The Carson City Board of Supervisors declined to act on ordinances Thursday that would have drastically cut sewer and water connection fees after developers complained the move would create unfair competition.
Dwight Millard, of Millard Realty and Construction, told the board that he wasn't opposed to the incentive-based aspect of the cuts but rather, to the amount that was being proposed.
Two weeks ago, the board voted unanimously to reduce sewer connection fees from the current rate of $5,700 to $500 and to scale back water connection fees from $4,543 to $500, but the move required a second hearing before it passed.
"Come on," Millard said. "I can understand 50 percent, but 98 or 99?"
He said that a 55-unit apartment complex cost him $271,000 in connection fees, but that a developer could come in today and build the same number of units right next door and only have to pay $8,498.
"We are really throwing out the baby with the bath water. ... there's got to be some equality for commercial competition," Millard said.
"I ask that you send this (measure) back so that they'll be competing (more fairly) with existing commercial. We run at a 30 percent vacancy rate right now because we have loans to repay that require a certain amount from renters," he said.
City Manager Larry Werner had said the higher fees were once needed for revenue as water and sewer infrastructure was being expanded and Carson City's population was expanding rapidly.
Today, there is minimal construction, and debts have been retired, so the Public Works Department felt it was unfair to keep charging the higher fees, which were creating a windfall situation.
Supervisor Robin Williamson said she would have liked to try reducing fees for two years to see if it stimulated the local economy.
"We're trying to entice investors to Carson City," she said.
But Supervisor Pete Livermore wasn't so sure.
"Your upfront costs stay with you a long, long time," he said. "Are we creating an inequality for commercial competition?"
Supervisor Shelly Aldean thought there might be some cause for keeping the higher fees.
"Looking into the future, we have some expensive improvement projects, so there is a justification for keeping these fees - we'll need capital for those projects," she said.
Sheena Beaver, representing the Builders Association of Western Nevada (BAWN), told supervisors her group supported the reduction for individual home construction, but commercial construction changes could get tricky.
"For primary residences, it would be beneficial beyond belief and we support it 100 percent. On the commercial side, it could bring up some issues," Beaver said.
The matter is expected to be brought back to the board at its Sept. 17 meeting.
In other action, supervisors:
• Debated once again the pros and cons of changing an ordinance addressing parking commercial vehicles in residential areas. A motion to amend city code failed, leaving the existing ordinance in place.
• Approved agreements with Doppelgangers Bar and Grill, B'Sghetti's, The Carson Cigar Company and Mo & Sluggos for assigning vendor space in conjunction with the "Rockin' the Square" concert on Sept. 12.
The family event will feature a popular group out of Sacramento, Mumbo Gumbo, an opening act featuring a local blues band, Cajun pizza, jambalaya, gumbo and fun drinks.
"We wanted to remind people that we, too, are downtown," Scott Dorr of B'Sghetti's told the board.
The opening act kicks off the evening at 6 p.m. and Mumbo Gumbo performs from 7-10:30 p.m, he said.
• Gave preliminary approval to an ordinance amending city code to eliminate language pertaining to "test pressure" requirements for gas piping and gas appliances.
• Approved the purchase of two International 7600 trucks for the street department. The existing vehicles used for plowing snow and hauling dirt do not function well on the multi-lane streets.
• Awarded a contract to F and P Construction, Inc. to build the urban fishing pond and site improvements at the Carson City Fairgrounds/Fuji Park grounds. The project will be paid for using Nevada Department of Wildlife grants and private donations. The low bid was about $603,000.
• Gave preliminary support to an ordinance allowing the city to dispose of unclaimed property through Internet auctions. There is no cost to the city.
Treasurer Al Kramer said the move will eventually lead to a vendor who would handle the auctions.
"There would (then) be a fee, but the revenue to the city would outweigh any future vendor fee," Kramer said.