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Parlier negotiates temporary sewer/water rates with Maxco, offers tower space in exchange for reduced charges
Summary
Council approved an MOU and a temporary rate arrangement with Maxco Incorporated after wastewater sampling showed higher-than-expected effluent concentrations and bills up to ~$24,000; staff negotiated a $6,153 fixed monthly billing amount retroactive to August 2023 while Maxco installs pretreatment equipment. Council also acknowledged Maxco allowed city radio equipment on its tower at no charge, saving roughly $16,200 since Aug. 2021.
Parlier officials approved a negotiated approach Wednesday to address unexpectedly high wastewater bills and to formalize a partnership with Maxco Incorporated.
Staff reported that weekly effluent sampling at two Maxco locations showed concentrations higher than anticipated; calculated monthly wastewater bills to Maxco reached as high as about $24,000 as of August 2024. Because the company is a major employer and water/wastewater customer, staff negotiated a temporary billing arrangement while Maxco installs pretreatment equipment at its sites. The recommended approach is a fixed monthly charge of $6,153, retroactive to August 2023, to spread costs while the company repairs and installs needed equipment. Council approved the temporary rate recommendation.
Staff also noted Maxco has allowed the city to place police-radio equipment on the company’s communications tower at no charge; staff estimated that arrangement saved the city approximately $16,200 since installation in August 2021. The council subsequently approved a resolution (recorded as resolution number '2024-79') implementing negotiated water/wastewater rates and the related MOU.
Staff said Maxco will have six months to install pretreatment equipment and that the city will monitor sampling results and billing thereafter.
