Amador County – The Amador County Board of Supervisors on Tuesday extended the maturity date of a $900,000 loan for an upcountry Gravity Supply Pipeline project, in part to keep the Amador Water Agency project on schedule to get a $5 million grant and $8 million loan.
AWA General Manager said the Agency requested the extension of the maturity date so it will be consistent with the current compliance date of Sept. 30, 2012, required by the U.S. Department of Agriculture in the $13.4 million in previously obligated funds. USDA in April approved an extension to that date by which AWA must meet a “letter of conditions” for the project.
Mancebo said the plans and specifications are 95 percent complete, and would need about 10 more hours of work to complete, prior to bidding. They still must get right-of-ways before bidding, including along roads on U.S. Forest Service land, BLM, SPI and PG&E properties. The list includes items to complete prior to construction or USDA conditions, including establishing “revenue streams to meet loan obligation” and a financial plan.
Mancebo said the Gravity Supply Line replaces an existing, aged system with a gravity-fed project that is “green” and already has approval of the grant and loan.
Supervisor Ted Novelli asked if they did extend the date, “is there anything in writing that says we will be paid that $900,000 fee on that date before anybody else?” Mancebo said the “first draw” of about $1 million would be to pay expenses, including the County loan. Novelli said he would like to see it in writing.
Supervisor Richard Forster said he wouldn’t want to tie AWA’s hands and preferred a little flexibility, but maybe they could say AWA “will pay our loan before junior loans.”
Supervisor Chairman John Plasse asked about parity with preexisting loans, and Mancebo said he did not know of any opposition to that. He preferred having them consolidated for one loan payment.
Supervisor Brian Oneto asked about the GSL crossing BLM and Forest Service land, and problems there. Mancebo said BLM and USFS “have indicated they want an ongoing lease” for the right-of-way. He said some lands had also been transferred between the two, but not noted on the parcel map.
Forster in part motioned to extend maturity of the loan to Sept. 30, 2012, and have the loan paid out of initial draws, as long as it does not hurt the progress of the project. Also, accrued interest on the loan was set to be annually paid each June 30. The extension was unanimously approved.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
