Monday night's meeting of the Jackson City Council was the scene of renewed skirmishing in what has all the earmarks of a water war between existing ratepayers and the Amador Water Agency.

The city formerly operated its own water treatment plant, but no longer does. Jackson presently purchases treated water at a wholesale price from the water agency, which is in turn sold at retail by Jackson Water Works.

Last August, the agency imposed a 22 percent rate increase on wholesale water that it sells to the city. Saddled with this rate increase from the agency, the city is losing substantial amounts of money monthly. Estimated shortfalls of more than $6,000 a month are being covered by funds drawn from rapidly dwindling reserves.

Later last year, the city attempted to pass an increase in water rates on to the ratepayers at the same time as it attempted an increase in the sewer rate. An uproar resulted, aborting both water and sewer rate increases and leading to the formation of a Water/Sewer Rate Committee, comprised of six residents and Councilman Wayne Garibaldi. The committee has met nine times since February, with participation, at times, from city water officials and water agency staff members.

City Manager Mike Daly outlined the situation for the council, detailing the formation of the committee and the work that it has done thus far. Daly's memorandum to the council stated that the original purpose of the committee was "to make recommendations (to the council) to ensure that both utilities are generating the necessary revenues to provide safe, reliable services to city of Jackson water and sewer customers."

Garibaldi, who has been attending committee meetings, said, "Our committee has people with passion who want to know if the city has any power over the agency. I would like people on the committee to continue to investigate the agency."

Mayor Rosalie Pryor Escamilla expressed another desire. "I would like the committee to come up with a recommendation for an acceptable rate increase," she said.

Committee member Bill Condrashoff spoke about agency plans to deactivate the Ione water treatment plant and replace it with an expanded Tanner plant. He questioned the validity of statements made to him by AWA General Manager Jim Abercrombie concerning agency decisions regarding that plan.

"In Jackson," said Condrashoff, "a hook-up fee is $7,000. New hook-ups in Plymouth are only $2,500."

Abercrombie was contacted later for responses to Condrashoff's statements. Hook-up fees, aka participation fees, for new connections are $7,020 anywhere in the system, he said. The $2,500 participation fee is being charged for each of the existing 536 connections in Plymouth. This is going to provide $1.34 million as a contribution from Plymouth to the Plymouth pipeline project. Any new connections beyond those that already exist will be required to pay the $7,020 participation fee.

According to Abercrombie, the Ione treatment plant deactivation plan has been the subject of a dozen public meetings and the decisions that have been made have been subjected to thorough public scrutiny.

The general tone of Monday's meeting turned to dealing with the apparent invulnerability of the water agency. City Attorney Andy Morris provided scant encouragement to the council in his memorandum that basically explains agency exemption from Proposition 218 rules, which empowered affected property owners to vote on any new or increased assessment before it could be levied. Morris offered a glimmer of hope in further exploration of laws governing fees charged by agencies.

Garibaldi said that he "wants a two-pronged attack that provides some rate increases to relieve the city while still pursuing a battle with the agency."

AWA District 1 Director Madonna Wiebold concurred with an earlier Condrashoff proposal. "I applaud Bill's suggestion that the city deal with the agency," she said. "Sutter Creek has already begun to deal directly with the directors of the agency."

Jackson resident Ken Berry, a candidate for District 1 supervisor, said, "The council will have to take a much more aggressive stance."

The hiring of a consultant to aid the city in its dealings with the agency was suggested.

"Maybe we could ally with Sutter Creek and share consultant costs," offered Jackson resident Thornton Consolo.

Garibaldi added that Jackson could "follow up on that by talking to Ione and Sutter Creek about consultants."

As the agenda item was only listed for review and direction, no action was taken.