Offer made to lease Reno-area water authority to private investors

Offer made to lease Reno-area water authority to private investors

By Jeff DeLong, Reno Gazzette Journal
July 15, 2008

Local water authority officials Wednesday will discuss whether they should consider leasing all or part of their water distribution system to outside investors.

Under one scenario, the 7-year-old Truckee Meadows Water Authority would lease its assets for 50 years in return for $100 million to $160 million payment to Reno, Sparks and Washoe County.
"Evidently, there are folks in the investment market that are very interested in investing in infrastructure assets," said Lori Williams, TMWA general manager. "It could be as broad as somebody stepping in and taking over the operation of TMWA. It could be just a piece of that."
Mike Carrigan, the Sparks councilman who chairs the nonprofit authority's board of directors, said he is open to considering a deal but is worried investors would be pressured to turn a profit by raising rates or deferring maintenance.
"The only reason somebody would do this is to make money," Carrigan said.
Williams said many employees at the utility appear uncomfortable with the proposal.
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