Discussion and possible action on any and all matters regarding Ordinance No. 457, an Ordinance of the Mayor and City Council of the City of San Luis, Arizona, granting to Southwest Gas Corporation, a California corporation, its successors and assigns, the right, privilege and franchise to construct, maintain and operate upon, over, along, across and under the public rights-of-way of the City of San Luis, Arizona. (Kay Marion Macuil, City Attorney)

A. Action on reading Ordinance No. 457 by title only.
(Clerk to read the Ordinance by title only.)
B. Action on Ordinance No. 457.

Ordinance No. 457 grants a franchise to Southwest Gas Corporation to operate within the city limits under the conditions of the attached franchise agreement.

The Arizona Constitution Article 13 § 4 and A.R.S. § 9-502 allow franchises to be granted for twenty-five (25) years. Southwest Gas Corporation currently operates within the City of San Luis ("City") under a franchise agreement approved by the San Luis voters on March 14, 2000. Franchises in the City must be approved by the voters of San Luis. The city followed the process to have a franchise agreement with Southwest Gas:

• February 14, 2024, Resolution 2303, City Council ordered the November 5, 2024, Election to be held and to include this franchise and
• May 22, 2024, Resolution 2310, City Council set the pro and con statements' deadline for August 7, 2024 (with a Nunc Pro Tunc Resolution 2311 correcting a typographical error on June 12, 2024).
• November 5, 2024, the voters residing in San Luis approved the new franchise agreement (Exhibit A to Resolution No. 2326).

The new Franchise Agreement has the following terms in summary :
It will be effective on January 1, 2025, and expire on January 1, 2050.
It will allow Southwest Gas Corporation the right, privilege, and franchise to construct, maintain, and operate its gas system and gas system facilities upon, over, along, across, and under the present and future public rights-of-way, thereby supplying natural gas and/or artificial gas to the City and its inhabitants.
Attorneys and representatives of the City of San Luis, the Arizona Municipal Risk Retention Pool for the city, and Southwest Gas have met several times, and the final terms are agreeable to all. In consideration of the grant of this franchise, Southwest Gas Corporation will pay the City:

• a franchise fee equal to two percent (2%) of their gross revenue from sales within the city,
• transaction privilege and use tax authorized by city ordinance,
• other charges, taxes, or fees levied upon businesses generally throughout the city, and
• applicable city right-of-way management and inspection fees, and
• pavement damage fees established by ordinance necessary for the services provided by Southwest Gas Corporation under this franchise.

The final agreement is attached as Exhibit A to Resolution No. 2326. 

A.  I MOVE TO APPROVE THE READING OF ORDINANCE NO. 457 BY TITLE ONLY
(CITY CLERK TO READ ORDINANCE NO. 457 BY TITLE ONLY)
B.  I MOVE TO APPROVE AND ADOPT ORDINANCE NO. 457 AS PRESENTED.