Less than happy with the proposal asking the V.I. Water and Power Authority to ante up $1 million to help pay teachers, the utility’s board of directors decided Thursday to ask Gov. Charles Turnbull to hold off on signing the bill into law.
But their plea came too late — Turnbull announced late Thursday that he has signed that portion of the bill into law.
After several different proposals asking WAPA for money, Turnbull and the Legislature last week decided on asking the utility to contribute the $1 million to the government’s general fund for fiscal year 2001. WAPA, a semi-autonomous government agency, already pays $700,000 in lieu of taxes to the government.
At its board meeting Thursday, WAPA directors were unsure whether the one-time request for the $1 million was in place of the $700,000 payment or in addition to it. However, Arturo Watlington Jr., WAPA’s legal counsel, said it was his opinion that the utility would have to pay $1.7 million for FY 2001.
In a letter to board chairwoman Carol Burke, WAPA Executive Director Raymond George called the $1 million request "unprecedented and improper."
"There’s no way we can do both," George said.
Board member Claude "Tappy" Molloy was less polite.
"This is utterly ridiculous," said Molloy, who is married to Turnbull’s chief of staff, Juel Molloy. "It seems to me, and again, I like the governor, but this is ridiculous advice."
Director Andrew Rutnik asked George if the $1 million payment could be recovered through a rate increase. Such a move, which would result in a 1 percent increase, would essentially negate any help to teachers because the vast majority of them are WAPA customers.
"Any cost imposed on WAPA is recoverable through rates," George said.
Apparently not wanting to air more of their ill feelings about the governor’s request in open session, George said the issue had legal ramifications and therefore requested that it be discussed in executive session, from which the public and media are excluded.
In executive session, the board opted to send a letter to Turnbull asking him to hold off on signing the bill that, including WAPA’s $1 million contribution, would authorize $11 million to pay striking teachers. The board hoped that WAPA officials could negotiate a better payment scenario with the governor if the utility had more time.
Molloy, meanwhile, noted that the government will owe WAPA nearly $38 million for electric and water in FY 2001. That translates into just more than $3.1 million a month.
"If they are in arrears $3 million a month . . . why should we pay them $1 million?" Molloy asked.
According to George, Turnbull’s original proposal was for WAPA to pay the $1 million in $250,000 installments. Then Sen. David Jones submitted a plan that would have increased WAPA’s payment in lieu of taxes from 10 percent to 20 percent.
That proposed increase, George said, would have had a "minimal" impact on WAPA customers.
