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STRATEGIC OUTCOMES |
ACTION |
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Department: |
☒ Safe & Prosperous |
☐ Motion |
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City Administration |
☐ Active & Appealing |
☒ Resolution |
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☐ Respected & Responsible |
☐ Ordinance - Introduction |
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Division: |
☐ Connected & Engaged |
☐ Ordinance - Adoption |
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N/A |
☐ Unique & Creative |
☐ Public Hearing |
TITLE: t
License Agreement: Cactus State Utility Operating Company, LLC
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SUMMARY RECOMMENDATION: Summary Recommendation
Approve a license agreement with Cactus State Utility Operating Company, LLC (Cactus State) for operation and maintenance of wastewater utility infrastructure within City right-of-way. (City Administration) (Jay Simonton)
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STRATEGIC OUTCOME:
This item furthers City Council’s strategic outcome of Safe and Prosperous as it permits Cactus State to continue providing sanitary sewer service in their franchise area.
REPORT:
Cactus State is regulated by the Arizona Corporation Commission (ACC) and provides wastewater utility service to approximately 600 customers in the vicinity of Avenue 7E and 24th Street. Cactus State began serving these customers when it purchased the assets of Sweetwater Creek Utilities, Inc. (Sweetwater) in 2021.
The Yuma County Board of Supervisors previously granted Sweetwater a 25-year franchise in 1994 when the service area was located in Yuma County. In 1999, Sweetwater’s entire service area was annexed into the City of Yuma (City).
Since Sweetwater’s original franchise expired in 2019, the Arizona Corporation Commission required Cactus State, as part of renewal of the franchise, to obtain a license agreement with the City authorizing Cactus to operate, construct, repair and maintain utility infrastructure within City right-of-way. The term of the license agreement is five years, but automatically renews for three additional five-year terms (for a total of 20 years) unless terminated earlier by one of the parties. Cactus State will pay the City $500.00 per year for the duration of the license agreement, and must restore City right-of-way upon the completion of any necessary repairs.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING: ACCOUNT/FUND #/CIP |
TOTAL $ 0.00
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To total; right click number & choose “Update Field” |
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FISCAL IMPACT STATEMENT:
None.
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
None
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
☐ Department
☒ City Clerk’s Office
☐ Document to be recorded
☐ Document to be codified
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Acting City Administrator: |
Date: |
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John D. Simonton |
10/08/2024 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
10/07/2024 |