Amador County – Amador Water Agency approved seeking a county Water Development Fund loan for up to $900,000 last week, but not before discussion of how the money will be spent, and loan terms. AWA board President Bill Condrashoff and Vice President Debbie Dunn said they were leery of taking the loan that must paid off by the end of the year. But Director Terence Moore pointed out that Dunn suggested the short term loan, and the board directed staff to seek a loan that must be repaid by December 31st. Moore said: “You can’t have it both ways.” Condrashoff said “if the USDA doesn’t come through, it leaves us in a bigger hole.” Agency attorney Steve Kronick said “the county can also extend this over 30 years, as it has done for other agencies.” General Manager Gene Mancebo said “staff recommended a longer term, and the board directed a very specific ending date.” Condrashoff said if they do not get the USDA grant and loan, they cannot have a project. Dunn said she was concerned supervisors hadn’t heard the possible loan figure before AWA discussed it in April. Mancebo said “it was not taken to the full board,” but he discussed a $1.2 million, 30-year loan with county Chief Administrative Officer Terry Daly, “there wasn’t a staff concern,” and Daly shared the information with 2 supervisors in committee. Condrashoff asked about the agency using the loan for expenses other than planned, to pay sunk costs of the GSL. The loan will free up reserve cash for the agency to be able to make a $1 million bond payment on the Amador Transmission Pipeline. Dunn suggested changing the contract. Kronick said the board need not change it, but could use a motion to direct staff not to use the money for other purposes. He said changing the contract would mean sending it back to the board of supervisors, which would have occurred after the Amador Transmission Pipeline payment due date of Saturday (May 15th) – 2 days before AWA approved seeking the loan. Dunn said she “can’t believe we’re handcuffed” by a time limit. Moore said “the only thing we’re talking about is how we use this $900,000,” and the board “can direct staff to put the money in the bank and not use it for any other purpose.” Summer water usage is expected to earn the agency enough money to repay the county loan. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Tuesday, 18 May 2010 06:34
AWA Discusses Use of Loan On GSL Sunk Costs
Amador County – Amador Water Agency approved seeking a county Water Development Fund loan for up to $900,000 last week, but not before discussion of how the money will be spent, and loan terms. AWA board President Bill Condrashoff and Vice President Debbie Dunn said they were leery of taking the loan that must paid off by the end of the year. But Director Terence Moore pointed out that Dunn suggested the short term loan, and the board directed staff to seek a loan that must be repaid by December 31st. Moore said: “You can’t have it both ways.” Condrashoff said “if the USDA doesn’t come through, it leaves us in a bigger hole.” Agency attorney Steve Kronick said “the county can also extend this over 30 years, as it has done for other agencies.” General Manager Gene Mancebo said “staff recommended a longer term, and the board directed a very specific ending date.” Condrashoff said if they do not get the USDA grant and loan, they cannot have a project. Dunn said she was concerned supervisors hadn’t heard the possible loan figure before AWA discussed it in April. Mancebo said “it was not taken to the full board,” but he discussed a $1.2 million, 30-year loan with county Chief Administrative Officer Terry Daly, “there wasn’t a staff concern,” and Daly shared the information with 2 supervisors in committee. Condrashoff asked about the agency using the loan for expenses other than planned, to pay sunk costs of the GSL. The loan will free up reserve cash for the agency to be able to make a $1 million bond payment on the Amador Transmission Pipeline. Dunn suggested changing the contract. Kronick said the board need not change it, but could use a motion to direct staff not to use the money for other purposes. He said changing the contract would mean sending it back to the board of supervisors, which would have occurred after the Amador Transmission Pipeline payment due date of Saturday (May 15th) – 2 days before AWA approved seeking the loan. Dunn said she “can’t believe we’re handcuffed” by a time limit. Moore said “the only thing we’re talking about is how we use this $900,000,” and the board “can direct staff to put the money in the bank and not use it for any other purpose.” Summer water usage is expected to earn the agency enough money to repay the county loan. 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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