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CI~ OF SAN BERNARDICO - REQUO FOR COUNCIL AC.,.,ON
From: Warren A. Knudson, Finance Director
Subject: Refund of Certain Util ity Users
Tax by Southern California Gas
Company
Dept: Finance
Date: October 31, 1985
Synopsis of Previous Council action:
Approved refunds of Utility Users Tax by the Southern California
Gas Company in February, 1982, December, 1983, December, 1984,
and t,lay, 1985. .
Recommended motion:
Adopt Resolution
/)0- C yr~
Signature
Contact person:
Warren A. Knudson
Phone:
'<;4'
Supporting data attached: Staff Reoort
FUNDING REQUIREMENTS: Amount: Aoorox. $19.000
Ward: All
001-000-41224'
Source: Ilpnlll'ti nn nf llti 1 ity Tav ll.e"er:l'IQ
Finance: jJ r: C? I':;. e
Council Notes:
75-0262
Agenda Item No,
s-s
CIN OF SAN BERNARD~ - REQULJr FOR COUNCIL AC'..JON
STAFF REPORT
The Southern California Gas Company is making refunds to its
customers relating, primarily, to refunds received by the
Gas Company from its interstate suppliers. They are request-
ing authorization to refund to City of San Bernardino residents
the corresponding Utility Users Tax amounts. The Utility Users
Tax refund would be based upon the amount of the utility refund
and the prevailing tax rate.
According to information provided by the Gas Company, the
amount of the Utility Users Tax refund would be approximately
$19,000. Refunds of this nature have been previously authorized
by the Mayor and Common Council, and staff recommends that the
current request be authorized.
URGENCY CLAUSE
Staff was notified of this item on October 30, 1985, by the
Gas Company. They require a response by November 12, so that
the refund can be implemented for the December billing cycle.
75.0264
"
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1 RESOLUTION NO.
2 RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING THE
EXECUTION OF AN AGREEMENT WITH SCUTHERN CALIFORNIA GAS COMPANY
3 RELATING TO REFUNDING CERTAIN UTILITY USER TAXES.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLO~S:
5
6 SECTION 1. Recitals.
7 A. The Southern California Gas Company, hereinafter "Gas'
8 Company", is requesting authorization from the California Public
9 Utilities Commission to refund certain amounts to its customers
10 relating, primarily, to refunds received by the Gas Company from
11 its interstate suppliers.
12 B. Southern California Gas Company intends to make the
13 refunds by credit to bills during December, 1985.
14 C. City desires to refund a portion of the gas users tax
15 provided for in San Bernardino Municpal Code Section 3.44.060
16 ccrresponding to the Gas Company's refund amount, including it
17 with the Gas Company's refund d~ring December, 1985. The amount
18 of the tax refund shall be calculated and distributed uniformly,
19 and the Gas company shall be expressly authorized by City to
20 offEet the tax refunds through a credit against current gas users
21 tax collections. The refund calculations shall be based upon the
22 amount of the Gas Company's utility refund and the City's utility
23 us~rs tax rate for the time period covered by the refund,
24 computed at the rate of 6% prior to October 1, 1983, and at 8%
25 subsequent to October 1, 1983.
26 SECTION 2. Authorization. The Mayor of the City of San
27 Bernardiro is authorized and directed tc execute on behalf of the
28 City an authorization form which authorizes Southern California
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Gas Company to refund certain gas users taxes to residents of the
City of San Bernardino, a copy of which is attached, marked
Exhibit "A" and incorporated in this resolution by this
reference.
!' I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a meeting thereof,
held on the day of , 1985, by the
following vote, to wit:
AYES: Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day of , 1985.
Mayor of the City of San Bernardino
Approved as to form:
City Attorney
2
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SOUTHERN CALIFORNIA
~
gas COMPANY
'M' lUGONIA AVENUE, REDLANDS, CALIFORNIA
FRANK e. AYALA
Manager Inland Divlaion
M"llING ADDRESS: P. O. 80X J003, REOLA-NOS. CALIFORNIA 1237300306
October 18, 1985
Ms. Shaunna Clark, City Clerk
City of San Bernardino
300 N. "D" Street
San Bernardino, CA 92401
.
Dear Ms. Clark:
The Southern California Gas Company is requesting authorization from the
California Public Utilities Commission to refund certain amounts to its
customers relating, primarily, to refunds received by the Gas Company from
its interstate suppliers. The refund plan is similar to that used for the
refund made in December, 1984, and June, 1985. The Gas Company expects to
make the refund by credit to bills during December, 1985.
Should your City wish to consider refunding the Utility Users' Tax corres-
ponding to this refund amount, the Gas Company is willing to assist your
City by passing that tax refund on to eligible city residents, including
it with the Gas Company refund during our regular billing operation in
December, 1985. However, we are prepared to assist in making utility users'
tax refunds only if the amount of the tax refund is calculated and distributed
uniformly and the Gas Company is expressly authorized by your City to offset
the tax refunds through a credit against current utility users' tax collections.
The refund calculations would be based upon the amount of the utility refund
and your City's July, 1983 Utility Users' Tax rate.
If your City agrees to the above approach, please indicate agreement by having
the appropriate City official sign the enclosed copy of this letter in the
space provided, attaching a Resolution to your City Council formally
authorizing this agreement and returned to me by November 12, 1985.
By. :!At!',.~ d d:r:z/A./.p..
Southern California Gas Company is authorized to proceed with the tax refunds
as outlined above and shall be allowed credits against current tax collectioDs
of all tax amounts so refunded. It is agreed that the City shall defend and .
indemnify the Gas Company as to any loss or liability arising from any..act
or omission by Gas Company in implementing tax refunds on behalf of the City.
Ci ty of
By
Date
Position
EXHiOlT A