Water and wastewater rate cuts for the Archbold ConAgra plant advantage was approved by Archbold Village Council, giving company managers a competitive edge.
Dennis Howell, Archbold village administrator, told councilmen at the Monday night, Aug. 6 meeting, that he was approached by the ConAgra plant manager.
The manager, Howell said, asked that the village give the plant some help, as plant offi- cials go for new business.
In response to the request, Howell said, village officials, in conjunction with council’s utility committee, came up with a plan that creates a fourth tier in the water rates.
Under the tier system, water rates are reduced as a customer consumes more water. Currently, if a customer uses 11 million gallons or more each month, the cost of each 1,000 gallons of water, above 11 million, is $2.08.
The new tier starts at 20 million gallons per month of consumption. For each 1,000 gallons above 20 million, the new rate will be $1.90.
The savings works out to about 8.65%.
Howell said, the ConAgra water consumption is “all over the board,” anywhere from 15 million to 40 million gallons per month.
Council also reduced the charge for treatment of Chemical Biological Oxygen Demand, or CBOD, at the wastewater treatment plant.
CBOD is a measure of the strength of wastewater.
Currently, the charge for each pound of CBOD is 21¢ per pound. If a single customer emits more than 100,000 pounds of CBOD, each pound over 100,000 will cost 19¢. The 2¢-per-pound discount works out to about 9.5%.
Kevin Morton, councilman, read a quote from Howell in the utility committee meeting notes, which states the risk of loss from offering the reduced rate is minimal.
However, the benefit of the lower rates would come back
many fold if the local ConAgra plant can attract new business.