Council authorizes addendum to Dairy Gold wastewater discharge agreement to account for year‑round discharge and back payments

The Chehalis City Council on July 14 authorized an addendum to the city’s Sewer Use and Industrial Wastewater Discharge Agreement with Dairy Gold Inc., addressing year‑round discharge, testing access and revenue adjustments dating from May 2019.

The nut graf: Staff said Dairy Gold’s discharge pattern changed in 2019; the addendum documents current year‑round discharge, grants the city explicit rights to enter and sample if needed, and adjusts payments to compensate the city for revenue not collected under the earlier seasonal‑discharge framework.

City staff said the original addendum had not been reviewed by legal counsel when previously presented; the city attorney reviewed the revised addendum before the July 14 vote. According to staff, Dairy Gold’s year‑round discharge began after May 2019; the addendum covers continued year‑round discharge and includes language to ensure that if Dairy Gold ceases operations the company would remain obligated to pay amounts due from the expanded discharge period. Staff described the remaining term of the underlying agreement as running through 2027 and referenced a historical payment schedule that included a recurring $195,000 payment in a prior period; staff also said the back‑payment difference tied to year‑round discharge totaled roughly $750,000 (staff characterized that figure as an approximate accounting difference).

Council approved the resolution authorizing the city manager to execute the addendum. Staff said the agreement clarifies enforcement rights and updates payment terms, and that the revised document reflects attorney‑recommended language.

Ending: With council approval staff will finalize signatures and implement the addendum terms; staff said they will continue to monitor Dairy Gold’s compliance under the revised agreement.