County raises water rates in foothill area

After number-crunching by consultants, Douglas County Commissioners approved new interim rates Thursday for customers of two small Foothill water systems effective Oct. 1.

Monthly water rates for 55 customers of Job's Peak Water System will increase from $65 per month to $180 per month. For the 91 customers in Sheridan Acres, the rates increase from $125 per month to $130.52.

Lawyer Kelly Chase, representing the Jobs Peak Ranch Community Homeowners Association, presented commissioners with 162-page document he claimed outlined mistakes and problems with the county's rate hike study.

"You're trying to impose a 'tax' on 55 people to pay for system improvements that serve 500. There's a lien, if they don't pay, you can foreclose on their property," Chase said.

He claimed the county was assessing the increase in an enterprise fund.

By statute, he said, an enterprise fund only covers operation.

"The Nevada Revised Statute makes it very clear, an enterprise fund does not tax capital. I don't know any business out there that imposes taxes," Chase said.

Commission Chair Nancy McDermid said the board did not have an opportunity to review Chase's claims prior to Thursday's meeting.

John Robertson, president of the homeowners' association, asked commissioners to continue the discussion so they could read Chase's report.

"I think you would be very interested in what staff knew and when," he said.

"Our members would like to see more study. We would prefer not to litigate, we'd like to be treated fairly," Robertson said.

Assistant District Attorney Michael McCormick said a brief review of the document indicated it contained no new information.

"He's trying to dig up old issues that already been resolved," McCormick said.

He added that residents had been properly notified of the rate increase and the enterprise fund was being operated according to statute.

"I want to make sure our intent is to establish a rate for this coming year while we work simultaneously on a consolidation study that affects everyone across the Valley," said Commissioner Dave Brady.

Commissioner Greg Lynn said the board did not relish the idea of rate hikes.

"Both these systems are being subsidized by county taxpayers who don't use either one," Lynn said.

"I subsidize your water and I pay for Gardnerville Ranchos water. People who use wells subsidize your water and they use their own water. One way to move forward is to bring equities to the entire system," Lynn said.

Resident Jim Slade, who lives outside the Foothill water districts, said he felt "some empathy" for homeowners facing large increases.

"I am not happy that I am paying for any of this," he said. "And I don't think any of the other 50,000 residents are either."

The board also approved a $179,093 study with HDR Engineering for the Job's Peak water treatment facility.

Consultant Karyn Johnson, hired by Douglas County to study the water systems, said the consolidation water rate should be set by February for implementation in July 2010.