Author: Jonelle Jackson

ST. THOMAS—The Committee on Culture, Historic Preservation and Aging, chaired by Sen. Myron Jackson met on Monday to receive testimony on government and private owned nursing home facilities in the territory impacted by COVID-19 and consider several measures.

Commissioner Justa Encarnacion of the Dept. of Health and Incident Commander for the Pandemic Emergency Command Council noted that COVID mitigation efforts are challenged by several factors that include: high poverty rate; high percentage of our population over 65; status of our hospitals and our incomplete recovery from the two Category-5 hurricanes in late 2017; limited healthcare capacity; workforce shortages; and geography.

The Operational Planning Guide for Long-term Care Facilities was designed to prevent and mitigate COVID-19 in long-term care facilities in the USVI prior to the availability of a vaccine or treatment. It also strives to prevent the transmission of disease in facilities, reduce transmission following COVID-19 detection, act as a guide for facility testing practices. “The DOH has and will continue to provide support in the form of staffing, education, and training on infection control practices,” concluded Encarnacion.

As soon as a positive case is confirmed, additional training is conducted per infection control practices and re-testing every 3-6 days until there are no new positives found within a 14-day period. Epidemiology, lab, and supporting divisions within the DOH have been successful in testing, diagnosis and implementing mitigating efforts to ensure patients are kept safe in non-congregate and congregate living facilities.

Commissioner Kimberley Causey-Gomez of the Dept. of Human Services spoke on the impact of the Coronavirus within the two-government operated assisted living facilities in the territory. Two very prominent features of the COVID-19 policy were the strict “No In-Person Visitation” and daily temperature screenings of all staff and residents. Under the Division of Senior Citizen Affairs, all eligible seniors over the age of 60 and adults with disabilities ages 18-59 years old are afforded services and care through twelve essential programs.

The Homes for the Aged, Herbert Grigg located on St. Croix and Queen Louise located on St. Thomas, are both 24-hour residential facilities providing nursing care and support services to eligible individuals 60 years and older. The bed capacity has been greatly reduced from 40 to 25 beds for Herbert Grigg and from 29 to 17 bed for Queen Louise. “With the “No In-Person Visitation” policy, family members and other supportive individuals and groups (i.e. religious and community agencies) have the option to communicate with residents via telephone or Skype,” said Causey-Gomez.

On July 15, 2020, DOH confirmed that a Herbert Grigg Home employee tested positive for COVID-19 on the previous day. Unfortunately, on August 12, 2020 DOH confirmed test results revealed several Queen Louise Home asymptomatic staff and residents were positive with COVID. Of seventeen (17) residents tested, ten (10) returned positive results, and of twenty-five (25) Queen Louise Home staff tested, six (6) tested positive. On August 25, 2020, one (1) staff at Lucinda Millin Home tested with a confirmed positive result. All staff and residents tested were confirmed negative for Covid-19 and their status remained the same following tests done on September 4, 2020.

The following measures were approved and sent to the Committee on Rules and Judiciary for further consideration:

-Bill No. 33-0367:  Act amending title 3 Virgin Islands Code, chapter 1, section 27f, to change the composition of the Commission on Aging and its duties and for other related purposes. Sponsored by Senator Myron D. Jackson

-Bill No. 33-0364:  Act amending title 1, Virgin Islands Code, chapter 7, by inserting section 111 relating to the recognition of indigenous Indian tribes as official Indian tribes of the Virgin Islands, and title 3, Virgin Islands Code, chapter 14 by inserting section 234 creating the Virgin Islands Indigenous Indian Tribe Identification Card. Sponsored by Senator Myron D. Jackson

-Bill No. 33-0369: An Act authorizing the removal of the copper bust of King Christian IX from the Emancipation Garden and replacing it with the statue of “the Conch Shell Blower” statue and appropriating $20,000 from the St. Thomas Capital Improvement Fund for the removal and replacement of the bust. Sponsored by Senator Myron D. Jackson

