17.2.22.030 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.