By Jim Reece -
In a meeting Tuesday, the Amador Water Agency and the city of Jackson agreed that the city should be involved with revisions in the water Participation Fee updates and also how and when to add additional Water Treatment Plant Capacity. The AWA board talked about the history of its rate relationship with the city of Jackson and the AWA board determined to keep the lines of communication open with the city. AWA General Manager Jim Abercrombie rehashed a history of some misconceptions about the agency and Jackson’s water rates, to dispel rumors. Jackson’s lead negotiator, Bill Condrashoff, on Tuesday also agreed to support the Jackson rate increase and agreed that the “cost to serve” study was accurate. Abercrombie said he was able to make headway in talks, saying, “when you remove some of the conflicts, you are dealing with facts.” Abercrombie dispelled one item of misinformation, saying that Jackson residents are not paying for the Plymouth Pipeline. He said contrary to misinformation, the agency will not spend 40 Million Dollars on Ione and Tanner water treatment projects, of which existing customers will not pay 30 percent. Abercrombie said that wholesale fees in the Plymouth Pipeline agreement of 2,500 dollars were based on 2004 rates, when negotiations between Plymouth and the AWA began. The agreement for the Plymouth Pipeline was signed in 2006 and the wholesale fee increases were 2,480 dollars in April 2004. It was raised to 5,010 dollars in December 2005 and then raised again to 7,020 dollars on October 11, 2007. In Summary, Abercrombie said that Jackson’s water rates were based on a water rate study and a “cost to serve” study, by Bob Reed. He said the main reason for the rate increase was due to litigation caused by Protect Historic Amador Waterways members, with 9 million dollars in capital costs, or 3 dollars per customer for 30 years. Condrashoff said he didn’t “like the Agency to pass the buck on this 9 Million-dollar litigation fee,” and he said PHAW won the lawsuit. District 5 board member Terence Moore said, “you want to know who won the lawsuit? Go out and look at the water pumping in from the valley.”
