News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
Perdue Farms has proposed a new water and sewer rate agreement to the town of Monterey.
Water and Sewer Department Director Duane Jarrett said the agreement keeps Monterey citizens from subsidizing the cost for the city’s new water and sewer plant.
“I was prepared last month to come to this meeting and tell you all that we were going to downsize the plant and just serve the customers of Monterey because I couldn’t get an agreement out of them,” Jarrett said. “There was no way I was going to recommend to you all that we build the infrastructure to support a company that may or may not stay.”
Under the proposal, the company commits to make a $29 million capital investment to install a new production line. Consulting engineer Nathaniel Green said the Perdue also proposed a 10-year fixed term agreement with rates set at $8.50 per 1,000 gallons.
“Other than there being some question as to what the specifics are to some of these notes, I feel like this is a workable agreement,” Green said. “It’s something that you can work with, and in time can be a very positive thing for you. It’s much better than not having anything at all.”
The company also agreed to a $50,000 minimum monthly payment. The proposal noted that a rate reduction should occur if new industrial users move to Monterey.
“Pretty much the gist of what they’ve give us is that this is it,” Green said. “There is no alternative and there is no discussion.”
The Monterey Board of Mayor and Aldermen voted last week to let Mayor Wiggins execute the contract with Perdue. The city began pursuing a new agreement more than three years ago.
