Next step of progress: Selectmen approve agreement with water system operator

Water Company Transition
 June 19, 2020 by Carol Britton Meyer

In what Selectman Mary Power called "another significant milestone" in the transition of the water system serving Hingham, Hull, and part of Cohasset from Aquarion Water Company to Town of Hingham ownership, the Selectmen -- acting as the Board of Water Commissioners - reviewed and approved the 100-page operations and maintenance agreement between the town and the new water system operator last night, sealing the deal. The targeted transition date is July 31.

Earlier this year Suez Water Environmental Services (SUEZ) was hired to fill this role, subject to the execution of the contract that was approved last night. Hull Director of Wastewater Operations/Assistant Director of Public Works John Struzziery was involved in the process. The town owns the water system and is responsible for all repairs.

"SUEZ is eager to get started," Power said. "We've been having weekly calls with them for a couple of months. With the signing of the agreement, SUEZ' "will kick into high gear" -- with the agreement effective today, June 19. SUEZ's official start date as water operator will be Aug. 1.

In the meantime, SUEZ plans to interview all current Aquarion employees for possible positions with the company, to provide continuity.

The process was complicated, Power said. "There was the potential for a lot of things to go wrong, but thanks to [all involved] the process was flawless, and we arrived at a mutually beneficial arrangement."

SUEZ will be paid $4.7 million in the first year of the five-year contract, with adjustments for inflation in the next four years. There's an option to extend the contract for an additional five-year term.

The $4.7 million figure includes providing billing services. SUEZ plans to open a customer service facility in Hingham. New phone numbers will be shared with ratepayers at a later date. "There will be a public information [campaign] over the next six weeks," said Town Counsel John Coughlin.

Jason O'Brien, speaking for SUEZ during last night's teleconference meeting, referred to the negotiations as "a great collaboration between us and the town" to get from the RFP to what he called a "great contract for the town and SUEZ. We're excited to start our partnership with the Town of Hingham."

The next step is to hire a water superintendent, to whom Suez will report directly on a day-to-day basis.

Yesterday the position of Water Superintendent/Managing Director was posted on the town website, with a salary range of $108,525 to $136,705.  The superintendent is responsible for the oversight and management of the water system.

The agreement comes on the heels of the Town of Hingham receiving word earlier this month that the Massachusetts Department of Environmental Protection approved the Water Supply Business Plan for the recently-named Weir River Water System, without conditions.

Power acknowledged the entire team who worked on the contract, with special recognition to Town Administrator Tom Mayo and Asst. Town Administrator Michelle Monsegur "who worked countless hours on the RFP and the resulting process. Their knowledge and professionalism have been critical in getting us to this point tonight," Power said.

She noted that "the cost of this contract fits within the town's projections. The contract bids came in a bit higher than expected, but that will be more than made up for by the lower debt service due to favorable interest rates."

Water rates are expected to remain the same as they are now for the first year.

 

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