Title
Resolution Declaring that Granting of a Gas Franchise to Southwest Gas Corporation Be Beneficial to the City of Phoenix (Resolution 21634)
Description
A Resolution of the Council of the City of Phoenix finding and declaring that said legislative body of the City of Phoenix deems the granting of a certain gas franchise to Southwest Gas Corporation beneficial for the City of Phoenix.
The franchise will not be in effect until approved by voters residing within Phoenix in an election.
Report
Summary
Southwest Gas Corporation currently operates within the City of Phoenix under a twenty-five year franchise agreement, originally approved by Phoenix voters on Oct. 5, 1993. The existing franchise agreement will expire on Dec. 31, 2018.
A gas franchise would grant 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. The gas system is for the purpose of supplying natural gas and/or artificial gas to the City and its inhabitants.
If approved by voters residing within Phoenix in an election, the new franchise agreement (Attachment A) will have a 25-year term, beginning on Jan. 1, 2019 and terminating on Dec. 31, 2043.
In consideration of the grant of this franchise, Southwest Gas Corporation will pay to the City:
1. franchise fee equal to two percent of the gross revenues of Southwest Gas Corporation;
2. general ad valorem property taxes;
3. transaction privilege and use tax authorized by City ordinance;
4. other charges, taxes or fees levied upon businesses generally throughout the City; and
5. 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.
Concurrence/Previous Council Action
The City Council approved the referral to voters for their approval or rejection a gas franchise with Southwest Gas Corporation on April 18, 2018.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua, the Street Transportation Department, and the City Engineer.