520461 Tinlan, MP 96952
RE: Response to Star Marianas Air's July 23, 2020, letter regarding CPA'S proposed budget
Dear Mr. Christian:
The Commonwealth Ports Authority (CPA) is in receipt of Star Marianas Air's (SMA) comments on the fiscal year (FY) 2021 proposed budget, dated July 23, 2020. CPA appreciates SMA's comments and has taken them into consideration. Based on the letter received, CPA understands that SMA's main concern is the employee expenses In relation to the anticipated revenue for each island.
For the FY 2021 proposed budget, overall expenses are projected to Increase by 2% from the estimated total expense in FY 2020. Of these expenses, personnel expenses comprise 43% of the total expense budget, and are projected to increase by 3% from Y 2020 due to the budgeting of standard hours for all personnel. Although personnel are budgeted at full standard work hours, the austerity measures wili remain In place until CPA is able to sustain itself financially. The personnel budget does not Include any salary increases or new hires.
The Benjamin Tais.acan Manglona International Airport (BTMIA) currently has a staff count of 23 and the Tinian International Airport has a staff count of 27. These personnel are the minimum number of personnel necessary to perform the required airport operations. For example, the Airport Advisory department at both airports has only one Individual on shift at any given time. For the Ports Police/ARFF department, two Individuals are usually on shift, one functioning as a Ports Police officer and other performing ARFF duties. In the evenings when the airports at both islands have no operations, there is only one Ports Police staff on duty. Furthermore, the Custodial, AOA, Maintenance, and Administrative departments have a total of nine to eleven personnel for all four sections. These personnel maintain the property, terminal, and administrative functions of the airport. Additionally, CPA has received a CARES Act grant from the FAA which includes a 90% employee retention requirement.
Last, CPA notes that the documents previously provided to SMA comply with the requirements of the Airline Use Agreement. Despite that compliance, CPA has no issue with providing SMA further information and has attached to this letter further details on the proposed FY 2021 budget. The CPA Board has not yet set a date for the adoption of the proposed FY 2021 budget and CPA welcomes any additional comments.
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Sincere
CHRISTOPHE TENORIO Executive Director EXHIBIT "F" Commonwealth Ports Authorlty.Consolidated Airport
FY 2021 BUDGET
FV2018 FY2019 FY2020 FYZO21 Audited Unaudlted Estimated Budget Revenue: Aviation $ 10,627,036.55 $ 7,768,274.71 $ 4,081,24182 $ 3,238,810.00 Non Aviation $ 6,585,928.35 $ 5742,902.37 $ 3,546,722.64 $ 4,582,888.99 Total Revenue $ 17,212,964.90 $ _13,S11,177.08 $ 7,633,963A6 $ 7,821,698.99
Personrel Expense: Salaries & Wages $ 5,533,286.66 5 5,724,633.53 S 4,951,914.75 $ 5,102,151.19 Benefits $ 987,808.93 $ 1,110,849.49 S 992,541.43 $ 1,040,982.17 Total Personnel $ 6,521,095.59 $ 6,835,483.02 $ 5,944,456.18 $ 6,143,133.36
Operating Expense: Staff Training $ 15126.96 $ 8,345.32 $ 2,500.00 5 7,500,00 ARFF Training FacilitV S 63,687.16 $ 38,316.28 $ 64,039.90 $ 105,000.00 Travel $ 185,045.13 $ 217,960.43 $ 151,52343 $ 139,650.00 Contractual Services $ 1,279,314.26 S 1,164,360.07 $ 1,199,013.25 $ 1,231,810.00 nsurance $ 528,833.78 $ 640,797.36 5 1,683,003.80 $ 1,690,192.61 Board 1rasel/Exense $ 58,362.15 $ 50,633.23 5 43,300.05 $ 35,700.00 Promotion 5 26,035.73 $ 14,595.09 S 17,173.06 $ 20,000.00 Repairs and Maintenance $ 914,81)15 $ 559,627.95 5 478,041.64 $ 529,150.00 Supplies & Materials $ 561,690.63 $ 476,24364 S 528,999.13 $ 600,350.00 Fuel 5 283,631.23 $ 240,773.73 $ 280,712.68 $ 298,800.00 Legal Services 5 180,520.56 S 148,443.29 $ 207,644.57 5 150,000.00 Professonal Servrces S 24,958.68 5 16,864.34 $ 72,693.00 $ 82,000.00 Subsnption S 1,283.28 5 31200 $ 1,94610 $ 1,400,00 Membership Dues $ 9,797.00 $ 6,705.00 $ 4,630.00 $ 4,500.00 Advertising $ 32,058.76 $ 19,590.08 5 26,472.20 $ 25,000.00 Communication $ 107,658.19 $ 94,126.12 5 93,286.07 5 92,800.00 Postage $ 4,14401 5 1,862.23 $ 2,777.47 $ 2,000.00 Utilities $ 5,809.124.62 5 1,811,101.38 5 3,065,141.93 $ 2,080,000.00 OPA Contribution 1% 5 148,031.46 $ 123,461.41 $ 138,673.54 $ 141,089.86
Miscellaneous S ' $ ' $ . $ Total Operating Expense $ 10,315,020.74 $ 5,634,118.95 $ 8,061,571.72 $ 8,106,942.47
Total Operating and Personnel expense $16,836,116.33 $ 12,459,601,97 $ 14,006,027.90 $ 14,250,075.83
Operating Income (Loss) $ 376,848.57 $ 1,041575.11 $ (6,372,064.44L$ (6,428,376.84) Commonwealth Ports Authority-Consolidated Airporta
Fiscal Year 2021 Budget
Salpan Rota Tinian TOTAL Operating Revenue: Aviation $ 2,960,000 00 $ 77,55000 $ 201,260.00 $ .3,238,810 00 Aviator 5 3,860,294.23 $ 482i6.72$ 674,37804 S 4.582,888.99 Total Operating Revenue $ 6,820,294.2.3$ 125,766.72 $875,638.04 $i99
Personnel: Salarres & Wages $ 3,784.662.57 $ &45,059.25 $ 672,429,37 S 5,102,15119 Benefrts S 704.993.4.55 169,515.03 $ 166,313.65 $ 1.040,982.17 Total Personnel $ 4,499,656.05 $ 814,674.28 ,,,838,803.03 $ 6,143,133.36
Operating Budget:
Staff Training $ 7,50000 S . $ ' $ 7,50000 ARFFTraning Facility $ 105003.00 S - $ ' 5 105.00000 Contractual Services $ 1201,810.00 $ . $ . $ 1,201,81000
Insurance $ 1.690,182.61 $ . S - S 1,690,192.61 rrave Espene 5 85,000,00 $ 39,500.00 $ 15,150 00 5 139,550.00 Board Travel/Expense $ 14,500.00 $ 14,200.CO 5 7,00000 $ 35,100.00 Promotion S 20,000.00 $ , $ 5 20,000.00 Repairs anc Maintenarce S 383,500.00 $ 98,150.00 $ 4/,500.03 $ 529,150.00 Suppfles& Materials $ 487,10000 $ 60,750.00 $ 52,500.00 $ 60Q350.O0 Fuel $ 247,800.00 $ 23.00000 $ 25,000.00 $ 298,600.00
Legal Services $ 150,000.00 $ S . $ 150,00000
Subscription $ 1,000.00 S ' 5 400.00 5 1,40000 Mersibcrship Dues $ 4,500.00 S 5 $ 4,50000 Advertising $ 25,000,00 $ , $ $ 25,000.00 Commun'caton 5 76,00000 $ 10,300.00 $ 6.500 00 S 92,80000 Postage 5 2,000.00 $ $ ' $ 2,000.00 Misclleneous 5 - $ $ , 5 Utilities 5 2,680,000.00 5 110,00000 $ 190,000.00 $ 2,980,000.00 Professional 5pre-c.es $ 80,000 00 $ 2,000.00 5 . 5 82,000.00 OPA- 1% 5 117,505.59 $ 11,725.74 5 32.858,53 $ 14L08986 Total Operating Exp5ns $ 7,378,408.20 5369,625.74 $ 358,908.53 S 8,106,942.4?
