Wednesday, 06 January 2010 03:26

AWA Workshop to Float Gravity Supply Line Ideas

slide4-awa_workshop_to_float_gravity_supply_line_ideas.pngAmador County – The Amador Water Agency kept a scheduled workshop on the proposed Gravity Supply Line Thursday. Director Debbie Dunn worried last week that nearly $930,000 already spent on the GSL would fall on the “ratepayers” if the agency dropped the proposed project. The line would replace the Central Amador Water Project pipeline that pumps water from the Tiger Creek Afterbay to Buckhorn treatment plant. The pumps cost $250,000 a year to operate, equal to 18 percent of the annual budget of CAWP, which serves 14 Upcountry communities. An informational “white paper” said it would cost $4 million to upgrade the pumps, and replacing the pipeline would cost $5 million. AWA has been working on the Gravity Supply Line to reduce costs of the existing system. The GSL was estimated to cost $13.4 million, including design, environmental review and construction. The agency has applied for a $5.1 million USDA grant and would fund the remaining $8.3 million with a 40-year, 3.3 percent loan. Annual loan payments would be $382,000 and total interest paid would be about $6.9 million. The grants are on a first-come, first-served basis, and “not be available indefinitely.” Dunn worried about the project being shelved, sticking ratepayers with the $930,000 already spent. Interim General Manager Gene Mancebo said it was a “valid expense” for the board to approve “money being spent on the Gravity Supply Line,” including making it “shovel ready” as required by USDA. Director Don Cooper said the project was generated by the AWA and constituents. Director Terence Moore said “we have to spend money to get out in front of the funding cycle,” and “when the grant comes through, we pay ourselves back first.” Mancebo said paying back money depends on the program, and some grants only reimburse money spent after the funding is authorized. He said “USDA is pretty flexible.” Finance Manager Mike Lee said if the GSL was delayed past January, rates need to be changed “just to fix the operating deficit” in the Central Amador Water Project. Lee said work on the GSL was a capital expense paid from reserves. Mancebo said they were not intending to get out notices on Central Amador Water Project rate increases,” until a draft financial plan was complete. Cooper said the longer they delay, the longer revenues don’t flow correctly. Director Bill Condrashoff said they “don’t want to get caught with our pants down if we don’t have a GSL.” The meeting is 6:30 p.m. Thursday at the AWA office. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.