Amador County – The Amador Water Agency board of directors Thursday approved seeking up to $900,000 in a loan from Amador County to pay money spent on the Gravity Supply Line. The loan will also free up cash to help the agency make a payment on the Amador Transmission Pipeline debt service, which will be more than $1 million. Based on a budget forecast, the board expects to be able to repay the loan in 3 months, but it must be repaid by December, as directed by the board in a vote April 30th. The board approved seeking the loan from the county Water Development Fund, and authorized General Manger Gene Mancebo to sign an agreement approved by supervisors. AWA approved it 4-1 with President Bill Condrashoff dissenting, saying he did not want to put AWS customers in potential debt if the agency does not get a USDA loan for the Gravity Supply Line project. The loan will pay back a debt of the Central Amador Water Project system, which took loans from the Amador Water System in paying for work on the GSL. Vice President Debbie Dunn said the CAWP loan should have been “memorialized,” like other internal loans similarly handled by the board at its last meeting. Condrashoff said CAWP had funds in reserve when it was given an AWS loan, and then earned interest on those funds. Finance Manager Mike Lee said CAWP spent $1 million on the GSL, and in the accounting, he showed CAWP had a $470,000 reserve and borrowed $640,000. He said any system or account “will get its proportional interest based on the total,” when the agency does “the interest allocation.” He said systems with negative cash have never been penalized. Part of the motion was to stop spending on the GSL until the agency knows it will get USDA grant and loan funds for the project. Mancebo said to get reimbursed for GSL sunk costs, the USDA wants to know the final bid amount for construction costs. And he estimated that the USDA will require the agency to have possession of right-of-ways. Mancebo said it was “crystal clear” that memorializing the CAWP loan has to happen, and they need to go back and look and “get to the bottom of reserve funds and what was used, where.” Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Monday, 17 May 2010 06:16
AWA Seeks $900K Loan From Amador County
Amador County – The Amador Water Agency board of directors Thursday approved seeking up to $900,000 in a loan from Amador County to pay money spent on the Gravity Supply Line. The loan will also free up cash to help the agency make a payment on the Amador Transmission Pipeline debt service, which will be more than $1 million. Based on a budget forecast, the board expects to be able to repay the loan in 3 months, but it must be repaid by December, as directed by the board in a vote April 30th. The board approved seeking the loan from the county Water Development Fund, and authorized General Manger Gene Mancebo to sign an agreement approved by supervisors. AWA approved it 4-1 with President Bill Condrashoff dissenting, saying he did not want to put AWS customers in potential debt if the agency does not get a USDA loan for the Gravity Supply Line project. The loan will pay back a debt of the Central Amador Water Project system, which took loans from the Amador Water System in paying for work on the GSL. Vice President Debbie Dunn said the CAWP loan should have been “memorialized,” like other internal loans similarly handled by the board at its last meeting. Condrashoff said CAWP had funds in reserve when it was given an AWS loan, and then earned interest on those funds. Finance Manager Mike Lee said CAWP spent $1 million on the GSL, and in the accounting, he showed CAWP had a $470,000 reserve and borrowed $640,000. He said any system or account “will get its proportional interest based on the total,” when the agency does “the interest allocation.” He said systems with negative cash have never been penalized. Part of the motion was to stop spending on the GSL until the agency knows it will get USDA grant and loan funds for the project. Mancebo said to get reimbursed for GSL sunk costs, the USDA wants to know the final bid amount for construction costs. And he estimated that the USDA will require the agency to have possession of right-of-ways. Mancebo said it was “crystal clear” that memorializing the CAWP loan has to happen, and they need to go back and look and “get to the bottom of reserve funds and what was used, where.” Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.Latest from
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