Total Operating and Personnel expense $ ii&4.25 $ 1,184.300.02 5 1,1977U.56 $ 14.250.075.83
Operating Inconse (Loss) $ (5,047,770.02) $ (1058,533.30J $ (322,07352) $ (6,428,376.84) Commonwealth Ports Authorlty.Salpan Airport Division Operations Budget
FY 2021 BU(XET
FYZO18 FY2019 F'Y2020 FYZOZ1 Audited Unauditod Estimated Budget Operating Revenue: Aviation $ 10,293,865.29 $ 7,447,509.35 $ 3,835,678.59 $ 2,960,00000 NonAvition $ 6,435,997.89 $ 5,355,321.35 S 2,931,128.39 $ 3,860.294.23 Total Operating Revenue $ 16,729,863.18 $ 12,802,830.70 $ 6,766,806.98 $ 6,820,294.23
Personnel: SI4rles & Wages $ 4,187,349.08 $ 4,355,779.70 $ 3,750,95273 $ 3,784,662.57 Benefits $ 687,745.38 $ 784,293.23 $684,469.73 $ 704,993.48 Total Personnel $ 4,875,094.46 $ 5,141,072.93 $ 4,435,422.46 $ 4,489,656.05
Operating Bu1get: Staff Training $ 13,736.96 $ 8,345.32 5 2,000.00 $ 7,500.00 ARIF 'training Facility $ 43,68716 $ 38,316.28 5 54,039.90 $ 105,000.00 Contractual Services $ 1,279,314.26 $ 1,164,360.07 $ 1,199,013.25 $ 1,201,810.00 lrsurance $ 528,83378 $ 640,797.36 $ 1,83,0O3.8O 1,690,192.61 Travel Expense $ 108,327.51 $ 120,017.30 $ 107,137.36 5 85,000.00 Board Travel/Expense S 23,177.35 $ 18,170.69 $ 21,13029 $ 14.500,00 Promotion S 26,035.73 $ 14,59509 $ 17,173.06 $ 20,000.00 Repairs and Maintenance $ 834,897.28 S 520590.08 $ 389,81569 $ 383,500.00 Supplies & Matenals S 556,816.81 $ 376,697 52 $ 436,268.53 $ 487,100.00 Fuel $ 224,881.56 S 183,578.37 $ 236,215.95 $ 247,800.00 legal Services $ 180,520.56 $ 148,443.29 $ 207,644.57 $ 150,00000 Subscription $ 903.78 $ 5 1,607.60 $ 1,000.00 Membership Dues $ 9,797.00 $ 6,705.00 $ 4,630.00 $ 4,500 00 Advertising $ 32,958.76 $ 19,590.08 $ 26,472 10 $ 25,000.00 Communic4tlon 5 91,942.07 $ 78,596.13 $ 76,926.99 $ 76,000 00 Postage 5 4,144.01 $ 1,862 23 $ 2,777.47 S 2,000.00 Utilities $ 5,248,534 10 5 1,530,31097 $ 2,763,222 63 $ 2,680,000.00
, Miscellaneous S - $ $ . $ Professional Services $ 24,958.68 5 16,86434 $ 72,69300 $ 80,000.00 OPA. 1% $ 121,180.70 S 100,340.13 $ 117,471.95 $ 117,505.59 Total Operating Expense $ 9,355,148.06 5 4,993,280.25$ 7,429,244.14 $ 7,378,408.20
Total Operating and Personnel expense $ 14,230,242.52 $ 10,134,353.18 $ 11,864,666.80 $ 11,868,064.25
Operating Income Loss) $ $ 2,668,477.52 $ (5,097,859.62) $ 5,047,770.02) Commonwealth Port Authority- Sapan Airport Revenue Budget
REVENUE: FY2018 EY2019 FYZOZO FY2O2O Aect. No. Account Name Audited tJnoudlted Estimated Budget 4111 100 landing Fee-Schedule airlines 1,552,316.65 1.162,812.09 622.77114 610,000.00 4112100 Landing Fee-air taxi 88,245.36 103,502.28 73,62486 90,000.00 4214.100 ParkIng Fee 15,421.49 10,962.50 2,121)00 4,60000 4115-100 Landing Fee ar taxi (Non-signatory) 78398.48 72,260.68 21,29335 96,00000
- Terminal Rntl M4in Terminal - - terminal Rental -Commuter
Per Use Fees - Main Terminal - Per Use Fees -Commuter 4209-103 Triturator 13,902.00 2,497.45 1,271,47 6,000.00 4209-100 ncinerator-Alrline 473,063.72 318,04159 181,812.75. 285,000.00 4218-100 lnplanement-Main Terminal 5,776,701,14 4,159,882.94 2,056,058.88 1,022,000.00 4219-100 Enplanement-Commuter Terminal 176,549.70 158,157.75 123,745,79 162,00000 4221-100 Deplanement Fee Main Terminal 1,272,025.80 876,020,20 453,802.90 163,00000 4222-100 Deplarlement Fee - Charter 5,723,89 1,428.90 44650 5,400.00 4328101 Restaurant-Aviation 543,119.02 341,2486? 196,012.50 330,000.00 4609-100 Fuel Flowage 298307.04 240,59.4.34 102,729.45 185,000.00 TataiA,4tion 10,293.855.29 7,447309.35 3,835,678.9 2,960,000.00
4 101-100 Agriculture fGrd. Renlali 2,430.00 3,330.00 4050.00 2,880.00 4140.100 Grour.d Transportation-Bus & Tasi 353,710.72 258,908.17 82,075 00 134,000.00
4141100 Car Rental Parking 38.05603 54,097.18 - 4201 -100 Space Rental 3,024.00 19,403.40 21,15885 11,593.80 4203-100 Office Space Rental 290,558 02 294,851.69 199,835.55 257,982.60 4204-100 Warehouce Rental 234,60000 234,500 00 152,49.3.00 234,60000 4205-100 Equlpment Rental 18,000 00 16,500.00 1,500.00 3,000.00 4209-101 Incinerator (Non-Airlinesi 24,52354 8,310.20 6,580.23 19,200.00 4324-100 Commuter Public Parkiri8 Fec ' 65.56 4325-100 Public Parking Cards 38,664.50 36,277.00 12,072.50 31,800.00 432.5-101 Public Parking Booth 177,236.00 127,825.77 79,941.00 192,00000 4327-100 Prime ConcessionaIre 1,465,732.28 2,513,920.26 1,309,014.71 1,590,000.00 4328-100 Restaurant-Non-Aviation 376,243.78 354,436.40 245,900.07 396,000.00 4329100 Rent aCer 256,39440 370,81324 292,273.10 449,650.92 4334-100 Advertising 119,15924 119,820.00 74,535.50 69,675.00 4337-100 ATM Machines 1,200.00 1,203.00 780.00 1,200.00
