WPCA, Rand-Whitney Reach 'Historic' Agreement

The WPCA and Rand-Whitney Containerboard signed an agreement Monday night that WPCA Chairman Tim May described as “historic.”

Mayor Joe Jaskiewicz said the agreement brings an end to the years of the town and Rand-Whitney Containerboard working against each other.

Jim Cobery, general counsel for Rand-Whitney, said the company and the town have addressed the issues that have caused longstanding problems.

The memorandum of understanding the parties agreed on Monday night changes the way the town bills the company for wastewater treatment.

Instead of Rand-Whitney paying the town for wastewater treatment services as it has been – according to a variable-rate formula – the company will pay for services as a typical commercial customer pays. Any rate changes would have to go through a public hearing process.

In the short run, Cobery said, this means Rand-Whitney's payments are likely to increase; the company now pays more tha $1 million per year for wastewater treatment. But Rand-Whitney has a $700,000 legal budget now, to deal with issues around the fluctuating rate, and that budget will now decrease over time, he said.

The WPCA also signed a second MOU, which requires the WPCA to explore new wastewater-treatment options.

Rand-Whitney attorney Matt Auger said that if both agreements are executed, the town and Rand-Whitney “are guaranteed a minimum two-year term for the commercial rate.” The maximum term is three years.

The town is currently repaying bonds to cover a nearly $12 million settlement in a breach-of-contract suit with Rand-Whitney over issues involving water going to the company’s mill on Route 163. The total cost of the settlement, including interest on the bonds, will be more than $16 million; the town's payments are scheduled to rise to $1 million in 2012-2013.

The Town Council has to approve the memoranda of understanding that Rand-Whitney and the WPCA agreed upon Monday night.

“I think this is a milestone achievement,” said WPCA member Robert Thorn.