Montville, Rand-Whitney (Bob Kraft) on the verge of ending long dispute over sewer fees

Montville, Rand-Whitney on the verge of ending long dispute over sewer fees
By Jeffrey A. Johnson
Publication: The Day

WPCA approves memo outlining billing method that's 'less contentious'

Montville - The town on Monday night moved a step closer to ending years of contentious legal disputes with Rand-Whitney Containerboard that have cost the town millions of dollars in legal fees and a breach-of-contract lawsuit.

The Water Pollution Control Authority approved a memorandum of understanding that will temporarily bill the paper manufacturer as a commercial user for its sewer usage fees based on existing rates.

That would leave the Foxboro, Mass.-based company to pay the same monthly sewer usage fees as other town commercial businesses, such as Mohegan Sun casino, WPCA Administrator Brian Lynch said.

Since Rand-Whitney opened its $100 million factory on Route 163 in 1995, the town and the paper company have been in court on various occasions. At issue is a complex, percentage-based formula to determine the company's sewer usage fees. In 2008, a New York federal court compelled the town to pay a settlement of $11.7 million to Rand-Whitney in a breach-of-contract lawsuit.

Robert Kraft, who owns the New England Patriots, is also chairman and chief executive officer of Rand-Whitney.

Monday's memorandum of understanding must go before the Town Council for a vote next week. If passed, it would create a system that would be "less contentious," according to WPCA Commissioner Timothy May, and would conceivably keep both sides out of court.

Lynch, who started talks with Rand-Whitney representatives on the commercial rate plan in October, said the agreement would be in effect for at least two years.

"I think there was apprehension on both sides - especially when you're trying to overcome some long history," Lynch said. "What's important is that both sides had to give on some things to try and come to an agreement that we hope will become long-standing."

WPCA commissioners and representatives from Rand-Whitney met in an hourlong executive session at the beginning of Monday's WPCA meeting.

Lynch said prior to the meeting that the dialogue between the two sides has improved of late, which could help the WPCA iron out a future plan with Rand-Whitney that will follow the two-year memorandum of understanding.

Lynch said at that point the town could continue to bill Rand-Whitney at the same rate as other commercial users. Seven months prior to the end of the two-year term, the two parties will have 30 days to decide if they wish to continue the memorandum of understanding.

May said he eventually supported the agreement between the two sides because concessions were made by both parties.

"At first I wasn't really sold on it, to be honest with you," May said. "But the more I looked at it, the better I thought it would be for the town. We've been through so much in the past several years."

Town residents in 2008 approved $12 million in bonding to be paid over 15 years to cover the settlement with Rand-Whitney.

The town will pay $320,000 in the 2011-12 fiscal year and will make payments of about $1 million annually starting in 2012-13 to cover the bonding and interest, according to Finance Director Terry Hart. The bonding will be paid off in 2023-24, Hart said.

On Monday night, WPCA commissioner Robert Thorn called the agreement with Rand-Whitney a "milestone achievement." Ellen Hillman, also a town councilor, was the only WPCA commissioner opposed in a 4-1 vote to send the memorandum of understanding to the Town Council.