4339- 100 Currency Exchange ' - 4340-100 Finger Plinting Fee 26,595.00 21,465.00 10,115.00 24,000.01) 4401-100 Ground Rental 882,769.96 788,054.50 398,917.89 355,332.95 4641-103 Ground Lease Mobil 14,482.70 14,482.63 9,413.66 15,378.96 4908103 Badges/Citation 34.76000 29.83500 14,48500 30,000.00 4909-100 Miscellaneojs 6,135.12 7A26,85 6,546 33 6,000.00 -. 4914-100 ARFF Training Fees 71,722.00 19,597.50 8,444.00 36,000.00 Total Non-Aviation 6,435 7.89 5,355,321.35 2,931,128.39 3,860,294.23
Total Operating Revenue 16,729,863,18 1~802,830.70 6,766,806.98 6,820,294.23 CornmonweaJth Pd AuthorIty $ann Airport Expanse 8dget
FY 2021 B1tD68T
FY 2018 FY 2010 FY 2020 FY 2021 Audited Unauthed ttimted Budget
Skrks $ 167,349.03 $ 4,356,779.70 $ 3,750,952.73 5 3,784,652.57 6eneft 5 657,743.38 5 784,203.235 684,469.73 $ 70.1,993.45 total l'ersonntl $ 4875094 46 $ 5 141,07293 f 4435 422 49 $ 4 489 656 OS
Stii TIiII $ 13,736 9 9 8,345.32 S 2,000.00 S 7,500.00 44FF 1rirlin8 Fadlitv S 43,587.36 $ 38,316.24 S 64,039.90 $ 105000.00 Conttttu& Srvics $ L279,314.26 $ 3,161,360.07 $ 3,199,013.25 5 1,201,810.00 kt ur it4 $ 528,833,73 9 540,797.36 $ 1693,003.80 $ 1,600,192.61 T(3eI Etpente $ 108,827.51 5 120,017.30 S 107,137 36 $ 85000.00 Pmotion 5 25,03571 5 14,595.09 5 1717306 $ 20,000.00 Repif & Mir1tnarce $ 834,897.28 $ 520,691108 5 389,815.69 9 383,306.00 Su0plet $ 5511816.81 S 375,697.52 $ 435,268.53 9 487,100.00 FuI $ 224,581,56 5 188,578.37 5 236,215.95 $ 247,505.00 LeI Sc $ 1511,520.56 $ 148,4.13,20 5 207,64437 5 150,000.09 Sl.bSCfiiXiOi S 90178 $ 5 1,607.60 5 1,000.06 Me'st'iip S 9,797.00 S G,'0S.00 S .1,630.00 5 4,500.00 Adverthit $ 32,958.76 9 19,500.08 $ s,472.io $ 25060.00 60&0 Epene $ 33,177.35 $ 18,170.60 5 21,130.29 5 14,105.00 Cortunkutiun $ 91,942.07 5 75,596.73 5 76,926.99 $ 76,060.00 $ 4,14401 S 1,862.23 5 2,777.47 5 2,500-00 Itti itit $ 5,248,534.10 S 1,530,310.97 5 2.763,222,63 $ 2,660,050.00 PtueionaI Servire $ 24,958.66 S 16,864.34 $ 72,693.00 $ 80,000.00
- tvt E'OUS $ - S $ - $ Fatal 0erting itp5nse $ 9,233,967.36 5 4.092,940.12 5 7,311,772.19 5 7,260,902,01
Tit Operating and Pera.onnel Expense 514,109,061,82 $ 10,884,013.05 $ 11,747,194.65 5 Ccmmonw8alth Ports Authortty-RQ8 Arprt BudgetOvsndew
Pm' 2021 BUDGET FUQ19 FY2020 FY2021 8uditd Unaudited EsImated 8ud59t RV?r1 U Arittion S 109,764.48 $ 79,46915 $ 6631135 $ 77,550.00 Nnn-AjaUon $ 100,449.50 S 92,39938 5 49,633.61 $ 48,236.72 $ 210~1398 $ 172,069,03 $ 11654016 $ 215,766.72
Persoiinnl Siaries & Wages $ 641,53534 $ 625,563.91 5 565,03307 645,059,25 0enefita S 171312.85 $ 158349.54 $ ,47,749.36 $ 162,615.03 TonI PQrwnnel $ 81344869 5 784423 45 5 732 788 03 $ 814 674.28
Opni'ntl n 8Itptftc
Staff T5inin8 $ 1,39a.QO $. - $ sco.00 $ - TraeI 5 36,613.03 5 44003.08 $ 2583235 $ 39,500.06 8ordTraveI!Espens 5 24,561.62 $ 17,01925 $ 10,332.24 $ 14,200.00 Praniaton $ - $ - S - 5 Repairn and Maintnnnnce 5 55,903.66 $ 32,945.20 5 56,77033 $ 98,150,120 Supplias & Materitlt 5 76-6 5 57,0813 S 59742.O 5 120,750.00 Putt $ 26,440.06 $ 25,437.55 $ 18,368.54 $ 23,000.00
- 1eat Servke $ S - S - S Professionat Seruices $ -5 - $ $ 2,000.00 Si9sciption $ - $ $ - S Membership Dues $ - $ - S - $ - Advertisin8 S $ - S - S - communication $ 8,697.93 5 9,499,72 $ 10,31138 5 10,300.00 $ $ - $ . $ - Utilities $ 125,337.01 S 93,775.25 5 119,254.87 5 110,000,00 Cnlributior,tn Puh& Auditor. 1% 5 13,08036 $ 20,641.73 S 10,399.63 S 11,723.74
- Miscellaneous $ $ S - 5 - Total Opera tmn$ 8xpefle S SrlTrSlO 67 5 190 401 50 S 311,57505 $ 368 525 74 _ _ _ Total operatrng and Personnel arpenso 5 1361 259 36 S 1074 815125 $ 1 05016308 $ 1.3.24 _ 30002 _ _ _ _ Operating Income (Loss) 5 C135 049 38) $ 9'02 _ 74643.2) $ 1933 816 93 $ (105853330) Commonwealth P0th Authority-Rota Airport FY 2021 Budget
l'Y2018 FY2019 FY2OZO FY2021 REVENUE: Audited Ursaudited Estimated Budget
4111-200 Landing Fee-Sthedule airlines $ 253.01 $ - $ $ - 4112200 Landing Fee-air taxi $ 29,803.95 $ 22,443.W7 $ 17,10259 S 21,60000
- - 4114-200 Parking Fee $ - $ $ $ 4115-200 Landing Fee-air taxi (Non -sgnalory) $ 7,87310 $ 2,643.72 $ 2,321.79 $ 2,450.00
Termrnal Rental Rate $ $ - $ $ -
Per Use Fees $ $ - $ 156.00 $ -
4228-200 tnplanement -Main Terminal $ 49.52 $ - $ - $
- - 4222-200 Deplaned 5th Service POP $ S 13.20 $ $ - 4219-200 Enplanement-Commuter Terminal 5 71784.90 S 54.36836 $ 47,332.17 $ 53,500.00 Total Aviation $ 109,764.48 $ 79,469.15 $ 66,912.55 $ 77,550.00
