LOWVILLE — After a few months of discussion, village trustees on Wednesday decided to bill Kraft Heinz for sewer costs based on its monthly usage rather than a long-standing agreement.
“From here on out, there would be no separate agreements,” Mayor Donna M. Smith said.
Trustees voted 5-0 to effectively eliminate a 1972 agreement with Kraft requiring the Utica Boulevard plant to pay 60 percent of debt service and operations costs at the village sewage treatment facility and instead bill for monthly sewer usage.
Effective Aug. 1, the plant, which uses most of the water and sewer service in the village, is to pay $1.39 per unit — or 100,000 cubic feet — for usage plus debt service owed on past upgrades at the plant.
Village officials said that reflects the same base rate of $1.04 per unit that all other residential and industrial customers pay; however, everyone else pays a total of $1.86 per unit because the non-Kraft portion of old debt is split among fewer total units than Kraft Heinz uses.
Kraft Heinz, which has been using roughly 800,000 gallons per day, has paid about $340,000 per year for sewer services under the 60-40 agreement. Village officials projected that would nearly double, with a roughly $300,000 per year increase, if the plant increases its daily usage to 1.1 million gallons as proposed.
Mrs. Smith said Kraft Heinz officials raised some issues during a private meeting with a few village representatives Monday; they included whether the plant should be responsible for helping with maintenance of the entire sewer system, particularly if the plant is responsible to maintain the new direct sewer line from Kraft Heinz to the treatment plant. Trustees determined all users should help pay for maintenance of the village system, including the Kraft Heinz line, so the company would not need to cover any such costs if they were to arise.
Mrs. Smith said it’s hoped that treatment upgrades at the plant will decrease monthly surcharges levied against the plant for exceeding maximum limits for waste volume, pH and concentration.
No other village sewer customers will see any impact on their bills.
Two village residents — Henry Avallone and Carol Leviker — spoke in favor of the move, suggesting all should pay their fair share of sewer expenses without special deals.
A Kraft Heinz representative attended much of the meeting but said he was not authorized to discuss the matter further.
The rate change was initially proposed in March, but trustees held off until they could hold further discussions with Kraft Heinz officials and revise the plan so it was most equitable.
Deputy Mayor Joseph G. Beagle said he found newspaper stories about a Kraft Heinz plant in a small Missouri city that produces Oscar Mayer products, and that plant — which also underwent a major expansion — is now paying $4.83 per 100,000 cubic feet of sewage. Compared with that, the plant here is “getting a bargain,” he said.
Trustee Dan L. Salmon once again complained about the $135,553 in annual county, town and school taxes the village pays on its watershed, noting Kraft Heinz pays roughly 50 percent of that bill and the five major employers pay 59 percent.
“It’s more so a tax on industry,” he said.
Village trustees on Wednesday also:
■ Fielded concerns about poor coordination and signage for top-coat repaving on East State Street earlier in the day, which effectively shut down the four-way intersection with Ross and Number Four roads and River Street. Trustees were told the contractor came a day earlier than expected for the one-day project, but they promised to address concerns with the company.
■ Approved use of the bandstand at the Veterans Memorial Park in December by Lewis County Hospice for a Christmas tree and memory wall, so long as liability insurance coverage is provided.
■ Heard the new four-corners parking lot should be effectively completed by the end of this month. Also set a public hearing for 5 p.m. Aug. 16 to establish two-hour parking between 6 a.m. and 6 p.m. at the new lot and no overnight parking between 3 and 6 a.m.
■ Switched their monthly meeting time from 5 p.m. to 4 p.m., starting in September, to give more time for village attorney Mark G. Gebo to participate before leaving for Martinsburg Town Council meetings.