Logan and Utah State University officials have signed an agreement ending a long-running dispute over the city's water billings of the school.
Mayor Russ Fjeldsted described Wednesday's settlement as the "capstone of my career" as he joined USU President George Emert in signing a deal outlining the procedure for billing the campus for water use in the future.The pact next goes before the Logan City Council, which will take up the matter at its Jan. 6 meeting.
The university refused to pay an increase in its water bill last year when the city raised rates. For USU, the increase amounted to a 150 percent because the city had failed to gradually raise rates as the cost of providing service climbed over the years.
The university agreed to pay its delinquent bill as calculated retroactively based on new rates derived from a recent cost-of-service analysis. City officials estimated the bill at $300,000.
The city will provide the university with a five-year financial plan for water and sewer budgeting, capital improvements and rate setting. The agreement requires this plan to be updated annually.
The contract also sets up a credit mechanism for the reservoir and main water line the university shares with the city. Credit is also given for prior agreements including the exchange of canal water shares for 21.1 million gallons of culinary water.
City Council Chairman Louise Brown expects the council will approve the agreement.
"I'm certain today's signing will do nothing but improve relations between the city and university," she said.