Sewer system contract hits snag

Thursday, November 18, 2004

By DAVID REID 

http://www.masslive.com/chicopeeholyoke/republican/index.ssf?/base/news-7/1100767904282490.xml

dreid@repub.com

HOLYOKE - By yesterday, negotiators for the city were awaiting a response from Aquarion Water Services on a 20-year contract for the company to design, upgrade and operate the city's sewer system.

Copies of the draft contract were given last week to the City Council, Mayor Michael J. Sullivan and members of the Board of Public Works. The board must vote on the contract, although the mayor has sole authority to approve it.

Under the proposed deal, the city would pay for up to $24 million worth of physical upgrades to the sewer system. Aquarion would operate the plant in compliance with federal mandates to stop releases of sewage into the Connecticut River.

A newly formed group called Holyoke Citizens for Open Government has demanded access to the final contract, six weeks to review it and a public hearing designed to solicit comments.

The group met Monday, drawing about 70 people, including several city councilors who oppose privatization.

High-priced consultants hired by the city two years ago analyzed the public-private deal and concluded city rate-payers would save up to $8.6 million over 20 years if Aquarion does the work instead of the city.

Public Works Superintendent William D. Fuqua, who has worked with the consultants and favors the deal, said delays finalizing the contract have been frustrating.

He described the draft contract as "a pretty complete version."

But Fuqua said there are several areas upon which the city and the company disagree. While declining to detail those areas of dispute, he said they are critical to the city's analysis of the comparative costs of rebuilding and running the treatment plant.

"I wanted it done last week," said Fuqua. "It's been frustrating because it's stopped us in our tracks."

Mayor Sullivan said he has seen the same incomplete document that city councilors have and said he is eager to see the negotiations conclude.

Meanwhile, the Board of Public Works has extended the public comment to at least Nov. 29, with Chairman Joseph E. Morrison saying he expects a further extension.

The board also voted last week to raise the sewer rate from $1.95 to $3.60 per 1,000 gallons.

City Council President Joseph M. McGiverin said yesterday he didn't even look at the draft contract after Fuqua told him there were seven areas of disagreement, all of which could affect the bottom line.

"I sent it back," he said.

McGiverin, who served on an advisory committee to analyze Aquarion's sole bid in June, also said a city ordinance requires the council get two weeks' lead time on any contract before it can take a vote.

He also said the federal government could reimburse the city for up to 55 percent of its costs complying with federal clean water mandates.

"The trouble is," he said, "they haven't appropriated any money."