Monday, 02 April 2012 06:15

AWA says CFD studies will help fine-tune a consolidated water rate analysis

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slide4-awa_says_cfd_studies_will_help_fine-tune_a_consolidated_water_rate_analysis.pngAmador County – Amador Water Agency Board of Directors at its late March meeting heard a presentation on a consolidated water rate study and took questions from the public.

AWA Counsel Stephen Kronick said Bob Reed’s presentation March 22 was “somewhat interim” and the agency will come back in a month-and-a-half or two months with more fine-tuned figures. He said AWA is talking about forming two different Community Facilities Districts, and a company, SCI is studying CFD costs.

One would be a voluntary Facilities District for future customers within the Amador Water System service area, to fund the debt service of the Amador Transmission Pipeline. The other Facility District would be located in the Central Amador Water Project service area, and fund the debt service for the proposed Gravity Supply Line. Kronick said the tentative cost would be $45 to $50 annually for CAWP District members.

SCI is working on the Facilities Districts and in a month or two will bring back both matters. Kronick said people want to know overall what will be the financial impact. When the agency gets that, Reed will apply it to system-wide water rate analysis.

Kronick said some people in the public wanted an update on the Gravity Supply Line. He said staff is working hard to prepare concrete and solid information on both matters.

In public comment, Bill Condrashoff asked about the estimated $13.4 million dollar cost of the GSL, and whether it should be listed at $14.8 million, because of $1.4 million already spent on the project. Reed said the rate studies already include the spent money.

One man asked who would vote on a Facilities District. Kronick said by law, if more than 12 registered voters live in a proposed district area, then it must be put to a vote.

June Crabtree asked about the CAWP system’s existing pump and pipeline, and if it was deteriorating, how could it be used as a back-up system to the Gravity Supply Line.

AWA General Manager Gene Mancebo said it’s an asset AWA could use if needed. He said if one pump fails on the existing system, they would not have full capacity, but about 60 percent capacity of the water flow. He said that would be sufficient as a backup, and if it was being used to supply water to the Buckhorn plant, the agency would send conservation notices to customers. He said many other AWA systems don’t even have a back-up.

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

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