Amador County – The Amador Water Agency sought a new financial plan Thursday toward getting federal financing for the Gravity Supply Line project.
The board voted 4-0 (with Director Don Cooper absent) to have staff create a new financial plan using the agency’s new budget and recent lower construction costs.
Jim Conklin, executive director of the Amador County Business Council, urged the board to pursue the GSL, saying the Business Council was “committed publicly” to helping educate customers on the project. Conklin said the GSL pipeline would help “total community wellness” in Amador County, and the Business Council was working on an investment project to help cities and agencies pay their bills.
He said “you have $13.3 million sitting on your table that you can use to eliminate this problem.” He said it would eliminate a $280,000 annual PG&E bill, and aging equipment on the existing Central Amador Water Project pipeline that will need to be replaced.
Rich Farrington said the Plymouth pipeline came in 28 percent under estimates, and “this could be a $10 million or $9 million project, which translates into lower rates.”
David Evitt, who spearheaded a Proposition 218 protest to block a rate increase said when he went out to talk to people, they said they did not want to spend $4 more a month on top of their $87 bill, calling it a “no brainer.” The increase would have helped secure a USDA loan for the GSL project.
Dunn said she had eight questions about USDA conditions to meet to get a grant and loan, including the costs of insurance and a construction bond, and when those would need to be purchased by the agency.
Engineering Manager Erik Christeson said insurance and the construction bond were both required to be paid by the construction contractor on the project.
Condrashoff asked if the USDA funding would come before a May 2011 due date for a payment on the Amador Transmission Pipeline debt service. He said a Prop 218 period would end within weeks or days of that loan payment being due.
Director Terence Moore said: “I think it’s worse than that,” because “they are not going to give us any money until we award the contract.”
Mancebo said the USDA wants to know if we completed the conditions. He said they cannot incur indebtedness without a CAWP contract.
Finance Manager Mike Lee said the rate notice and workshop would likely take 45 to less than 90 days, and the USDA is pretty quick to wire money.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
