Friday, April 22, 2005 | 11:04 a.m.
Developers and contractors apparently have been ripping off taxpayers by tapping into electricity for which Las Vegas pays the bill, the city's Audit Oversight Committee learned Thursday.
That was one of the issues raised during the discussion about an audit of the city's utility use. Senior Internal Auditor Bryan Smith said the city spent $16.6 million in the 2004 fiscal year on power, water, gas and trash, and part of the cost came from developers and contractors taking power from city streetlight meters before the lights have been activated.
As Smith attempted to explain the situation, Deputy City Attorney John Redlein interjected drily: "Larceny is what it's called."
It is not known how much this apparently longstanding and widespread practice has cost taxpayer, he said, but the Public Works Department said it will have stopped within six months.
"Developers and contractors regularly connect to the city's energized street meters prior to final inspection, creating additional power costs and liability for the city," Smith told the audit committee.
That means that, once streetlights in new developments are hooked up to the city grid but before they're turned on, the developers and contractors are siphoning power. Debby Ackerman, a spokeswoman for the Public Works Department, said the city has taken steps in the last three months to help resolve the problem. Any developer that installs street lights is required to get a power hook up in their name, she said.
Steve Holloway, executive vice president of the Associated General Contractors of Las Vegas, a trade association, said he supports the city cracking down on power theft. Most good, legitimate contractors get a temporary power pole installed by Nevada Power, but he said the power company's slow response time may be contributing to the problem. He said he can take several weeks for contractors to get a temporary pole and months to get a permanent connection. "It doesn't surprise me it is happening because it takes so long to get a connection," said Holloway who added he has met with power company officials about the time lag, which he attributes to "bureaucracy." But Peter Easler, the supervisor for new design for Nevada Power, said contractors are told it will take seven to 15 working days before they have a connection. "There is no excuse to steal power," Easler said. "If they are in range to steal power from a street light, they are line to get it from a Nevada Power source."! Apparently, the power theft has been going on for a long time, city officials said.
"If they (public works) find out, they'll cut the line, but I'm not sure if there's any penalty," Smith said. He said he couldn't give any specifics about the scope of the problem because it's just not known.
"They're telling me it's a regular practice and that's the most I can tell you," he said.
He speculated that the developers might be using the stolen power for their model homes, but if they need that in the future they'll have to establish power in their own name.
There have even been instances where Public Works has put a lock on a power box and the lock has been cut, he said. According to Public Works, the solution is to not establish power to the streetlights until right before they're turned on. The problems in Las Vegas are likely to get the attention of neighboring cities. Kelly Chum, the assistant public works director in North Las Vegas, said she's not aware of any problems in her city. The power isn't activated until the lights are ready to be turned on, she said. Staff monitor streetlight circuits and if there were any unauthorized taps, it would be immediately spotted. Ackerman said Las Vegas doesn't have a system like that in place and would be interested in talking to North Las Vegas about it. Chum said there was an instance about 10 years ago when a homeowner tapped into a streetlight electric line but was caught. Still, she said she will talk with Las Vegas officials.
"It is the same developers, and so it is hard to believe what they are doing in one city, they are not doing elsewhere," Chum said. "I have not heard of this little trick. They are very smart. I am intrigued and would like to find out more. Maybe, there is something we don't know about."
In Henderson, Councilwoman Amanda Cyphers said she's not aware of any problems with developers siphoning power from the city in her community. With the revelations in Las Vegas, that will prompt to city to conduct a review and see if it is happening in Henderson, she said. "When something happens in the area, it causes us to look at ourselves," Cyphers said. "We are going to be a watchdog."
Sun reporter Buck Wargo contributed to this story.
