The Commonwealth Utilities Corp. board directed utility executives to hire Velma Palacios to the position of deputy director of electric systems\u2014but changed their minds after hearing challenges from management over this person\u2019s qualifications, and the legality of the board\u2019s directive to tell the utility whom to hire.<\/p>\n
Instead, the board voted to direct management to hire the \u201cmost qualified person\u201d as recommended by their Human Resources.<\/p>\n
CUC management has concerns, though, that there is no need for such a position. They also assert there was never a recommendation from human resources communicated to them in person or in writing.<\/p>\n
Management says the two candidates considered for the job failed to meet job qualifications.<\/p>\n
Saipan Tribune learned of \u201csignificant differences\u201d among the four-member panel set up to rate candidates interviewed for this position. However, the exact scores and who did the rating is kept confidential.<\/p>\n
It was also not made immediately clear by the board last Friday if this Velma Palacios is also IT&E\u2019s manager of engineering, and the same person who sat on the CUC board over 10 years ago with current board member Joe Torres. That board was dissolved.<\/p>\n
The directive to hire Palacios was made by board member Albert A. Taitano. He chairs the personnel subcommittee.<\/p>\n
On Friday, Taitano restated a motion from their July 31 personnel committee meeting to \u201crecommend to management and the full board to hire a Velma Palacios to position of deputy director of power.\u201d<\/p>\n
\u201cI would like to motion and rescind the word \u2018recommend\u2019 to replace it with the word \u2018direct\u2019 and I would like to motion to direct management to hire Velma for the position of director of deputy director of power.\u201d<\/p>\n
This was later clarified to state to deputy director of \u201celectric systems.\u201d Taitano\u2019s motion was seconded.<\/p>\n
Board counsel James Sirok, however, repeatedly suggested that they go into executive, or closed-door session, as they were dealing with a specific individual to hire.<\/p>\n
\u201cIf there is going to be some discussion about whether or not management feels that she\u2019s qualified for this position, we should probably do that in executive session,\u201d he said.<\/p>\n
To this point, Torres asked Sirok point blank if he was \u201csitting on our side or the management\u2019s side?\u201d<\/p>\n
Sirok said neither. He said he was trying to protect the interest of Velma Palacios.<\/p>\n
Board members chose to continue discussion in open meeting, citing that the matter was already discussed in their committee meetings.<\/p>\n
Management objects
\nDuring the ensuing discussion, acting CUC executive director John Riegel and other management officials objected to the need for the position, and whether this person meets minimum qualification levels.
\nAt one point, the management\u2019s \u201cchallenges\u201d to the board prompted Torres to say there was \u201cdiscriminatory\u201d practice in CUC against hiring locals.
\nRiegel assured the board that his recommendation has nothing to do with that.
\n\u201cI\u2019d like to move on [and vote],\u201d Torres said at one point. \u201cWe haven\u2019t seen any of our products here. We have a lot of our local products that would be able to help in this corporation.\u201d
\nRiegel told board members he looked at the need for the position at all and its history and based on that, CUC did not need that position under the current structure they have.
\nThe electrical systems position was created in the late 2000s to repair Power Plant 1.
\nHe also said the decision who to hire lies with him and that\u2019s where the selection should rest.
\nRiegel said that from his conversations with power managers, it didn\u2019t seem like the \u201cneed was there.\u201d
\n\u201cWe are creating like another level [of management], in a time we are trying to save our money,\u201d Riegel told the board.
\nTorres and Taitano, though, said managers need more support, giving the example of an \u201capprenticeship program\u201d that has not moved since the board voted for one.
\nChief financial officer Matthew Yaquinto, who has lived in six countries and worked in 10, said utilities their size usually do not have the position for electrical systems.
\nHe said for a small utility, there would be a power manager for generation and a power manager for transmission and distribution.
\n\u201c\u2026So I don\u2019t think there is a need for that position here and I am with John there. I agree with John also that we have policies in place for hiring, and if there is a directive given to John just to hire\u201d then they are violating some of their HR policies.
\nAccording to Riegel, the Human Resources file he was given said \u201cno recommendation.\u201d
\n\u201cIt was, \u2018action needs to be taken on this,\u201d he said.
\n\u201cWe had two [ratings] that are strongly in favor, and two that are strongly opposed. My recommendation is to reconvene that [selecting] body,\u201d Riegel said.
\nYaqunito explained that under the rating sheets, the two candidates had to meet a \u201ccertain level,\u201d noting that it was Human Resources who determined this level.
\n\u201cAnd neither candidate was above that level,\u201d Yaquinto told the board.
\nBreaking mandates?
\nBefore speaking again, Sirok said he wanted to be absolutely clear that he was not taking side.
\n\u201cMy concern is not directed to the individual that is going to be put in the position, but a precedent that we may be setting\u2014and that\u2019s the board directing management to hire a certain named individual.
\n\u201cThis particular position is a director position. The law\u2014our enabling statute, not the bylaws\u2014says that the executive director may hire assistant directors to be in charge of one or more divisions in the corporation.\u201d
\nHe said for the executive director\u2019s authority, the relevant statute states that the executive director can hire such employees as the board may delegate the power to do so.
\nHe said he understood that to say that the board can tell the director to hire a deputy in charge of power.
\n\u201cBut you don\u2019t say hire a Mr. A, Mr. B, Ms. C, Ms. D or E\u2014because then you are involved in the hiring process, which is supposed to be a management position.\u201d
\n\u201cThat\u2019s just the note I want to make, that\u2019s just how I interpret this particular provision in the law,\u201d Sirok said.
\nTaitano amended his motion to remove Velma Palacios and insert the \u201cmost qualified person\u201d as recommended by their Human Resources. <\/p>\n","protected":false},"excerpt":{"rendered":"
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