REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution Authorizing the City Manager to Execute an Agreement with the State Board of Equalization and any other related document for Implementation of the Local Prepaid Mobile Telephony Services Collection Act (Collection of UUT for Prepaid Wireless Service)
Report
BACKGROUND
The City of Sunnyvale collects a Utility Users Tax (UUT) at a rate of 2% on telecommunication, gas, and electricity from businesses and residents in the City. Beginning January 1, 2016, Assembly Bill 1717 enacted a new surcharge and required local jurisdictions to contract with the California State Board of Equalization (BOE) to receive UUT revenue imposed on prepaid wireless consumers. With voter approval of Measure N on November 8, 2016, Sunnyvale is now eligible to participate in the BOE collection program.
On December 13, 2016, City Council approved two resolutions in order to contract with BOE (RTC No. 16-1139). The two resolutions administered the following purposes:
* Authorizing the City Manager to execute an agreement with the State Board of Equalization to collect the City's UUT on prepaid wireless service and related documents, including certification regarding details of the City's UUT ordinance (Resolution 796-16); and
* Authorizing the examination of prepaid mobile telephony services surcharge and local charge records by the City and its consultant to ensure proper collection and remittance (Resolution 797-16).
After execution and submittal of the resolutions, the BOE provided a new template and requested a revised resolution, consistent with BOE's template, authorizing the City Manager to execute the agreement. The revisions to the resolution are procedural and make non-substantive changes to the version adopted by City Council on December 13.
ENVIRONMENTAL REVIEW
The adoption of the resolution does not constitute a "project" with the meaning of the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines sect...
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