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Water Authority Tells Councilors It Needs Cash — Or Else

Bristol County Water Authority officials told town councilors from Bristol, Warren, and Barrington that the agency will run out of cash for operating expenses by the end of next year without more revenue.

 

 

UPDATE, Dec. 23, 12:30 pm: The BCWA presented a plan that amounts to a 31-percent increase over the next five years, according to East Bay Newspapers.

The Eastbayri.com website quoted state Rep. Raymond Gallison as calling the Authority "the Grinches that stole Christmas."

Original article, Dec. 20, 10 am:

The Bristol County Water Authority is in bad financial shape.

Pamela Marchand, executive director of the water authority, delivered that message to the town councils of Bristol, Warren, and Barrington on Wednesday evening, Dec. 19, at Barrington Town Hall. 

The Tri-Town Meeting was set up by the water authority to brief the 15 councilors on its new strategic and financial plans, and its need for a double-digit rate hike for next year. That rate hike will be explained at a public hearing for ratepayers tonight at 6 at Mt. Hope High School

“We’re not in a good financial situation right now,” Marchand said. “We will run out of cash by the end of next year” without a significant boost in revenue. 

Marchand explained after the meeting that she was referring to cash used to pay operating and capital expenses. The water authority still has millions of dollars set aside in reserves to pay off bonds. But that cash cannot be used for day-to-day expenses, she said.

The town councilors also learned Wednesday that the financial situation might be even a bit worse than Marchand explained. Two representatives from the Anawan Club in Rehoboth, MA, informed the councilors that the club filed a lawsuit against the water authority in Superior Court in Taunton, Mass., on Tuesday, Dec. 18. 

The club, which has had an agreement with the water authority for water in the Shad reservoir for decades, is suing the authority for approximately $300,000. The club said it is owed that amount of cash for maintenance and repairs to the dam that feeds the Shad pipeline.

The costs have accumulated over 18 years, and through mounds of correspondence with water authority officials, according to the club representatives. Anawan filed the lawsuit after being unable to reach a settlement agreement with the water authority over the costs.

Marchand spent most of the meeting outlining the water authority’s new strategic plan, which was crafted based on a “situational analysis” that shows an aging infrastructure, a single water source, declining demand for water, and outdated management systems. 

The board has set goals, therefore, to maintain a secure source of high-quality water, address infrastructure that is 100 years old in some cases, improve management systems, ensure financial stability, and improve customer relations. 

“Those goals are all interrelated,” Marchand said. “They must be met together.”

The water authority plans first to secure a backup water supply by building a pipeline through East Providence to Pawtucket, which can supply all of Bristol County’s water if necessary.

But that will take some political muscle to “modify” the Bristol County Water Act, she said, which requires the authority to maintain its supplies and facilities to Massachusetts. 

The authority then wants to start making upgrades to pump stations, water tanks, the meter system and 60 miles of water mains, including a main that runs under Maple Avenue in Barrington, over the next 20 years.

“We’re running out of time to do that before we see water quality issues,” Marchand said, referring specifically to cast-iron mains that must be cleaned and lined of deposits.

All of the above requires a boost in revenue, which has been dropping because rate payers have been conserving water. The average rate payer in Bristol County uses 41 gallons of water a day, far less than the state’s goal of 65 gallons a day, she said. 

The authority already has reduced costs, Marchand said, by cutting debt service, negotiating a favorable contract with the union and reducing retirement expenses. All that remains is to raise rates – by 12 percent next year and 4 percent a year on top of that for four more years.

“I guess we don’t have the water system we thought we had,” said Warren Town Councilor Joe DePasquale. “Now we need a big increase.”

Related Topics: Bristol County Water Authority, Warren Town Council, Water use rates, and bristol town council

marina peterson

11:32 am on Thursday, December 20, 2012

Where to begin??? It appears that, at the advice of their attorney, the BCWA has decided not to settle their obligation with the Anawan Club. Kerching!!!

