Resolution No. SI-R19-020: Extension and Restatment of the Act Approving Tax Subsidy to San Ildefonso Services, LLC

At a duly called meeting of the Council of San Ildefonso Pueblo on the 14th day of October, 2019, the following Resolution and law were adopted:

WHEREAS, the Pueblo de San Ildefonso ("Pueblo") has identified the need to promote economic development within the Tribe for the benefit of the People; and

WHEREAS, the Council established and chartered San Ildefonso Services, LLC, ("SIS, LLC") under tribal law as a single member limited liability company wholly owned by the Pueblo; and

WHEREAS, SIS, LLC owns and operates two businesses within the Pueblo lands commonly referred to as the Totavi and White Rock Convenience Stores and Gas Stations ("C-Stores"); and

WHEREAS, the Council transferred ownership and operation of the C-Stores to SIS, LLC, effective July 1, 2017, pursuant to the, "Act to Transfer Ownership and Operation of C-Stores to San Ildefonso Services, LLC," dated June 21, 2017; and

WHEREAS, 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; and

WHEREAS, SIS LLC assumed full responsibility for insuring, maintaining, and repairing the C-Stores; and

WHEREAS, SIS, LLC assumed all C-Stores employees and responsibility for payroll, benefits, and related human resources matters for employees of the C-Stores; and

WHEREAS, 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; and

WHEREAS, 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 of gasoline sold to allow SIS, LLC to adequately compete in the local C-Store market; and

WHEREAS, on June 6, 2018, the Council formally approved a subsidy for the benefit of SIS, LLC in the amount of $0.06 for every gallon of gasoline sold in the C-Stores ("Subsidy") pursuant to Council Resolution No. SI-R18-011, titled "Act Approving Tax Subsidy to San Ildefonso Services, LLC" ("Subsidy Act"); and

WHEREAS, the Council determined that it is in the Pueblo's best interest to support SIS, LLC and its operation of the C-Stores and to provide the Subsidy, and identified that the Subsidy could be paid from revenues generated by the Pueblo's $0.17 per gallon fuel tax; and

WHEREAS, the Subsidy authorized in the Subsidy Act expired one (1) year from the effective date of the Act, i.e., on June 5, 2019; and

WHEREAS, SIS, LLC has requested that the Subsidy continue in force for an additional one (1) year period, effective on June 6, 2019, and expiring on June 5, 2020; and

WHEREAS, the Council has determined that it is in the Pueblo's best interests to support SIS, LLC and its operation of the C-Stores by extending the Subsidy for an additional one-year period beginning on June 6, 2019 and expiring on June 5, 2020, and has identified that such subsidy could be paid from revenues generated by the Pueblo's $0.17 per gallon fuel tax.

NOW THEREFORE BE IT RESOLVED, that the Council hereby enacts the attached law entitled, "EXTENSION AND RESTATMENT OF THE ACT APPROVING TAX SUBSIDY TO SAN ILDEFONSO SERVICES, LLC."

CERTIFICATION

The foregoing resolution was duly voted upon by the Council on October 14, 2019, at a meeting with a vote of 6 in favor, 0 opposed, 0 abstaining and 4 absent (Governor presiding and not voting) pursuant to the authority vested in the Council by the Agreement of the Pueblo de San Ildefonso.

Irene Tse-Pe, Council Secretary

COUNCIL REPRESENTATIVE SPONSOR(S): Council Representatives

DELIVERY OF THE RESOLUTION TO THE GOVERNOR:

Resolution No. SI-R19-020 was presented to the Governor of the Pueblo de San Ildefonso on the 14th day of October, 2019, pursuant to the Governing document of the Pueblo de San Ildefonso ("Agreement"), GOVERNOR, Sec. 4 (c), and will become effective after signature by the Governor or veto override by the Council.

Irene Tse-Pe, Council Secretary

GOVERNOR'S ACTION:

{ } APPROVED

{ } VETO - RETURNED TO COUNCIL WITH EXPLANATION:

On this __________ day of ________________________, 2019.

Perry M. Martinez, Governor

Presented by the Governor to the Council on the ____ day of ____________, 2019.

