PSS to move out of Fund building

The Public School System is now searching for new building space for its central offices based on the request for proposal it issued last week.

This PSS refused the proposal offered by the NMI Retirement Fund—the owner of the building it is renting in Capitol Hill.

In a special meeting Friday, Fund officials and the board of trustees expressed their surprise on the move of PSS, disclosing that the agency was not notified about PSS’ decision to move out of its building.

But the board of trustees was firm in its decision to only approve a new lease for PSS if all arrears and required deposits are settled by the system.

Saipan Tribune learned that PSS has incurred unpaid lease and power obligations to the Fund totaling $278,625 as of April 30 this year. The lease term has expired on the same date but was extended for another two months under the same rate.

However, board chair Sixto Igisomar, in his recent letter to education board chair Marylou Ada disclosed that after the two-month extension, “any hold over will be on a non-consensual basis and will be subject to increased rent in accordance with the terms of the lease.”

Fund officials revealed that PSS is approved $1.33/ft rental rate under the existing agreement. PSS, it was disclosed, has appealed for a reduction of rent to $1.00 per square foot per month for 12-month term.

Igisomar said that the trustees have agreed to the rate reduction proposal but established conditions for PSS to comply. These include paying in full the outstanding obligation of $278,625; upon execution of the renewal, PSS shall continuously maintain a security deposit equal to three months at the new rental rate; and should also maintain a $40,000 deposit for utilities, or establish a separate account with Commonwealth Utilities Corp.

“We are unwilling to renew your lease on any terms unless and until you first bring your account current, and that all payments received will first be applied to amounts past due,” said Igisomar in his letter to the education board, adding that based on the lease agreement, absent its consent to holdover, PSS is subject to holdover rent equal to 125 percent of the current rate of $1.33 per square foot. The “holdover” expires on June 30.

The Fund admitted Friday that no response was received from the board regarding this decision.

PSS finance director Richard Waldo and the system’s procurement officer Robert Florian confirmed to Saipan Tribune the request for proposal issued by PSS on June 15 and the intention of the system to relocate central offices to a bigger but cheaper cost.

Waldo said PSS is looking into paying portion of the arrears within the month.

Meantime, the Fund trustees have agreed to submit a bid for the PSS announcement with the same rate and conditions it proposed to the education board. The board also adopted a request for proposal for the soon-to-be vacated space.