Athol Town Manager Shaun Suhoski and Royalston Selectboard member Linda Alger Tuesday night signed a new intermunicipal agreement which keeps Athol Sewer Division employees in charge of Royalston’s wastewater treatment plant operations.

The agreement goes into effect on July 1 and runs for three years. While management, operation, and maintenance of the plant will continue to be overseen by Athol employees, Royalston is responsible for capital expenses such as chemicals, along with utility costs and licensing.

Beginning July 1, Royalston will pay Athol $5,855 dollars per month, a 7% increase over the current monthly fee. The fee will then increase by 5% for each of the remaining two years of the agreement.

After Suhoski presented the plan to Athol’s Selectboard Tuesday night, board member Brian Dodge said, “This is a good agreement for both the Town of Athol and the Town of Royalston. We have some other (proposals) coming up that will hopefully move in the same direction.”

At a meeting earlier this year, members of Royalston’s Selectboard expressed reluctance about the initial proposal, presented by Suhoski and Assistant Public Works Director Paul Raskevitz, which called for a 7% increase to the monthly fee for each year of the agreement.

The proposed increases mirror those approved by Athol’s Selectboard for water and sewer rates in that town.

Athol board member Mitch Grosky asked if Royalston had any concerns about the newest proposal.

“I think, like everyone, folks are reluctant about rate increases, because it’s tough,” Suhoski responded. “But we’re re-setting in accord with Athol rates for the coming year and it moderates to 5% in years two and three, which reflects that Royalston still pays for all the capital improvements. They’re just paying for the staffing, really, on our end. So, they did accept those terms; they voted for them on their end.”

Suhoski told the Athol Daily News Wednesday that he understood why Royalston officials were concerned about the proposed 7% increase for each year of the agreement.

“They made a valid point that Athol’s rates are built upon operating the entirety of our wastewater treatment and collection system, all of the capital needs and equipment and chemical costs – everything that goes into operating that.

“Whereas, our agreement with Royalston really centers around staffing, licensed operators, ensuring DEP compliance, and Royalston is still responsible for their own capital costs. So, I think what we have is an agreement that is very fair to both communities and tracks more closely to the actual cost.”

Other than the agreed-upon rate increases, Suhoski said, “Essentially it’s the same system that’s been working for almost four and half years now. It has worked out well. Royalston’s plant along the Millers River in South Royalston has been in compliance with Mass DEP … and in the fee structure there is a modest subsidy that comes to Athol ratepayers for undertaking this project.”

Suhoski pointed out that when Royalston put operation of its treatment plant out to bid several years ago, the rates proposed by private contractors “was twice as high as what we’re charging now.”

Royalston Selectboard member Linda Alger, who negotiated the agreement for the town, said she is satisfied with the contract.

“Even though it wasn’t ideal, they did compromise a bit,” she said.” We kind of met in the middle.”

Greg Vine can be reached at gvineadn@gmail.com.