4101-20C) Agriculture (Ord. Rentall $ 2,970.00 5 2,905.00 5 2,280.00 $ 2,280.00 4140-200 Ground Transportation -Bus & Taxi $ 6,675.00 $ 6.07500 $ 2,550.00 $ 3,600.00 4201-200 Space Rental 5 1,27892 $ 3,836.76 5 3,244.52 $ 3,024.00 4203-200 Office Space sternal $ 50,928.96 $ 42,268.96 $ 15,807.90 5 4204 200 Warehouse Rental $ - $ - $ - $
4209-101 incinerator(ton-Airllnes) $ - $ $ - $ -
4324 100 Commuter Public Parking Fe $ - $ - $ - S
4325-100 Pubric Parking $ - $ $ - $ 4327-100 Prime Concessionaire $ - 5 $ - 5 4328200 Restaurant $ 2,791.07 5 11430 5 - $ 4329-200 Rent a Car $ 24,660.00 5 26,114.64 $ 18,865.55 $ 29,023 92 4334-200 Advertls,ng $ - $ $ $
4337-200 AIM Machines S S - S - $ - 4339-200 Currency Exchange $ S - $ S - 4340200 FingerPrinting Fee $ 540.00 5 720.00 $ 27000 S 300.00 4401-200 Ground Rental 5 9,454.80 $ 9,454.80 $ 6,14562 S 9,454.80 4641200 Ground lease Mobll1 $ $ - $ $ - 4908200 Badges/Citation 5 725.00 5 66500 $ 395.00 $ 384.00 4909-200 Miscellaneous $ 42575 $ 445A2 $ 75.02 $ 150.00 Total Non-Aviation $ 100,449.50 $ 92,599.88 $ 49633,61 $ 48,216.72
Total Operating Revenue $ 210,213.98 $ 172,069.03 $ 116,546.16 $ 125,766.72 Commonwealth Ports Authority-Rota Airport Expense Budget
FY 2021 Budget
FYZO1S FY2019 FY2020 FY2021 Audited Unaudited Estimated Budget Salaries Salaries& Wages $ 641,535.84 $ 625,55391 $ 585,038.67 $ 645,05925 Benefits $ 171,912,85 S 158,849.54 $ 147,74936 $ 169,615.03 Total Personnel $ 813,448.69 $ 784,413.45 $ 732,788.03 $ 814,674.28
Travel $ 36,613.03 S 44,0031)8 $ 25,88236 S 39,500.00
Repairs & Maintenance $ 55,903.65 $ 32,945.16 $ 56,770.93 $ 98,150.00
Supplies $ 55,766.50 $ 57,081.86 $ 59,742.50 $ 60,75000
Utilities $ 325,357.01 $ 93,773,25 $ 119,254.87 $ 110,000,00
Fuel $ 26,44006 $ 25,437.55 5 18,368.54 S 23,000.00
Board Expense $ 24,56162 $ 17,019.25 $ 16,338.24 $ 14,200.00
Staff Training $ 1,390.00 $ - $ 500.00 $ -
Communication $ 8,697.93 $ 9,499.72 $ 10,317.98 5 10,300.00
Professional Services $ - $ $ . S 2,0(JO.00
Miscellaneous $ $ . $ . $
Total Operations $ 534,729.81 $ 279,759.87 $ 307,175.42 $ !?0
Total Personnel and Operations $ 1,348,178.50 $1,064,173.32 $ 1,039,963.45 $1,172,574.28 Commonwealth Ports Authority-Tinlan Airport Budget Overview
F's' 2021 BUDGET FY2018 FYZO19 F't'2020 FY2021 Audited Unaudited Estimated Budget Revenue: Aviation $ 223,406.28 $ 241,296.21 $ 184,55068 $ 201,260.00 onAvlatio, $49,480.96 $ 294,981.14 $ 565,959.65 $ 674,378.04 Total Operating Revenue $ 272,887.74 5 536,277.35 $ 750,610.33 $ 875,638.04
Personnel; Salaries & Wages $ 704,401.74 $ 742,289.92 $ 515,923.35 $ 672,429.37 Benefits $ 128,150.10 $ 107,706.72 $ 160,322.34 $ 166,373.65 Total Personnel $ 832,552.44 $ 909,996.64 $ 776,245.69 $ 838,803.03
OperatinB Eepersse;
Staff Training $ $ - $ $ Travel S 39,604.59 $ 53,940.05 $ 18,503.71 S 15,150.00
Contractual Sevices $ . $ . 5 - $ Board Travel/Espense $ 10,623.18 $ 15,443.29 $ 5,831.52 $ 7,090.00
Promotion $ . $ . $ . .5 - Repairs and Maintenance $ 24,016.21 $ 5,99271 $ 31,455.02 S 41,500.00 Supplies & Materals $ 49,107.32 $ 42,464.26 $ 32,988.10 $ 52,500.00 Fuel $ 32,309.61 $ 26,75781 $ 26,128 19 $ 28,000.00 legal Services $ - $ $ - $
Consulting 5 $ $ . $
Professional Services $ . $ $ . $ Subscription $ 379.90 $ 312.00 $ 338.50 5 400.00 Membershp Dues $ $ $ $ -
Advertising $ $ . $ . $ - Communication 5 7,018.19 $ 6,030.27 $ 6,041,10 $ 6,500.00 Postage 5 - $ - $ . $ UtIlities $ 235,233.51 $ 187,017.10 S 182,664.43 $ 190,000.00 Miscellaneous S - $ - S - S Contribution to Pubic Auditor . 1% $ 13,769.90 $ 12,479.54 5 10,801.96 $ 11,858.53 Total Operating Expense 5 412,062.01 $ 314,752.53 $ 358,908.53
Total Operating and Personnel expense $ 1,244,614.45 $ 1,260,433.73 $ 1,090,998.22 $ 1,197,711.56
Operating Income (Lots) $ (971,726.71) $ J724,156.38) $ (340,387.90) $ (322,073.52) Conrnonwealth Ports Athorlt- Tinian Airport Revenue Budget
REVENUE: FY2018 FY2019 FV 2020 FY2021 Acat. No. Account Name Audited Wiaudited Estimated Budget
4111-300 Landing Fee-Schedule airlines $ - $ $ - $ - 4112-300 Landing Fee-air taxi $ 50,624,82 $ 5571522 $ 43098.02 $ 40ODO.0C 4114-300 Parking Fee $ - S - $ - $ - 4115-300 Landing Fee-air taxi (Non-signatorv} S 2,165.36 $ 1,39644 $ L162,96 $ 1,260.0( Termina' Renta' 5 - $ - $ - $ PerUseFees 5 - $ - $ - 5 42i-300 Enpianenient-Main Terminal $ - $ $ - $ - 4219-300 Enp!anement-Comniuterlerniinai $ 170,616.60 5 184,124.55 $ 140,3i3970 $ 15000O.&C 4220-300 Enlanernent- Charter Service $ - 5 $ - $ 4222-300 Deplanement Fee - Charter Sorvice 5 - $ $ - $ - 4609-100 Fuel Fbwage $ - $ $ - $ - - Total Aviation $ 223 406 78 $ 241296 21 $ 184 650 68 5 201,260 IX
