Amador County – The Plymouth City Council heard from a prospective manager of its Arroyo Ditch Thursday, and planned to work through the weekend on an agreement with the company.

City Manager Dixon Flynn gave a report on an effort that began in December 2008 to find a company to manage the Arroyo Ditch and get its water flowing. Shenandoah Water Company has worked to make water flow in the ditch for the last three years.

Flynn said the state requires that the city show and measure “beneficial use” of the water, meaning it must install meters. The city believes its “pre-1914 water right on the Cosumnes River” gives it the right to divert at least 31 cubic feet per second from the river, or 23,000 acre-feet of water. Flynn said that right has not yet been “adjudicated,” and the agreement they seek to manage the Arroyo Ditch would include securing the rights.

The council in open session heard a presentation by Flynn and by Shenandoah Management Company, which made a proprietary agreement with the city to keep details of the company’s offer confidential.

Flynn said the company wanted to pursue the deal if it was “economically viable,” and would pay with “venture capital.” Flynn said the latter was “really broad.” The company also requested a 45-year contract, but Flynn said “over the last two years, the city has been fairly firm in its maximum of 20 years” for a contract.

Shenandoah Management Company partner Mark Suden of Pine Grove said he is a general engineer, with experience in mining, tunneling, drilling, blasting and ditch work. He and his partner, Josh Lyman, of Shenandoah Valley have been involved in the Arroyo Ditch for the last three years, beginning when Councilman Jon Colburn called him to blast some rock that had fallen in the ditch.

Originally Shenandoah Water Company, Suden said “we have not been in direct negotiations with the city since November 30th, 2009.”

Suden said: “We’re involved because we see the potential to make some money.” He said “we may be good guys, but we intend to make a profit on this.” He did not expect the city to pay the initial investments but “we do want to be paid back if we are successful in selling water.”

Suden said they wanted a long-term contract and would work with the city on a time frame.

The Shenandoah Management Company partnership includes Downey Brand Attorneys LLP, including water rights special counsel J. Mark Plymouth City Council heard from a prospective manager of the Arroyo Ditch water right for the city last week, and set a special, closed session meeting for last weekend to continue discussion.

Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.