Amador County – The Amador Water Agency board of directors last week approved an agreement with Amador County Supervisors to extend the maturation date of a $900,000 loan for its Gravity Supply Line project.

AWA General Manager Gene Mancebo said the AWA board last week approved its updated Urban Water Management Plan, and in a special meeting approved an agreement with Amador County Supervisors to extend the maturity date of a Water Development Fund loan of $900,000, to Sept. 30, 2012.

Supervisors last week approved the extension of the loan due date, and discussed the merits of the GSL, which it supports as a necessary project.

Mancebo said there were “not a whole lot options” for the AWA board because the Agency is not ready to proceed with the Gravity Supply Line. He said Sunday, Sept. 28, was the previous deadline, and the Agency needs to get a rate increase to proceed with the GSL, or look to repair the pump system.

In order to make payments back to the county, the Water Development Loan was set up so that once the USDA loan and grant are received, “the first draw was intended to pay back to the county.” That was built into the whole concept that the GSL project will be moving forward.

Mancebo said if the rate increase is not approved for the Central Amador Water Project service area, the Agency would need to come up with a loan repayment plan and agreement with the county, or would need to find another source of financing.

A cash report last week said cash grew in the AWA in July. Mancebo said cash grew with help from an agreement AWA executed with JTS Communities in Ione which “allowed us to obtain some participation fees up front, instead of sometime in the future.”

Cash impact by the JTS agreement was about $385,000 paid to the Agency, Mancebo said. It was a significant portion of the $1.1 million agreed to be paid for pending will-serves. JTS will pay $240,000 next December, and in 2013 will make another payment.

Mancebo said the payments come early, with less cost to the developer, but the Agency gets the funds sooner, as opposed to the previous agreement, which would have payments only when they sold lots or pulled building permits, whichever would come first. He said without the concessions “it could have been years,” but they moved the money forward, paying some now and it “gives us a revenue stream” in the future, until it pays off by 2013. ¶ He said the Agency had more money than we anticipated” in July. It was ahead by $100,000 over projections.

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