4101-300 Agriculture {Grd. Rental) $ - $ $ - $ - 4140-300 Ground transportation-Bus & Taxi $ 4,900.00 $ 1,100.00 $ 3,800.00 $ 3G00-lX 4228-300 Restaurant .5 10,200.00 $ 10,200.00 $ 6,630.00 5 10,200.OC 4329-300 Rent a Car $ 24,384.96 $ 26,340.28 $ 26,125.Ji $ 128,320.92 4337-300 ATM Machines $ 1,200.00 $ 1,200.00 $ 1,200.00 $ 780.OC 4339-300 CurrencV Exchange $ - 5 - $ - $ 4340-300 Finger Printing Fee S 540.00 $ 45.00 $ 45.00 5 90.00 4401-300 Ground Rental $ 7,776.00 $ 255,424.34 $ 52?,658.02 $ 530,967.12 4641-300 Ground Lease (Mobil $ - $ - $ - $ - 4908-300 Badges/Citation $ 480.00 $ 260.OD $ 200.00 $ 30000 4909-300 Miscellaneous $ - 5 35L52 $ 201.52 5 12a00 Total Npn-Avlatlon $ 49,480.96 $ 294,981.14 $ 565,959c&5 $ 674,378.04
Total Operating Revenue $ 272,887 74 $ 536 277 35 $ 750,610 33 $ 875,63804 Commonwealth Ports Authoritv'ilnian Airport Expense Budget
FY 2021 BUDGET
P12018 P12019 FY2020 P12021 Audited Unaudlted Estimated Budget Personnel Saaries & Wages S 704,401.74 $ 742,289.92 $ 615,923.35 S 672,429.37 Benefits S 128,150,70 $ 167,706.72 S 160,322.34 $ 166,373.65 Total Personnel $ 832,552.44 $ 909,996.64 $ 776,245.69 $ 838,803.03
Travel $ 39,604.59 $ 53,940.05 $ 18,503.71 $ 15,150.00
Repairs & Maintenance $ 24,016.21 $ 5,992.71 $ 31,455.02 $ 47,500.00
Supplies $ 49,107.32 S 42,464.26 $ 32,988.10 $ 52,500.00
UtilitIes $ 235,233.51 5 187,017.16 $ 182,664.43 $ 190,000.00
Fuel $ 32,309.61 $ 26,757.81 5 26,128.19 $ 28,000.00
Staff Training S $ S . $
SubscriptIon $ 379.50 $ 312.00 $ 338.50 $ 400.00
Board Expense $ 10,623.1K $ 15,443 29 $ 5,831.52 5 7,000.00
Advertising $ . $ . 5 $
Communication $ 7,018.19 $ 6,03027 5 6,041.10 $ 6,S00.C'O
Postage S $ . $ - 5
Consulting Services $ $ S - S
Professional Services $ $ - S S
Total Operations $ 398,292.11$ 337,957.55 $ 303,950.57 $ 347,050.00
Total Personnel and Operations $ 1,230,844.55 $ 1,247,954.19 $ 1,080,196.26 $ 1,185,853.03 EXHIBIT "G" pQ 520461, San Jose Vitlage, TInao, MP 969520461
August 4, 2020
Christopher S. Tenorio Executive Director Commonwealth Ports Authority P.O. Box 501055 Salpan MP 96950
Dear Mr. Tenorio;
SMA has received the CPA's letter dated July 29,2020, "RE: Response to Star Marianas Air's July 23, 2020. letter regarding CPA's proposed budget". SMA would like information regarding the account amounts in the Tables below. Please provide the information at your earliest opportunity In order for SMA to better understand the CPA's budget figures.
SpnAi!pcrt: Account No. Account Name FY 2020 FY 2021 SMA Estimated Estimate Comment 4112-100 Landing Fee- 73,624.86 90,000.00 How did the CPA arrive at these air taxi amounts and how much of the totals are attributed to SMA? 4219-100 Enplanement- 123,745.79 162,000.00 How did the CPA arrive at these Commuter amounts and how much of the Terminal totals are attributed to SMA?
Rota Airport: Account No. I Account Name FY 2020 FY 2021 SMA Estimated Estimate Comment ______4112-200 rLanding Fee- 17,102.59 21,600.00 How did the CPA arrive at these air taxi amounts and how much of the totalsareattributedtoSMA? 4219-200 Enplanement- 47,332.17 53,500.00 How did the CPA arrive at these Commuter amounts and how much of the Terminal totals are attributed to SMA?
Tel.: 6704339998/9989 Fax.: 670-4339990 Web site: www.starnsauanasalr.com Response to CPA 'e pmpused budget - Page 20(2
Account No. Account Name FY2020 FY 2021 SMA Estimated Estimate Comment 4112-300 Landing Fee- 43,098.02 40,000.00 How did the CPA arrive at these air taxi amounts and how much of the totals are attributed to SMA? 4219-300 Eriplanement 140,389.70 160,000.00 How did the CPA arrive at these Commuter amounts and how much of the Terminal to SMA? ______totals are attributed
Please let us know if you have further questions.
Sincerely,
Shaun ft. Christian President
cc: Robert F. Christian - SMA Chairman of the Board Paz 1. Christian - SMA Executive Vice President EXHIBIT "H" Commonwealth Ports Authority
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August 13, 2020
Shaun R. Christian Presiden: Star Mananas Air P0 Box 520461 Tinian, f/P 96952
RE: Response to Star Marianac Air's August 4, 2020, letter regarding CPA's proposed budget
Dear Mr. Christ;an
The Commonwealth Ports Authority (CPA) is in receipt of Star Marianas Airs (SMA) request for additional information on the fiscal year (FY) 2021 proposed budget, dated August 4, 2020.
