Sutter Creek – The Amador Water Agency board of directors last week considered absorbing 59 well customers in the La Mel Heights subdivision into its main water system. The board heard the pros and cons of consolidating the La Mel Heights Water Improvement District with the Amador Water System. La Mel Heights subdivision has 2 wells that serve 59 customers. In 2007 the AWA built a new well and storage tank and improved the La Mel Heights distribution system, using a $350,000 USDA Rural Utility Services grant. AWA Interim General Manager Gene Macebo said Tuesday that the agency “also made a loan to the district for the improvements, but debt service and the community’s small customer base have contributed to an annual budget deficit of about $33,000.” He said a notice was recently mailed to all La Mel Heights customers proposing rate increases of 8-15% and 15% over the next 3 years, which was protested by most customers in the form of a petition presented at the board meeting by La Mel Heights resident Jackie Vaughn. The board discussed the benefits of spreading out the costs of a small improvement district over the larger system, and members also questioned whether or not La Mel Heights customers were in favor of consolidation. AWA Financial Services Manager Michael Lee told the board that, if consolidated, the Amador Water System would continue to service the La Mel Heights system with the same personnel as it currently does and that AWA could absorb the La Mel Heights budget deficit, which represents less than 1% of the Amador Water System’s $5.19 million budget. Mancebo said in consolidation, the question arises on whether some customers “subsidize” other areas, because each region of the county has different water districts and different costs. Story by Jim Reece This e-mail address is being protected from spam bots, you need JavaScript enabled to view it