Carson City water customers will see a 30 percent increase for water usage and a 14 percent hike for sewer on their July utility bills.
The Board of Supervisors approved final readings of both measures Thursday. The water ordinance was necessary to meet federal Clean Water Act guidelines and to improve summer peak water demands.
Typical residential users using 10,000 gallons per month (ranging from 4,000 in the winter to 21,000 in the summer) will see an increase in their average monthly bill from $23.32 to $31.06, or $7.74 per month.
The increase will pay for a $32 million water pipeline connecting the city to Douglas County, where it will be able to access the water rights it owns in the Carson Valley and to acquire new rights.
Public Works Director Andy Burnham said eight of the city's wells have too much uranium and seven have too much arsenic. He estimated that the water and sewer projects could create 500 jobs during the next two years.
The city was given five years to become compliant with the federal guidelines or face $35,000 per day in fines, and the deadline has already passed, Burnham said.
"They could also arrest the mayor and throw him into jail," he said, "and they could also mandate that we do exactly what we're considering today."
The only alternatives to improve water quality would have been to spend more than $40 million to build an additional arsenic treatment plant and a uranium treatment plant - which would have resulted in a 55 percent rate hike - or to spend $46 million to bring water down from Marlette Reservoir.
Neither option, however, would have addressed the city's need for more water for peak demands in the summer, Burnham said.
"This couldn't have come at a worse time with the economy the way it is," said Supervisor Pete Livermore, "but it is mandated by the federal government."
Rancher and land owner Duana Lompa said she was concerned that the city had assured her that there would be plenty of water to support development of 425 acres she had up for sale.
Burnham told her that water quality was the main driver for the project and the rate increase.
"We have sufficient water for a population of 75,000-80,000," he said.
City Manager Larry Werner explained that the city has been blending water from good wells with water from contaminated ones to try to keep up with federal safe drinking water standards, but it causes a burden on the system, particularly in the summer, causing several cease watering orders every summer.
Although the new water pipeline equipment will last 50-60 years, Carson City's water system will continue to need upgrades like any other water system, Burnham said.
Resident Rick Reavis said he was concerned that higher fees would result in reduced consumption and ultimately, less revenue going into the water fund, but Finance Director Nick Providenti explained that the projected decrease had already been factored into the rate structure.
Burnham said that even with the rate hike, Carson City's water rates were the lowest in the region.
Supervisor Shelly Aldean said that a potential long-term solution could be to use more reclaimed water such as is used for the some of the city's parks and golf courses.
Supervisors also chose a tiered rate structure over a flat rate in order to encourage residents to adopt more frugal watering practices and landscapes. That portion of the measure will not go into effect until Nov. 1.
The 14 percent sewer rate hike will mainly pay for work on the wastewater reclamation plant, Roop Street sewer line and other sewer system upgrades.