2016 2:00:00 PM

Monday, April 11, 2016 2:00 PM
Council Chambers, Legislative Bldg, 745 Fourth St, Sparks, NV

Public Hearing and Action Items Unrelated to Planning and Zoning: 10.1

Title: Consideration and possible approval of the five (5) year extension of the Sierra Pacific Power Company dba NV Energy Natural Gas Franchise Agreement.

Petitioner/Presenter: Shirle T. Eiting/Shirle T. Eiting

Recommendation: It is recommended that City Council approve the five (5) year extension of the Sierra Pacific Power Company Natural Gas Franchise Agreement.

Financial Impact: N/A

Business Impact (Per NRS 237):
A Business Impact Statement is not required because this is not a rule.

Agenda Item Brief:

The City and Sierra Pacific Power Company negotiated a natural gas franchise agreement which was approved by City Council on April 24, 2006. The franchise agreement is set to expire on April 26, 2016. NV Energy has indicated that they wish to extend the franchise agreement under the same terms and conditions as provided in the April 24, 2006, agreement. The agreement allows for two (2) additional five (5) year extensions at the discretion of the Franchisee.

The City of Sparks currently collects a five percent franchise fee which is the maximum allowed by Nevada Revised Statutes.

Background:

The Natural Gas Franchise Agreement was approved by City Council on April 24, 2006. The original agreement was for a ten (10) year term. The agreement allows for two (2) five (5) year extensions exercised at the discretion of the Franchisee. The City collects a five percent (5%) franchise from the natural gas franchise agreement. In 2015 the City received $1,562.002.00 in franchise fees. Attached to this report is the request for the extension from Paul Caudill, President, Sierra Pacific Power Company, dba NV Energy. Also attached is the Natural Gas Franchise Agreement approved April 24, 2006.

Analysis:

City staff has been contacted and no amendments to the Agreement were felt necessary at this time. The franchise fee is at the maximum as allowed by Nevada Revised Statutes. It is recommended that the five (5) year extension for the Natural Gas Franchise Agreement be approved.

Alternatives:

In the alternative, City Council could direct city staff to negotiate a new franchise agreement.

Recommended Motion:

I move that the five (5) year extension of the Natural Gas Franchise Agreement be approved.

Attached Files:

NV Energy Letter.pdf

A-3356 - Gas Franchise.pdf

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