SR-212-005 (4)
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Councll Meetlng: November 12, 1985
Santa Monica, Callfornia
TO:
Mayor and Clty Council
FROM:
Clty Staff
SUBJECT:
Resolutlon Authorlzlng Southern Callfornia Gas Company
to Make Refunds of Utllity Users Tax
Introduction
Th~s report recornmends the Cl ty Counell approve the attached
resolutlon authorlzlng the Southern Call-fornla Gas Company to
make certa1n refunds of the Clty'S Utillty Users tax as provlded
for under Sectlon 6632 (b) of the Santa Manlca Munlcipal Code.
The Southern Callfornla Gas Company must have the Clty Councll's
auhorizatlon by November 13, 1985 ~n order to effect the returns.
Background
The Southern Callfornla Gas Company advised Clty Staff on October
24, 1985 (see attachment I) that it 1S requesting authorlzatlon
from the Callfornia Public Utllltl-eS COmmJSS10n to refund certain
amounts to its customers relatlng prJmarlly to refunds rece1ved
by the Gas Company from ltS lnterstate suppliers. ThlS declsion
affects the City's UtJlity Users Tax since tax receipts are based
on a percentage of amounts pald by Gas Company customers.
Southern Call-fornl-a Gas Company I s refund calculatj on is based
upon the amount of the utllity refund and the Clty'S July 1983
Utl11ty Users Tax rate (5%). Approval of the attached resolution
wlll mean that the Utl1ity Users Tax remltted to the C~ty for
December 1985 would decrease by approxlmately $3,800.
b-C-
fIOV 1 2 1.
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Staff be11eves that it 16 appropriate for the Southern Californla
Gas Company to effect thlS refund of Utillty Users Taxes Slnce
Southern Callfornla Gas Company has complete data on all serVlce
users and can make the refunds in a tlme1y manner.
To fac11ltate future refunds of Uti1lty Users Taxes resultlng
from deClslons of the Callfornla PUblic Utlllties Commisslon, the
Southern Callfornia Gas Company suggests that Sectlon 6632 of the
Santa Monlca Munlclpal Code be amended to permlt adrnlnlstrative
approval by the City for such refunds. Staff concurs with thlS
suggestion. A suggested amendment is at Attachment II.
Budget/Flnanclal Impact
The budget 1n revenue account number 01-901-014-000-000 for
FY1985-86 should be reduced by $3,800.
Recommendation
It is therefore recommended that:
a.
the
City
Councll
approve
the
attached
resolution
authorlzlng the Southern Californla Gas Company to make
refunds as provlded for under Sectlon 6632 (b) of the
Santa Monlca Munlclpal Code
b. the FY1985-86 revenue budget for revenue account number
01-901-014-000-000 be reduced by $3,800, and
c. dlrect the Clty Attorney to prepare an appropr1ate
amendment to Sectlon 6632 of the Santa MODlca Municlpal
Code so as to permit admlnlstrat1ve approval of Utllity
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Users Taxe refunds resulting from decis10ns of the
Californ1a PubllC UtilitJes Commission.
Prepared by: Mlke Dennis, Dlrector of F1nance
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cAu~om'}IJ4IJ~S I (('~::::= I
lOG ~A.S'" NI~TWOOD STFEET . 'NGLE"JOO:) CA.LI~OR"JIA. ;213"1 419-2301
GEC'lG M 8'<8BE
Ma-ager We"'e'~ DI~JS,(}n MAlU"'G ADDRESS BOX 6100 !NGL~WOQD CAucQR!\JIA %312
AnIl M. Shore, City Clerk
City of Santa Monica
1685 Mam Street
Santa ~bn~ca, Cal~forn~a 90401-3295
Dear Ms. Shore:
The Southern Cal~fornia Gas Cc:npany is requestrng author~zat~on
from the Cal~fornia Publ~c Utillt~es Commission to refund certalll
arrounts to l.ts custcrrers relatmg, primarily, to refunds received
by the Gas Canpany frem lts mterstate suppl~ers. The refund plan
~s smlar to that used for the reflU1d made 111 December 1984, and
June 1985. The Gas CUl1''t-ffi1y expects to make the refund by credit
to bills during Deceml::er 1985.
Should your City wish to cons~der refunding the Ut~l1.ty Users' Tax
corresponchng to thlS refund am:>unt, the Gas Ccmpany ~s wllling to
aSS1.st your City by passJ..ng that tax refund on to eligible city
residents. including it with the Gas CUl't'~y refund durmg our reg-
ular blllrng operatlon ill Deceml:::er 1985. However, 1N'e are prepared
to assist in makmg utility users' tax refnnds only .r.f the am:mnt of
the tax refund is calculated and distributed unifonnly and the Gas
Ccrnpany is expressly author~zed by your CLty to offset the tax re-
funds through a credit agamst current utility users' tax collec-
tions. The refund calculatwns would be based ufxm the arrount of
the utllity refund and your C~tyls July 1983 Utility Users' Tax rate.
