Water users balk at skyrocketing rates

Facing the reality of huge hikes in water rates for two tiny Carson Valley water systems, Douglas County commissioners on Thursday asked county staff to come up with more options.

"I don't like horror pictures and this is a horror picture," said Commissioner Nancy McDermid.

Under a rate plan presented Thursday, the 55 customers of Job's Peak water system would see their rates skyrocket from $65 a month to $422.80 in 2012.

The news was nearly as grim for the 91 connections in Sheridan Acres.

Customers' rates would jump from $125 a month to $235.41 in 2012.

"These fees weren't charged in the past, the systems were subsidized," said Carl Ruschmeyer, director of public works.

Customers of the Foothill area water systems asked commissioners for relief.

John Robertson, president of the Job's Peak Ranch Homeowners Association, said the problem could have been avoided if Douglas County followed the development agreement with Firecreek LLC, developer of the upscale project.

"We feel bad you're in this position, but a lot should have been avoided," he said. "This corrosion (in the water) was known by the county eight or nine years ago. The developer sent a letter to all the lot owners that basically said, 'Pay me, not the county.'

"Future fees were raided. The developer has made millions of dollars up there," he said.

Robertson said he spent 33 years in government - 16 years as a police chief and two stints as a county manager.

"If I were sitting in your position, I would request an investigation. Our members are not going to pay $5,000 a year for water. I don't think any one would build up there with this thing hanging over their heads," Robertson said.

Bill Nichols, vice president of the homeowners group, asked the commission to phase in the rate hikes.

"Sixty-five dollars to $500 a month in four short years is too much," he said. "We'd like to see the consolidated study that would spread our burden. Why did the county accept the system without warranties?"

Virginia Starrett said she'd heard comments that "the people there are so rich they can afford it."

"The deal the county made with our developer was a despicable deal. The county knowingly took over a faltering system and let the developer off scot-free. That's unfair and un-American," she said.

Job's Peak resident Gene Ezell said he was concerned about an option to charge a flat fee and meter the rest.

"Water usage is high in the summer because we put a lot of effort in defensible space," he said.

Resident Milton Ratcliff said if residents were metered, they might cut down water usage in the summer.

"We live in a fire zone. If you imposed usage based on a rate structure, people would stop watering and we would have terrible consequences," he said.

Commissioner David Brady cautioned the board against taking steps that would violate policy, such as a one-time infusion of money into the water systems.

"One thing that got us into this mess is the absence of any fiscal policy. A fund transfer is an option that violates our own policy," he said.

Currently, the water systems' administrative and capital improvement costs are being subsidized from the county general fund which means all taxpayers are sharing the burden.

County Manager Michael Brown said staff was directed to apply the county's financial policies to the rate structure so the water systems pay their own way.

"This is a strong fiscal management system not seen in the past," Brown said Thursday. "That's where you see the pain. It's a huge challenge, but we want you to see the real picture. Just recognize that the costs are the costs."

Staff is to return in September with another look at the rates.

"I'd like to see staff look at ways not to see the escalation occur so rapidly, to soften the blow," said Commissioner Michael Olson.