Amador County – The Amador Water Agency board of directors voted 4-0 to get a new cost estimate on the proposed Gravity Supply Line project, in effect tabling the issue until after the November 2nd election.
The board directed Finance Manager Mike Lee to create a new financial plan to back a USDA grant and loan for the project.
Director Gary Thomas suggested showing lower bids and the effects on fees in the Central Amador Water Project system, based on a lower cost estimate than the original engineers’ estimate of $13.9 million.
Director Terence Moore said Lee show the “impact of reduction of cost by a bid amount reduction of $1 million.” He said Lee should be able to show variations in the estimated bid amount.
General Manager Gene Mancebo and staff presented a list of conditions from the USDA to meet in order to get a $5 million grant and $8 million loan for the Gravity Supply Line. He said it would take $70,000 in agency work to get bid results, and he said that funding could come from a number of places.
He said the Central Amador Water Project wholesale system has a contingency fund of $92,000, which could be used, but it must still be paid back. Mancebo said they could also use one-fifth of tax funds due from the state to pay for the preparation.
He said the agency needs the bids to know if it is feasible to carry on with the Gravity Supply Line project.
Thomas said he thought it was a good project, and he needs a little more information. He said he would hate to look back, five years down the road and “wonder why we didn’t do it.”
Moore said a 21 percent rate increase over three years that was rejected by CAWP in a Proposition 218 protest had a financial plan based on the agency’s budget at the time. He said they now have a new budget and will plug that into the financial plan.
“Most directors agree it is a good project if we can afford it,” Mancebo said. He said they cannot see if they can afford it “until we get a bid.” He said construction costs are low right now, which will also be factored into the financial plan.
He said “are we willing to spend $69,000 to get those answers?”
President Bill Condrashoff said he was willing to go forward only as far as to get the financial plan together, but he wasn’t willing to spend $70,000 until he saw the practicality of the project.
Moore motioned to direct Lee to gather the new financial plan information, to have it ready for the first budget and finance committee meeting in November. The motion passed 4-0.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
