Town manager outlines limits on switching water providers; cites litigation win and HB1451 transparency changes

Town Manager Jim Harper reviewed the town's long-running utility relationship with the city and explained why a change of provider remains impractical despite earlier litigation results. "We did prevail on the federal antitrust claim," he said, but added that physical geography and the cost of connecting an island-like service area (including subaqueous piping) made it economically unworkable for private or regional providers to assume the system.

Harper said the town retained consultants and negotiated with potential private providers, including Aqualia, but that the customer base and the costs of connecting northern and southern portions raised prohibitive engineering and construction expenses. "In the end, for a variety of reasons, there was really no economic purpose for anyone to come in and take this number of customers," he said.

Several committee members asked whether the town could push for a better deal in the franchise agreement given a roughly 6% transfer that benefits the city's general fund. One committee member characterized that arrangement as appearing to be "taxation without representation"; Harper acknowledged the concern and said legislative action this year (HB1451) requires more public disclosures by providers and may strengthen the town's position in future renegotiations.

Harper also said the town is in the process of renegotiating its franchise agreement with the city and that staff will consider the impact of HB1451 and any additional legislative changes when pursuing a fair outcome for town residents. He emphasized that while litigation opened negotiation options, it did not eliminate the practical and financial obstacles to changing providers.