Amador County – The Amador Water Agency board of directors voted to amend its agreement with Amador County on a $900,000 loan, with a proposed eight-month deferral of the repayment.
Supervisor John Plasse and County Counsel Martha Shaver spoke to the board. Shaver urged them to seek an outside loan to pay off the county “Water Development Fund” loan, if the AWA decides it will not continue with the Gravity Supply Line project.
General Manager Gene Mancebo met with Plasse and the county water committee to discuss the amendment, which, if approved by Supervisors, would allow the AWA to repay the loan August 31st, 2011, instead of December 31st.
The agreement has wording to enact a “maturity date” 75 days after certain triggers, including if the “AWA board of directors takes any action to delay or terminate the (Gravity Supply Line) Project.”
Another trigger is if the “AWA has elected to delay or terminate the project, or cease to pursue obtaining the grant for the project.” At third trigger is if “any other act has occurred that will prevent AWA from receiving funds from the grant, including any acts or omissions occurring prior to” execution of the amendment. Supervisors must also approve the agreement.
The board approved the amendment on a 3-2 vote with President Bill Condrashoff and Vice President Debbie Dunn against. On the same vote, they directed Finance Manager Mike Lee to investigate outside loans and conditions, should the agency need to pay the loan by the end of the year. Lee said it would take a couple of weeks.
Director Don Cooper said members of the Central Amador Water Project, who met Wednesday in a quarterly meeting, were in favor of further studying the Gravity Supply Line. He said “retailers want to pay the $69,000 to get the ball rolling on the project,” and determine whether to proceed with the GSL, for which the AWA has applied for a $5 million grant, to build a new, gravity-powered water pipeline to Buckhorn water plant. They also want to see the costs to customers, which he said may be shown in a financial plan at the next budget meeting.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