For the axounts listed that SMA has requested additional information on, CPA forecasted the FY 2021 budget amounts after considering the monthly invoiced amounts in those acounts for the previous years. The table below provides information on tie monthly averages for each account
F'Y2021 FY2021 FY2020 FVZO19 Airport Gil. Account Annual Monthly Monthly Monthly Budget budget Average Average 41 .' 56,096 $862s ,°° , s aipari ¯S90 4219-100 $162,000 $13,500 $9,294 $14,207 4112-200 $21,600 51,800 $1,455 $1,870 R ?-20 S53 500 f 63 $4.530 4122300 540,000 52,973 54.645
Tinian . ' -. 4219-300 $160,000 $10,818 S36.520
In FY 2020, the ongoing pandemic resulted In reduced airport operations, and the FY 2019 monthly averages show revenues resulting from normal operations. The FY 2021 proposed budget assumes that airport operations will continue to be reduced through the remainder of the 2020 calendar year and slowly trend towards normal operations beginning in calendar year 2021. Thus, the IV 2021 proposed monthly budget amourts are estimated to be ir between the FY 2020 and IV 2019 monthly averages. These amounts include invoices issued to all carriers operating at each airport. Please note that the IV 2021 budget amounts are forecasts and are subject t change based on the economic circumstances in the CNMI.
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' . .t'I',A; . ,.:';-''. 1,1 i,.,..'IL 'I - ...... '.ITi.3 4!! Please kt me know f you have any further questions. Sir1cer&(
(HRISIOPHFR S TENORIO Esecutve Diretlor EXHIBIT "I,, Mt. Raar I. ludela April 15, l9'4 Page 3 N Action taken
A comparison of budgeted vs. actual expenditures N is being done regularly. Actually, in 1993, the actual expenditures is even lower than the budgeted figure by $292939 or 4%. The Authority has also adopted cost- U cutting measures in all departments.
3 coiniandation Cash disbursements should be caretully planned in order to optimize investment of excess cash in treasury bills, time certificates of deposit, etc., for U additional interest income. Discount periods or the maximum credit period should be reviewed to determine whether it would be more advantageous for the Authority to avail at discounts or to maximize on the credit period and invest such cash to more productive uses. U
The Authority 15 carefulLy monitoring its dis- bursements. Payments are made in accordance it: tho U "schedule of payment" which maximizes the credit period offered by the vendors. No payment is made unless a liability or obligation is due.
¯- Recomrr.endation U Accounting records that would segregate costs incurred for the Main Terinina Building and Area and for the Commuter Terminal Buiding and Area should be maintained. This would eliminate the need for allocat- U ing the total costs for the Terminal Buildings and Areas between the two secondary cost centers using I assumed rates. Action taken U This will be implemented in fiscal year fl94. It must be noted however, that only those expenses e.g., supplies, repairs and maintenance, etc.) which can be directly identified to a particular cost center will be I segregated. All other expenses will have to be ulo- cated to the two secondary cost centers at year-end. I I U A. J PARP' AND ASSOCAT ES, INC. AIHPCRI PLANNING, FINANCIAL MANAGEMENT CONSUIJANIS SCHEDULE S Page 1 01
PRO FORI4A STATEMENT 8U9047iRY OP UISI'ORICAL AND PROJECTED REVENUES AND EXPENSES TERMINAL BUILDINGS AND AREAS"
SAIPAN INTERNATIONAL AIRPORT Saipan, Northern Nariana Islands
HI SI'OR I CAL' PROJECTED'
- 1991 1992 1993 1994' * 19;5;96 Operating Revenues - (Excluding Airline Incose) Kain T.reinal Building and Area (ScheduLe B -i.) $3,744,939 $4,061,465 $3,919,120 $4,225,300 $4,610,200 $4730100 CouL.r Teeninel Buildiug and Ar.. (Schedul. 8-2) 69,210 117,888 54,771 58,800 63,700 67,930 Total - Operating Rexenuesi $3,814,209 $4,119,353 $3,973,891 94,284,100 94,533,900 94,798,000
Direct Op.rating Expenses itsin Ter.inal Building and Are. (SChedule 8-1) $607,381 $846,791 $831,312 91,042,900 91,104,900 91,154,300 Co.uter Tereinal Building &nd Area (Schedule 8-2) 15,925 22,127 20,493 36,800 29,100 32,800 Total - Dirsot Op.rating Exp.nsss 9623,306 9848,918 $651,805 91,069,600 91,134,000 91,187,100
Allocated Operating E.psnsea
Kin Torainal Building and Area (8cheduleB-l) $975,513 $1,193,954 $1,473,094 $1,713,700 $1,737,500 91,163500 Couter Terainal Building and Area (Schedule 8-2) 31,030 32,859 45,744 59,100 59,500 65,400 -- Total - Allocated Operating Expenses) $1,006,603 91,226,813 $1,518,838 $1,712,800 $1,197,000 $1,828,900 Total Operating Eap.neesi $1,629,909 $2,095,731 $2,310,643 $2,842,200 $2,931,000 $3,016,000 Total Operating Profit, $2,188,300 $2,083,622 $1,603,248 $1,441,900 $1,602,900 $1,182,000
Noocash Expenses
Main Tereinal Building and Ares (Schedule 6-1) $950,166 $924,554 $959,640 $987,700 $1,035,200 $1,086,201) Comeutee Terminal Building and Area (Schedule 8-2) 1,094 472 721 700 100 800 SCHEDULE 0-2 Page 1 of 3 PRO FORM?. SThTEMENT HISTORICAL AND PROJECTED REVENUES AND EXPENSES COD4NUTER TERWIHAL RUILDIHO AND AREA
SAIPAW INTERNATIONAL AIRPORT Saipen, Northern Kariana Islands
H1STOR1CAL PROJECTED* 1991 1992 1993. ¯ 1994 1995 -1996 Operating Revenues (Excluding Axrlioe Innoce) Concessions Duty Free Shoppers $23,664 $23,598 $23,429 $25,300 $26,700 $29,000 -- Rdvertiaing 400 100 -- 400 500 Snack 8Cr 4,643 5,349 5,441 6,400 7,500 8,200 Rent A Car'" 7,061 9,367 15,078 15,200 16,400 17,600 Other 100 -- -- 300 400 600 - - Total - Operating Revenues, $35,468 $38,714 $64,448 $47,200 151,600 154,900 Interest Do Invaateots*** 11,246 9,313 10,823 11,600 12,300 13,000 Operating Revenues after Interest on InVeateenta $46,714 $48,027 $55,271 $58,800 $63,700 $67,900
Non -Aviation Revenues"" 23,265 46,867 ------Total Operstig Rcveuues after Non -Aviation Revenues, $69,979 $94,894 $55,271 $58,600 $63,700 $67,900
Direct Operating Esp.na.s
Salaries Wages end Overtie $7,939 $10,844 $11,943 $14,800 $16,500 $18,900 Repairs and Kaintenance 2,874 4,621 942 3,800 4,000 4.200 Supplies end Katerials 3,111 4,345 4427 4,600 4,800 1,100 Staff Training -- 560 711 400 600 600 Electric Power°' 1,779 1,657 2,313 2,100 2,700 3200 Fuel. 104 100 157 100 200 300 Other 118 -- -- 300 300 500 - Total - Direct Operating Espeuses. $15,925 $22,127 $20,493 $26,500 $29,100 532,800
Allocated Operating Esp.ns.s Aircraft Rescue sod rite Fighting (Schedule D-1) $4,661 $4,732 $7,142 $8300 $7,900 99, 100 Adsinistrstivs )8cb.duls 0-2) 15,004 15,625 21,632 26,200 25,800 29,400 General - Shop and aqoip..nt (Sch.dul. 0-3) 397 263 462 500 500 500 Security (Bch.dol. 5) 10968 12239 16508 24,100 25,300 26,400
Totel - Allocotad Operct,flcj Pixpenova 131,030 532,859 $45,744 $59,100 559,500 565,400 EXHIBIT "J" COMMONWEALTII PORTS AUThORITY M4nO FWCIS C. ADA1PANU NATI04ALAJIP0RT P.O. Box 5OS5, Saipaa,M? 695O4O5 Pose (?O)37.5fffI Fi (7O)234-$2
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November 25, 201
Ms. Donna Lynn B. Cabrera General Manager Star Marianas Air P0 Box 520461 Saipan, MR 96950
Dear Ms Cabrera:
The Commonwealth Ports Authority (CPA) is in receipt of Star Marianas Air's (SMA) letter dated November 5, 2019 requesting to occupy a vacant 40' office container at the temporary Saipan Commuter Terminal and indicating that SMA would like to remain on their current space at the Ben)amirl Thisacan Manglona International Airport (BTMIA}.
