Hingham has eyes on water system

Hull and Cohasset share both the water system and Hingham’s grievances.

As a result, Hingham officials are starting to look at purchasing its water system from privately owned Aquarion. A warrant article for April’s annual Town Meeting would authorize a feasibility study that would not only analyze how much the aging infrastructure might be worth, but also look at the possibility of buying it and litigating for the price.

“We’re struggling with failing or crumbling infrastructure, rate increases that are fairly robust, and Hingham is blessed with sitting on a tremendous amount of water. Many parts of the country don’t . . . yet we pay the fifth-highest water rates in Massachusetts,’’ said Ted Alexiades, the town administrator. “There’s an incongruity we need to address.’’

The cost of the study has yet to be determined, and public sentiment has not been formally surveyed. Yet anecdotal evidence suggests that townspeople support the idea.

“The informal response we’ve had is overwhelming support for the town to acquire it,’’ Alexiades said. “Of course, we don’t know what the price is yet. People are supportive of the idea. . . . There is enormous dissatisfaction with the high rates and quality of service, those are driving public sentiment . . . that may change when we look at the purchase price. It’s one step at a time.’’

A timetable hasn’t been set for any of the steps going forward. Much will depend on the reaction at Town Meeting, and even more will depend on negotiations with Aquarion.

Moreover, both Hull and Cohasset would have to sign on to the municipal plan, as Hingham’s water infrastructure is tied in closely with the other two nearby towns.

It’s an idea that Philip Lemnios, Hull’s town manager, already favors.

“People are pretty outraged. They are outraged at the rates, and the level of rate increases,’’ he said. “We also have one area in town where they have had five water breaks in six to eight months in the same set of houses.

“The capital reinvestment in the system has been fairly insignificant, despite what Aquarion is telling you. They are sucking a lot of money out to their stock payers . . . and they are doing it at the expense of the long-term stability of the system.’’

Hull and Hingham have partnered extensively before, not only in the new regional emergency dispatch center, but also by sharing an animal-control officer. Cohasset is also a partner in the dispatch center.

In Cohasset, only a small portion of the town uses Aquarion services; still, officials there appear receptive to the change.

“One has to be very concerned when other municipalities are making decisions about leaving Aquarion. Common sense signals a warning sign,’’ said Michael Coughlin, Cohasset’s town manager.

Cohasset is deciding whether to make the other portion of its system publicly or privately owned, as its contract with American Water expires this year.

While several towns are looking to distance themselves from private utilities, there is truly no “best’’ way for a water utility to operate, said Jennifer Pederson, executive director of the Massachusetts Water Works Association.

Although municipally owned utilities are the most common, all types of models work - whether it be a district operating within a town, part of the town’s government, or even privately owned.

Still, numerous South Shore towns have encountered problems with the private route, and despite their desire to acquire their own infrastructure, the route may be more difficult than anticipated.

Oxford has been trying to purchase its water utilities since the 1970s. Even though a 1977 Town Meeting authorized officials to pay $600,000 to purchase the utility, an agreement with then-owner Massachusetts-American Water Co. couldn’t be reached.

In 1984, a judge determined the price would be the original cost plus any shortfall in dividends paid on the stock. However, the town couldn’t appropriate the money, which was much higher than anticipated.

In 2002, Aquarion purchased the Oxford infrastructure from Mass-American, and when rates rose dramatically in 2008, the idea to purchase the infrastructure came back to the table.

“So we sent notice that we would exercise the right to buy it. Town Meeting voted to appropriate $6.7 million . . . [and] when Aquarion was notified of our intent, they said it wasn’t for sale,’’ said Joseph Zeneski, Oxford’s town engineer since the 1990s and town manager since 2007. “But it is for sale, read your charter! This has troubled me . . . didn’t they know what they bought?’’

The issue has been locked in litigation since then. Only this past December did a judge decide that the town did have the right to buy it, citing a 1904 enabling statute that established the Oxford Water Co. The courts are still deliberating the cost.

Meanwhile, Oxford will fight the latest proposed rate increase, along with Millbury, Hingham, Cohasset, and Hull. Zeneski doubts the rate hike is the result of infrastructure repair costs, but rather just another way for Aquarion to bolster its bottom line.

“If this was a system that was really a burden to them, they would jump at the chance to get rid of it,’’ Zeneski said. “That’s not what they’ve done. They are fighting to keep it because they are earning an unjustified profit on what they’ve invested here.’’

Despite complaints from several communities, executives of Connecticut-based Aquarion say they are doing an adequate job; rate increases in all of Aquarion’s communities stem from aging infrastructure, and the company values customer service.

“I think that Aquarion provides a great level of service and has a commitment to investing in the community,’’ said Harry Hibbard, Aquarion’s vice president of operations for Massachusetts.

“It’s a challenge, no matter who is running it, and we believe with the support we have in place with the company, that we’re in a great position to do so. . . . We maintain a state-of-the-art treatment facility, and maintain miles and miles of pipe, all of which require investment,’’ Hibbard said. “We have the expertise and experience to do as good of a job as we could possibly do.’’

Hibbard said Aquarion is concerned that municipalities might leave, and said the company recognizes that towns have the right to purchase their property.

Although things in Oxford are difficult, it is just at the beginning stage for Hingham, Hull, and Cohasset, he said, and nothing has been ruled out.

“We’re at a point where all of us are looking at the enabling statute and beginning to assemble the data that would allow us to evaluate what a fair price is. It’s early in the process,’’ Hibbard said.

Even as the towns work to buy their infrastructure, Hibbard said service wouldn’t be affected.

“I think that [these communities] can expect to see the same level of service or better,’’ Hibbard said. “We hear a community when they come to us and aren’t pleased with how something was handled. We act on that and approve it. We will not shirk our responsibility because the town is looking at a purchase.’’

Jessica Bartlett can be reached at jessica.may.bartlett@gmail.com.