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Fund board OKs one-month utility deposit for PSS
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Posted on Jul 24 2011
The Public School System has countered the proposal of the NMI Retirement Fund to pay a two-month deposit for its projected utility consumption during the extension period that PSS will stay at its building.
The Fund’s legal counsel, Christopher Timmons, told the board of trustees during a special meeting Friday that PSS only wants to pay a one-month deposit for utilities. The board approved this.
PSS, which occupies both second and third floors of the Fund building on Capital Hill, has decided to move out next month after it failed to secure a lower lease rate with the Fund board. The system pays about $20,000 monthly for rental spaces, excluding utilities amounting to $10,000 per month.
The Fund initially agreed to a lower rate but set some conditions such as a three-month deposit for space rental and a separate meter for utilities or an advanced deposit. The system refused and decided to move to PSS-owned facility to save on cost.
Because its lease expired on April 30, the Fund approved a holdover period until the system can transfer to a new space. However, the holdover rate is an increased rate from $1.33 per square meter to $1.60 per square meter, with the condition that after satisfying all the rental payments, PSS will be given a rebate of 30 cents per square meter.
Last Friday, the board approved the PSS proposal to instead make a utility deposit during the holdover period of only one month instead of the Fund’s two months.
It was learned during Friday’s meeting that PSS has already paid its rental and utility obligations to the Fund up to the end of its lease. The PSS lease expired on April 30. PSS, it was reported, now only owes the Fund building rent for July and August.
PSS central offices will be temporarily housed in the vacant facilities at Marianas High School.
