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Presentation Overview

Presentation Overview. Pumps or Gravity? CAWP Gravity Supply Line (“GSL”) - A More Affordable Solution - Proposed CAWP GSL Local Funding Measure Tentative Timeline / Next Steps . Pumps vs. Gravity. Pumps vs. Gravity. Current pump system is costly, outdated and failing

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Presentation Overview

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  1. Presentation Overview • Pumps or Gravity? • CAWP Gravity Supply Line (“GSL”) • - A More Affordable Solution - • Proposed CAWP GSL Local Funding Measure • Tentative Timeline / Next Steps 

  2. Pumps vs. Gravity

  3. Pumps vs. Gravity • Current pump system is costly, outdated and failing • Costly pump replacement required; electrical costs • Upcountry wildfire could put electrical pumps at risk • Federal / state grants unavailable • Higher water costs • Average $58.49 per month • Construction of gravity supply line is a smart, long-term solution • Low-interest loan available • $5M federal grant available to fund 40% of the project • Cleaner, more reliable and more affordable water • Lower water costs • Average $41.70 per month including special tax

  4. $$$ Savings with Gravity Supply LineTypical CAWP Residential Customer/Taxpayer

  5. CAWP Gravity Supply Line • GSL Project Cost $13,400,000 • Sources of Funds • Federal Contribution USDA Rural Development Grant $5,070,000 (40%) • Local Contribution Low-interest USDA Rural Development Loan $8,330,000 (60%) The AWA will be eligible for the USDA grant and low-interest loan with the passage of a local funding measure. USDA Loan: 3.25% interest rate 40-year term $375,000 annual payment (est.)

  6. Annual Special Tax Formula • Step 1 – Determination of the Revenue Requirement • Step 2 – Classification of Property • Step 3 – Assignment of Tax Units to Property • Step 4 – Determination of the Annual Special Tax Rate • Step 5 – Determination of the Annual Special Tax Levy

  7. Annual Revenue RequirementRestricted Use of Proceeds • Loan $414,500 (est.) • Annual Loan Payment - $375,000 • Annual Contribution to Loan Reserve - $37,500 (10 years only) • Incidental Expenses 6% (est.) • Levy Administration Costs • County Tax Collector Charges • CFD Formation / Election Costs • LESS: Other Associated Revenue • Delinquency Penalties • Associated Participation Fees • Interest Earnings

  8. Proposed Boundaries • Parcels with land located within the Central Amador Water Project (“CAWP”) Place of Use area. The Place of Use defines the land within Amador County that receives water from a common location. •  CFD No. 2 includes parcels currently improved and receiving water service directly or under a wholesale agreement from the CAWP water system, in addition to parcels that are currently not served by the water source with land locate within the CAWP Place of Use area and benefit from water availability.

  9. Proposed Boundaries

  10. Proposed CAWP Local Funding Measure • Maximum Rate per Tax Unit $86.00 (est.) • Maximum Tax Units per Parcel 10 Tax Units • Duration of Special Tax 40 years (USDA Loan term) • CPI Adjustment None

  11. Pumps vs. Gravity$$$ Savings for Typical Residential Customer/Taxpayer

  12. CAWP GSL Local Funding MeasureStrict Accountability Provisions • Citizens’ Oversight Committee • Proceeds may only be used to fund USDA loan and other incidental expenses • Proceeds shall be deposited into separate fund; shall not be commingled with other AWA funds • Annual Audit • Annual Special Tax Report • Appeals Procedure

  13. CAWP GSL Local Funding MeasureOther Key Provisions • Requires supermajority approval (2/3rd of participating registered voters) • Maximum special tax rate established for duration of the special tax • Maximum tax units per parcel established for the duration of the special tax • No annual inflationary (CPI) adjustment for the duration of the special tax • Annexation provision • Well exemption provision

  14. CAWP GSL Local Funding MeasureTentative Timeline / Next Steps • September 24, 2012 Resolution of Intention to Establish CFD No. 2 • October 25, 2012 Public Hearing re CFD No. 2 • Resolution Forming CFD No. 2 • Resolution Calling for a Local Funding Measure • November 8, 2012 Public hearing / adoption of system- wide water rates • March 26, 2013 Election Day (66.7% approval required) • If measure passes, . . . GSL is constructed & lower water rates. • If measure fails, . . . pump system is replaced & higher water rates.

  15. Questions? / Discussion Gene Mancebo Amador Water Agency Blair Aas SCI Consulting Group Jesse Salmon SCI Consulting Group Stephen Kronick AWA Legal Counsel

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