-Bill No. 33-0150: An Act posthumously honoring and commending Manassah Francis for his significant entrepreneurship and service to the people of the Virgin Islands. Sponsored by Senator Marvin A. Blyden and Senator Donna Frett-Gregory

-Bill No. 33-0233: A Resolution honoring and commending Mr. Randolph “Junior” Donovan      and Mr. Kashief “DJ General Kuntry” Hamilton for their heroism in saving the life of a cruise passenger at the West Indian Company Dock. Sponsored by Senator Athneil “Bobby” Thomas.

Other testifiers present during the meeting:

Dr. Esther Ellis, Territorial Epidemiologist

Dyma B. Williams, Interim CEO of the Gov. Juan F. Luis Hospital and Medical Center

Sean Krigger, Director of the State Historic Preservation Office

Troy DeChabert-Schuster, AARP State Director of the Virgin Islands

Activist Michael Vante

1. Leba Ola-Niyi, Program Coordinator of the Pan African Support Group

Felipe Ayala, Chairman of the Historic Preservation Commission

Glenn Davis, Educator and Culture Bearer

Maekiaphan Phillips, President of Opi’a Taino

Robert Mukaro Borrero, Taino Cacique, Consultant & Cultural Advisor

Anthony Ottley, Acting Chief Executive Officer of the West Indian Company, Ltd.

Joseph Boschulte, Commissioner of the Department of Tourism

Kashief Dave Hamilton, St. Thomas Resident

Randolph Donovan, Jr., St. Thomas Resident

Members present during the meeting: Chairman Myron Jackson, Vice-Chair Javan James, Sr., Senators Alicia Barnes, Oakland Benta, Dwayne DeGraff, Steven Payne, Sr., Athneil “Bobby” Thomas and non-committee member Sen. Marvin Blyden.

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ST. THOMAS — On Thursday, Members of the 33^rd Legislature, led by Acting Senate President Myron D. Jackson, convened in a Special Session, called by Governor Albert Bryan, Jr., to receive testimony and consider amending Act No. 8329, the Matching Fund Securitization Act of 2020, amendments to the agreements with Diageo USVI, Inc., and Cruzan VIRIL, Ltd., and the ancillary agreements related to the issuance of the Matching Fund Securitization Bonds (MFSB).

The proposed measure, Bill No. 33-0372, amended Act No. 8329, specifically Title 29 of the VI Code, adding a new Chapter 24, creating the Matching Fund Securitization Corporation as a special purpose, independent and autonomous, public corporation, and governmental instrumentality.

The Body dissolved into Committee of the Whole to receive testimonies virtually from the VI Public Finance Authority (PFA), Office of Management and Budget (OMB), the Department of Finance (DOF), and members of the Governor’s financial and advisory team. Nathan Simmonds, PFA’s Finance and Administration Director, discussed the key provisions of the Act and overview of the transaction. “The Government of the VI, through the Public Finance Authority, previously sold bonds in order to provide funds for the cost of infrastructure and economic development, and to support rum production by Cruzan and Diageo.”

Currently, the U.S. Treasury collects an excise tax of $13.50 per proof gallon of rum manufactured by Diageo and Cruzan on St. Croix and shipped to the United States, and the Government receives a rebate of $13.25 per proof gallon from the excise taxes that the federal government collects (Matching Fund Receipts or Rum Cover-Over). The monies are used to pay periodic principal and interest to the bondholders, the rum companies, according to agreements executed for economic development, and the Government. This secured lockbox structure will remain in the New Matching Fund Bonds indenture with the Matching Fund Securitization Corporation replacing the PFA’s role as issuer in the old agreement.

