DPW: Kilili does not understand how federal highway funds work

During a recent trip to Guam to attend the Guam Forum, CNMI Technical Services Division director Anthony A. Camacho, Highway administrator Lorraine M. Seman, and Federal Program coordinators Lauren DLC. Sanchez and Stacyann Atalig met with Richelle Takara, Federal Highway deputy administrator from Hawaii and Bruce Johnson, senior project manager from Black Micro, to discuss and view the presentation for the Route 36 highway project, which is from Kingfisher to Bird Island—a total of 3.7 miles. Because of the large amount of funding shortfall based on the bid submitted, DPW TSD is working to secure more funding so that they will be able to proceed with this long-awaited project. (Contributed Photo)

The Department of Public Works was appalled by the recent accusations of Delegate Gregorio Kilili C. Sablan (Ind-MP) in suggesting that the Department of Public Works is not performing its duties. 

“This is unfortunate and very disappointing coming from our [delegate]. What he should have done is communicate with our office to at least understand how the program is being administered.  DPW has formulated a four-year Transportation Improvement Plan from year 2016 through 2020 under the appropriation of the FAST-ACT from U.S. Congress, which has been approved by our territorial representative from the Federal Highway Administration in Hawaii,” said Anthony A. Camacho, director of Technical Services.

“Had…Sablan taken the time to understand, it will clearly show that the yearly appropriation of $3.8 million is barely enough to complete one project that is listed in our TTIP. The Transportation Improvement Plan will give him a better idea of how we distribute funds to the islands of Saipan, Tinian and Rota in order to facilitate continuous improvements on all three islands,” he added.

Public Works Secretary James A. Ada noted that FHWA funds have already been obligated for various projects.

“If…Sablan took the time to talk with us and review our TTIP, he and his staff would have saw that the CNMI has been moving forward with proposed projects with completed Plans, Specifications and Estimates amounting to over $60 million, which includes reconstruction of Route 33 Beach Road; construction of Route 302 Naftan Drive; construction of Route 304 Kagman Drive; hazard elimination project in Rota Route 10; Sabana Road Route 103 Phase II; and hazard elimination projects in Tinian Phase II.

“What…Sablan needs to understand is we need more funds to complete these projects than the amount of funds he is talking about. DPW has said this before and will say it again: [Delegate] Sablan should help us look for new money and not worry about the existing formula grant funding. In fact, the last time the CNMI received discretionary funds of $12 million for road projects clearly were not from his efforts,” Ada added.

Ada emphasized that the “unobligated” funds are from various federal highway projects that have been funded, completed, and have a remaining balance. 

“This means that all encumbrances were paid, the project has been accepted and closed out by the government.  Upon final closure, all remaining balances are reverted back to Federal Highway for reconciliation.  After the financial review is cleared, funds are once again availed for CNMI to re-obligate. The recent financial report received from FHWA is as of Jan. 24, 2018.”

Ada further noted that DPW was not even aware of Sablan’s letter dated Jan. 31, 2018. 

“On March 20, 2018, it was brought to DPW’s attention by Sen. Sixto Igisomar (R-Saipan), chairman of the Senate Committee on Public Utilities, Transportation and Communication regarding FHWA funding. We thank…Igisomar, Senate President Arnold Palacios, and PUTC vice chair Justo Quitugua for taking time to meet with DPW regarding the congressman’s letter. Between January and March, neither Sablan nor any of his office staff contacted or visited DPW to inquire about the unobligated funds,” he said.

Highway administrator Lorraine Seman stated that the process of obligating FHWA funding is not difficult and that it is important that all obligated funds are also spent within the “Period of Performance.”

“If an obligation remains dormant, then FHWA reports reflect them as ‘inactive obligations.’ …Sablan failed to state that the CNMI’s active obligation record with the U.S. Department of Transportation Federal Highway Administration’s most recent quarterly report shows that the CNMI has exceeded the national requirement for ‘inactive obligation’ of 2 percent.  The CNMI has the percentile of 0.1 percent, with Guam at 14.4 percent and American Samoa at 22.8 percent.  The other territories have obligated all their funding, however, they have not met the 2-percent national inactive expenditure obligation.  This is based on the annual apportionment.  All obligations with no expenditure activity for 12 months or more are considered inactive by U.S. DOT FHWA,” Seman said.

Seman noted that Federal Highway funds may be reduced, suspended, diverted or approval of new federal funds may be withheld should a state or territory continue to fail to meet the 2 percent national inactivity requirement within its 12 months authorized, which is not the case of the CNMI.

“All funds are under the oversight and stewardship of Federal Highway and no funds can be expended without the pre-approval signature stamp from the territorial representative out of Hawaii. We welcome…Sablan to visit our office and hopefully he does take the time to fully understand and clear up this misinformation. If he needs to review our records, we are more than happy to avail our time for him. Our FHWA territorial representative will be on island on the week of April 2 to 6 to conduct a program review and will also be meeting with government officials,” she added.

For his part, Gov. Ralph DLG. Torres said that DPW has expended and exceeded the national requirement for Federal Highway funding use and completion.

“The accusations [of] our congressman is unwarranted and out of line because he failed to perform his due diligence in understanding how federal dollars are spent under the Federal Highway Administration. In fact, the FHWA has commended DPW’s team of engineers, not once but twice in the past year for their effective funding utilization. The CNMI has even surpassed American Samoa and Guam in addressing inactive obligations. While our infrastructure needs in the Commonwealth are growing…Sablan has not been able to help secure more funding to aid the work already being done for our infrastructure. The strong relationship DPW has made with FHWA over the years has allowed for more federal funding to be obligated to projects that have been sitting idle under past administrations for years,” Torres said.

“I am very disappointed in our congressman’s inaccurate claims that serve nothing more than to undermine the hard work and progress that our DPW engineers and employees do every single day. These false claims are a disservice to our community.” (PR)