HomeMy WebLinkAboutItem N June 9, 1999
STAFF REPORT
TO: Honorable Mayor and Members of the City Council
FROM: Elizabeth Stoddard, Director of Administrative Services
SUBJECT: PINNACLE PETROLEUM
SUMMARY OF REQUEST:
City Council to authorize implementation of sales tax rebate provisions of Pinnacle
Petroleum agreement.
DISCUSSION:
On October 12, 1998, City Council approved a Sales Tax Agreement with Pinnacle
Petroleum that called for a partial rebate of sales tax receipts sent to the City. The State
Board of Equalization has been undergoing a Y2K computer conversion for the past 9
months that has caused delays in reporting of sales tax receipts. I have spoken with
Debbie Nelson of the State Board of Equalization in Sacramento and have obtained verbal
confirmation that Pinnacle Petroleum has reported and is current in its reporting of sales
tax being credited to the City of Seal Beach. We expect Y2K issues at the State to be
resolved in the next reporting quarter, such that actual receipts will be in hand prior to
rebate disbursements. In the meantime, disbursements for the period dating back to
October 98 would represent a good faith effort to conform to the spirit of the agreement.
RECOMMENDATION:
Authorize the advance rebate payment to Pinnacle Petroleum for sales tax reported
October through December 1998.
lizabe/' Stoddard
Direct off%o Administrative Services
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Keith R. Till
City Manager ,�
Agenda Item /V