For the BCWA to NOT tape this important meeting so that ALL of the ratepayers could view it online is unfathomable! Our taping committee was assured that the taping would go on after they advised us that they wanted to look elsewhere for this service. At this time of year, when everyone is very busy with family and the holidays, I believe that they were counting on a poor attendance last night. There were about 6 people there that were non-related to the meeting.

At our forum two years ago we talked about the cow manure getting into the water (the famous slide of the cow on the hill) and explained how it would be more economical to purchase water from other sources and have the plant be a distribution point. This was exactly the plan stated by the executive director last night, including the reference to the cow manure!

She also said that there will be no layoffs and that people will be cross-trained. The new union contract that she negotiated prohibits layoffs and also stipulates that if an employee is re-assigned to a lesser paying job, he/she gets her same rate of pay.
"Modifying" the Bristol County Water Act should be interesting. How do you take funds that were voted on by the people for one purpose, and redirect them to something else?

Rate hike hearing is tonight, 12/20 at Mt. Hope HS 6:00PM.

Alex

5:53 pm on Thursday, December 20, 2012

28% RATE HIKE OVER 5 YEARS. FOR DAY TO DAY EXPENSES ARE YOU KIDDING ME.

Bear401

1:32 am on Saturday, December 22, 2012

All utility companies have this same scam going. They all give their customers tips on how to save. Buy this bulb, use this shower head, etc, etc, etc. Then once they get everyone saving they raise the rate because customers are using less? The PUC is part of this little scam too. You end up paying more for using less & the utilities end up getting more for putting out less. Scam Scam Scam

Bob Venice

5:23 pm on Saturday, December 22, 2012

Any comments about their meeting on Thursday. I wasn't able to make it, but I would appreciate someome filling me in.

Bob Venice

10:02 pm on Saturday, December 22, 2012

Gina, than you for the information. After reading it I bcame ill.
1. Pam Marchand, no cut contract.
2. Unon, no layoff contract. Pam Marchand states that the contract was good!
3. Sandra Mack rehired. No bids? Sounds like a no cut contract.
4. Two more workers for $100,000 a piece. Is this also no cut contracts or is the purpose of the hireing to leave Pam Marchand with very little work?
5. Not one elected official from Warren at the meeting. Scarry!

New BCWA Motto, NO CUTS, MUCH GLORY.

no regr allia b

3:03 am on Sunday, December 23, 2012

Yep led down the primerose path yet again, only to end up at the sewer outlet known as the BCWA "CashCow" Inc.

BCWA stands for Because Cash Washes Away. They sure as heck spend it hat way.

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b kcaj

9:05 am on Sunday, December 23, 2012

Congratulations Jack! You managed to make your first negative post about the water company without bashing the unionized workers or criticizing the union contract-you must be feeling charitable for Christmas.

Gary Morse

10:12 am on Sunday, December 23, 2012

BCWA is asking for a 31% rate increase over the next five years. The facts supporting the needed rate increase are based largely on trust from the community that the money will be spent on ratepayers behalf, and not on BCWA insiders, as has been their history.

BCWA is now extending an "olive branch petition" not only to rate payers, but also quietly to the RI General Assembly. There is $6.9 million dollars in funding that BCWA is attempting to retain that will require an amount of trust from state taxpayers, and also the RI General Assembly.

In 1993, the Bristol County Water Supply Act was codified into RI law on a basis that the state would get something in return for handing over $16.1 million in state funding to BCWA. The $6.9 million is over and above the previously received $16.1 million

Through 19 years of legal maneuver by BCWA, the state got nothing for their investment.

BCWA just reappointed their attorney, and will march to the state house with a petition that they can now be trusted.

Is the BCWA Board indifferent to common sense?

DownTown

11:12 am on Sunday, December 23, 2012

The three towns need to step in, dissolve the BCWA and hand over the assets to the PWSB.

If the local politicians can't see that customers are being swindled then they are in on it.

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no regr allia b

12:03 pm on Sunday, December 23, 2012

Yep got that right Downtown. Get rid of it all.

