INVESTIGATION: Top 20 Largest Water Bills Owed to Worcester
Saturday, April 07, 2012
Worcester City Councilor and local realtor Tony Economou said shortfalls like these have huge impacts on the city. Economou said, “Whenever there are revenue shortfalls it would have an effect on revenue streams into the city. If you run the city like a business as we do, any shortfalls have a negative impact.”
Large apartment complexes made up several of these huge water bills. Economou said, “I think that it is a shame because you are entrusting that your rental payment is going to where it is supposed to go.”
Bills Get Paid As a Result of GoLocal's investigation
The largest bill on the list was associated with 600 Main Street, the large apartment building known as The Sky Mark Tower. 600 Main Street LLC owed $56,000 to the city in back water bills. However, once GoLocalWorcester brought this bill to the managenment’s attention they rectified the situation. The Chief Operating Officer of V.T.T. Management, Inc. Michael T. Reed released this statement:
V.T.T. Management, Inc. has a 25 year history of managing properties at A+ standards. VTT has successfully managed 600 Main Street for almost 10 years. VTT has spent millions of dollars improving 600 Main Street and it is the best large apartment building in Worcester. 600 Main Street has 196 apartments and the Landlord pays all utilities including water/sewer (they are included in the rent). The Landlord’s monthly water/sewer bill can of course be very large with 200 to 300 people living in the building. The Landlord’s monthly water/sewer bill could be as high as $20,000. As of 4:00PM EST on Thursday, April 5th – the water/sewer bill for all accounts at 600 Main Street are 100% current. 600 Main Street is over 90% occupied with wonderful residents. VTT enjoys being part of the Worcester community and will continue to maintain 600 Main Street to A+ standards for many years to come.
Worcester Commons LLC, the owners of the apartment complex called Bancroft Commons at 50 Franklin Street, owe about $26,000. The owner made headlines last year when the president John McGrail pled guilty to tax, payroll, unemployment insurance, and environmental charges. No one returned our calls for comment.
The second largest bill is connected to a nursing and rehabilitative care facility called Odd Fellows Home. They owe about $43,000. No one returned our calls for comment.
One property Owner, Paul Parizek owes about $73,700 on six properties in the city. Mariann Castelli Hier, City Treasurer & Collector, said he is going through bankruptcy. One would think Parizek’s name would be well known among the Department of Public Works since Parizek owes so much money on mulitple properties. Commissioner Robert Moylan said they actually don’t look at water bills the way you might think.
How DPW reviews bills
“We don’t do an analysis of bills. We look at each bill separately. If there was someone who owns ten properties with delinquent water bills we might not know that. We look at them individually. There’s an argument we should look at them collectively, but we don’t.”
Moylan explains the reason behind the DPW’s practice, “Each property is treated individually, when we go to shut off someone’s water we have a process. If someone owns 12 properties and only ten have delinquent water bills we only shut off the ten."
Moylan said they turn off water to very few people in any given year. But if they have to, it does cost the customer about $100 to turn the water off and then back on.
Moyland said, “If someone’s water is shut off it is a huge disruption. It has a tremendous impact on them."
Moyland said shutting off water for a rental property is a bit more complicated. “If a property owner isn’t paying the water bill the renter of the property can go to court and withhold rent and instead make a payment to the city. We do post signs at the property so the renter is aware their landlord isn't paying their bills.”
The Accelerated Water/Sewer Collection Program
Moyland stressed the city does work with property owners and is willing to work out payment plans.
According to Julie Parenteau, DPW’s Utility Billing Manager, The City of Worcester has had an accelerated water/sewer collection program in place since May 1992.
The Accelerated Water/Sewer Collection Program includes demand notices, dunning letters, certified letters delivered by constables, and actual “posting of 48 hour notices” of water service termination at the specific locations.
Julie Parenteau said, “The DPW with assistance from Treasurers compiles a list of delinquent payers and this starts the process of notification which usually starts with a friendly reminder. If no positive action takes place, a payment, then a certified letter delivered by constable is next. This informs the nonpayer of the city’s intention to shutoff water service if there is no payment. The commercial/industrial customer has 7 days to respond and the residential customer has 35 days. In many cases this is as far as it will get.”
However if no payment or communication is made by the customer, the next step is posting of the structure. This posting is a “large notice” that is adhered outside/inside the premises displaying the fact that water service will be terminated in 48 hours.
Parenteau said, during that time and sometimes prior to that a water crew visits the location so that it is known where the shutoffs are, whether or not there is a sprinkler system issue, etc. No fire safety systems are terminated and the policy also includes the provision that water is not shut off at residential locations during the heating season from November to April.
City Treasurer & Collector Mariann Castelli Hier provided GoLocalWorcester with the delinquent list. Hier said there are larger outstanding water bills in the city but these are the bills owed since June 30, 2011. Old bills have been liened to the corresponding property tax.
Hier said, “.For any amounts due that are not paid at the end of each fiscal year (June 30th), those water bills outstanding are then liened to the corresponding property tax.”
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