Amador County – Amador Water Agency Director Debbie Dunn last week requested that the board today reconsider a “bridge loan” it approved to correct a cash flow problem. Dunn then wondered why her request set off a series of e-mail exchanges, culminating in her e-mail Monday to the other 4 board members asking: “What in the world is happening here?” Dunn sent the first e-mail (Friday, April 14th) to General Manager Gene Mancebo and board President Bill Condrashoff, saying that after studying the Amador Transmission Pipeline’s “Series A bond agreement, it appears that the board may have taken a vote with information that is contrary to the agreement.” She said “unless there is a simple explanation that differs from what I am reading, I believe it prudent and feel obligated to request an item be added to the May 20th agenda to entertain a motion to reconsider these items and this decision.” The AWA board last Thursday approved seeking a $900,000 loan from the Amador County Water Development Fund to free up cash so the agency can make a payment on 2006 bonds that financed the Amador Transmission Pipeline. Mancebo shared Dunn’s e-mail with agency attorney Steve Kronick, and neither of them knew what Dunn was referring to as “information contrary to the agreement.” A follow-up e-mail from Condrashoff said Dunn was concerned the Pipeline bond payment was not due May 15th, as Finance Manager Mike Lee told the board. Kronick, in an e-mail to the entire board, said he consulted bond attorney Jim Boyd about the specifics of the 2006 bond, which Boyd worked on. Boyd wrote that Lee was correct on the payment date, and noted that the June 1st interest payment date is not the same as the date the agency must make its payments. The bond issuer typically wants “some lead time to make sure” the “payments can be made, particularly where there is no reserve fund.” The agency used “bond insurance” instead of “funding a reserve” on the bond. Kronick said he “copied the other board members in transmitting (Boyd’s) response so that they also could benefit from the information that he provided.” Dunn’s e-mail to the other board members said: “I noticed a couple of inconsistencies but I didn’t think it was that big a deal.” Her initial e-mail included a quote of the “Rules of Order” on procedures to make a “motion to reconsider,” and a copy of a page from the AWA Employee Handbook, with portions of it highlighted, including employee obligations, and the definition of the term “improper practice” by employees. Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
Thursday, 20 May 2010 06:13
Dunn Requests AWA Board Reagendize $900K County Bridge Loan
Amador County – Amador Water Agency Director Debbie Dunn last week requested that the board today reconsider a “bridge loan” it approved to correct a cash flow problem. Dunn then wondered why her request set off a series of e-mail exchanges, culminating in her e-mail Monday to the other 4 board members asking: “What in the world is happening here?” Dunn sent the first e-mail (Friday, April 14th) to General Manager Gene Mancebo and board President Bill Condrashoff, saying that after studying the Amador Transmission Pipeline’s “Series A bond agreement, it appears that the board may have taken a vote with information that is contrary to the agreement.” She said “unless there is a simple explanation that differs from what I am reading, I believe it prudent and feel obligated to request an item be added to the May 20th agenda to entertain a motion to reconsider these items and this decision.” The AWA board last Thursday approved seeking a $900,000 loan from the Amador County Water Development Fund to free up cash so the agency can make a payment on 2006 bonds that financed the Amador Transmission Pipeline. Mancebo shared Dunn’s e-mail with agency attorney Steve Kronick, and neither of them knew what Dunn was referring to as “information contrary to the agreement.” A follow-up e-mail from Condrashoff said Dunn was concerned the Pipeline bond payment was not due May 15th, as Finance Manager Mike Lee told the board. Kronick, in an e-mail to the entire board, said he consulted bond attorney Jim Boyd about the specifics of the 2006 bond, which Boyd worked on. Boyd wrote that Lee was correct on the payment date, and noted that the June 1st interest payment date is not the same as the date the agency must make its payments. The bond issuer typically wants “some lead time to make sure” the “payments can be made, particularly where there is no reserve fund.” The agency used “bond insurance” instead of “funding a reserve” on the bond. Kronick said he “copied the other board members in transmitting (Boyd’s) response so that they also could benefit from the information that he provided.” Dunn’s e-mail to the other board members said: “I noticed a couple of inconsistencies but I didn’t think it was that big a deal.” Her initial e-mail included a quote of the “Rules of Order” on procedures to make a “motion to reconsider,” and a copy of a page from the AWA Employee Handbook, with portions of it highlighted, including employee obligations, and the definition of the term “improper practice” by employees. 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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