DownTown

12:30 pm on Sunday, December 23, 2012

People are using too little water so rates must rise but then they will give discounts to people who use less water?

Are ratepayers here so stupid that they will swallow that? No.

brian m

5:23 pm on Sunday, December 23, 2012

Marina, could you read the union contract and post the truth, not made up fiction that you love to post. Also you didn't post the truth about the taping of the meetings. You been crying wolf to much people don't know when your telling the truth

no regr allia b

6:30 pm on Sunday, December 23, 2012

Well Mr. Brian Mellor aka (union President) Do you read your own contract? Do you have a link to the taping of that meeting Marina is talking about? The layoff clause is true as well as the temp pay she quotes. The only one having trouble as usual with the truth is you!! Naturlly no facts.

BCWA 2012 Union Contract

Section 30 Lay-off

It is hereby agreed that, during the life of this contract, employees with twelve (12) years of continuous service ot hired prior to May 9, 1987 will not be subject to layoff. Employees with ten (10) or more years of service on May 8, 2000 are no0t subject to layoff during the cycle of this contract.

That = 27 Employees hired before 2000 and 13 of those hired before 1987

Section 14 Temporary Transfers

If employees are temporarily transferred from the department in which they are employed regularly to another department paying a lower wage, there shall be no reduction in wages; and, if employees are temporarily transferred to other jobs or departments paying higher hourly rates, they shall receive such higher rates while so employed. Any employee may be transferred to another position for a period of time not to exceed six (6) months. Temporary transfers of six (6) months will not apply when the transfer is to replace an employee who is absent because of illness or injury. An employee on a temporary transfer continues to accumulate seniority in the department where he or she is regularly employed.

no regr allia b

6:51 pm on Sunday, December 23, 2012

Hmmmm Wonder if there is some secret "Homeland Security Contract" Like the Janitor one the last time. Please enlighten us oh wise Union President lol.

brian m

9:49 pm on Sunday, December 23, 2012

Jack, First of all you don't know the number of union employee's. If you know how to read, read the contract as there are employee's subject to lay-off. You must be having tea with Marina because both off you can't gasp the truth. You don't understand the contract and you claim to have knowledge of contracts.

brian m

9:53 pm on Sunday, December 23, 2012

Jack can you tell us what firefighter was drinking alcohol on the job and also what firefighter was escorted off the base by security.

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no regr allia b

10:22 pm on Sunday, December 23, 2012

Gee brian I do not know what that has to do with this story. Please provide names and any proof you have to the proper authorities. If you wish you canalways post it right here to I guess, because if you are insinuating me I can always use another house lol.

On the contract, why should I even trust anything you say when I word for word posted those section of the contract? You are the Union President right? Please explain those sections and how many people cannot be laid off under this 2012 contract. Is there a differen one then the one I have from public records because that would be illegal!!

brian m

10:39 pm on Sunday, December 23, 2012

Jack, you haven't answered the question? Do you know who was involved? Were you taken off patch? Jack I don't have to explain anything to you , I know what the contract reads I guess you don't. Also I hope your new house has better water pressure,

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no regr allia b

11:24 pm on Sunday, December 23, 2012

Oh making fun of a ratepayer who has low substandard service huh. Well thanks for the cut and paste on that. Will be happy to bring that to the Board, Councils and Management of how thier employees, particularly you Brian as a rep of the employees.

Just goes to show how you have no respect for the ratepayers but are happy to take their money to fund your huge pay and benefits. wonder how long you will leave that up before you figure out you should not have typed it lol.

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no regr allia b

11:30 pm on Sunday, December 23, 2012

If you want a record of what I did for the last few years at my job, you will have to file a FOIMA form with the Inspector Generals Office in Washington DC. Tell them you want all the information you can get on a "Whistle Blower". Which I was very proud to be.

Good luck getting sealed records by the US AG. lol

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no regr allia b

11:32 pm on Sunday, December 23, 2012

On the other hand. How about you stay on topic for once, rather than try spinning to everything other than the topic being discussed. That being the BCWA you work for.

