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Council votes to place 25-year APS franchise on Nov. 3 ballot; 2% fee, undergrounding rules explained
Summary
The council approved Resolution 5907 to put a 25-year franchise agreement with Arizona Public Service before voters on Nov. 3, 2026; the proposed franchise carries a 2% fee on APS revenues, a 25‑year term, and includes an undergrounding policy with the city responsible for incremental costs above APS estimates.
The Casa Grande City Council voted unanimously on April 14 to call a franchise election on Nov. 3, 2026, to authorize a 25‑year franchise agreement with Arizona Public Service (APS).
City staff presented the proposed agreement, which would begin April 2, 2027, carry a 25‑year nonexclusive term and include a franchise fee equal to 2% of APS revenues excluding applicable taxes. Staff said the 2% fee generated about $1.895 million for the city in 2024 under the existing arrangement and described current fund distributions: 34% to an aesthetic revitalization fund, 33% to the general fund and 33% to an economic development fund; staff said the aesthetic fund holds roughly $12.2 million for undergrounding and beautification projects.
The proposed agreement lets the city request estimates for undergrounding overhead facilities when APS plans to replace or install lines; the city would be responsible for the incremental cost of undergrounding. Staff said there is a threshold for when additional costs would be brought to council, and named $25,000 as a typical threshold for council review.
Richard Rosales, APS public affairs, and Danny Ortega, APS southern director, attended and answered questions. Rosales thanked city staff for negotiating franchise language and noted the fee growth as the city has developed.
Mayor Fitz Gibbons moved to approve Resolution 5907 to call the franchise election as presented; the motion passed on a unanimous roll call vote. Staff noted the agenda packet contains an abbreviated ballot summary and that final ballot language will mirror the resolution; the voter registration deadline for the election will be Oct. 5, 2026.
Why it matters: a voter-approved franchise would authorize APS to use public rights‑of‑way under the terms negotiated by the city and generate a recurring revenue stream that staff says has produced nearly $1.9 million in recent years. The franchise also preserves city discretion to request undergrounding estimates and imposes a cost share for incremental undergrounding expenses.
What’s next: staff will finalize the ballot language and the election materials; the council may later consider ordinance changes to the distribution of franchise proceeds if it chooses to revisit the 2002 ordinance that currently prescribes the allocation formula.
