Amador County – The Amador Water Agency board of directors spent time Thursday explaining why its means of repaying a $900,000 loan from Amador County was on hold.

Supervisor John Plasse asked what action by the agency placed the Gravity Supply Line on hold, along with a USDA grant and loan.

AWA Board President Bill Condrashoff said they were doing budget work and realized “we don’t have the cash to go forward at this point.”

Plasse said AWA authorized Finance Manager Mike Lee to seek the loan, with its repayment based on the USDA grant, but now board action has put the grant funding in jeopardy, giving him “great pause – and even more pause when you say you want to come to me for more money.” The agency discussion Thursday included looking to get another loan from the county.

The board said the GSL is also on hold due to a Proposition 218 protest of a Central Amador Water District rate increase. The rate increase was part of the GSL financial plan, in support of the loan repayment structure and basis for the USDA loan of $8 million, to supplement the project’s $5 million grant.

Director Terence Moore said “Prop 218 is not the end of the road. We can very well go out with a new rate increase tomorrow.”

The agency board voted 4-1 to direct staff to meet with the county and discuss renegotiation of the loan, and ask the county to consider amending the terms of the Water Development Fund loan repayment, which is due to be paid December 31st. They will also look at details of bank loans.

Vice President Debbie Dunn voted no, saying it was compounding the problem and sending the general manager to the discussion “unarmed.” She thought it was important to approach the discussion knowing the “risk level,” so AWA can “understand financially what this is going to do to us.”

Director Don Cooper said the discussion would simply see if the AWA can renegotiate, or if it needs to seek an outside loan.

Robert Manassero in public comment said “December 31st was never the right date because the recession was here.” He said they should talk to the county and try to “get a loan that would be more reasonable than a six-month loan.” He said the AWA should “not want to burn any bridges with the county.”

Cooper said they owe it to the rate payers to talk to the county and see if there are any changes that can be made that can be beneficial to the county and the agency.” Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.