Amador County – The Amador Water Agency board of directors discussed a system-wide water rate structure and related Proposition 218 notice in a special meeting Monday, Aug. 13, and planned to discuss the expected water costs on Tuesday in an Outreach Committee meeting with Jackson City Council.
Directors discussed the proposal with consultant Bob Reed of The Reed Group, who said some costs of the consolidated rate structure would not be known yet, but his estimates for certain costs for water in the five water systems had dropped significantly with the insertion of participation fees from JTS Communities, of which he said 87.5 percent could be put toward the components of debts service costs for the Amador Transmission Pipeline, and toward buy-in for services.
Reed said $250,000 a year from JTS will offset debt service costs for the already built Amador Transmission Pipeline. He said that represents a pretty significant increase, up from $33,000 and makes the water rates less than they were in previous proposals. He said the typical Amador Water System customer’s rate would go up 14 cents a month. It also would change debt service charges that were delineated per water system.
The rate structure would be formed by the election across the county of water agency customers on a Community Facilities District, and would require a two-thirds majority vote, and also a Proposition 218 notice for allowing protest of the expected rate increases. The CFD would assess a special tax for the Gravity Supply Line project, and would depend on the boundaries of the CFD, which would omit parcels on wells.
Reed said resale water rate increase estimates showed Jackson rates would go up 9.5% in the consolidated rate structure; Plymouth would go down a little; Drytown would go up 16.5%; and Mule Creek State Prison would go up 11.5%.
Wendell Peart suggested that the availability of water for fire fighting be considered. Reed said the fire flow was not about home use of water.
Reed said debt service charges per system were different, and the CFD for the Gravity Supply Line would reduce bills in the Central Amador Water Project service area.
AWA Attorney Steve Kronick said staff is proposing a system wide rate structure and annual adjustments tied to an index, and any year the board could choose not to implement that adjustment, over a five-year term.
Ken Berry asked if the rate could be based on actual spending. Kronick said the Prop 218 notification, which is “in process,” will say that in no case shall the adjustment exceed the cost of providing service.
Story by Jim Reece This email address is being protected from spambots. You need JavaScript enabled to view it.
