Mar 16, 2009 11:34 pm US/Eastern
I-Team: Wealthy Institutions Pay Water Bills Late
BOSTON (WBZ) ―
If you can, you pay your bills on time. It's a pretty simple concept.
But the WBZ I-Team has found some of New England's wealthiest and most respected institutions are not paying on time, especially when it comes to their water bills.
It could be costing you money.
At the Queensbury Laundromat in downtown Boston the monthly water bill is owner John Sawtell's biggest expense. And he always pays it on time. "And it takes a lot quarters in this equipment to pay $1,000 water bill every month."
So if a small businessman can pay on time, you would think some of the cities wealthiest and most prestigious institutions could too. But the I-Team has been investigating and what we found was surprising.
On Jan. 15 of this year, for example, Harvard Medical School, which is housed in impressive structures in the city's hospital district, owed the Boston Water and Sewer Commission more than $200,000 across 43 accounts. That day they were the commission's single largest delinquent account.
Nationally renowned Children's Hospital was also near the top of the delinquent list that day. The hospital owed $116,000 across 38 accounts to the Boston Water and Sewer Commission.
The I-Team's Joe Shortsleeve asked Jeanne Richardson, the spokesperson for the Water and Commission, about the delinquent accounts. "So did someone call over to Children's Hospital and say you owe us $116,000?"
Richardson replied, "Absolutely, we will call anyone."
"What did they say?" Shortsleeve asked.
"They said arrangements will be made," Richardson answered.
And arrangements were made. In fact, someone at the Water and Sewer Commission tipped off both institutions that the WBZ I-Team was asking questions about their delinquent accounts. Within days, their balances fell dramatically by tens of thousands of dollars.
So the I-Team asked for more records and found both Harvard and Children's had a history of routinely paying late.
To handle delinquent accounts, the Boston Water and Sewer Commission has a staff of 17 full time employees.
Jeanne Richardson admits if someone does not pay on time "we all pay a little bit for it."
John Sawtell, the owner of the Boston laundromat, says "it is disappointing large companies seem to have their own rule book when it comes to paying their bills."
The I-Team found they are also wasting money. At a time when medical costs are skyrocketing, over the past two years Children's Hospital paid more than $16,000 just in late fees for water bills.
In a statement to the I-Team, Children's Hospital says "we are reviewing the bill paying process and are prepared to make any necessary adjustments to our payment practices."
It is a similar story at Harvard Medical School where some bills sat unpaid for almost four months. Harvard was slapped with more than $6,500 in penalties over the past two years.
We showed the water bills to Sam Tyler, a fiscal watchdog for the city of Boston. "Well I think the reaction is....this is really not acceptable."
And guess what? Harvard agrees with him.
In a statement to the I-Team they also admitted late payments were "unacceptable" and that the "administration is doing everything it can to ensure that late fees do not accrue in the future."
And that could be a good thing for all rate payers, according to Sam Tyler.
"The Water and Sewer charges are a little higher than perhaps they would need to be if more of these institutions and companies paid on time."
Another very large delinquent account belongs to Stamatos Properties. It is a Jamaica Plain company which owns 300 apartments.
On Jan. 15, Stamatos owed more than $83,000 in water bills on 54 different accounts. But the Water and Sewer Commission didn't "tip them off" that the I-Team was asking questions.
Chief Correspondent Joe Shortsleeve spoke to Christ Stamatos on the phone. He told Shortsleeve he considers late fees "just the cost of doing business."
Stamatos also knows the city will not shut-off occupied apartments. As of late last week, Stamatos properties owed more than $84,000.
The Water and Sewer Commission charges 14 percent interest on bills which are more than 45 days over due. However, Water and Sewer managers admit that still does not cover all of the recovery costs associated with delinquent accounts.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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