In this new transaction, the new corporation would issue new MFSBs with a lower interest rate than that currently being paid on the Existing Matching Fund Bonds, and lower overall debt service requirements. As presented by the PFA, this would result in more of the Matching Fund Receipts flowing to both the Government and the rum companies after the debt service is paid. The increased amount of Matching Fund Receipts remaining will continue to go to the Government and the rum companies under their existing agreements.

The Corporation will acquire all of the Virgin Islands Government’s rights, title and interest to the Matching Fund Receipts to be paid to the Government by the U.S. Treasury as long as the Matching Fund Bonds are outstanding and issue the New Matching Fund Bonds and the residual certificate to pay the purchase price for the Matching Fund Receipts. The Governor will, then, direct the Secretary of the U.S. Treasury and the Department of the Interior to pay the Matching Fund Receipts directly into the restricted account created and maintained by the trustee for the New Matching Fund Bonds.

Specifically, the proposed securitization is expected to generate an additional $255 million in cash flow over the next three (3) fiscal years (2021, 2022, and 2023) at an average of $85 million per year. This increased cash flow would increase the liquidity of the Virgin Islands, and that increased liquidity would make more money available for the operation of the Government, including the funding of certain projects and priorities for the people of the Virgin Islands, at a time when COVID-19 has severely impacted our economy and revenues.

Once the transaction is completed and the refunding bonds issued, the savings derived from the refunding will be presented to the Legislature with the Governor’s recommendations for the projects to be funded.

After several rounds of questioning, the Body rose into Session, and voted on Bill No. 33-0372, as amended. The measure was approved with eight (8) votes in support, six (6) in opposition and will be sent to the Governor for further action.

Other invited testifiers present during Committee of the Whole included: OMB Director Jenifer O’Neal; Finance Commissioner Kirk Callwood; PFA Special Counsel, Miles Plaskett, Esq. (Duane Morris LLP); Bond Counsels Lisa Forcht Esq. (Hawkins Delafield & Wood, LLP), Pedro Hernandez, Esq. and Karol Denniston, Esq. (Squire Patton Boggs); General Counsel, Geoffrey Eaton, Esq. (Winston & Strawn LLP); Richard Tortora, President, Capital Markets Advisors, LLC; Kye Walker, Esq., Managing Attorney (The Walker Legal Group); and Adam Lorbert, Senior Vice President & Lead Investment Banker, Ramirez & Company.

Members present during Session included: Acting President Myron Jackson, Senators Alicia Barnes, Marvin Blyden, Donna Frett-Gregory, Janelle K. Sarauw, Athneil “Bobby” Thomas, Kurt Vialet, Oakland Benta, Dwayne DeGraff, Kenneth Gittens, Allison DeGazon, Javan James Sr., Stedmann Hodge, Jr., and  Steven Payne, Sr.

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ST. THOMAS– The Committee on Finance, chaired by Senator Kurt Vialet continued budget hearings on Thursday in the Earle B. Ottley Legislative Hall St. Thomas on the Fiscal Year 2021 Executive Budget. In the morning portion of the hearing, the Committee took testimony regarding the Office of the Governor (OOG) and the Department of Justice (DOJ).

In his testimony, Kevin Rodriquez, Deputy Chief of Staff for OOG stated that for Fiscal Year 2021, the overall proposed budget OOG is $10,966,511, which reflects an increase of approximately 7.07% over the Fiscal Year 2020 budget appropriation of $10,242,660.

He said for FY 2021, personnel costs are estimated to be $4,656,290 which represents 42.5% of the proposed budget. Those personnel costs are for seventy-nine (79) full-time positions, funded one hundred percent by the General Fund. He added that Employee Fringe Benefits account for $1,879,671. According to Rodriquez, fringe benefits cover employer’s retirement contributions, workers’ compensation premiums, social security contributions, or the Federal Insurance Contributions Act (FICA), Medicare, and health insurance premiums.

