New water fee ‘the last straw’

In a guest commentary in the June 17 Review-Journal, Southern Nevada Water Authority General Manager Pat Mulroy explained her agency's cost-shifting for water treatment and delivery facilities following the economic debacle of 2008.

In an attempt to "make growth pay for growth," the authority's 1990s model drew nearly 60 percent of revenues for such projects from new connection charges. But revenues from new connections plummeted by 95 percent in 2008 as new construction "virtually ceased," Ms. Mulroy noted.

As a result, to help pay down roughly $2.5 billion in construction debt and finish building an $800 million intake (the "third straw") designed to keep water flowing even if Lake Mead continues to shrink, the water authority in May started levying an infrastructure surcharge on fire-prevention sprinkler systems and hydrants - a charge which can run $400 a month even for a modest enterprise.

Agency officials acknowledge businesses bear the brunt of the new fee, which whacks especially hard companies with large but little-used water lines feeding their fire sprinkler systems and hydrants.

The surcharge is slated to remain in place for three years, but water authority board members are talking about revisiting it in response to the barrage of complaints from angry customers.

"If fire line surcharges are reduced, someone else will have to make up the difference," Ms. Mulroy warned last month. "So the question becomes, is commercial fire protection everyone's responsibility, or is it incumbent upon the property owner to pay for the facilities that protect their investment, employees and customers?"

To which, in the current economic climate, one more question may still have to be added: And what if they can't?

Larry Lapenta opened a gourmet restaurant called Larry's Old Ranch House, near the corner of Rancho Drive and Cheyenne Avenue, in 1962. He converted it to Larry's Hideaway, a dance hall and bar, in 1998.

Local accountant Brent Howard was named trustee of the businesses after Mr. Lapenta died in 2006, at age 84.

And after 50 years as a neighborhood fixture, Larry's Hideaway closed its doors for good last weekend - in response to the sharp rise in its water bill.

Mr. Howard announced the pending closure in early June after the struggling business was hit with a new $400 monthly water fee.

As for all that extra money the water authority needed to collect? Mr. Howard says Larry's Hideaway has almost $1,200 in outstanding charges that will now go unpaid - and the balance continues to grow.

"I've tried to call the water district to cancel the account and shut the water off," he said. "I can't get through. Nobody's answering the phone."

Back in June, Ms. Mulroy concluded her commentary: "During the months to come, the water authority will convene a citizens advisory committee to consider a number of issues ... including the distribution of costs associated with providing a reliable water supply. The business community will be well-represented on this panel."

Best to do so sooner, rather than later. Yes, there are some positive economic signs on the horizon. But as the supposed recovery continues to recede toward the horizon like a desert mirage, businesses that have hung on by their fingernails for years will continue to open their mail each month, add up what they owe, and face the kind of decision Mr. Howard finally made.

These enterprises can't all wait till fall. Ms. Mulroy's advisory committee is needed now.