Title
Authorize Amendment No. 3 to Agreement with Aromas Water District for the funding of engineering and other work for the formation of an assessment district in the Oak Ridge and Via Del Sol areas, and connection to the Aromas Water District system. (ADDED VIA ADDENDUM)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors authorize Amendment No. 3 to the Agreement with Aromas Water District for the funding of engineering and other work for the formation of an assessment district in the Oak Ridge and Via Del Sol areas, and connection to the Aromas Water District system.
SUMMARY/DISCUSSION:
In April of 2010, the Board authorized an agreement ("Agreement") with the Aromas Water District ("District") and approved the expenditure of $155,000 from the County's Capital Projects Fund 402 to the District for preparation of an Engineer's Report to include surveying, engineering and design fees, Appraisers Fee, LAFCO Report Fee and Environmental Document costs for the connection of Oak Ridge Mutual Water Company and portion of Via Del Sol Drive Area to the Aromas Water System (the sum of $7,500 was previously advanced under the authority of the CAO). That amount has been amended from time-to-time, most recently in January of 2013, the Board of Supervisors approved the additional sum of $58,000 towards the project, for a total authorized expenditure of $270,500.
The Agreement provided that upon the successful formation of an assessment district the County would be repaid from the proceeds of any bonds issued to finance the improvement. The assessment district has been successfully formed, and annexation to the District has also been approved. The improvements will be financed with the proceeds of a loan from the Federal Department of Agriculture ("FDA") at very favorable rates. The FDA loan has certain requirements for the maintenance of reserves, and may not be sufficient to provide for all improvements necessary to implement the p...
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