Barre City, town settle long-running water dispute
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By David Delcore TIMES ARGUS STAFF - Published: November 18, 2009
BARRE – The City and the Town of Barre won't be seeing each other in court after all.
Nearly two years after the town slapped the city with a lawsuit alleging the community failed to live up to its end of a 33-year-old water agreement, and that it had chronically misused some funds raised through local water rates, both sides reached an out-of-court settlement and declared victory.
Less than an hour after city councilors approved a new five-page agreement that clarifies the long-muddled relationship between the city and its single biggest water customer, the town's selectboard followed suit Tuesday night.
The new deal does away with three longstanding agreements – one dating all the way back to 1931 – that were never abolished or adhered to, while at the same time addressing the town's contention that the city had improperly diverted revenue from the water fund to subsidize its day-to-day governmental operations.
The product of perhaps 45 hours of mediation sessions led by retired superior court judge Alan Cook over an eight-month span, the new agreement was endorsed by Barre Mayor Thomas Lauzon and Jeff Blow, chairman of the town's selectboard.
"I wholeheartedly support the council ratifying this agreement," Lauzon said, echoing a sentiment expressed moments earlier by Councilor Steve Mackenzie.
Mackenzie described the agreement as a "fair and equitable settlement" to a divisive dispute with roots that date back decades.
"This brings closure to that dispute and settles it amicably for the future," Mackenzie said, suggesting the alternative would have been costly and laced with risk for both sides.
"There were some significant issues on the table and there was significant exposure to both parties had this gone to litigation," he said.
Blow expressed a similar opinion after his board voted, 4-1, to ratify the agreement that was unanimously approved by the city council.
"I'm very satisfied," he said. "It's a good agreement for both communities. It's a good agreement for Barre."
Under the terms of the agreement, the town waives its claim for repayment of alleged overcharges to the water fund to cover general fund expenses and agrees that the current amount of cross-billing – roughly $700,000 – is fair and reasonable.
The figure had been in excess of $800,000 a year when the town first questioned the city's practice.
The agreement requires the city to provide the town with budget information, an annual audit and other financial records involving the water fund and stipulates that town residents who are directly billed by the city for their water service continue to be charged the same rates paid by city residents.
Meanwhile, the agreement adds Countryside Estates and Al Monty Drive – two town developments – to the list of areas that will be directly served by the city. Future development in the town in areas north of Route 302 and the Honey Brook will also fall within the city's service area, according to the agreement.
Another key feature of the newly signed agreement is a stipulation the town will pay an annual "readiness to serve" charge of $16,875 to the city in exchange for the city maintaining existing water connections in East Barre and South Barre. That condition will allow the town to pursue the continued development of a well-fed water system without worry about what would happen in the event drought-like conditions depleted the water supply.
In addition to the annual fee, the town will pay the city for any water it purchases at the same rate paid by city residents.
The 40-year agreement, which also includes complex, but well-defined dispute resolution and termination procedures, turns all fire hydrants located within the town's corporate boundaries over to the town, while enabling the city to use the hydrants to flush its water mains as necessary.
Blow, Town Manager Carl Rogers and Town Attorney Michael Monte represented the town in mediation, while Lauzon, Mackenzie, City Manager John Craig and City Attorney Oliver Twombly represented the city.
The two sides met with a mediator perhaps roughly 10 times since April, before finalizing the agreement following a four-and-a-half-hour session last Thursday.
The settlement presumably averts the need for a pre-trial conference that was scheduled for Nov. 30 in Washington Superior Court.
david.delcore@timesargus.com
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