Special Email – FW: MuniServices Gas UUT Audit for Chevron

From: Jones, Steve
Sent: Thursday, February 09, 2012 3:32 PM
To: Domann, Cathy
Subject: FW: MuniServices Gas UUT Audit for Chevron
Importance: High
Tracking: Recipient Read

Domann, Cathy Read: 2/13/2012 11:39 AM

As requested.

Steve Jones
Business Services Manager
City of El Segundo
(310) 524-2332

From: Jones, Steve
Sent: Thursday, January 26, 2012 12:54 PM
To: Cullen, Deborah
Subject: FW: MuniServices Gas UUT Audit for Chevron
Importance: High

Steve Jones
Business Services Manager
City of El Segundo
(310) 524-2332

From: Jones, Steve
Sent: Thursday, January 26, 2012 12:39 PM
To: ‘Stark, Stephen’
Cc: ‘Chai, Michele’
Subject: MuniServices Gas UUT Audit for Chevron
Importance: High

Hi Steve & Michele,

There was an audit performed by MRC back in the early 1990’s. Out of that audit MRC determined Chevron owed unpaid
gas utility users tax of $3,431,600. The City reached a settlement agreement with Chevron for $800,000 and MRC received
25% or $200,000 as a result of its contract with El Segundo. The settlement agreement provided for an annual charge of
$150,000 per year subject to CPI adjustments annually in satisfaction of Chevron’s gas utility users tax liability.

Deborah and I are trying to determine how much revenue the City would have received from Chevron if the gas UUT was
based on usage instead of the 1994 settlement agreement. Can somebody at MuniServices assist us in coming up with
some analysis based on the audit that was performed? We are trying to get a ballpark dollar amount to demonstrate how
much money the City did not receive from Chevron by not basing its gas UUT on consumption.

We need to get something as soon as possible. Thanks for all your help.

Steve Jones
Business Services Manager
City of El Segundo
(310) 524-2332