Amador Water Agency
CAWP Gravity Supply Line Local Funding Measure
“A More Affordable Solution”
Meeting of Board of DirectorsSeptember 13, 2012
SCISCIConsultingGroupConsultingGroup4745 Mangels Boulevard 4745 Mangels Boulevard Fairfield, CA 94534Fairfield, CA 94534Phone 707.430.4300 Phone 707.430.4300 Fax 707.430.4319Fax 707.430.4319www.sci-cg.comwww.sci-cg.com
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Presentation OverviewPresentation Overview
• Pumps or Gravity?
• CAWP Gravity Supply Line (“GSL”)
- A More Affordable Solution -
• Proposed CAWP GSL Local Funding Measure
• Tentative Timeline / Next Steps
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Pumps vs. GravityPumps vs. Gravity
Pumps vs. GravityPumps 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Current pump system is costly, outdated and failing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
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$$$ Savings with Gravity Supply LineTypical CAWP Residential Customer/Taxpayer
$$$ Savings with Gravity Supply LineTypical CAWP Residential Customer/Taxpayer
$0.00
$20.00
$40.00
$60.00
$80.00
Current MonthlyWater Bill
CAWP GSL MeasureNOT APPROVED
CAWP GSL MeasureAPPROVED
Net Savingswith GSL
CFD No. 2Special Tax
AverageMonthlyWater Bill
$43.98
$58.49
$34.53
CAWP Pump System CAWP Gravity Supply Line
Rate increase due to pump system repair and replacement NET SAVINGS
$16.79 per month$202 per year
$7.17
$16.79
TOTAL COST$41.70
per month
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CAWP Gravity Supply LineCAWP 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.)
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Annual Special Tax FormulaAnnual 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
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Annual Revenue RequirementRestricted Use of ProceedsAnnual 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 CostsCounty Tax Collector ChargesCFD Formation / Election Costs
LESS: Other Associated RevenueDelinquency PenaltiesAssociated Participation FeesInterest Earnings
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Proposed BoundariesProposed 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.
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Proposed BoundariesProposed Boundaries
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Proposed CAWP Local Funding MeasureProposed CAWP Local Funding Measure
Maximum Rate per Tax Unit $86.00 (est.)
Maximum Tax Units per Parcel 10 Tax UnitsDuration of Special Tax 40 years (USDA Loan term)
CPI Adjustment None
Land Use Classification Tax Units
Developed Residential Property1 Tax Unit + 0.25 Tax Units per Acre for Acres over 5 Acres
Developed Nonresidential Property 2 Tax Units per ¼ Acre or portion thereof
Undeveloped Property 0.25 Tax Unit per Acre
Tax Exempt Property 0.0 Tax Units
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Pumps vs. Gravity$$$ Savings for Typical Residential Customer/TaxpayerPumps vs. Gravity$$$ Savings for Typical Residential Customer/Taxpayer
$0.00
$20.00
$40.00
$60.00
$80.00
Current MonthlyWater Bill
CAWP GSL MeasureNOT APPROVED
CAWP GSL MeasureAPPROVED
Net Savingswith GSL
CFD No. 2Special Tax
AverageMonthlyWater Bill
$43.98
$58.49
$34.53
CAWP Pump System CAWP Gravity Supply Line
Rate increase due to pump system repair and replacement NET SAVINGS
$16.79 per month$202 per year
$7.17
$16.79
TOTAL COST$41.70
per month
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CAWP GSL Local Funding MeasureStrict Accountability ProvisionsCAWP 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
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CAWP GSL Local Funding MeasureOther Key ProvisionsCAWP 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
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CAWP GSL Local Funding MeasureTentative Timeline / Next StepsCAWP 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.
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Questions? / Discussion Questions? / Discussion
Gene ManceboAmador Water Agency
Blair AasSCI Consulting Group
Jesse SalmonSCI Consulting Group
Stephen KronickAWA Legal Counsel
