GOVERNOR Arnold I. Palacios wants the Commonwealth Utilities Corp. board to appoint a new and qualified CUC executive director.
In a letter date Feb. 17, 2023 to CUC board members Janice A. Tenorio, Donald Browne, Allen Perez and Frank Lee Borja, the governor said the current executive director, Gary Camacho, “meets neither the requirements in the Stipulated Orders nor the requirements in CNMI law. His contract is due to expire on or about March 26, 2023. I strongly oppose any contract extension or renewal.”
Palacios noted that as the new governor, he is now “a party to the federal Stipulated Orders directing [CUC] to reach compliance with the [federal] Clean Water Act and Safe Drinking Water Act.”
He said his administration intends to “correct CUC’s persistent violations that threaten public health and the environment.”
“Among CUC’s numerous challenges,” he added, “are the lack of a qualified Executive Director, troubling management practices and chronic noncompliance under the leadership of the current Executive Director, and the lack of a quorum among the Board of Directors.”
The governor said the “lack of a quorum impedes the CUC Board’s ability to make policy decisions, set appropriate rate structures, or approve contracts for essential services. Without a quorum, the Board is also unable to appoint an Executive Director. To reestablish quorum, I have already nominated one individual to the CUC Board, and will soon be announcing nominations for three additional members. These nominations are subject to confirmation by the CNMI Senate as required by law. I am committed to appointing Board members who understand the importance of vetting and hiring a qualified Executive Director, and who will prioritize improvements in the delivery of utility services to the people of the CNMI, and focus CUC’s efforts on fulfilling the requirements of the Stipulated Orders.”
The governor noted that his predecessor, Ralph DLG Torres, petitioned federal Judge David O. Carter to approve a waiver of the qualifications mandated by the Stipulated Orders in order to allow Camacho to assume the position of executive director.
The federal court “approved a joint stipulation, in which the United States government indicated that it did not approve but would not object to Mr. Camacho’s appointment. The joint stipulation did not modify the Stipulated Orders,” Palacios said.
“By this letter,” he added, “I am formally notifying the CUC Board that I oppose any continuation of the waiver of qualifications for the CUC Executive Director position. The joint stipulation entered in 2017 does not have my support. Further, I concur with [the Environmental Protection Agency’s] recent letter to the members of the CUC Board objecting to the renewal of Mr. Camacho’s contract and the continuation of any such waiver.”
Once the executive director’s position is vacated and as the Senate confirmation process moves forward on the governor’s nominees to the CUC board, Palacios said its members “must take appropriate steps to ensure that the position of Executive Director is filled by a qualified person. Given that recruitment of a qualified and permanent Executive Director may take several months, an acting Executive Director should be appointed who meets the minimal qualifications as set forth in Stipulated Order No. 1.”
Over the years, Palacios said, “CUC has demonstrated its ability to attract qualified candidates for key positions required by the Stipulated Orders, but has been significantly challenged in its ability to retain professionals. A qualified, properly vetted Executive Director who possesses the management and communication skills to effectively lead CUC is arguably the most important position of all, and crucial for the retention and satisfactory performance of all other personnel.”
Palacios said achieving “compliance with federal mandates and providing an efficient, well-run utility system and clean, safe and drinkable water for the people of Marianas are among my administration’s highest priorities. It is my desire to see a management team of professionals at CUC that will work collaboratively with federal and local stakeholders to address systemic issues that have plagued CUC for many years. Terminating the joint stipulation and paving the way for a qualified Executive Director to take the helm at CUC are critical first steps toward these goals.”
Variety was unable to get a comment from Camacho.
According to Variety files, the minimum requirements for the executive director include a master’s degree in management, engineering, finance or public administration or, in the alternative, a bachelor’s degree in engineering and registration as a professional engineer pursuant to the National Council of Engineering Examiners standards in the civil, mechanical or electrical branch.
In addition, an applicant must have at least 10 years’ experience as senior management in wastewater, drinking water and/or power utility.
Arnold I. Palacios
