Town Finalizes $77M Milford Water Company Purchase

MILFORD, MA — After about a decade, Milford's bid to acquire the private Milford Water Company (MWC) utility is complete.

The town closed on the $77.1 million purchase of the utility on Friday, placing the town water supply in public hands for the first time in more than 100 years. The closing follows Town Meeting's approval to issue bonds for the purchase in August.

"This control effectively allows our residents, through their elected officials, to be directly involved in ensuring the quality of our water as well as the future investment needed to maintain a safe and reliable system," Select Board Chair Michael Walsh said in a news release on Wednesday.

The town now owns all the water company's property and assets in Milford and Hopkinton, and the company's workers have been converted to town employees. Milford Water Company General Manager David Condrey will lead the new town utility for at least the next three years.

Milford has also established a three-person Water Commission, whose appointed members — Jonathan Bruce, Phillip Ciaramicoli and Jamie Luchini — will oversee the water department operations and set water prices. The commissioners will be elected beginning in 2022.

Milford residents should not notice a difference in how they pay bills, Town Administrator Richard Villani said Wednesday.

The water company was formed in 1881 to supply the growing community. The water supply originally came from Echo Lake, but expanded over the years as Milford grew.

But the public began to lose confidence in the water company more than a decade ago after a boil-water advisory that lasted more than a week. That was followed by criminal charges against then-manager Henry Papuga, who admitted to bleaching water samples in a bid to end the advisory.

The town began pursuing the purchase shortly after, and in 2017 Town Meeting voted to authorize the purchase. The town then entered into a process with the state Department of Public Utilities to set a value for the utility. The state set a price of about $66 million in March, but the price rose to about $79 million following negotiations between the town and MWC.

The $77.1 million closing price tag does not include items like closing costs, title insurance and other fees. The cost is higher than the state valuation due to recent infrastructure upgrades, outstanding bills and a transaction fee.

The negotiations and closing were handled by the Select Board, Villani, Treasurer Chris Pilla, Finance Director Zach Taylor and former town attorney Gerry Moody. The town also used the Boston law firm Womble Bond Dickinson during the closing.