July 20, 2020 by Carol Britton Meyer
The long-awaited date for the completion of the water system transition from Aquarion Water Company to Town of Hingham ownership is just around the corner.
"We're on target for a July 31 closing date, when the purchase will be finalized. At that time the town will be immediately responsible for operating the system," Water System Transition and Evaluation Committee Chairman James Taylor told the Hingham Anchor. "Everything has been working out, and looking the way we had hoped, for a really smooth transition for water customers [in Hingham, Hull, and part of Cohasset] and the town."
There has been steady progress all along, but especially in the past several months. The Department of Environmental Protection approved the Weir River Water System business plan; a contract was signed with Suez Water Environmental Services (SUEZ) to operate the water system; a water superintendent was hired; rules and regulations and the final purchase and sale agreement with Aquarion are in place; and the town's AAA bond rating was reconfirmed recently, which paves the way for what Taylor called "a very favorable" interest rate on the 30-year, roughly $111 million general obligation water bonds related to the purchase of the system from Aquarion.
'A great partner'
"SUEZ has been a great partner so far in the transition discussions," Taylor said. "They have a lot of experience with running water systems on behalf of municipalities. Aquarion has also been a very good partner in the process, and we appreciate their help during this time. Everyone is working collaboratively."
Other good news for customers, Taylor said, is that SUEZ interviewed and hired all but one of the current Aquarion water treatment plant employees. That employee declined the offer. "So they will be running the system just as they did before."
Looking beyond July 31, SUEZ is planning to open a walk-in customer service office -- possibly in downtown Hingham -- within the next six months. Customers will be able to pay their bills or ask a billing question in person, report discolored water, a main break, or other issue, and have their questions answered. There will also be a number to call during after-office hours -- and in the near future, a centralized website.
In the meantime, Aquarion will continue to handle the billing for the next six months, until SUEZ assumes that responsibility, and there will be a 24/7 number for customers to call in the interim.
All this information and more will be included in a letter that will be mailed to all water customers by the end of this week -- the first of a number of letters keeping customers informed.
'Smooth transition'
"The transition is going smoothly. It has involved a lot of work by many town employees, volunteers [serving on committees], and consultants to take us this far, with a focus on providing the highest-quality water and service levels expected by our customers," Taylor said.
In particular, Town Administrator Tom Mayo, Asst. Town Administrator Michelle Monsegur, and other team members have had, and continue to play, a major role. "They have gone above and beyond to make sure the transition happens, while dealing at the same time with COVID-19," Taylor said.
While the main goal of bringing about the transition has nearly been accomplished, there is still a good deal of work ahead. This includes a capital study that will begin immediately -- in cooperation with a consultant -- to perform a thorough analysis of the infrastructure, pipes, and other facets of the water system to identify their condition and help the town determine the "most appropriate" improvements in which to invest water system capital.
Same rates for first year
During the first year of ownership, a cost-of-service study will be performed to help determine how much it costs to provide service to all water system customers. This will assist the Selectmen, acting as water commissioners, in setting water rates -- which will remain the same as they were under Aquarion ownership for the first year.
"We'll be going from a for-profit model to a break-even one, where the town will only charge customers for the costs associated with running the system," Taylor said. "This study will help us identify the true cost, and potential ways to save money in order to try to keep rate increases low."
Taylor explained that all customers -- regardless of whether they live in Hingham, Hull, or part of Cohasset -- will be treated the same way.
"There's been a lot of work involved, and many details to [work through], to bring us this far, but we're really close," Taylor said.
I fail to understand the need to spend money on “branding” a monopoly. This is not an opportunity to engage in a business school “case study”. And the rates at which the bonding was issued would result in those responsible being fired if not prosecuted if this were the private sector.
Great to see the closing date approaching. Kudos to all involved in making public ownership of this valuable, essential resource and service a reality.