He told the Committee that the increase of the OOG’s FY2021 budget by $723,85 is above their FY2020 request and is attributed to the inclusion of the $1,277,050 appropriation for Legal Services of the Virgin Islands. He said before the Fiscal Year 2021 budget recommendation, this appropriation was part of the general miscellaneous section of the Executive Budget. Absent the inclusion of this line item, the actual budget request for the Office of the Governor has decreased by $553,199 when compared to Fiscal Year 2020.

The rehabilitation of Government House on St. Thomas, Rodriquez said is currently in progress. The work is being performed by J. Benton Construction for $4,116,082.30. This being an Actual Cost project FEMA will pay the entire cost of the renovations less the required 10% match if the project stays within FEMA’s Scope of Work. The Office of the Governor anticipates utilizing funds from the Community Development Block Grant – Disaster Recovery Program to satisfy the required matching funds for this project. Based on changes and unforeseen conditions encountered, the expected completion date will likely be extended beyond the original contract completion date of February 12, 2021.

He pointed out that the Battery, restorations have commenced. Custom Builders, LLC, won the contract with a bid of $1,131,538.94. However, the discovery of asbestos in the removal of the old floor tiles along with some other structural issues not covered by the A/E scope will necessitate a contract modification. This project will be funded by insurance proceeds. The Public Assistance grants for repairs to Government House Christiansted and the Arthur Abel Complex in Frederiksted is near to being obligated. It is a generous grant that will allow for the repair of longstanding items at both facilities.

According to the Deputy Chief of Staff Rodriquez, the strategic priorities of the Bryan-Roach Administration remain unchanged these include, continued efforts towards the fiscal and operational stabilization of our government; rebuild the public trust in government through greater transparency; ensure proper stewardship of federal disaster recovery funds and timely execution of projects; and pursue private sector driven economic development.

In her testimony, Denise George, Attorney General, said this year, the Governor, in consultation with staff and herself, is requesting the amounts from the General Fund— Personnel Services-$8,354,004.00; Fringe Benefits-$3,013,298.00; Supplies (including office supplies, operating supplies, vehicle supplies, and small tools and minor equipment)-$442,443.00; Other Services (including such things as rent, training, professional services, automotive repair, airfare, and advertising)-$5,728,577.00; and Capital Projects—Machine Equipment & Misc.-$120,000.00. The total General Fund, she added came to $17,658,322.00.

According to the Attorney General, $9,121,286.00 of the Department’s budget is funded by federal grants. Thus, the total of the Department’s proposed budget, including local and federal funds, is $26,779,608.00. She pointed out that this represents a decrease or cut from the 2020 Fiscal Year in the amount of $1,311,420.13.

She said that one of the chronic challenges facing the Department is attorney retention. Meeting its obligations under the various collective bargaining agreements will go a long way towards the Department achieving this objective. Unfortunately, she added, delays in funding step increases for attorneys who are on board has, to some extent, prevented the Department from achieving its retention goals.

According to her, once an attorney joins the Department, it takes years for the attorney to move to the appropriate step on the pay scale. Newly hired attorneys, however, are paid on the current pay scale when he or she joins the Department. This creates an inequitable situation where two attorneys may be barred for the same number of years, but the newly hired attorney receives a higher salary than the attorney who has been working with the Department for several years.

This disparity, she said does little to help morale or enable the DOJ to retain experienced attorneys. She added, to place attorneys on the appropriate step, DOJ needs an additional $125,455.00 for Fiscal Year 2021.

Thursday’s FY 2021 Budget Hearing will continue with presentations from the Bureau of Internal Revenue, Legal Services of the Virgin Islands, Public Employees Relations Board (PERB), and the Virgin Islands Labor Management (LMC).

Senators present during today’s hearing were Chairman Senator Kurt Vialet, Myron Jackson, Novelle E. Francis, Marvin Blyden, Athneil “Bobby” Thomas, Kenneth Gittens, Donna Frett-Gregory, Janelle Sarauw, Dwayne DeGraff, and Oakland Benta.

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