At issue was the amount Monson was being charged, which resulted in that town not paying its fourth quarter bills dating back to 2008.
The towns of Palmer and Monson have finally come to an agreement regarding Monson's use of Palmer's wastewater treatment plant.
The agreement, which runs through 2024, can be extended for additional years. At issue was the amount Monson was being charged, which resulted in that town not paying its fourth quarter bills dating back to 2008.
"The formula in the revised agreement more accurately allocates the actual cost to each community, addressing the concerns raised in the past by Monson officials, and the previous bills that were held by Monson will be recalculated based on the revised formula. The revised agreement was a cooperative effort and is a win-win situation for both communities," Palmer Town Manager Charles T. Blanchard said.
Blanchard said Monson's costs for fiscal 2011 have been recalculated.
As a result of the new agreement, Monson will pay Palmer $292,641, instead of $320,848, the amount under the old formula, Blanchard said. He said Monson had paid Palmer all of that bill with the exception of $73,000. Now, it owes Palmer $45,000 under the new calculation, saving approximately $30,000, he said.
While that it is about 9 percent less, Blanchard said it doesn't necessarily mean Monson will receive the same decrease in the remaining outstanding bills.
According to Blanchard, the new agreement revised the language on how wastewater flow is measured. Costs involving the operation of the wastewater treatment plant and Palmer town administration in relation to the wastewater treatment plant also were updated, as well as how the two towns will share capital improvement expenses.
There also will be regular meetings between Monson and Palmer officials to discuss operational and capital improvement issues that may arise, he said.
Blanchard said that depending on normal variances in flow, Monson typically pays 20 to 25 percent of the total cost to run the wastewater treatment plant. That remains the same under the new agreement.
As of late last year, Monson owed Palmer almost $300,000 in unpaid bills from fourth quarters in fiscal 2008, 2009 and 2010.
The wastewater issue began when Palmer's government switched to a Town Council and town manager six years ago; at that time, the former town manager started charging Monson ancillary costs, such as paying portions of salaries for Palmer officials involved some way in the wastewater operation. The new agreement continues that requirement.
Monson always has been required to pay part of the overall operation of the joint wastewater treatment plant, ever since the agreement was signed in 1974.
Monson Town Administrator Gretchen E. Neggers referred questions about the agreement to Monson Water and Sewer Superintendent Craig W. Jalbert, who did not return calls for comment.
Jalbert has said approximately 4,000 users are connected to the town sewer system.