Amador County – Amador Water Agency board president, Director Gary Thomas last week called a special board meeting for Monday, April 30 to consider approval of $50,000 to commence the work toward qualifying for a loan and grant for the proposed Upcountry Gravity Supply Line.

The AWA board on Thursday discussed a list of the work needed to be done to qualify for a USDA grant of $5.1 million and a loan for about $8 million. The list of 17 tasks required by the USDA includes the “kingpin,” that is, the source of funding for the project. AWA General Manager Gene Mancebo said the USDA pays for 40 percent of the cost, and requires the agency to show its source for funding the rest of the project. He said Community Facilities District studies and consolidated rate studies by consultants undertaken to show that source of funding.

The list includes an estimated total of 224 staff hours, $38,000 in consultant work, and $11,400 in other fees, for work to be done on lands and right-of-way, permits, environmental reviews and engineering. The work needs the board’s reauthorization, along with the funding.

Mancebo said after a Community Facilities District election, if successful, another 33 hours of staff work is required, plus $25,000 in consultant work and $125,000 in easement work.

He said USDA has extended a deadline to Sept. 30 for the qualifying tasks, and “now we need to show how we will meet the loan payment.” He said eight “purchase option” agreements for right-of-way easements for the Gravity Supply Line were negotiated and signed. One, which held some AWA assets, was already purchased, but the eight agreements expired because the agency did not pay for them by the end of 2011.

The agency sought extensions from property owners on the agreements, but six still remain to be renegotiated, and two have been “in contact with outside parties who have actively discouraged them from cooperating with AWA.” Mancebo said one owner in the Antelope Creek area, “with whom previous negotiations were successful, is refusing to sign the new easement agreement extending the deadline,” and told the agency the party “won’t sign a new agreement because the Agency is out of money and this project will never get built.”

Another owner in the Highway 88 area “parroted the same issues as the Antelope Creek property owner” and also refused to extend the agreement. Mancebo said the route is preferred, but an existing utility easement could be used, though it “introduces additional constructability issues.” The Antelope easement also could be built around.

Mancebo said there remained $50,000 in staff and consultant work to do before a Community Facilities District election could be held. The unbudgeted costs will be subject of a special meeting to consider authorizing the spending. The board meets at 1 p.m. Monday, April 30.

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