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no regr allia b

11:35 pm on Sunday, December 23, 2012

Still waiting for the link to the video of that meeting by the way?

brian m

10:41 pm on Sunday, December 23, 2012

Jack is there a reason why your using your name backwards?

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no regr allia b

10:53 pm on Sunday, December 23, 2012

And that has to do with what. Look Mr. Union president. If you are going to complain about people discussing the contract. Then accuse them of not reading it when they post the exact wording and section. Don't you think your post should address that since you are the ne who said what was posted was wrong?

Why do you only use "m" What does that have to do with anything just like my name backwards? Nothing. Want to play kid games, do it with someone else. Either reply to you being proven wrong on the article and post at hand or go to bed or something.

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no regr allia b

10:54 pm on Sunday, December 23, 2012

Oh and no reason just like the way it looks. Not like anyone does not know it lol

Joe Sousa.

6:54 am on Monday, December 24, 2012

This may be a crazy question but has the water authority ever considered purchasing water from Fall River ? Tiverton uses their water in the north end They have extra capacity.

The City takes its water from two protected sources, the North Watuppa Pond and the Copicut Reservoir.

The City owns both reservoirs, along with much of their watersheds. No activity is allowed on these 8,500 acres that would endanger the high quality of the City’s raw water supply.

no regr allia b

11:09 am on Monday, December 24, 2012

Joe Our water is now 100% from Providence. The BCWA is no more than a pumping station masquerading as a water company. problem is not where we get it from its a BCWA out of control "cash cow" breaking the back of ratepayers in the tri-town area and taxpayer's in the whole State with an enormous liability.

It is a dinosaur that should have been put out of busines and taken over by the State decades ago. Foolishly 3 small towns consisting of 50,000 customers total thought the were Bane Capitol without the expertise, financial resources or just plain business smart could run it. They failed enormously and will not like all politicians admit they were wrong.

Bob Venice

11:54 pm on Monday, December 24, 2012

Jack , I usually agree with both of you on many topics, but the one that you are having with Brian Mello makes no sense. All Brian can do is tell the BCWA what the union wants in the contract. It is the BCWA that can either say no or yes to the demands. If the BCWA was stupid enough to let the union have what they wanted, then God Bless the Union and to hell with the BCWA. I stated before that I never worked as a union employee, and I have seen over the past ten years unions taking all kind of cuts, at contract time. They either take the cut or go on strike. They lose either way. If you or any other citizen doe's not like the contract, then blame Pam Marchand and the authority for letting the union have what they wanted.

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no regr allia b

3:56 am on Tuesday, December 25, 2012

Disagree Bob except for the part on management past and recent. Well you can blame management equally blame the Union leadership who for years in public Unions have taken the taxpayers over the coals. Now that the unsustainability has come, they cry a river.

Why you say God Bless the Union when it is the taxpayers and ratepayer they and management screwed over is beyond the pale. This is not the 30's. Brian is also missleading you on how much they gave up. Look at past contracts and compare them to this one and you will see why the BCWA is bankrupt, and cannot produce water for decades now to meet the needs of the area at all.

Public Unions and management are suppose to work in tandem for the good of the people. They work for me and every other ratepayer/taxpayer. We the people own the Company not Brian or the Director.

Ask Brian to list exactly what hardships they gave back. Because there are none. Big difference between a public Union, Private and Federal Unions. Nationwide the problem is public Unions scams come home to roost. The BCWA is no different. The payroll in 2009 was almost 2.5 million per year not including benefits. Compare that to any other water company with 34 employees. You can't because they are known as top dog in this State because of management and gone and union gone wild no-one else is even close.

Private Unions totally agree with you, but they are not the same by a long shot Bob.

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no regr allia b

4:12 am on Tuesday, December 25, 2012

In anycase Bob I am not ragging on you over this. What you may have not seen is that I merly posted exact wording from the current contract when Mr. Mellor said it was not true what Marina said.

