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: 10.2

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

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

Recommendation: I recommend that the five year extension of the NV Energy Electric Franchise Agreement be approved.

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 an electrical system franchise agreement which was approved 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 of the franchise agreement 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 electrical system 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 of the franchis agreement exercised at the discretion of the Franchisee. The City collects a five percent (5%) franchise from the electrical system franchise agreement. In 2015 the City received $3,914,670.00 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 Electrical System 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 Electrical System Franchise Agreement be approved.

Alternatives:

In the alternative, City Council could direct city staff to negotiate different Franchise Agreement.

Recommended Motion:

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

Attached Files:

NV Energy Letter.pdf

A-3355 - Electric Franchise.pdf

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