If your C~ty agrees to the arove approach; please indicate agreenent
by having the appropriate City official s~gn the enclosed copy of
tius letter Ln t.~e space provlded, attach:mg a Resolution of your C.r.ty
Caunell formally authorlz~ng thlS agreement and retumed to Ire by
November 12, 1985.
Yours very truly,
/ -- ;7
f
!r, !> / '
J""_~ _c (- '-- '( !, /tL {,.. t,- (
A Subsection to be Added to the
A'ITACHMENT II
Refunes Sect~on of Existing Utility Users Tax Ordinances
() Notwi th:standin.9' o..ther provisions of this section,
whenever a serv~ce 'supplier, pursuant to an order of the
California Public Utilities Commission or a'court of competen~
Jur.~sc.~c,tion/ make..s a refund to serV1.ce users of ,ch~rqes fo.r
past ut~;~ty services, the taxe~ paid pursuant to this Code on
,the amount of such refunded charges sha 11 al so be refunded_tQ
servJ..ce users, and the servi~e "supplier shall be entitled to
ClalIT'.a credl.t .for. such refunded taxes aqal.nst the....amount of
~ax which ~s due upon the next ,monthly returns~ In the event
thl.s Code,~s repealed, the amounts of any refundable taxes wl.ll
.pe ,borne by the City. -
'..
BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION # ~//~
Council Meeting Da te ~;f-2
Agenda Item 1/
FOR CITY CkERK'S ACTION
ORDINAJ'lCE #
Introduced:
Was It amended?
c --~-
//,0
7-0
Adopted~
AIlVAYS PUBLISH AOOP1'.Iill ORDINANCES*
*Cross out Attorney I s aP!;"lroval
VOTE: AffirmatIve:
Negative~
Abstain~
Absent:
~ PROOF VOTE~ WITH ANOTHER PERSO~ BEFORE AK~THING
DiSTKinuliuN: uRiGiNAL LO be signed, sealed and filed in Vault.
NEWSPAPER PUBLICATION (Date:
Department originating staff report (
Management Serv.~se~ Lynne Barrette -vrdinances only
)
)
~
Agency mentioned in document or staff report
(certified?)
Subject file (agenda packet)
1
Counter file
1
Others;
Airport
Parking Auth.
Auditorum
Personnel
BUIldIng Dept. PlannIng
EnVIron. Servo Police (en-
i forcement?)
Finance
Purchasing .
FIre
Recr/Parks
General Servo
TransportatIon
Library
Treasurer
Manager
SEND FOU~ COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS, Attn Peter- Macfearie
120'Main rtT~et -
. ,AV0'1t ~~t;W Jersey_07717 . "
SEND FOUR COPIES OF ALlI (lRnTNANr.E~ TO:
PRESIDING JUDGE
SANTA MONICA MUNICIPAL COURT
~725 MAIN STREET
SANTA MONICA, CA 90401
*Check COde SectJ.ons before sendlllg.
TOTAL COPIES
J-
FI:CMD:lh
Councll Meetlng:
Santa Monica, Callfornla
~ovember 12, 1985
RESOLUTION NO. 7112{CCS)
(Clty Council Serles)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA
AUTHORIZING UTILITY TAX REFUNDS
WHEREAS,
the Callfornia Public Utilltles Commlssion has
authorlzed the Southern Callfornia Gas Company to refund certain
amounts to its customers relating prlmarily to refunds received
by the Gas Company from its lnterstate suppliersi and
WHEREAS, the refund results 1n service users overpaY1ng the
Clty'S Utllity Users Tax durlrg the perlod covered by the refund;
and
WHEREAS, the Clty of Santa Monlca deslres to refund the
./
excess tax payments pald by serVlce users,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
RESOLVES AS FOLLOWS:
SECTION
1.
Pursuant to Munlcipal Code Section 6632 (b),
Southern Callforni a Gas Company is authorlzed to refund to the
service user or credit to charges subsequently payable by the
serVlce us er the amount of excess Utlll ty Users Tax pald for
serVlce relatlng primarily to refunds received by the Gas Company
from ltS lnterstate suppliers.
Southern California Gas Company
shall be entitled to a credit agalnst current tax collectJons in
the actual amount of such refunds and credits.
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SECTION 2.
The City Clerk shall certJ_fy to the adopt~on of
th1.S ResolutJ on, and thereafter 1. t shall be in full force and
effect.
APPROVED AS TO FORM:
~'-.~
Robert M. Myers
City Attorney
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Adopted and approved thIs 12th day of November, 1985.
~/_- l 0---1L
/. . rl:-e- M~yor '" ,--
I hereby certIfy that the foregoIng ResolutIon No. 7112(CCS)
wa~ duly adopted by the CIty CouncIl of the CIty of Santa MonIca
at a MeetIng thereof held on November 12, 1985 by the followIng
CouncIl vote:
Ayes: Councllmembers:
Conn, Epstein, JennIngs, A. Katz,
H. Katz, Zane and Mayor Reed
Noes: Councllmembers:
None
AbstaIn: Councllmembers:
None
Absent: Councllmembers:
None
ATTEST:
a_~t ~, 4!uVcp
CIty Clerk