Amador County – In the first meeting of its new makeup, the Amador Water Agency board of directors voted unanimously Thursday, December 9th, to spend close to $70,000 to proceed to bid as soon as possible on the Gravity Supply Line project.
AWA General Manager Gene Mancebo said bidding could start in April 2011, and if approved, construction of the GSL could begin late next summer or early fall.
Mancebo said: “Once construction bids are opened, the agency will have a firm cost to share with customers prior to considering a potential rate increase and weighing the cost versus benefits of the project.”
Three Central Amador Water Project districts must also approve financing for the final project, which the AWA board approved in March. The GSL is a gravity-fed raw water pipeline to CAWP’s water treatment system in Buckhorn.
Mancebo said the GSL is “designed to greatly reduce the impacts of rising electricity costs on CAWP’s budget.” The AWA board’s March approval allowed the agency to apply to the U.S. Department of Agriculture for a $5.1 million grant and a low interest, 40-year loan for $8.3 million to pay for the GSL. The loan payment would be offset by a reduction in energy costs.
Mancebo said he was hopeful that actual construction costs will be lower than initial estimates, citing other recent public works project bids that have come in as much as 50 percent below original engineering estimates.
He said AWA staff will begin a series of Upcountry meetings to share information with CAWP ratepayers in January.
In a report to the board, Mancebo said the AWA board halted work on USDA conditions for the grant and loan for the project, due to concerns over the cost. Staff brought back a timeline and list of the conditions, and reported that for less than $70,000, consisting of “existing staff time,” the AWA “could bid the project and meet all conditions necessary prior to the start of construction.”
He said staff “will continue to refine financial plans with the budget and finance committee,” made up of President Don Cooper and District 4 Director Robert Manassero. Staff also plans “a future workshop on the financial plans with the entire board.”
Mancebo said on November 17th that AWA staff held a quarterly meeting with the CAWP wholesale districts, well represented by its board members. They unanimously said “they wish to proceed with spending $69,630 to get the GSL out to bid,” so a firm construction bid cost could be determined.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
