Tuesday, 10 August 2010 06:27

AWA's GSL Approved for $5M USDA Grant, $8M Loan

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slide3-awas_gsl_approved_for_5m_usda_grant_8m_loan.pngAmador County – The Amador Water Agency board of directors received notification that it has been approved for a $5 million USDA loan and a grant for another $8 million toward building a “gravity supply” pipeline to serve central Amador County customers. The board in a 3-2 vote last Tuesday authorized its general manager to sign two documents that would acknowledge the grant and loan (but not obligate the agency) pending the agency’s adherence to a list of conditions and final acceptance. General Manager Gene Mancebo signed and sent the two documents to the USDA later that Tuesday. Mancebo, in an e-mail to the board and department heads July 30th, said the “USDA approved our application for the (Gravity Supply Line) in the amounts of a $5.07 million and an $8.33 million loan” at not greater than 3.25 percent. Finance Manager Mike Lee said Monday that the grant and loan were exactly the amounts staff expected. The agency must now set about meeting a list of conditions to qualify for the funding. Lee said the conditions are similar to those required with other USDA-funded projects, including the Plymouth and Amador Transmission pipelines. He said staff felt that the conditions largely could be met in three months if they do not run into problems, such as with right-of-way acquisition. Engineering for the project is more than 90 percent complete, Lee said, and part of the nearly $1 million in “sunk costs” for which the AWA would be reimbursed if the spending of USDA funds is approved. Mancebo requested that the matter be placed on last week’s special meeting agenda, saying that he had learned of the approval on July 29th and the agency was being asked to sign the two form documents. One is a “request for the USDA to obligate the funds” and the other indicates the “agency’s intent to meet the letter of conditions,” Mancebo said. “The water agency would have one year to meet funding conditions and may during that period conclude whether or not conditions can be met.” Mancebo said Frank Risso, USDA community program coordinator, told him that the documents do not commit the agency to accept the funding. The 3-2 approval included Directors Terence Moore, Gary Thomas and Don Cooper in favor of the actions, with President Bill Condrashoff and Vice President Debbie Dunn dissenting. The board in the same 3-2 vote in March approved the environmental documents for the Gravity Supply Line project, which would be the new water supply conveyance system for the Central Amador Water Project service area. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
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