Amador County – The Amador Water Agency board heard Monday it might not be the best time to refinance a $23 million dollar loan. Finance Manager Michael Lee said interest is $4.6 million dollars on the loan, which built the Amador Transmission Pipeline. Vice Chairman Bill Condrashoff asked if it could be refinanced, and Lee said “you’d have a hard time finding loan money, and rates would probably be higher.” Lee also answered questions on a $77,000 dollar budget request for telephone and communications. He said part of that is a high speed band width upgrade, from T1 to D3, at $2,600 dollars a month. Lee said due to the amount of data the agency transfers in its operations, “we would get calls daily from AT&T, saying you are banging up against the top of the band width. You are slowing up the whole network.” The budget line item includes Volcano Communications, a computer reporting system, 2 vendors, pagers, cell phones, the agency radio system, and “a lot of AT&T bills.” Another area, Lee said, is the federal GASB 45 retiree health benefits funding and future liability issue. GASB recommended and the agency has done an actuarial study of costs, and started putting money aside. They now put away $40,000 to $50,000 dollars a year, which Lee said is not meeting the amount actually paid. And the board could further throw off the balance by using the funds elsewhere. Elsewhere, the board looked at consultant costs per system, led by $221,700 dollars in “Agency General.” The Amador Water System had $27,165; Central Amador Water Project wholesale was $2,850; and wastewater was $3,275. The board asked if consulting was put out to bid. Abercrombie said it falls under professional services, which do not require the bidding process. He said several reasons help the agency stay with its current consultant, Bob Reed. Reed was originally selected in a bidding process as lowest bidder, his rates have not changed, and he is familiar with the system. Abercrombie said the agency is pleased with his past work and comfortable with him. Lee said a 2006 bidding for consultants, during the ENRON scandal era, nearly led to a loss of the agency’s bond rating, due to an inept company. Firing that company led to the rehiring of Reed, who was second lowest bidder. He has remained the agency consultant since then. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Thursday, 11 June 2009 00:15
Amador Water Agency Budget
Amador County – The Amador Water Agency board heard Monday it might not be the best time to refinance a $23 million dollar loan. Finance Manager Michael Lee said interest is $4.6 million dollars on the loan, which built the Amador Transmission Pipeline. Vice Chairman Bill Condrashoff asked if it could be refinanced, and Lee said “you’d have a hard time finding loan money, and rates would probably be higher.” Lee also answered questions on a $77,000 dollar budget request for telephone and communications. He said part of that is a high speed band width upgrade, from T1 to D3, at $2,600 dollars a month. Lee said due to the amount of data the agency transfers in its operations, “we would get calls daily from AT&T, saying you are banging up against the top of the band width. You are slowing up the whole network.” The budget line item includes Volcano Communications, a computer reporting system, 2 vendors, pagers, cell phones, the agency radio system, and “a lot of AT&T bills.” Another area, Lee said, is the federal GASB 45 retiree health benefits funding and future liability issue. GASB recommended and the agency has done an actuarial study of costs, and started putting money aside. They now put away $40,000 to $50,000 dollars a year, which Lee said is not meeting the amount actually paid. And the board could further throw off the balance by using the funds elsewhere. Elsewhere, the board looked at consultant costs per system, led by $221,700 dollars in “Agency General.” The Amador Water System had $27,165; Central Amador Water Project wholesale was $2,850; and wastewater was $3,275. The board asked if consulting was put out to bid. Abercrombie said it falls under professional services, which do not require the bidding process. He said several reasons help the agency stay with its current consultant, Bob Reed. Reed was originally selected in a bidding process as lowest bidder, his rates have not changed, and he is familiar with the system. Abercrombie said the agency is pleased with his past work and comfortable with him. Lee said a 2006 bidding for consultants, during the ENRON scandal era, nearly led to a loss of the agency’s bond rating, due to an inept company. Firing that company led to the rehiring of Reed, who was second lowest bidder. He has remained the agency consultant since then. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
