‘Legislature should come to CUC’s aid’

Acting Senate president Arnold I. Palacios (R-Saipan) is asking his colleagues to act now to help the Commonwealth Utilities Corp. The veteran lawmaker said the 19th Legislature already knows what CUC’s problems are but have been slow to act. He said the island’s dilapidated water system is one of CUC’s primary problems.

“It would have been appropriate for us to put some resources to CUC. Put your money where your proverbial mouth is. Help CUC other than just doing oversight hearings and putting them on the spotlight,” Palacios told Saipan Tribune.

He added that he was one of the legislators who have been advocating for a financial package to address CUC’s concerns. “We already know what the issues are, knowing that, we should at least put up something.”

“I know that [CUC] tries to access funds from EPA (U.S. Environmental Protection Agency) grants but it would be nice for us to put together a nice package, even $500,000 of matching funds that would show the federal government and EPA that we are also serious in finding solutions,” said Palacios.

“Regardless of our limited resources, we’re willing to put our limited resources to good use. Into something to help address the issues and problems affecting CUC.”

He said the issue on the sewage system also came out in an earlier oversight hearing after they asked CUC on a number of the permits they issued for big developments in the northern part of Saipan.

“They [CUC] specifically said that they needed to do major renovation and retrofitting of the sewer treatment plant in Sadog Tasi,” said Palacios, who added that Kensington Hotel and two other developments would soon generate wastewater.

Kensington Hotel opened last July, while Best Sunshine International, Ltd.’s Grand Mariana Casino & Hotel is tentatively set to open in early 2017. Ocean Vista Resort is currently being constructed on Capitol Hill.

Palacios said CUC’s wastewater facility needed to undergo major renovation. “[But] what are we doing, are we going to wait until the sewer starts backing up to GES again. Sometimes you forget these things.”

Infrastructure tax
Palacios said the Saipan and Northern Islands Legislative Delegation should also put the Developers Infrastructure Tax to good use where it should be allocated to a particular village where an infrastructure is being built.

He said the SNILD has decided to use the money to fund other projects. “Don’t put the money collected and put it somewhere else that won’t be affected by the impact. It was supposed to mitigate the impact in the immediate community. We’re diverting funds from intended purpose.

“What the delegation did was took it and funded other projects aside from the impact of the infrastructure being developed in the immediate vicinity and that was my biggest concern. We know for a fact that we’re facing water issues and these developments would have an impact.”

He said Public Law 8-23 or the Developer Infrastructure Tax Act of 1993, “specifically tells us that if the government can’t mitigate the impact, then the developer would pay for it through the tax.”