The request to occupy the 40' vacant office container is approved on the following conditions First, the use of the vacant office container will be temporary. Lastly, SMA will be charged for the space.
At the BTMIA, SMA would like to remain at its existing space since ISA has vacated. Unfortunately, ISA's equipment still remains and CPA is awaiting the equrpment removal from ISA. Also, there would be additional work, repair, and time that CPA needs to complete in order to address the direct access to the airside, CPA recommends SMA relocating into the readily available space that already has access to the airside. Should vr..need additional information, please feel free to contact me at 2376500, Sincerel
CHRISTOPHER TENORIO Executive Director
cc: Deputy Director Comptroller Saipan Airport Manager Rota Ports Manager ELCO
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JO. tha5O1SS. & fl'969Se O. MI, R M' 95! P.O. Bax 135. Thi MP59S2 EXHIBIT "K" rianac Afr P.O. Box 520461, San Jose Village, Tinian. MP 969520461
December 2, 2019
Mr Christopher S. Tenorlo Commonwealth Ports Authority - Executive Director P0 Box 501055 Saipan, MP 96950
Dear Mr. Tenorio:
Thank you very much for your letter dated November 25, 2019 respondIng to our requests related to space at the Saipan and Rota airports. In regards to CPA's recommendation to relocate to the readily available space at the Benjamin Taisacan Manglona International Airport, based upon your explanation, Star Marianas Air agrees and is ready to coordinate the move as soon as practical.
With regard to the occupation of the vacant container at the temporary location of the Saipan commuter terminal, I thank you for your favorable consideration. I would greatly appreciate it you could please provide the costs/charges associated with the use of the area so that I can seek approval from the company's board of directors to proceed with an agreement.
Thank you again for your letter and I look forward to your reply.
Sincerely,
Donna Cabrera General Manager
cc: Robert Christian - chairman Shaun christian - President Timothy Belles - Legal Counsel EXHIBIT "L" M Gmail Robin Creinioa 1cfgrcorrs
Fwd: Meethig Notes 2 .nassag.s
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* - Isotomer lease CPA w work on the draft and provide ,vu a copy It was opseed upon that the Isotainels can be moved to vacate some of the be donns that are being blocked
2. Equipment sloroge area (area near isotoiner) SMA will enpoct the proposed (ac*ty Ground serviong equipment wit be stored at that woo It was agreed upon that SMA can hove the tug and tanker art designated area (cunent - dosignabon) during operations However, at thee nt will be moved to the storage iuoa Temporary 3 additional spec rote for Use space is $357 6$ a month As men , w be a44ng another container that will be outside senger waiting area 4 RotoSpoce ltwasmenbonodthalthoAuA ismes stages Withthat.SMAiswmflingtostazlmoving or coordisatesg the move to the counter area Please work with our Rota Ports Manager, Ms Sharlerie Monglona 5 Rota concerns Commumcotion via radio is a concern because SMA can't transmit unless they are 30 miles or closer to Rota Additionally. SMA can only hear Rota fllghl Seco 20.25 miles out
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or_ UpUats; As per Rota Posts Miniger, tl. satin.. P1CC been ordored sr.d ** .rc laserg a, IrrIsat a Rato Rssway L.lwi SSIA e tn.tsrn.d tt hIM tiM not tied ety nm.. bØ1b talc. 1.ily about AsqJti Thorn we I.nee eel SW, is acrlesdI.il b emesgoricy r.kc trenslet but cil .ccrrmtcdal. weiout Ce Igliti Update: The conslant current regulator fCCR) Se w,dod for the ,vneey IgMe Pen bsir. ordered ladle schedu1.dto sarly. tentstta.ly by tat. April, Cyce would like further upd.te, p1.... do rot heiitate Cortact th $CN.