COUNCIL'S ACTION:

Override of Governor's veto:

{ } YES

{ } NO

CERTIFICATION

The foregoing resolution was duly voted upon by the Council on _________________, 2019, at a meeting with a vote of ______ in favor, _____ opposed, _____ abstaining and _____ absent (Governor presiding and not voting) pursuant to the authority vested in the Council by the Agreement of the Pueblo de San Ildefonso.

Irene Tse-Pe, Council Secretary

EXTENSION AND RESTATMENT TO THE ACT APPROVING TAX SUBSIDY TO SAN ILDEFONSO SERVICES, LLC

Section 1.1. Short Title

This enactment shall be known as the Act, "EXTENSION AND RESTATMENT TO THE ACT APPROVING TAX SUBSIDY TO SAN ILDEFONSO SERVICES, LLC ("Act")."

Section 1.2. Purpose

The purpose of this Act is to restate and extend the 2018-2019 Pueblo de San Ildefonso Tax Subsidy to San Ildefonso Services, LLC for an additional one-year period.

Section 1.3. Findings

The Council hereby finds and declares that:

(a) The Council established and chartered San Ildefonso Services, LLC, ("SIS, LLC") under tribal law as a single member limited liability company wholly by the Pueblo; and

(b) SIS, LLC owns and operates two businesses within Pueblo lands commonly referred to as the Totavi and White Rock Convenience Stores and Gas Stations ("C-Stores"); and

(c) The Council transferred ownership and operation of the C-Stores to SIS, LLC, effective July 1, 2017, pursuant to the "Act to Transfer Ownership and Operation of C-Stores to San Ildefonso Services, LLC", dated June 21, 2017; and

(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; and

(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; and

(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; and

(h) 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 of gasoline sold to allow SIS, LLC to adequately compete in the local C-Store market; and

(i) On June 6, 2018, the Council formally approved a subsidy for the benefit of SIS, LLC in the amount of $0.06 for every gallon of gasoline sold in the C-Stores ("Subsidy") pursuant to Council Resolution No. SI-R18-011, titled "Act Approving Tax Subsidy to San Ildefonso Services, LLC" ("Subsidy Act"); and

(j) 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 the subsidy, and identified that the Subsidy could be paid from revenues generated by the Pueblo's $0.17 per gallon fuel tax; and

(k) The Subsidy authorized in the Subsidy Act expired one (1) year from the effective date of the Act, i.e., on June 5, 2019; and

(l) SIS, LLC has requested that the Subsidy continue in force for an additional one (1) year period, effective on June 6, 2019, and expiring on June 5, 2020; and

(m) The Council has determined that it is in the Pueblo's best interests to support SIS, LLC and its operation of the C-Stores by extending the Subsidy for an additional one-year period beginning on June 6, 2019 and expiring on June 5, 2020, and has identified that such subsidy could be paid from revenues generated by the Pueblo's $0.17 per gallon fuel tax.

Section 1.4. Authorizations

(a) The Council hereby approves and reauthorizes the Subsidy to SIS LLC of $0.06 for every gallon of gasoline sold by the C-Stores.

(b) Such subsidy shall be paid by the Pueblo from revenues received by the Pueblo from the $0.17 per gallon fuel tax paid by the C-Stores.

(c) The Subsidy shall be used by SIS exclusively to reduce the costs of gasoline in order to increase customer traffic to the C-Stores, and the Subsidy shall not be used for any other purpose.

(d) The subsidy shall begin on June 6, 2019 and shall expire on June 5, 2020.

(e) SIS, LLC shall provide monthly financial statements and fuel reports, and such other information and documents to the Governor and Council to support the expenditure and continuation of the Subsidy.

(f) Six months after the passage of this Act restating and extending the Subsidy Act for an additional year, SIS, LLC shall provide the Governor and Council with a written report and evaluation of the effect of the Subsidy on the price and competitiveness of the gasoline sold at the C-Stores, and the effect, if any, on customer traffic.

(g) The Council authorizes the Governor to continue the Subsidy and execute any documents that may be necessary to support the provision of the Subsidy.

(h) The Governor is authorized to take such actions as deemed necessary to carry out the intent and direction this Act.