County delays vote on loan for PUD

Wahkiakum County commissioners this week delayed acting on a resolution to loan Wahkiakum PUD $1.2 million from the county treasurer's investment fund.

Wahkiakum PUD has requested the loan to help finance construction of a new $3 million substation at Cathlamet.

PUD Manager David Tramblie has said that the PUD has $1.8 million in reserves, so it needs another $1.2 million to complete the project.

The treasurer's investment portolio includes reserves from Wahkiakum County, the PUD, Wahkiakum School District, port districts and small taxing districts throughout the county. Retiring Tresurer Paula Holloway last week said the fund has $11-12 million invested.

Last week, county commissioners said they hadn't received copies of the resolution and proposed loan agreement at meeting time, and they wanted a week to consider them. During the week, they said they met individually with Holloway and Prosecuting Attorney Dan Bigelow and came up with two agreements to consider, one setting up the loan as proposed and the second containing a clause allowing the county to call the loan with six months notice.

However, on Tuesday, they again said they hadn't received the new documents until just before their meeting, so they hadn't had time to review them. They said they would make their decision next Tuesday.

Tramblie said the PUD's engineering firm has scheduled bid opening for March 23; a decision next week would meet the deadline.

"We just got things today," said commission Chair Dan Cothren. "We'd like to have additional time to go over them."

"In theory, I agree with the proposal but I want to go over it," said Commissioner Lisa Marsyla.

Commissioner Blair Brady said one proposal contains an "out clause."

"Should something develop, we could recall the loan with six months notice," he said. "It is prudent for us as commissioners."

Tramblie said it would be easier for the PUD to have 12 months notice instead of six, and Marsyla said she could live with a 12 month period.

Tramblie reminded the commissioners that the loan will save county residents around $45,000 because the county will offer a lower interest rate than the PUD could get through a commercial lender.

"My job is to look out for the county's interests," Brady said.