Wednesday, 02 November 2011 08:41

AWA Rate Study looks to 4 systems' shared costs

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slide3-awa_rate_study_looks_to_4_systems_shared_costs.pngAmador County – Amador Water Agency held a workshop last week to look at an ongoing rate study that will look at sharing some costs among all water systems. But the agency consultant warned that it was not an official consolidation of the systems.

Bob Reed of the Reed Group said at a previous meeting that the word “consolidation” might lead to a misunderstanding of the aim of the project. He said the agency general manager and counsel also had concerns that it was misunderstood by the public. Reed said it will be a five-year plan and will pair with the agency’s Capital Improvement Projects plan. It will look at costs that are common to water systems, and will keep certain costs individual to the four water systems, such as improvement costs. The shared costs will be parsed out in a fair way.

Reed said there are also separate studies under way on the potential formation of two different Community Facilities Districts. One of those CFD studies looks at having a fee assessment area to pay for the Gravity Supply Line Project in the Central Amador Water Project service area. The other CFD study will look at assessing fees in the Amador Water System to pay for the Amador Transmission Pipeline. Director Robert Manassero said the ATP assessment would apply to current customers and future customers. The future customers are owners of vacant, undeveloped lots. AWA General Manager Gene Mancebo said the CFDs would allow assessment fees for standby customers, to be able to get some early payment.

Reed said the water systems are divided with shared costs in different customer areas. AWS has wholesale customers, including in the cities of Jackson, Plymouth and Drytown, and then untreated and treated water customers.

Camanche stands alone, as does La Mel Heights, the smallest water system, and CAWP has retail customers, and then wholesales to the Pine Grove, Mace Meadow and Rabb Park service districts.

Reed said the CFD studies will look at what overall revenue is needed, as well as a timeline to be able to go into effect for the next fiscal year.

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

Read 451 times Last modified on Thursday, 03 November 2011 06:52
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