April 28, 2020 by Carol Britton Meyer
The transition of the water system serving Hingham, Hull, and part of Cohasset from the Aquarion Water Company to Town of Hingham ownership could be complete by July 1.
Last night the Water System Transition and Evaluation Committee heard an update during a teleconference meeting on proposed revisions to the working draft of the 56-page "Hingham Water System Water Supply Business Plan" that is required to be submitted to the Massachusetts Department of Environmental Protection for approval. This document is posted at https://www.hingham-ma.gov/DocumentCenter/View/9895/DEP-Water-Supply-Business-Plan-Working-Draft-April-20-2020.
"A lot has transpired since our last meeting in December," Chair Jim Taylor said. "I'm glad to be reconnecting once again now that there are signs of progress with the transition."
Consultant Mark White of Environmental Partners went over details of the draft business plan, which contains five sections: Administration, Basic Planning, Financial, System Description, and Operation Maintenance.
"Now we have a working plan that is nearly complete and ready for submission to the DEP pending selectmen, transition and evaluation committee input, working closely with Town Administrator Tom Mayo, Asst. Town Administrator Michelle Monsegur, and [consultant] Ryan Trahan of Environmental Partners Group" to fill in the missing pieces.
"We're looking forward to rolling out a new identity and brand," Taylor said. "We're working on a plan as to how customers will be serviced and billed, how to get information out to ratepayers about aspects of the transition, and other details."
Earlier this year the Town of Hingham hired a new operator, Suez Water Environmental Services (SUEZ) -- subject to the execution of a contract -- which is part of the process of transitioning to full ownership following Town Meeting's decision to purchase from Aquarion the portion of the system that serves the three towns. A representative from Hull was involved with the process. SUEZ will be responsible for all billing activities.
"In our capacity as water commissioners [the selectmen] will be voting on the contract with SUEZ in a public meeting within the next few weeks," said Selectman Mary Power, who is the board's liaison to the committee.
The water system will be run as an enterprise fund (meaning that it will be self-supporting), which at this time shows a $2.3 million surplus, which will serve as an emergency reserve. By law these funds must remain within the water system.
According to the Hingham Board of Selectmen (in their capacity as water commissioners) water rates will remain the same as they are now for the first year of operation under the newly-named Weir River Water System. About the same amount of revenue will be collected under town ownership, but the costs will be lower because there is no obligation to shareholders, town officials say.
For the first year of operation, the system will utilize the Aquarion water rate structure currently in place. During that time Hingham will conduct a cost of service study that will inform future water rates (both amounts and rate structure).
The town intends to perform a comprehensive evaluation of the water system during the first year of operation to identify capital needs in Hingham, Hull, and Cohasset -- taking into consideration Aquarion's capital plan that's already in place -- in order to develop its own capital improvement plan.
The intention is to spend $250,000 a year through the enterprise fund for systemwide capital improvements and to bond a minimum of $2.7 million a year -- with a five percent increase every three years -- for additional capital projects -- with no taxpayer impact. The town will borrow the money, with all associated costs paid for through the enterprise fund. The debt service includes $114 million for system acquisition.
There's a chance that planned short-term borrowing can be replaced by long-term borrowing at a significant savings due to the low interest rates associated with the current economic downturn.
A water superintendent will also be hired within a salary range of $109,000 to $137,000, along with a part-time support staff member, a GIS (Georgraphic Information System) coordinator, and seasonal inspectors who will support water main replacement projects. SUEZ -- in accordance with the water operator Request for Proposals issued by the town that placed a high priority on considering current water system employees for positions within the new system -- will interview all current Aquarion employees.