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City of San Leandro <br />Meeting Date: September 8, 2015 <br />Staff Report <br />File Number: 15-506 Agenda Section: CONSENT CALENDAR <br />Agenda Number: 8.R. <br />TO: City Council <br />FROM: Chris Zapata <br />City Manager <br />BY: David Baum <br />Finance Director <br />FINANCE REVIEW: David Baum <br />Finance Director <br />TITLE: Staff Report for Resolutions to Collect Communication Utility Users' Tax <br />(UUT) and Emergency Communication System Access Tax (9-1-1) on Prepaid <br />Wireless Service and to Authorize Examination of Prepaid Mobile Telephone <br />Services Surcharge and Local Charge Records <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council authorize the City Manager to execute certain <br />documents required by the California State Board of Equalization (BOE) to collect the City's <br />Utility Users' Tax (UUT) and Emergency Communication System Access Tax (9-1-1) on <br />prepaid wireless service, and to approve and authorize the following relating to this tax <br />collection process: <br />• A resolution authorizing examination of prepaid mobile telephone services surcharge <br />and local charge records <br />• A resolution authorizing the City Manager to execute an agreement with the State <br />Board of Equalization for implementation of the Local Prepaid Mobile Telephony <br />Services Collection Act <br />• A resolution to approve amendment No. 4 to the MuniServices, LLC agreement to <br />examine BOE records relating to prepaid wireless UUT and 9-1-1 tax collections <br />• An amended ordinance for the temporary reduction of the single access line tax on <br />prepaid wireless services <br />BACKGROUND <br />Traditionally, a city's UUT and 9-1-1 tax is collected by wireless service providers who include <br />the charge on their customers' monthly invoices. In contrast to this arrangement, customers <br />who purchase prepaid wireless services usually avoid paying any UUT or 9-1-1 tax due to <br />collection complications. With prepaid wireless, there is no contract, no monthly invoices, and <br />the prepaid wireless services are usually sold by retailers, not service providers themselves. It <br />is estimated that approximately 70% of all prepaid wireless services are sold by retailers. <br />City of San Leandro Page 1 Printed on 9/2/2015 <br />