Wednesday, 24 August 2011 06:27

GSL merits discussd before supervisors extend AWA loan period

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slide3-gls_merits_discussd_before_supervisors_extend_awa_loan_period.pngAmador County – Supervisors on Tuesday discussed merits of the Gravity Supply Line project, before approving an extension on a loan to the Amador Water Agency.

In public comment, Bill Condrashoff said if someone asks for a loan, the county should “act like a banker.” He said AWA owes Sutter Creek $800,000, although Sutter Creek City Manager Sean Rabe recently told TSPN the amount agreed on is about $650,000.

David Evitt said AWA suffered from “bad financial decision making” and needed the $900,000 loan 14 months ago to make a $1 million bond payment on the Amador Transmission Pipeline. He said “I don’t think Sutter Creek will want to be paid second.”

Supervisor Richard Forster said that was “the pot calling the kettle black,” because “some primary opponents of the Amador Water System” cost the agency $11 million after 10 years of fighting the AWS pipeline, “and you wonder why AWA is having financial problems.”

Forster said he supported the GSL when he was on the AWA board, but there was no grant. Now AWA has a grant and a small group of some of the same people who opposed the AWS led a Prop 218 drive against the GSL, and is doing the same thing in the Camanche water district. He wondered what conclusion they sought besides “bringing AWA to ruination.” Forster said the language the group uses in its Prop 218 drive is: “Don’t vote for a rate increase,” but this “has been viewed as a great project for 12 years now.”

Supervisor Brian Oneto said it was ironic that the same AWS foes who cost AWA millions are now trying to stop the GSL, while at the same time saying they want to save the ratepayers money. He said “people want to shut off access to water, whether it’s the GSL or Wild & Scenic.”

Supervisor Chairman John Plasse said calling the request for a loan extension “bad management” was short-sighted. He said AWA has time and again demonstrated the benefits of the GSL, including gravity flow of cleaner water, replacing dirtier water that is pumped. He said the GSL pays for itself two times over, compared to what it would cost to replace or fix the existing system.

Plasse said the Amador Transmission Pipeline could have been finished for $10 million, but “frivolous lawsuits” ended up costing $22 million, and “those costs are passed on to the ratepayers.” He said one ruling found that “the plaintiff couldn’t make an intelligible argument.”

Evitt said “don’t you dare say” he cost the AWA money with his suit. He said all he wanted was a compromise, and the agency was “bullheaded.” Forster said “there was some bullheadedness” on both sides.

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

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