Rutland Herald
A proposed new contract for the Alpine
Pipeline could bring the city $2.3 million in revenue through the next
20 years, according to city Department of Public Works Commissioner
Jeffrey Wennberg.
Wennberg presented the new agreement to the Board of Aldermen on Tuesday. The board voted to have it reviewed by the Intermunicipal Committee before making a decision.
The agreement allows Alpine, which buys sewer capacity from the city and in turn sells it in Mendon and Killington, to purchase another 303,250 gallons worth of allocations on top of the 101,675 it already has.
“They have been steadily purchasing units for the last 15 years,” Wennberg said Wednesday. “They didn’t purchase everything (they could), but they certainly purchased a lot.”
Wennberg said the allocation purchases are essentially a connection fee, similar to that paid by new users in the city.
“What this represents is, basically, they’re buying access to the plant,” Wennberg said. “That money doesn’t treat an ounce of sewage.”
Rates for residential users on the pipeline would be identical to the residential rate in the city. Nonresidential users will pay the same basic rate, plus a charge based on their property tax assessment. More users, Wennberg said, will mean lower rates for all. However, that assumes the pipeline makes use of the allocations it buys.
“They have a lot of reserve capacity in the plant they have never used, but they have paid for it,” Wennberg said. “They have actually delivered very little of the actual gallonage they have purchased.”
The city has significant unused sewer capacity, to the point where the Board of Aldermen is considering a tax stabilization-like program offering breaks on connection fees and rates to new users.
@Tagline:gordon.dritschilo @rutlandherald.com
Wennberg presented the new agreement to the Board of Aldermen on Tuesday. The board voted to have it reviewed by the Intermunicipal Committee before making a decision.
The agreement allows Alpine, which buys sewer capacity from the city and in turn sells it in Mendon and Killington, to purchase another 303,250 gallons worth of allocations on top of the 101,675 it already has.
“They have been steadily purchasing units for the last 15 years,” Wennberg said Wednesday. “They didn’t purchase everything (they could), but they certainly purchased a lot.”
Wennberg said the allocation purchases are essentially a connection fee, similar to that paid by new users in the city.
“What this represents is, basically, they’re buying access to the plant,” Wennberg said. “That money doesn’t treat an ounce of sewage.”
Rates for residential users on the pipeline would be identical to the residential rate in the city. Nonresidential users will pay the same basic rate, plus a charge based on their property tax assessment. More users, Wennberg said, will mean lower rates for all. However, that assumes the pipeline makes use of the allocations it buys.
“They have a lot of reserve capacity in the plant they have never used, but they have paid for it,” Wennberg said. “They have actually delivered very little of the actual gallonage they have purchased.”
The city has significant unused sewer capacity, to the point where the Board of Aldermen is considering a tax stabilization-like program offering breaks on connection fees and rates to new users.
@Tagline:gordon.dritschilo @rutlandherald.com
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