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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From: FRED WILSON
City Administrator
Subj ect: Authorization to Execute Subpoena for
Production of Business Records Relative to An Audit of
the City's Utility Users' Tax.
Dept: ADMINISTRATOR'S OFFICE
Date: April 2, 2003
ORlGlNAL
Synopsis of Previous Council Action:
01/11/99:
Mayor and Common Council authorized execution of subpoena for the production of
business records at Southern California Edison Company and AT&T for the purpose of
. conducting an audit of utility users taxes.
03/20/95 :
Mayor and Cornmon Council authorized execution of subpoenas for the utility company
business records of Southern California Gas, Southern California Edison, Pacific Bell and
General Telephone for the purpose of conducting an audit of Service Users Taxes (utility
users' tax).
Recommended motion:
That the Mayor be authorized to execute, and the City Clerk to attest, the attached subpoena for the business
records ofT -Mobile for the purpose of the City's utility users' tax auditors, MBIA MuniServices, conducting
a compliance audit on said company on its collection of the City's utility users' tax.
li/aC cD ~v(, 6 )
SIgnature
Contact person: Fred Wilson
Phone:
5122
Supporting data attached: Staff Reoort
Ward:
All
FUNDING REQUIREMENTS: Amount: None at this time
Source:
Finance:
Council Notes:
Agenda Item No.
'111 103
I ,
31
STAFF REPORT
Council Meeting Date: Avril 7. 2003
TO:
FROM:
DATE:
AGENDA:
Mayor and Common Council
City Attorney's Office
April 2, 2003
Authorization to execute subpoena for production of
business records relative to an audit on the City's
utility users' tax.
The City's utility users' tax auditors, MBIA MuniServices, are proposing to conduct a
compliance audit on T-Mobile Communications in its application of the City's utility users' tax.
According to MBIA MuniServices, T -Mobile Communications has been growing rapidly in the past
couple of years and are offering more new services to its customers. As a result, the potential for
errors or improper application of the City's utility users' tax is high, which could result in lost
revenues for the City. The compliance review will include Geo-coding and the review ofT-Mobile's
records from the date of starting business in the City of San Bernardino to the present.
In order for the staff ofMBIA MuniServices to effectively carry out the compliance review
ofT -Mobile Communications for the City of San Bernardino, an administrative subpoena to obtain
the necessary information is needed. On March 20, 1995, the Common Council authorized the
Mayor to execute subpoenas for the utility company business records of Southern California Gas,
Southern California Edison, Pacific Bell and General Telephone for the purpose of conducting an
audit of the City's utility users' taxes. On January II, 1999, the Common council authorized the
Mayor to execute subpoenas for the production of business records at Southern California Edison
Company and At&t for the purpose of conducting an audit of the City's utility users' taxes.
It is requested that, pursuant to San Bernardino City Charter Section 34. California
Government Code 937104 et. seq, and 18 U.S.C.A. 92703(c)(1 )(C), the Common Council adoptthe
floor motion authorizing the Mayor to execute, and the City Clerk to attest, the attached subpoena
for the business records of T-Mobile for the purpose of the City's utility users' tax auditors
conducting a compliance on said company on its collection of the City's utility users' tax.
In re: Compliance Review of )
Telecommunications Utility User )
Taxes. )
)
SUBPOENA
For Production of
Business Records
[San Bernardino City Charter ~34
Govt. Code ~37104 et. seq.
18 U.S.C.A. ~2703(c)(I)(c)J
TO: CUSTODIAN OF RECORDS OF T-MOBILE COMMUNICATIONS
FROM: CITY OF SAN BERNARDINO
1. YOU ARE ORDERED TO PRODUCE BUSINESS RECORDS described in Item
3 as follows:
a. By delivery of a true, legible, and durable copy of the business
records described in item 3 to: MBIA Muniservices, 32107 W.
Lindero Canyon Road, Suite 233, Westlake Village, CA 91361.
2. The records are to be produced by no later than 30 days after the issuance of the
subpoena, or 25 days after service, whichever is later. Reasonable costs of copying and postage are
recoverable from the City. The records shall be accompanied by an affidavit of the custodian or
other qualified witness stating in substance each of the following:
a. the affiant is the duly authorized custodian of records or other
qualified witness and has authority to certifY the records;
b. the copy is a true copy of all the records described in the
subpoena; and,
c. ifT-MOBILE has none of the records described, or only part
thereof, the custodian or other qualified witness shall so state in the
affidavit, and deliver the affidavit and such records as are available.
3. The records to be produced are as follows:
a. The billing and service addresses, account
numbers, and jurisdictional tax designations of all
current T-MOBILE customers with Postal ZIP
Codes of92324, 92346, 92376,92401,92402,92403,
92404,92405,92406,92407,92408,92409,92410,
HTC/ed[TMobile,Subpoena)
Date Issued:
ATTEST:
92411,92412,92413,92415,92416,92418,92420,
92423, 92427, 92369, 92374, 92354, 92414, and
92424.
b. The billing and service addresses, account
numbers, and jurisdictional tax designations of all
current T-MOBILE customers with a "primary
place of use" within the City of San Bernardino.
c. The gross amounts of revenues billed to each
account for all telecommunications services
provided by T -Mobile and the amount of utility
users tax collected from each such account since T -
Mobile began offering services within the City of
San Bernardino.
d. The names and addresses of all customers within
the City, which, according to T-MOBILE's
records, are designated as exempt from the City's
utility users tax pursuant to a federal excise tax
exemption certificate.
e. For each customer within the City that is billed on
a master or aggregate billing, a copy of the master
billing verifying that T-MOBILE's
telecommunication services to such customer are
properly taxed under the City's DUT.
f. A copy of the tax matrix used for applying or not
applying the utility users tax and/or federal excise
tax to customer charges for telecommunication
services provided by T -Mobile, including a sample
bill reflecting services offered and how the utility
users tax and federal excise tax is applied.
Mayor,
City of San Bernardino
City Clerk
HTC/ed[TMobiJe.Subpoena]
2