What does Mr. Mello do then. He starts name calling the same way he does at BCWA meetings from the audience when a citizen trys to speak or he insinuates threats against the members of the public at meetings as he has done in the past. He uses the Union thug book very well indeed. That is not what Unions are about or their mandate. The mandate is fair and equal pay for a fair days wages period. Not rape the ratepayers.

You have to understand Bob the the BCWA is the ratepayers/taxpayers. Been blaming the board,Union, Town Councils, State Politicians Directors etc for years and years now. I want it shut down and out of business as far as the tri-towns are concerned. Let the State take control of it. It is nothing more than a cash cow that has gone on way way to long with blame on the Union, Management and the towns totally.

Were you happy with studio 38 Bob? State was stupid enough to give them that money. I would throw shilling in jail along with those that approved it. That is why your argument of "BCWA stupid enough" does not fly. Wrong is wrong. Granted you can't fix stupid, but we can make things right for the ratepayers that Brian could care less about. For him it is a gimme gimme and let the junior employees get stuck with the fallout after he is gone. Thats shameful.

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no regr allia b

4:13 am on Tuesday, December 25, 2012

Have Merry Christmas and a happy New Year Bob ;-}

yea yea you to Brian.

brian m

12:24 am on Tuesday, December 25, 2012

Bob thanks for understanding the union contract. The union gave up a lot because of the economy. some members are subject to lay-off based on senority, we pay more for health ins, less sick time, wage freeze for two years, less pay for overtime etc. It was a fair contract and the union understood and gave up much but some people would like the ratepayers to believe the opposite. We have no control over non-union employees.

John Tattrie

11:44 am on Tuesday, December 25, 2012

Well, I most certainly said to wait a while before throwing rocks. But I see the info that has come forward wasn't very good. It was expected though. Perhaps the three Towns need to really think about if it's a good option to even try saving this present system under BCWA control. If they don't have enough money for everyday operations, that's a death sign in my eye's. Asking for more money just for operations means that everything else they have on the books will fall into limbo...Not a good sign at all. Might be time to consider turfing this whole place to some other authority or enterprise.

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no regr allia b

12:18 pm on Tuesday, December 25, 2012

There you go John on Target. This place cannot be run by the towns. The State needs to step in and take it over. It is an experiment that failed. No matter ver the years who the town appointed to the board. What politicians did to keep an overview of it, it could not succeed. Its finances are no different then when it was first taken over. Actually they are worse considing the next to nothing pay down on the pipeline, Millions of dollars wasted and unaccounted for. No pay down on bonds as it is mostly interest and the principle not changing almost at all.

When you do see a board member or a town council member try to do the right thing. All that happens is, well nothing because there is never total agreement that the BCWA is a failure. Shoveling manure against the tide as they say. They talk about how they did changes to the pension system but it still to this day is a liability the towns/ratepayers cannot afford, nor is it close to being able to handle future retiree's.

20 year plans for their infastructure is a joke. It is nothing more than stretching out the work, keep expences high and on the edge of bankruptcy to keep getting more money to supply the "cash cow" for the chosen few. No forensic audit before dumping yet more money and liability into this thing an exercise in futility not to mention stupidity. We finally smartened up to the Studio 38 fiasco and this is no different other than going on for decades of foolishness.

Bob Venice

12:32 pm on Tuesday, December 25, 2012

John, How would this be done. How would it be started, by whom? It seems the most sensable thing do to stop this run away train.

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DownTown

3:05 pm on Tuesday, December 25, 2012

The very first thing is for the towns to deny any rate increase forcing the BCWA into Chapter 9 bankruptcy. Chapter 9 covers many types of public and non profit companies such as the BCWA.

DownTown

3:09 pm on Tuesday, December 25, 2012

I've been saying to close it down and give the assets to the PWSB for over 2 years now. I'm happy to see some others at least put that under consideration now.

The BCWA has squandered a valuable asset to the point where it is no longer viable. They should be taken to task for that.

