Amador County – Amador Water Agency directors voted 4-1 Thursday to seek renegotiation of a $900,000 loan from Amador County that is due to be repaid December 31st.

Supervisors John Plasse and Ted Novelli and County Counsel Martha Shaver spoke to the board about the loan, which the agency had said it would pay back with a USDA loan and grant for its Gravity Supply Line project.

Novelli said when initially presented, AWA wanted a 30-year loan. He said supervisors had not discussed the issue as a board, and if they were asked to do so, he “would like something in writing,” including rates and timelines. He asked if AWA had looked at problems it now faces, including a stalled USDA loan, blocked by a Proposition 218 protest of a rate increase in the Central Amador Water District.

President Bill Condrashoff said “we definitely looked at in great detail.” He said he “was under the belief that money would come back in the busy summer months with the sale of water,” when he voted with Vice President Debbie Dunn, and Director Gary Thomas to seek a six-month loan from the county, instead of a 20 or 30-year loan as recommended by staff.

Dunn said: “My decision was made based on the ability to pay, not the grant.” She said she felt that, “USDA loan or not, we’d be able to pay back the money.”

Finance Manager Mike Lee said he researched general loans to pay back the $900,000 owed to the county by year’s end. Interest was 6-7 percent for a 10-year loan, or 4-7 percent for a 5-year loan. The loan was taken to pay sunk costs on the Gravity Supply Line, which were paid by an internal loan from the Amador Water System.

Plasse said the county did not need to see the internal paperwork involved. He said the $900,000 loaned from the county at 2 percent interest rightfully could have earned 4-5 percent for the county.

Loan interest rates were not the only thing to consider but also the risk of repayment, Plasse said, as the county was now experiencing.

Condrashoff said “we’ll come up with a solution to pay you back,” and “we’ll not walk away from this.”

County Council Martha Shaver said that was reassuring. She said “we sort of view this as your problem and not the county’s problem.”

The 4-1 board vote also set staff to look into more detail of bank loans to repay the loan on time. Dunn dissented.

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