At Thursday's brief meeting of the Amador Water Agency, Financial Services Manager Michael Lee told the board of directors that the agency remained on solid financial ground, despite federal seizure of the IndyMac Bank in Pasadena.

The agency had a CD of unspecified value with IndyMac. Lee informed the directors that the agency's broker had assured him that the Federal Deposit Insurance Corp., better known as FDIC, will reimburse the money.

As of June 30, the agency's investment portfolio showed a value of "$3,766,000 and change," Lee said. All of this money is invested in either state- or federally-guaranteed financial institutions.

Lee injected a further word of assurance, pointing to the relatively high yields on agency-held CDs. "We have some pretty good stuff, paying up to 5 1/2 percent," he said.

A presentation was made to the directors by Andy Sells, chief financial and operations manager of the Association of California Water Agencies Joint Powers Insurance Authority. Formed in 1979, this specialized insurance company presently has 285 water agencies as members. AWA is one of the top 45 members. Only water districts or agencies are allowed to become members and participate in the services.

The ACWA/JPIA provides a comprehensive array of insurance coverage for the agency, through risk-sharing pools that meet the needs of its members for liability, property and workers' compensation coverage. Cost for insurance coverage under the ACWA/JPIA is considerably lower than with commercial insurance companies. This coverage is available only to public entities and premiums are based on agency payrolls. Sells mentioned that the payroll at the El Dorado Irrigation District is more than $20 million. According to its 2007-08 budget, AWA payroll is slightly more than $4 million.

Joint powers authorities are widespread public entities in California, numbering over 150. They are all about insurance, which can be provided more efficiently and at better rates to cooperating entities. An important aspect of the JPIA is protection of its members by limitations placed on applicants for membership. Water districts can be refused membership if their risk level is too high.

"One water district was refused membership for reasons of elevation and flood exposure," Sells said. He later revealed that the spurned district was in the Natomas area of Sacramento. Insofar as the cost of claims to the JPIA is shared by the membership, Sells explained that refusal came because "they had too great an exposure and jeopardized other members."

AWA Director Dave Thomas asked Sells if the overtime incurred during the June power outage caused by the Electra fire can be covered by insurance. Sells replied that further research would be required.