Amador County – Amador Water Agency discussed preliminary estimates for the cost of a Gravity Supply Line, and estimates of fixing the existing system according to an agency-wide water consolidation rate study.
Bob Reed presented the analysis March 22 showing costs to water customers in four water systems across the AWA, and costs with and without the Gravity Supply Line. He estimated the cost to fix the existing system, which pumps water up to the Buckhorn water plant for the Central Amador Water Project service area.
Reed said water rates across the systems would be $20 more per month for the pump and system replacement in the CAWP system if a Community Facilities District was not formed to fund the Gravity Supply Line. Those estimated debt service fees would go from $12 to $32 in monthly bills.
Agency Counsel Stephen Kronick said in Reed’s preliminary study, a Community Facilities District to fund the GSL for Central Amador customers would cost $45 to $50 annually.
GSL critic and former AWA board vice president Debbie Dunn said she thought Reed’s study was aimed at getting USDA support, and the agency never even looked for a grant to replace the pumps.
Reed said the USDA has tentatively approved a $5 million dollar grant for the Gravity Supply Line, along with an $8.3 million dollar loan at 3.25 percent interest over 40 years, with an annual loan payment of $412,000.
Reed said pump-related charges are eliminated and in consolidation, “all customers would have lower water bills with this system.”
Replacing the existing pumps and pipeline would cost $9.7 million, and likely have a higher, 5.5 percent loan over a shorter term, and a 30-year loan would have annual payments of $750,000 dollars. Reed said a $900,000 Water Development Fund loan from Amador County would have to be repaid from loan proceeds, likely $161,000 annually for seven years.
Reed said there would be higher pumping costs and significantly higher water bills. He said CAWP Retail pump-related costs are $194,000 in the study of system-wide cost allocation. Total debt service among the four water systems is $1.6 million, and system-wide other costs are just over $5 million.
The pumping lifts the water 1,300 vertical feet, and using a Gravity Supply Line would save $260,000 dollar a year over the pumping costs. Reed said it would reduce costs by over a quarter-million dollars a year.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
