The Cities of Biggs and Gridley have come to an agreement that will resolve a dispute over the provision of maintenance for Biggs’ electric system.

A disagreement over how to compute costs under the previous agreement led to a more than $160,000 arrearage for Biggs and prompted Gridley to consider terminating the agreement earlier this year.

A new agreement approved last week by the Biggs City Council and passed Monday night by the Gridley City Council shaves $60,000 from the arrearage amount, down to $108,000, and sets a new flat rate for electric services going forward: $23,345 per month. Biggs will pay an additional $3,000 per month that will go toward paying off the arrearage.

Biggs has contracted with Gridley for those services since 1994.

Biggs City Administrator Mark Sorensen said it’s a relief to get the agreement hashed out and approved.

The new agreement runs through September 30, 2020.