17.2.13.030 Findings

The Council hereby finds and declares that:

(a) San Ildefonso Services, LLC, ("SIS LLC") is chartered under tribal law as a single member limited liability company wholly owned by the Pueblo, and the Pueblo de San Ildefonso Governor and Council currently serve as the Member's Representatives.

(b) The Pueblo owned and operated two businesses within the Pueblo's lands commonly referred to as the Totavi and White Rock Phillips 66 Convenience Stores and Gas Stations ("C-Stores").

(c) The Council transferred the ownership and operation of the C-Stores to "SIS LLC, effective July 1, 2017.

(d) SIS LLC assumed all liabilities, including contracts and accounts, of the C-Stores accrued after July 1, 2017, and SIS LLC is responsible for the payment of any applicable taxes related to the operation of or otherwise imposed on the C-Stores.

(e) SIS LLC assumed full responsibility for insuring, maintaining, and repairing the C-Stores.

(f) SIS LLC assumed all C-Stores employees and responsible for payroll, benefits, and related human resources matters for employees of the C-Stores.

(g) Since the July 1, 2017 acquisition of the C-Stores, SIS LLC has endeavored to enhance the operations and profitability of the C-Stores but operational and procurement costs have made this extremely difficult. On May 21, 2018, SIS LLC presented the C-Stores' financial concerns along with supporting financial information, to the Council and formally requested that the Pueblo provide a subsidy of $0.06 for every gallon sold to allow SIS LLC to adequately compete in the local market.

(h) The Council has determined it is in the Pueblo's best interest to support SIS LLC and its operation of the C-Stores and provide a subsidy of $0.06 for every gallon sold, and has identified that such subsidy could be paid from revenues generated by the Pueblo's $0.17 per gallon fuel tax, and such subsidy shall be made pursuant to specific terms contained herein.

(i) The Council has determined that the Pueblo Governor may execute such subsidy pursuant to certain essential terms contained herein.

(j) The Council finds the need to approve the Pueblo de San Ildefonso Tax Subsidy to San Ildefonso Services, LLC.