Proposed water system purchase fuels discord in Oxford

Proposed water system purchase fuels discord in Oxford

By Craig S. Semon TELEGRAM & GAZETTE STAFF
csemon@telegram.com
OXFORD — A town meeting article asking voters to approve an estimated $2.7 million as part of the purchase of Aquarion Water Co. continues to stir up debate.

Officials discussed the issue at a meeting of the Board of Selectmen Tuesday night.

Voters at the annual town meeting May 7 will consider spending $2.7 million toward the purchase of the water system. At the annual town meeting in 2009, voters appropriated $6.7 million to fund the purchase.

If the additional funding article fails in May, it could be brought back again in October, Town Manager Joseph M. Zeneski said Tuesday night. Mr. Zeneski said the town meeting vote in 2009 authorized the purchase.

"It seems to me the only way out is (for Aquarion Water Co.) to sell it because they're locked in with the town," Mr. Zeneski said.

Selectman Michael Voas said the town voted in 2009 to purchase a $6.7 million water system, not a $9.4 million water system. He said if the article is beaten handily at annual town meeting, it is the will of the townspeople not to buy it.


"We've been talking about this since 2009," Mr. Voas said. "Why don't we have every ... number taken care of at this point?"

Mr. Zeneski said even if the town had $9.4 million, Aquarion would not rush to accept the town's check, because every quarter, there are more profits in the company's pocket.

Referencing operating budget figures provided by Department of Public Works Director Sean Divoll, Mr. Zeneski and Mr. Voas disagreed on the cost to run the water system. Mr. Zeneski said the town does have the money according to Mr. Divoll's numbers, while Mr. Voas said it doesn't.

Mr. Divoll said last week that only customers of the water system would pay for the water system, and no taxpayer money would be affected. He said the vote to purchase was done in 2009. "It was a good deal in 2009; it's a good deal today," he said last week.

Mr. Divoll also said the town had qualified for a U.S. Department of Agriculture loan at 4? percent, with a 40-year payback, allowing residential customers to save about 15 percent per year on their water bill, including infrastructure improvements.

In addition to the DPW director's numbers, Mr. Zeneski suggested town voters look at Aquarion's receipts and expenditures report for 2013.

"Sean (Divoll) has given you details. Aquarion has given you mush. Look at it," Mr. Zeneski said. "Aquarion gives you nothing. You want to stay with Aquarion, who gives you no information, or look at our numbers? It's who do you trust, I guess."

Selectman Dennis E. Lamarche said Aquarion won't give the town honest numbers, and, in turn, Mr. Divoll can't make an honest comparison.

"Everybody wants a comparison but we can't get realistic information from Aquarion," Mr. Lamarche said. "They're going to lie as far as they can lie."

Selectman Jarred J. Mahota said there's a lot of money at stake and the board just wants to make sure all the information is in front of the voters.

"We want everything to be upfront," Mr. Mahota said. "This is what it's going to cost us. This is really what the rates are going to be. That is all we're asking and that's all we're trying to do."

Addressing Mr. Mahota's wishes, Board of Selectmen Chairman John G. Saad said that's simply not going to happen.

"If you're going to expect that you're going to get this right down to the penny, that ain't going to happen because we never ran a water company before," Mr. Saad said. "Why is it that most of the communities (water systems) across this commonwealth are operated by municipalities and districts? It's because you have total control. When you have a complaint, you're talking to a board of commissioners that are ratepayers, taxpayers."

After voters at the 2009 town meeting of 2009 appropriated $6.7 million to fund the purchase, Aquarion and the town could not agree on a price and went to court. In December 2012, Worcester Superior Court Judge David Ricciardone ruled that the town was entitled to buy the local water system, and in December 2013, Worcester Superior Court Justice Daniel M. Wrenn ruled that the town would have to pay an $8.12 million purchase price. He said the actual cost of the water system was $5.97 million, but added $2.15 million for Aquarion stockholders.

Contact Craig S. Semon at craig.semon@telegram.com. Follow him on Twitter @CraigSemon