Las Vegas City Commission Minutes, May 14, 1929 to February 11, 1937, lvc000003-411

On motion of Commissioner Ward seconded by Commissioner Marble it was moved and carried that the letter read by the City Clerk to the Board of Commissioners at this time be entered upon the minutes of this meeting. (Letter is as follows): SOUTHERN NEVADA POWER COMPANY Las Vegas, Nevada. October 7, 1935. To the Hon. Mayor and City Commissioners of the City of Las Vegas, Clark County, Nevada. Gentlemen; On September 11, 1935, representatives of Southern Nevada Power Company met with your Honorable body, at your invitation, to confer in regard to the acquirement by the City of the Power Company's plant and distribution system. The result of that conference was to the effect that the Power Company would have its rate Engineer confirm its present intention of providing a rate at Las Vegas as low or lower than any rate that can be made by a mun­icipally owned plant, after power from Boulder Dam is available, and also have its valuation Engineer determine the value of its existing plant for the purpose of any further negotia­tion. At that conference, you were informed that our Engineers were on vacation but would return before October 1st and that you would be notified. On September 26th, we received your letter requesting that, pending these negot­iations, we defer any further work on the Transmission line we are building to Boulder Dam and on that day we wrote you that we would comply with your request and further advised you that our rate and valuation Engineers had returned from their vacations and were working on their respective assignments and as soon as their reports were available we would notify you and continue our negotiations. We were of the impression that matters would remain in status quo pending these negotiations and were surprised at the proclamation made by your Board, dated October 4,1935. In order that our negotiations may be continued in a friendly spirit and without any appearance of coercion on your part, we request that you defer action on your proclamation and withdraw the same until our negotiations have been consummated. Respectfully yours, Southern Nevada Power Company By S.J. Lawson Its Vice President Vote on the above motion was as follows Commissioners Marble and Ward and His Honor the Mayor voting aye. Noes, none. On motion of Commissioner Ward seconded by Commissioner Marble it was moved and carried that the answer to the letter be spread upon the minutes of this meeting as follows: CITY OF LAS VEGAS Las Vegas, Nevada October 11th, 1935. Southern Nevada Power Company, Las Vegas, Nevada. For the attention of Mr. Lawson. Gentlemen; This is with reference to your letter of October 7, 1935, directed to the Mayor and City Commissioners of the City of Las Vegas. It appears from your letter of October 7, that you misapprehend the purpose of negotiations heretofore had with you. You state;" The result of that conference was to the effect that the Power Company would have its rate engineers confirm its present intention of providing a rate at Las Vegas as low or lower than any rate that can be made by a municipally owned plent, after power from "Bould­er Dam" is available, and also have its valuation Engineer determine the value of its ex­isting plant for the purpose of any further negotiation." The above quotation had reference to a meeting of the Officers of your company, and the Board of Commissioners on September 11th. It is difficult to understand how you arrived at such a conclusion as is expressed in the above quotation. At this meeting the Mayor stated as follows: The reason for this meeting, I believe gentlemen, we 11 understand. The Commissioners and City Board, since election, have attempted to carry out the obligation which they have more or less assumed, from that election. The majority of people have more or less demanded that the Commissioners endeavor to take over municipal ownership of power and we have considered this matter, with thought in mind to nego­tiate with the Southern Nevada Power Company to arrive at a fair price, if they are willing to sell to the City their distribution system. I believe this will state the purpose of the meeting." The purpose of the meeting was unequivocally stated. It is the sincere hope of the Mayor and Board of Commissioners that negotiations be continued in a friendly spirit and you are assured that it is not the purpose of the Board coerce you or to display the appearance of coercive methods.