Instead they need money to connect to Pawtucket. Wait till they tell us that the cross bay pipeline needs replacement. The area will go back to being a hot spot for well diggers.

Bob Venice

6:08 pm on Tuesday, December 25, 2012

Saint Delise! This is going to be the new name given to Pasquale Delisi by the citiens of Warren, Barrington and Bristol, after her Royal Majesty, Pam Marchand, and her nine court jesters get done with increasing cost of the water rates over the next five years for just treating Water brought in from other towns. The BCWA must be done away with now, before it buries all tax payers.

no regr allia b

6:19 pm on Tuesday, December 25, 2012

Why you cannot believe the BCWA

Then

1. Per Sandra Mack’s “"14 answers" document she handed out at the January 25, 2011 East Bay Patriots Forum: "Redundant transmission pipelines are critical to the ability of the authority to deliver water 24/7 every day of the year. Remember that the authority’s connection to Providence water supply lies under Narragansett Bay. Because it is under the bay at depths down to 160 feet, inspections and repairs are very complex and will require extensive time to accomplish. Based on industry standards, a pipeline such as this will have a life expectancy of 50 to 65 years with systematic inspections and necessary maintenance."

http://bristol-warren.patch.com/articles/water-authority-answers-14-questions-on-shad-pipeline

And now, on Page 28 of the BCWA plan regarding the useful life of the East Bay Pipeline, they say it's 80-120 years. Because they want to say this now
so that they don't have to put any money into it.

It would appear some is lying about the pipeline. Was there no actual lifetime in the original contract? Or did some pipeline fairy sprinkle magic dust on it extending the lifetime by 55 years. What a patent that dust would be.

bustopher1

10:13 pm on Tuesday, December 25, 2012

Christmas day and all you people can do is spend your time carping? How sad your lives must be.

Gary Morse

6:43 am on Wednesday, December 26, 2012

Back to BCWA.

Here are some facts:

The BCWA 2011 Performance Audit outlined in detail their high labor costs:

http://bristol-warren.patch.com/articles/water-authority-performance-audit-shows-excessive-labor-costs-2

The new labor contract locked in those costs with a "no layoff" clause where it appears not a single production employee will be impacted by the shutdown of the water treatment plant.

The benefit packages are still out of line with benefits provided in the private sector, and even with most government sector jobs.

I admire the union for its work on behalf of its members. It's management and the board I call into question who have failed to examine parity with water authorities like East Providence. They have never done that simple task.

Then there is the statutory mandate of the 1993 Bristol County Water Supply Act. That mandate required ongoing legal advice by their attorney who was charging BCWA $495 per hour.

At this point, it appears not only is BCWA relying on $6.9 million in state taxpayer money they may not be entitled to, it also appears BCWA might actually owe money back to the state ($1.7 million) for transfers in 2001 for work on the water treatment plant before the Shad Pipeline was installed.

This is the mess we have, in part, because BCWA is not under the Public Utilities Commission (PUC) and instead run by unqualified volunteers.

BCWA should finally be placed under the PUC for the sake of its rate payers.

John Tattrie

2:06 pm on Wednesday, December 26, 2012

@ Bobby Venice, my second attempt at answering you, sorry This site doesn't agree w/my computer at times. It would take a Legislative change and a three town vote in agreement to send the BCWA packing down-stream. Question is do the Towns give the New Director the chance to prove she might be able to make this work, or do they really consider not throwing any more money at this place and turn it over to a (United Water) type outside contractor to run? The Three Towns have a serious amount of consideration to give to this request, this is just money for everyday operations, "That's not a good sign"....these funds don't account for any other projects or issues that may arise during their request time or unfinished projects that presently have no funds. While I would like to think the new director has the ability to pull this place out from under the rock, it's really not looking good overall. If you do the math, that is a very big chunk of cash, even after being spread out over five years. The issue is Pasqual, left this new Gal with nothing to work with, she has no choice but to ask for the funds.

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