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Joy MM CItson Gratrea (nIo.qqss*s Ccenpkence omces EXHIBIT "M" R&ocation of Benjamin Taisacan Manglona
Donna Lynn Cabrera Thank you for taking the time to meet with me last Friday to discuss moving from our existing location at the Benjamin Taisacan Manglona Airport on Rota to the adjacent office which provides direct access to the ramp. Per our correspondence with CPA Executive Director Chris Tenorio, we are in agreement with his suggestion to move to that office. We recognize that it is the most efficient way to have full access to the ramp and are looking to coordinate the move as soon as reasonably practicable. I understood from our discussion that you are waiting for a revision to our existing lease agreement to be signed before you are able to allow us to begin moving, but we have not received any revised agreement from CPA. I am cc'ing Director Tenorio and Ms. Joy Ann Deleon Guerrero on this email with the hopes that they can provide updates on the status of that agreement. I look forward to any updates you or the CPA Saipan team can provide, so that we can coordinate with our telephone and internet providers to set up the infrastructure needed to maintain uninterrupted operations.. Best regards and Happy Holidays. bonna Lynn Cabrera eneraI Manager Star Marianas Air, Inc. 520461 5an Jose. Trthan MP 96952 CNMI USA Office 670.433.9991 Mobile 670.285-0974 E mcii dlcabrero.stormarionascir'gmoi l.com EXHIBIT "N" Fronc Mgie Agign nungiuuuoigolthwagarmn Date Jane 22 2020 at 1033 t8AaJ GMT10 To Simon Chrtetien <5rrhtisn@otannaeiananairconm Cc: JoyAnn Saloon 000rrero 4u4Ig©cpugvjo Donna Lynn Cabrnrs odicabrera slanaiianasa@gmaiLcarr Snbjecc FinatAinaandment to the SMA Airline UsnAgneennant Hafa Adgi Mr Chnsluan Please see attached draft First Amendment to the SMAAUA for your review Should you have further questions or concerns please feel free to contact oar office at 237-6500 Have a great day Thank you, Angetica Aguigui Secretary II Commonwealth Ports Authority Tel: 237-6500i0lIFax: 234-5962 Attachments i1Il - _____ [1- 1 tattac t yin Excitor n-n Star a ExHiBiT 0-2 star a.. yr £5111010 0-3 Steen. ExHiBiT C-i 010 rn yr 10111010 1.2 TiAra - yr ISHiOlT C-3 n r 04i102020r050. r EXHIBIT "0" ' lctananas P.O. 60'. 520461, Sir .JO2e VtLLae, Trnian, MP 96952-0461 July 27, 2020 Commomvealth Ports Authority : Angeica P0 Box 501055 Saipan, N 96950 Dear Ms. Aguigni: Star Marianas Air ("Star) hereby acknowledges the receipt of your letter via email to the President of Star dated June 22. 2020 ("Letter") which included as attachments a proposed First Amendment to the Airport Usa Agreement ("AUA") between the Commonwealth Ports Authority ("CPA') and Star. As well as Exhibits B-i, B-2, B-3, C-i, C-2 and C3. (Collectively the "Amended AWL") This written communication has been followed by telephone calls inquiring whether Star intends to execute the Amended AUA. Star has reviewed the Amended AUA and has several objections to it. First, in our opinion there has been very little, if any, arm's length negotiations between Star and CPA in order to an*e at the te.rrna ofthe Amended AUA Several items from discussions held over the course ofseveral meetings on Rota and Tinian in May of 2019, do not appear to have been incorporated into the above identified documents. For example, after the meetings in May, on November 25. 2019. the CPA Executh'e Director, Mr. Tenorio, wrote to Star regarding the air canier relocating to more suitable space at the Benjamin T Manglona Airport on Rota. On December 2,2019, Star accepted the proposed space and was ready to make the move to that space. When Star attempted to move into the space in early December 2019, CPA's Manager of the Rota Airport blocked the move and indicated it was being held for another airline. It is unclear based upon the exhibits, ifthe previously agreed upon office is incorporated into the Amended AWL in Exhibits B.-3 and C-3. Exhibit B-3 appears to accurately depict the office agreed upon howeverC-3 shows Star's office as being in location 2 and location 4 as Star's Careo hold. [not sure if we want to also mention that the common use area behind offices 1 and 2 are ofno use to Star as they are designated for TSA baggage]? Furthermore. on Tinian, Star was told that operations would be moving to the area indicated by numbers 7 and 14 on exhibit C-2. Star raised issue that the layout ofthat area created many operational chailenges and. CPA had suggested that some design changes would be made to make the area more suitable for inter-island operations, and expressed that the existing location was preferred. Exhibit C-2 appears to keep Star in its current location, but makes reference to an increase in the total common use area once repairs are made to the area in gray. Star continues to TeL: 570-433-999519969 Fax.: 670-433-9990 Web tte: www.starm.arianasair.can, Marianns Air P.O. Box 520461, San .J2e vltla5e. Tin1n, MP 96952-0451 maintain that the area in gray is not appropriate as designed for inter-island operations. Also depicted on C-2 is an area designated as CNMI immigration (#4) which was disbanded in 200P. Star does not necessarily object to the proposal for Tinian but believe another discussion with CPA would be appropriate to understand what has changed since previous discussions. Finally, the situation in Saipan has also drastically changed based on the typhoon damage to the original commuter terminal. Star is occupying as its office space storage containers and passengers are required to await departure in open air, non airconditioned space, with only 2 portable chemical toilets (without running water) and a recently installed outdoor sink without soap or hand drying amenities. Yet the Amended AUA does nothinc to take these changed circumstances into consideration. Again, this requires Star who is the only cather providing reliable air services between the islands to accept the terms which are unfavorable and unspecified by executing the Amended AUA. Theoretically, the Amended AUA could impose significant financial burdens on Star to defray the entire cost ofoperating the Rota and Tinian terminals because it is the only operational canier. Even more objectionable is that Star does not even know what the. operating costs are because in the recent Proposed 2021 Budget that was submitted to the Air Carriers for comment there is no separate line item indicating the operational expenses for the Saipan, Tinian and Rota terminals. lithe CPA would like to sit with Star representatives and negotiate in good faith some realistic terms for an amendment to the ACA, then Star is willing to do so. Otherwise the Amended AUA is nothing but an adhesion contract which the CPA wants to force Star to accept based on the unequal bargaining power ofthe parties. Thank you for the opportunity to express our views. Unless CPA accepts the offer to negotiate, Star does not intend to sign the Amended AUA at this time. Sincerely. cc: TeL: 57a433-9959/99B9 Fax: 670-433-9990 Web site: www.starniarianasair.co.n EXHIBIT B-3 I I I 1 STAR CARGO HULD OMMON AREA STAR OFFICE-2 239SF TICKETING COUNTERS STAR MARIANAS OFFICE SPACE AT BENJAMIN TAISACAN MANGLONA INTERNATiONAL AIRPORT, ROTA Dn flft L!J B w - 0 B G) HI z z 1 g r1i=J2 ______ 0 m LI -I 9 (p.) -h Walenga, Pat (FAA) From: Alejandra Muniz Attachments: 2020-08-31(Surreply to Appeal - Star Marianas Part 16 - Exh).pdf Follow Up Flag: Follow up Flag Status: Flagged Good afternoon, FAA Docket No. 16-18-01 Star Marianas Air, Inc. v. Commonwealth Ports Authority Please find attached Star Marianas, Inc.'s Surreply and Motion for Leave to File Surreply Brief. Please note, this email has been sent today, August 31, 2020, to the following email addresses: ¯ 9-AWA-AGC-Part- [email protected] ¯ robert.torrescrtt1awgroup.com ¯ [email protected] Thank you. Regards, Alejandra Mufliz Marcial RICHARDS LEGAL GROUP 55 Miracle Mile, Suite 310 Coral Gables, Florida 33134 Telephone: (305) 448-2228 Facsimile: (305) 448-2229 1 Email: [email protected] Attention: The information contained in this Email message is attorney privileged and confidential information intended only for the use ofthe individual(s) named above. Ifthe reader ofthis message is not the intended recipient, you are hereby notified that any dissemination, distribution or copy ofthis communication is strictly prohibited. If you received this communication in error, please contact the sender by reply Email and destroy all ofthe original message. Thank you.