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RESOLUTION NO.9 6-5 5
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
GRANTING IN PART THE APPEAL OF GTE OF A PENALTY ASSESSMENT
FOR LATE SUBMITTAL OF THE UTILITY USER TAX
WHEREAS, on June 17, 1996, the City Council of the City of Huntington Beach
conducted a hearing to consider GTE's appeal of a penalty assessment imposed
against it for failure to submit utility user tax receipts within the time specified pursuant
to Huntington Beach Municipal Code, Chapter 3.36, Utilities Tax, Section 3.36.160; and
The City Council directed the City Attorney's Office to prepare these findings
and facts and conclusions of law following the hearing;
NOW, THEREFORE, the City Council of the City of Huntington Beach hereby
resolves as follows:
Section 1. In reference to the appeal by GTE of a penalty assessment of fifteen
percent (15%) imposed against it for failure to submit tax receipts within the time
specified in Huntington Beach Municipal Code, Chapter 3.36, Utility Tax,
Section 3.36.160, the City Council makes the following findings of facts and
conclusions of law:
1. Under City of Huntington Beach Municipal Code, Chapter 3.36,
all utility tax receipts are due and payable to the City by the service supplier (in this
case GTE) on or before the twentieth (20th) of each month for the amount of taxes
billed by the service supplier during the preceding month.
2. GTE's tax department, located in Westfield, Indiana, prepared a
form letter on September 12, 1995, eight (8) days before the payment was due the City
for August 1995 tax receipts. This form letter indicated that the City was due the
amount of S235,050.12. The Westfield, Indiana office then requested GTE's San
Angelo, Texas office to issue the check.
3. The San Angelo office prepared a check in the amount of
$235,050.12, and forwarded it to the Westfield, Indiana office in a mail pouch, which
also included checks for 56 other California utility tax cities. However, unbeknownst to
the San Angelo office personnel, by this time, GTE had already relocated its Westfield,
Indiana office to Dallas, Texas. The mail pouch sat in the Westfield, Indiana office for
approximately five (5) days until GTE staff realized what had happened.
4. The mail pouch was subsequently retrieved and new checks
were issued by GTE and distributed to all 57 cities. Ultimately, the Huntington Beach
check was prepared by GTE on September 22, 1995, two days after the actual due
date of the payment to the City. The envelope was not postmarked until September 25,
1995, five (5) days after payment was due the City.
g.resaluli ulililac
Res. No. 96-55
STATE OF CALIFORNIA }
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is'seven; that the foregoing resolution was passed and adopted by
the affirmative vote of at least a majority of all the members of said City Council at an
regular meeting thereof held on the 1st day of July, 1996 by the following vote:
AYES: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo
NOES: None
ABSENT: None
City Clerk and ex-officio Clerk of the
City Council of the City of Huntington
Beach, California
G/resol uti/reshkpg/97-3 9